What Is My Hair Salon or Barbershop Worth?

Hair salons and barbershops are one of the most commonly sold small business types. The challenge with valuing them is that business models vary enormously — from owner-operated single-chair shops to multi-location operations with 30+ stylists. The model matters more than the revenue number.

Here's how to think about your salon's value.

Typical Valuation Ranges

Most hair salons and barbershops sell for 1.5x to 3x SDE.

Factors that push toward the higher end:

• Commission-based or employee model (not booth rental)
• Strong, loyal client base tied to the business (not just the owner)
• Multi-location with management in place
• Revenue above $500K with consistent growth
• Modern, well-maintained facility
• Long-term lease in a strong retail location
• Retail product sales as a secondary revenue stream

Factors that push toward the lower end:

• Owner is the primary stylist generating most revenue
• Booth rental model (revenue is just rent collected — low margins, limited transferability)
• Clients follow the stylists, not the brand
• Aging facility or poor location
• Short remaining lease
• Declining client count

The Business Model Matters

Commission/Employee Model

Stylists are W-2 employees or commission-based. The salon controls pricing, scheduling, marketing, and client relationships. This model creates a transferable business because clients are booked through the salon, not directly with the stylist.

Booth Rental Model

Stylists rent chairs and operate as independent contractors. The salon is essentially a landlord collecting rent. These businesses have simpler financials but lower multiples because the "business" is really a real estate sublease. If stylists leave, the revenue leaves with them.

Franchise Model

Franchise salons (Great Clips, Supercuts, Sport Clips) have built-in brand recognition and systems. They typically sell at moderate multiples — constrained by franchise rules but supported by proven operational models.

Key Metrics Buyers Evaluate

Client Retention Rate

Are clients loyal to the salon or to individual stylists? Salons with a centralized booking system and brand-driven marketing retain clients better during ownership transitions.

Revenue Per Stylist

Strong salons generate $60K–$100K+ in revenue per stylist annually (commission model). Higher revenue per stylist indicates better utilization, pricing, and client demand.

Stylist Retention

If stylists turn over frequently, clients leave with them. Salons that retain stylists through competitive commission structures, good culture, and strong client flow are worth more.

Retail Revenue

Product sales (hair care, styling products) generate 60–70% margins and indicate a sales-oriented culture. Retail as 10–15% of total revenue is a positive signal.

Online Reviews and Brand

Google reviews, Instagram presence, and brand recognition matter. A salon with 500+ reviews and a 4.8 rating has marketing leverage that a no-name shop doesn't.

How to Increase Your Salon's Value

1. Own the client relationship. Book through the salon (not individual stylists). Use salon-branded communications. Build a brand, not a personal practice.
2. Move to commission model if possible. Commission-based salons are more valuable than booth rental because the business controls the revenue stream.
3. Retain your stylists. Competitive commissions, continuing education, and a positive culture keep talent. Stylist retention is client retention.
4. Build retail sales. Train stylists to recommend products. A strong retail program adds high-margin revenue.
5. Secure your lease. 5+ years remaining with renewal options. Location drives salon traffic.
6. Clean up your books. Separate personal expenses, track revenue by stylist, and maintain accurate financial records.

Ready to Find Out What Your Salon Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.