Color Cost-Per-Service Analysis

Prepared for: Studio Eight Salon | Owner/Manager: Jamie Rivera | Date: [Report Date]

Stylist: e.g. Alex Chen

This report calculates the true material, labor, and overhead cost for the selected service type, benchmarks it against your current menu price, and identifies the minimum price required to hit your target margin. Use this document to make repricing decisions that are data-driven and defensible to your team and clients.

Service Being Analyzed

• Service Type: [Primary Service Type to Analyze]
• Primary Color Brand: [Primary Color Brand]
• Average Service Time: 90 minutes
• Current Menu Price: $120.00
• Target Gross Margin: 65%
• Services Performed Per Week: 12

Product Cost Breakdown

The following line items represent the direct product cost for a single [Primary Service Type to Analyze] service using [Primary Color Brand] color. All figures are based on your entered distributor/invoice pricing — not suggested retail.

Color

• Brand: [Primary Color Brand]
• Tube/Bottle Size: 2.05 oz
• Your Cost Per Tube: $6.50
• Cost Per Oz: $6.50 ÷ 2.05 oz
• Oz Used This Service: 2.0 oz
• → Color Product Cost: $6.50 / 2.05 × 2.0

Developer

• Brand: e.g. Wella Well-Oxon
• Your Cost Per Liter: $8.00
• Cost Per Oz (1 L = 33.8 oz): $8.00 ÷ 33.8
• Oz Used This Service: 2.0 oz
• → Developer Cost: $8.00 / 33.8 × 2.0

Consumable Supplies

• Foils Used: 45 sheets × $ per sheet

Total Cost Summary — [Primary Service Type to Analyze]

The table below consolidates every cost category for a single [Primary Service Type to Analyze] service at Studio Eight Salon using [Primary Color Brand].

• Color Product Cost: $6.50 / 2.05 × 2.0
• Developer Cost: $8.00 / 33.8 × 2.0
• Toner Cost (if applicable): $5.00 / 2.05 × 1.0
• Lightener Cost (if applicable): $0.75 × 1.5
• Foil Cost: 45 × $0.04
• Gloves: $0.15
• Bowl & Brush (amortized): $0.10
• Other Supplies: $0.50
• Labor (if included): see Labor section above
• Overhead (if included): see Overhead section above
• ─────────────────────────────
• TOTAL COST PER SERVICE: Sum of all applicable line items above

Your current menu price for this service is $. The difference between your menu price and your total cost per service is your gross profit on this service.

Margin Analysis & Repricing Target

Your target gross margin is 65%. To achieve this margin, your minimum menu price must be calculated as: Minimum Price = Total Cost ÷ (1 − 65 ÷ 100).

Current vs. Target

• Current Menu Price: $120.00
• Target Margin: 65%
• Minimum Price to Hit Target: $[Total Cost ÷ (1 − 65/100)]
• Pricing Gap (positive = underpriced, negative = overpriced): Current Price minus Minimum Price
• Weekly Revenue Impact at 12 services/week: Gap × 12
• Annual Revenue Impact: Gap × 12 × 52

Last price increase at Studio Eight Salon: 2022. If it has been more than 18–24 months since your last increase, product and supply costs have almost certainly risen, meaning your real margin has compressed even if your volume has stayed flat.

Brand Benchmark — [Primary Color Brand]

Below are industry-average cost-per-oz benchmarks for the major professional color brands. Compare these to your actual entered cost ($6.50 ÷ 2.05 oz) to see whether your distributor pricing is competitive.

• Wella Professionals Koleston / Color Touch: ~$0.28–0.35/oz (avg tube ~$6.00–7.50 / 2.05 oz)
• Redken Shades EQ / Color Fusion: ~$0.26–0.34/oz (avg tube ~$5.50–7.00 / 2.1 oz)
• Schwarzkopf IGORA Royal / Essensity: ~$0.30–0.38/oz (avg tube ~$6.50–8.00 / 2.1 oz)
• Goldwell Topchic / Colorance: ~$0.29–0.36/oz (avg tube ~$6.00–7.50 / 2.05 oz)
• Kenra Color Permanent / Demi: ~$0.25–0.32/oz (avg tube ~$5.25–6.75 / 2.05 oz)
• L'Oréal Professionnel INOA / Majirel: ~$0.27–0.35/oz (avg tube ~$5.75–7.25 / 2.1 oz)
• Matrix SoColor / ColorSync: ~$0.20–0.28/oz (avg tube ~$4.25–5.75 / 2.05 oz)
• Joico LumiShine / Vero K-PAK: ~$0.26–0.33/oz (avg tube ~$5.50–6.75 / 2.05 oz)
• Pravana ChromaSilk: ~$0.27–0.34/oz (avg tube ~$5.50–7.00 / 2.05 oz)

Note: Benchmark ranges reflect distributor invoice pricing as of 2024. Prices vary by region, account volume, and distributor relationship. If your cost per oz is above the high end of your brand's range, consider negotiating volume pricing or consolidating your order with a single distributor.

Repricing Strategy for Studio Eight Salon

Use the following framework to implement a price adjustment that is defensible to clients and your team.

Step 1 — Anchor to Cost, Not Competitors

Your cost-per-service analysis is your anchor. You now have documented evidence that your current price of $120.00 produces a specific margin. If that margin is below 65%, you have a factual basis for a price adjustment that is not arbitrary.

Step 2 — Phase the Increase

If the gap between your current price and your minimum target price is large, consider a two-phase approach: close 50–60% of the gap now, and the remainder in 12 months. This reduces client friction while immediately improving your margin.

Step 3 — Communicate with Confidence

Client communication script: 'We review our pricing annually to make sure we can continue investing in the best products and education for you. Starting [date], our [Primary Service Type to Analyze] service will be $[new price]. This reflects increases in professional color costs industry-wide and allows us to maintain the quality you expect at Studio Eight Salon.'

Step 4 — Reduce Product Waste First

Before raising prices, audit your actual product usage. If your team is using 2.0 oz of [Primary Color Brand] per [Primary Service Type to Analyze] but the formula only requires 1.5 oz, waste reduction alone may recover meaningful margin. Train to mix to formula, not to habit.

Step 5 — Revisit Quarterly

Set a calendar reminder to re-run this calculator every quarter. Distributor prices, service mix, and stylist usage patterns all shift. A quarterly review keeps your pricing proactive rather than reactive.

Report Sign-Off

This cost analysis was prepared for Studio Eight Salon on [Report Date] by Jamie Rivera. All figures are based on self-reported pricing and usage data. Results are estimates intended to guide business decisions and do not constitute financial or accounting advice.

Next scheduled pricing review: ___________________________