Hair salons, beauty spas, fitness studios, wellness centres, and personal care businesses in South Africa.
Use the Gross Margin CalculatorThe beauty and wellness industry in South Africa includes hair salons, beauty spas, nail studios, fitness centres, and wellness practitioners. This sector is characterised by a mix of service revenue and product retail sales, each with standard-rated VAT at 15%. A common business model involves chair rental arrangements, which have important tax implications — chair renters are typically treated as independent contractors rather than employees. Occupancy rate (booked hours vs available hours) is the key profitability driver.
Our free gross margin calculator is tailored specifically for beauty & wellness businesses operating in South Africa. Below you'll find industry-specific tips, benchmarks, and common mistakes to help you get accurate results and make better financial decisions.
Industry-specific guidance to help you get accurate results
Beauty and wellness gross margins typically range from 55-70%
Product retail can boost margins — aim for 50%+ markup on retail items
Service-only businesses have higher margins than product-heavy businesses
Financial and tax mistakes frequently made by beauty & wellness businesses in South Africa
Not separating service income from product retail sales in accounting records
Misclassifying chair renters as employees, leading to incorrect PAYE and UIF deductions
Failing to account for VAT on gift vouchers at the correct time (on redemption, not sale)
Not tracking occupancy rates and idle capacity costs
Underestimating consumable costs (products used during services) when calculating margins
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Typical range for beauty & wellness
Typical range for beauty & wellness
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Use the Gross Margin CalculatorOther free calculators tailored for beauty & wellness businesses
Calculate VAT amounts for invoices, expenses and financial planning. Support for standard and zero-rated supplies.
Find out exactly how much revenue you need to generate before your business becomes profitable.
Calculate your monthly take-home pay after PAYE, UIF, and pension deductions using current SARS tax brackets.
Common questions about gross margin calculator for beauty & wellness in South Africa
Accounter provides free South African business calculators for VAT, PAYE, tax, and more.
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