Adding a markup to your wholesale color costs ensures you're not just covering your expenses, but building in the cash flow you need to restock, grow, and support your team.
At SalonScale, we recommend starting with a 100% markup on your product costs.
Why Add a Markup to Backbar Products?
You're already marking up your retail products - so why not your backbar? Marking up backbar color costs helps:
✅ Cover restocking and replenishment
✅ Offset operational expenses like rent, taxes, and utilities
✅ Support team incentives or training
✅ Fund salon upgrades, amenities, or growth opportunities
Where Does the 100% Markup Go?
You can customize this breakdown based on your salon type:
For Salons with a team, the 100% markup can cover:
50% to restock and replenish your ensure your backbar products. It helps you maintain a consistent supply of products without impacting your salon's cash flow.
40% to cover your overhead costs such as rent, taxes, utilities, and other operational costs. This allocation ensures that these expenses are accounted for and allows you to invest in improving your salon, saving for future needs, or pursuing educational opportunities.
10% to add a color commission to stylists to incentivize them to use the app and additional income from your salon.
If you are a solo salon, 100% markup can cover:
50% to ensure your backbar products are paid for when you need to restock or replenish. It helps you maintain a consistent supply of products without impacting your salon's cash flow.
50% to cover overhead costs like your rent, taxes, utilities, etc. This allocation ensures that these expenses are accounted for and allows you to invest in improving your salon, saving for future needs, or pursuing educational opportunities
Just to remind you, these recommendations are provided to be a starting point. You can adjust the markup percentages based on your specific salon's needs, market conditions, and profitability goals.
What Markup is best for me?
🔹 50% Markup – Basic Coverage
Formula: Product Cost × 1.5
Covers: Direct product cost
Risk: Break-even pricing, no coverage for stylist time or salon expenses
🔹 75% Markup – Bare Minimum Profit
Formula: Product Cost × 1.75
Covers: Product cost + small buffer for labor/overhead
Best for: Salons just starting to move toward profitability
🔹 100% Markup – Sustainable Pricing
Formula: Product Cost × 2
Covers: Product replenishment, overhead, labor, and modest profit
Best for: Most salons aiming to be profitable and stable
Recommended by SalonScale as your baseline
🔹 150%+ Markup – Profit Center Pricing
Formula: Product Cost × 2.5+
Covers: Full cost recovery, higher profits, stylist commissions, and business growth
Best for: Salons ready to reinvest in their space and team
Should I markup my extensions?
Yes, you should. We recommend a 25% markup.
You can learn how to set up extensions here.
How to Add a Markup in SalonScale
Markup is added when setting your wholesale cost in the Color Lines in your business center. You can update it anytime.
There are 2 ways to set your markup:
You can set the sale markup across all color lines and products. We call this a global markup.
You can set it for individual color lines and products. This is beneficial if you want to charge different markups for different types of products.
How to set a Global Markup
Go to your Business Center, click Backbar and then click Color Lines
Click "Edit Markup"
Type in your preferred markup
How to set markup for each product and line:
Go to your Business Center, click Backbar and then click Color Lines
Select the 'View All' of the product line you want to edit
Type in your preferred markup on each product or click select all and update the preferred markup.
Final Tip:
Don’t wait until you’re running out of color or cash to rethink your pricing. With the right markup in place, your backbar becomes a source of profit—not a cost you have to chase down.