Great Clips Pricing and Discount Analysis

2026 FDD Item 19 Data

This tool is for franchisee analytical use. All financial data sourced from the 2026 Great Clips Franchise Disclosure Document, Items 7 and 19. OCF estimates use system-average expense ratios and do not reflect any individual salon's actual performance.

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1Your Salon Inputs

Enter your operating numbers. Every figure below this section recalculates instantly as you change these inputs.

$21.00
Your posted top-line price before any discount.
20,000
approx. 385 per week
8.0%
Discounts as a share of sales — your INsite Service Discount %.
Applied to estimated operating cash flow for the exit-value view.

2Average Invoice vs Top-Line Price

What you actually earn per customer is not your menu price. Once your discount rate is applied, your realized revenue per ticket — your average invoice — falls below the posted price. Average invoice is the correct unit of analysis.

Current average invoice
$19.32
menu price net of your discount rate
Gap: menu price − average invoice
$0.88
4.2% below menu price
Annual revenue at average invoice
$402,400
average invoice × annual volume
Revenue given away to discounts annually
$33,600
yield compression from discounting
Menu price$21.00
Average invoice (what you keep)$20.12
avg invoice
The shortfall between the two bars is revenue your menu price implies but your discounting removes.

3The "$1 Price Increase" Analysis

What a $1 top-line increase actually produces at your discount rate. The claimed value of a price increase assumes every customer pays it and no one leaves. Neither holds at a real discount rate.

$22.00
current $21.00
Moves in $1 increments. The marker shows your current menu price for reference.
−0.30
−0.1 = very inelastic (customers rarely leave for price) … −0.8 = elastic (significant attrition on price increases). Default −0.3 is conservative for a necessity value service. Also adjustable in Advanced.
Scenario A
Claimed gain (no elasticity, no discount adjustment)
$20,000
Assumes every customer pays the new price.
($1.00 × 20,000 cuts)
Scenario B
Adjusted gain (discount rate applied, no attrition)
$18,400
The increase is reduced by your discount rate.
new avg invoice − current avg invoice, × volume
Scenario C
Realistic gain (discount-adjusted, with demand response)
$15,900
Customers lost: 286
elasticity −0.30 applied to volume
The difference between Scenario A and Scenario C is the compounded effect of two analytical gaps: your discount rate scales with the higher price, so the full $1 isn't realized (A→B), and raising price removes some volume (B→C).
Break-even attrition
9.3%
You can afford to lose 9.3% of customers before this price increase costs you money.

4What Discounting Costs vs. What a Price Increase Earns

Raising your menu price and running discounts pull against each other on the same number — your average ticket. Here is both sides in your own dollars.

"Yield compression" — in plain terms: it's the money you give up by discounting. Every discounted haircut rings up below your menu price. Add that shortfall across a full year of discounted tickets and that's your yield compression — $33,600 a year at your current numbers. That comes off your sales before a price increase even starts.
What a $1 price increase earns per year
$18,400
after your discount rate is applied
What discounting gives away per year
$33,600
yield compression at your current discount rate
Your discounting is costing you approximately as much as your price increase is generating.

How the two compare at different discount rates

As your discount rate climbs, the give-away grows and the price-increase earnings shrink. Your current rate is highlighted.

Discount rate0%2%5%8%10%15%20%

"What a $1 increase earns" assumes no customers leave. "What discounting gives away" = menu price × discount rate × annual volume. Cost ratios from 2026 Great Clips FDD, Item 19, are used in the valuation section below.

5Valuation Impact

What average invoice means at exit. Enterprise value tracks operating cash flow, and OCF tracks average invoice. The matrix compares your current position against a realistic $1 price increase.

PositionAverage invoiceAnnual OCF estimateEnterprise value (4x)

OCF estimate applies 2026 FDD Item 19 Table 2 system-average expense ratios (labor 49.25%, occupancy 11.09%, products 1.69%, continuing franchise fees 6.02%, advertising 5.31%, other 6.86%) to estimated revenue. This is a system-average cost model and individual results vary. Item 19 OCF excludes income taxes, depreciation, amortization, and debt service. Source: 2026 Great Clips FDD, Item 19.

6Where You Rank — and What Moving Up Is Worth

Your estimated annual revenue (average ticket × yearly haircuts) places you in one of the system's revenue groups from the 2026 FDD. The chart shows the average annual cash flow at each level — moving up a group is worth real money.

Your estimated annual revenue
$386,400
Revenue group: $350K–$400K
Typical annual cash flow at your level
$68,492
18% of sales — system average
More revenue to reach the next group
+$13,600
gets you into $400K–$450K

Source: 2026 Great Clips FDD, Item 19, Table 3 (2,376 reporting salons). Each bar is a revenue group's average annual cash flow (OCF); your group is highlighted. "Cash flow" here is operating cash flow before taxes, interest, and depreciation. Hover a bar to see how many salons fall in that group.

The FDD shows 34% of reporting salons (812 salons) operate below your current revenue level. Note: reporting salons represent 2,376 of 4,158 eligible salons. Non-reporting salons skew below the reported median.
System net growth: 0 units (2023), +12 units (2024), +2 units (2025). 108 permanent closures in 2025. Source: 2026 Great Clips FDD, Item 20.
Advanced inputs

Override the system-average assumptions for a more accurate OCF estimate. These feed Sections 5 and 6.

−0.30
−0.1 = very inelastic (customers rarely leave for price) … −0.8 = elastic (significant attrition on price increases). Linked to the Section 3 slider.
49.25%
Table 2 system average: 49.25%.
11.09%
Table 2 system average: 11.09%.
19.89%
Products + continuing franchise fees + advertising + other. Table 2 system average: 19.89%.
Implied OCF margin: 19.77%

Build-cost reference — Source: 2026 Great Clips FDD, Item 7: total initial investment $187,800–$419,900; leasehold improvements $70,000–$200,000; grand opening advertising $20,000–$25,000; initial franchise fee (single unit) $20,000.

What This Is Worth at Exit

Pulling it all together. Enterprise value tracks operating cash flow, which tracks your average invoice. At your selected 4x multiple, here is the estimated exit value today versus after a realistic $1 price increase — the full breakdown is in Section 5 above.

Estimated enterprise value today
$318,000
at 4x operating cash flow
After a $1 price increase
$372,000
realistic scenario — demand response applied
Valuation lift from $1
+$54,000
what one dollar on the menu is worth at exit
📋 Pricing & Discount Analysis v1.3 · Built by DGLT Incorporated

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