If you want to be the go-to salon in your area, it’ll take more than just killer cutting skills and a great playlist. You need the right equipment. From those ultra-comfy hydraulic chairs to top-tier processors that cut drying time in half, high-quality equipment is non-negotiable.
But here is the catch: outfitting a salon can be quite expensive. Fortunately, you have options. In most cases, you can rent, buy, or finance the hair salon equipment you need. We’re here to break down the options so you can figure out which path best fits your business goals.
Renting Hair Salon Equipment
Renting is often seen as the low-risk entry point. You pay a monthly fee to use the gear, but you don’t actually own it. For many salon owners, especially those just starting out, this can feel like the safest bet.
The Perks of Renting
The biggest win here is the low upfront cost. When you are launching a new spot, your capital is likely tied up in renovations, marketing, and staffing. Renting keeps your initial expenses down, leaving you with more cash on hand for the unexpected surprises that tend to pop up during a grand opening.
Plus, renting offers serious flexibility. The beauty industry moves fast. Trends change, technology improves, and suddenly that “state-of-the-art” steamer looks a bit dated. When you rent, you aren’t stuck with old gear. You can easily upgrade to the latest models at the end of your rental term, keeping your salon looking fresh and modern without the hassle of selling old equipment.
The Downsides To Consider
While the monthly payments are lower than a loan repayment might be, renting is often more expensive in the long run. If you rent a styling chair for three years, you might end up paying significantly more than the chair’s actual purchase price, with nothing to show for it at the end.
You also have limited control. Since you don’t own the equipment, you can’t customize it or leverage it as an asset if you need a business loan later. You are essentially paying for the right to use it, and once the payments stop, the equipment goes back.
Buying Hair Salon Equipment
After renting, your next option is to buy your equipment outright. With this option, you’ll need a hefty cash investment, which will require a healthy bank account. However, the benefits are well worth it.
Why Buying Rocks
Ownership is power. When you buy your equipment, it is yours. You can customize it, upholster it in wild leopard print if that is your brand, and keep it for as long as it holds up. You don’t have to worry about monthly payments hanging over your head, which improves your monthly cash flow once that initial check clears.
Buying is also usually the cheapest option over time. You avoid interest rates, leasing fees, and administrative costs. Plus, there are potential tax benefits. Under Section 179 of the IRS tax code, you can often deduct the full purchase price of qualifying equipment from your gross income (always double-check with your accountant, though!). That is a massive deduction that can lower your tax bill significantly.
Why It Might Sting
The obvious hurdle is the high upfront investment. Dropping thousands of dollars all at once for a complete set of salon equipment can deplete your cash reserves quickly, leaving you vulnerable if business is slow or an emergency hits.
There is also the risk of obsolescence. If you buy a top-of-the-line laser machine today, it might be outdated in five years. Unlike renters who can just swap it out, you are stuck with it until you can sell it or scrap it.
Financing Hair Salon Equipment
Financing is seen as the middle ground between renting and buying. You get to own the equipment eventually, but you pay for it over time rather than all at once. This usually involves taking out an equipment loan or a capital lease, but some salon chair sellers offer financing options directly on their site.
The Good Stuff
Financing is a lifesaver for cash flow. Instead of a massive lump sum, you make manageable monthly payments. This allows you to get the high-quality equipment you need right now, even if you don’t have the full cash amount in the bank.
It also helps build business credit. As long as you make your payments on time, you are establishing a solid credit history for your salon, which can help you qualify for larger loans down the road if you decide to expand to a second location.
The Tricky Parts
Financing isn’t free money. You will pay interest and fees, which means the total cost of the equipment will be a bit higher than if you bought it with cash. Depending on your credit score, those interest rates can add up quickly.
You are also committing to a long-term payment plan. Even if business slows down or you decide you don’t like the equipment, you are still on the hook for those payments until you finish paying off the loan.
How To Choose the Right Method for Your Needs
Still scratching your head? No worries. There is no one-size-fits-all answer when deciding to rent, buy, or finance your hair salon equipment. The “right” choice depends entirely on your specific situation. Here is a cheat sheet to help you decide.
Assess Your Budget
Look at your cash flow. Do you have a pile of cash sitting around doing nothing? If yes, buying might be wise to save on interest. If money is tight, renting or financing keeps your liquidity safe.
Consider Your Business Stage
Are you a brand-new startup or an established salon? Startups often benefit from the flexibility and low entry cost of renting. Established salons with steady revenue streams might find financing or buying more advantageous for tax purposes and long-term savings.
Check the Equipment Lifespan
How long will this gear stay relevant? For staple items like styling chairs and shampoo bowls, buying or financing makes sense because they last for years. For high-tech gadgets that evolve every two years, renting might be safer, so you aren’t stuck with dinosaur tech.
Flexibility Needs
Do you get bored easily? Do you like to refresh your salon’s look every few years to stay trendy? If you love changing up your aesthetic, renting gives you the freedom to swap things out without the hassle of selling used furniture.
Understand the Tax Implications
This is huge. Talk to a tax pro before signing anything. Buying and financing often come with depreciation benefits that renting doesn’t offer. However, rental payments can be deducted as a business expense. Run the numbers to see which deduction helps you more.