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Retail
What would lifting retail do to your bottom line?
Most salons sell retail at 3–5% of service revenue when 10–15% is on the table. Because the chair time is already paid for, that lift drops almost straight to profit. Model it here.
$
The base retail is measured against.
%
Today's retail as % of service. Most sit at 3–5%.
%
An achievable goal, 10–15%.
%
Sell price minus wholesale cost, ex GST.
%
Paid to staff on ex-GST retail sales.
Extra profit on the table
$9,682/year
Moving retail from 5% to 12% of service revenue adds about $186 a week to the bottom line — after product cost and commission. The chairs are already paid for, so it's close to pure profit.
Current retail / year
$18,200
5% ratio
Target retail / year
$43,680
12% ratio
Extra retail / year
$25,480
added sales
Profit contribution rate
38.0%
margin minus commission
Contribution = retail gross margin minus commission. Benchmarks (illustrative): most salons run 3–5% retail; 10–20% is achievable.
A working tool, not financial advice. It uses the figures and assumptions you enter — check them against your own numbers and your accountant before any pricing, wage or financial decision. Award and tax figures change (often each 1 July); verify current rates at fairwork.gov.au and ato.gov.au. Shear Profit gives no tax or financial advice.
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