How much does it cost to open a barber shop in Australia

Victor Young

Marketing & Business Development Manager

  • Short answer - it depends. Longer answer? It depends on leasing, equipment, licensing/franchising fees and big one - staffing.
  • Here we'll give you as much information to understand the true costs of opening a barbershop in Australia.

Always wanted to open a barbershop?

The first thing you're probably thinking about... how much does it cost to open a barbershop in Australia?

Here we'll break down all the potential costs involved.

P.S These sound like huge figures (especially if this is your first run with owning a business)

To put things into perspective, our barbershops have an average turnover of $300,000 - $500,000.

Okay so let's talk about costs.

Starting Costs

The first thing you'll need to consider is the start-up costs.

These include:

  • the lease for your shop location (deposits, bank guarantees, legal etc)
  • the construction or renovation of the space (including the design)
  • necessary equipment like barber chairs and shears

These are the majors ones to consider, though depending on what you're aiming for there's things I might've missed out.

Generally, you can expect a startup cost of $50,000 - $150,000.

Licenses, Franchise Fees and Permits

Think of these as the legal stuff to run your business properly (and legally).

Things like:

  • Business Insurances
  • Bank fees if you're financing options
  • License or Franchise fees

Consider these as more on-going costs. In my opinion

Staffing Costs

For any service business, staffing and wages are the biggest 'expense'.

I've put expense in quotations because you can see it two ways.

An on-going cost draining your business' revenue, or what how we like to think about it; investing into your team who help grow and service your customers!

According to Seek, an average salary for a barber ranges $60,000 to $70,000.

So let's do some math.

Let's say a barber averages 10 haircuts a day (pretty standard rate).

And let's say there's an average order of $35/haricut.

($350 a day) x 5 days a week x 48 working weeks

$84,000 in turnover per barber.

Hope this helps put things into perspective.

Running Costs

These costs include stuff like water, electricity, internet bills. Don't also forget your POS or credit card terminal would also need to be considered as running costs too.

Unexpected Costs

It's also wise to set aside some funds for unexpected costs. These could be things like equipment repairs, or a sudden increase in rent. A safe estimate would be to set aside an additional 10% of your overall budget for these unexpected expenses.

Future Costs

Depending on your location, expect your lease to increase after every renewal.

From our experience this can average anywhere from 3-5% per year.

It doesn't sound like much, but this compounds. So being on top of your numbers is key.

Also don't forget to consider the increase in wages which usually follow the rate of inflation (2-3%/year).

So the true key? Being able to increase your prices to adjust for these future costs.

And the answer is building great relationships and providing quality haircuts for your customers.

So they genuinely want to come back and pay you top dollar.

We have an article about how to attract quality customers here.

So... how much does it cost to open a barbershop in Australia?

While it can vary greatly depending on many factors, a safe estimate would be between $100,000 and $200,000. This includes start-up costs, licenses and permits, staffing costs, running costs, and a buffer for unexpected expenses.

Opening a barbershop is a significant investment, but with the right planning and budgeting, it can be a profitable venture. Remember, the key to success is providing excellent service, creating a comfortable environment for your customers, and effective marketing. So, are you ready to make the cut and open your barbershop in Australia?

Remember, this is just a guide, and costs can vary. It's always a good idea to do your own research and consult with professionals in the field. Good luck with your barbershop venture!