Short answer
Colour overage billing is the practice of charging clients for any extra colour product used during their service beyond the standard allowance. This occurs when thick or long hair requires more colour than normal. If you don't charge for this extra product, the cost of additional tubes of colour comes out of your own pocket.
How colour overage occurs
In a standard hair salon, service prices are calculated based on the average amount of product and time needed for a typical client. A standard tint or balayage service includes a set amount of colour, such as 50 grams.
However, hair isn't standard. A client with very thick, long, or dense hair requires significantly more product to achieve the same result. If your stylist has to mix a second or third bowl of colour, those additional grams of product represent colour overage.
If you don't charge for this extra product, the cost of those additional tubes of colour comes directly out of your service profit. Over a week of busy colour columns, these uncharged grams can add up to hundreds of pounds in lost profit.
Calculating the cost of extra product
To implement colour overage billing, you need a clear way to measure and price the extra product you use. Salons calculate this by defining a standard product allowance for each service and setting a price per gram for anything used beyond that limit.
For example, if your standard colour service includes 40g of colour and you use 60g on thick hair, that's an overage of 20g. If you set your overage rate at 15p per gram, the extra charge to the client is £3.00.
This charge covers the cost of the colour, developer, and the salon's overheads for mixing and handling. Recording these amounts in your colour formulas ensures that the next time the client visits, the stylist knows exactly how much product to mix and what the client expects to pay.
How to implement overage billing in your salon
Transitioning to overage billing requires clear communication with both your staff and your clients. You'll need to establish a consistent process so everyone knows when and how the charge is applied.
- Set clear standard allowances. Define exactly how many grams of product are included in the base price of each tint, bleach, and balayage service.
- Train your stylists to weigh and record. Stylists must weigh their colour bowls before and after application to calculate the exact amount used.
- Update your colour formulas. Keep a precise record of each client's formula and the extra grams used. Luminate includes colour formulas with overage billing, which lets you store these formula details directly in the client's profile.
- Add the charge at checkout. Since overage is based on actual usage, you'll need to manually add the extra product charge to the bill when you checkout the client.
What this means for your salon
Implementing colour overage billing ensures you're compensated for the actual product you use on every client. It stops thick and long hair from draining your profits, while keeping your colour pricing fair for all clients. Once your team is in the habit of weighing and recording formulas, your colour business will be much more predictable and profitable.