Thriving Stylist Podcast Episode #407: The Parts and Labor Pricing Model

Host: Britt Seva
Date: October 13, 2025

Episode Overview

In this episode, Britt Seva tackles the hot topic of the "Parts and Labor" pricing model as it relates to the beauty industry, particularly for hairstylists and salon owners. She unpacks industry questions around transparency, compensation structures, and the client experience. While Britt openly acknowledges her strong stance against adopting the parts and labor model in salons, she provides context, practical insights, and alternative approaches to sustainable and profitable pricing strategies.

Key Discussion Points & Insights

1. Origin of the Episode and Listener Question

• The episode is inspired by Mel, a listener and likely salon owner, who left a review packed with questions about pricing in 2026 and the parts/labor model, specifically asking:
  • How do we price if we can't call it what it is?
  • How do we sell extra color without “eating” the cost?
  • What about compensation where product costs are taken out before commission is split?

Notable Quote

"There are about 16 questions here in this one rating and review, so I want to dissect it a little bit before I dive in."
— Britt, 03:21

2. Product Charges Before Commission: The Controversial Practice

• Britt explains the growing debate around taking product fees off the top of service tickets before splitting commission with stylists.
• She acknowledges it’s legal in most states but takes issue with how it's positioned, often causing mistrust and dissatisfaction among stylists.
• The core issue is not about cost control—it's about message, trust, and clarity.

Notable Quote

"It feels like the owner is taking money out of a stylist's pocket, which is never going to go well."
— Britt, 06:51

3. Parts and Labor Pricing—Definition and Industry Examples

• Britt gives a straightforward definition: charging the client separately for the “parts” (products used) and “labor” (service/time).
• Other industries with this model: auto repair, plumbing, manufacturing, IT consulting, construction, etc.

Notable Quote

"If you didn't know what parts and labor was before, it's quite literally charging an end use consumer...for the overall operational cost of running our business."
— Britt, 17:36

4. Contrast with the Salon Industry

• Britt questions if the salon industry is similar enough to industries like plumbing or auto repair to warrant this model.

  • Most "parts and labor" industries are emergency/one-off services, not ongoing relationship-based, repeat businesses like salons.
  • In those industries, costs are often higher than expected, services are stressful, and there is less repeat business.

• Warning: Adopting their pricing model could transfer those negative associations (uncertainty, irritation, feeling nickel-and-dimed) to salons.

Notable Quotes

"We're in the relationship business."
— Britt, 22:53

"If I can just see, okay, a root touch up is 80 bucks... I trust you more. The consistency's there, the transparency is there. It's just more simple."
— Britt, 25:13

5. Client Perspective: Transparency and Trust

• When clients see unpredictable, variable pricing (base rate + product charges, totals unknown until the end), they are less likely to book or trust the process.

• In economies where clients are price-shopping, this uncertainty drives people away.

• Simpler is better: predictable rates and clearly communicated surcharges (only in rare, understandable cases).

6. Historical & Anecdotal Approaches

• In the past, stylists simply communicated transparently with clients who required above-average product usage and tacked on a reasonable surcharge. No drama, no system overhaul.
• Britt believes maintaining this human, straightforward approach is better than complicating systems for everyone because of the 10% of clients who are "outliers".

Notable Quote

"We lost the art of just talking to clients like humans and letting them know what was up."
— Britt, 32:43

7. Philosophy: What Should Clients Pay For?

• Britt asserts clients pay for the result, not for the process or every input (echoing the luxury/service experience).
• She draws a comparison between bundled pricing (all-inclusive, elevated) and cafeterias or DIY/kitchen salon models (a la carte, less professional).

Notable Quote

"The client is paying for a result, not the cost of a process."
— Britt, 38:00

8. Recommended Model: Price for Profit, Not Piecework

• Rather than separating parts and labor, salons should:
  • Bundle product costs into the service price: Calculate average product usage and set service prices accordingly for consistent profit margins.
  • Use inventory and software tools (like Vish, SalonScale) operationally, but not as direct cost-pass-throughs to clients.
  • Only charge a product surcharge in rare, pre-discussed cases (e.g., triple-density hair, exceptionally long/outgrown roots).
  • Prioritize clarity on commission splits; no hidden deductions.

Notable Quote

"If we as an industry are really saying respect us, support us, we want predictability in our income...start looking at how smart businesses manage operation costs."
— Britt, 41:18

Timestamps for Key Segments

• 03:00–08:00 — Reader question unpacked; Britt's stance on pre-commission product charges
• 13:00–17:00 — What is parts and labor pricing? Definitions and industry comparisons
• 19:00–25:00 — Why salons are different; dangers of importing models from repair trades
• 25:00–29:00 — Client trust and transparency; how inconsistent pricing erodes relationships
• 31:00–34:00 — Historical approaches; communicating about surcharges humanely and simply
• 37:00–42:00 — Philosophy: pay for result, not process; solution—blend product costs, increase pricing intelligence

Memorable Moments & Notable Quotes

• On the relationship-driven nature of salons:

  "The beauty industry is one that is supposed to be of relationship trust. Regular, repeat business...unlike any of the other industries I just mentioned."
  — Britt, 22:53

• On hidden fees impacting trust:

  "It feels like the owner is taking money out of a stylist's pocket, which is never going to go well."
  — Britt, 06:51

• On the folly of upending pricing for rare cases:

  "I just don't believe we reinvent the entire pricing model to fit the 10% that are outside of the standard."
  — Britt, 33:10

• On the bigger picture:

  "The client is paying for a result, not the cost of a process."
  — Britt, 38:00

• On strategic mindset:

  "Instead of creating like band aid solutions and strategies, really get to know our numbers, understand why we're losing out on cost of color or other things and start there."
  — Britt, 41:39

Episode Summary

Britt’s argument is clear: the parts and labor pricing model, popular in trades like auto repair, is ill-suited for the beauty industry. Salons thrive on trust, relationships, and predictability for both clients and stylists. Surprise product charges, convoluted compensation splits, and price uncertainty create friction and erode trust. Instead, she advises salon owners to price services with true product cost and profit in mind, only add surcharges after transparent conversation in rare cases, and use technology for internal operations. Bottom line: respect your craft, your staff, and your clientele by building pricing structures that are fair, predictable, and elevate the professional experience for all.

To discuss this further, Britt invites listeners to leave a review or question on iTunes for future episodes.