Hair Salon Startup Cost Comparison
Tempe, AZ vs Los Angeles, CA
Tempe, AZ
$58,000 - $214,000
COL Index: 108.5
VS
Los Angeles, CA
$78,000 - $291,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Tempe, AZ | Los Angeles, CA | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$1,600 - $6,100 | $4,000 - $14,400 | -58% |
|
Commercial Lease (First + Last + Security)
|
$7,800 - $39,100 | $15,000 - $75,000 | -48% |
|
Salon Equipment & Stations
|
$15,000 - $60,000 | $15,000 - $60,000 | Same |
|
Initial Product Inventory
|
$3,000 - $10,000 | $3,000 - $10,000 | Same |
|
Interior Build-Out & Design
|
$15,800 - $52,500 | $20,300 - $67,500 | -22% |
|
Business Insurance (Annual)
|
$2,000 - $6,000 | $2,000 - $6,000 | Same |
|
Marketing & Launch
|
$2,000 - $8,000 | $2,000 - $8,000 | Same |
|
Working Capital (3 Months)
|
$10,900 - $32,600 | $16,700 - $50,000 | -35% |
| Total Estimated Cost | $58,000 - $214,000 | $78,000 - $291,000 | -26% |
Local Market Factors
| Factor | Tempe | Los Angeles |
|---|---|---|
| Cost of Living Index | 108.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $18 - $42 | $30 - $85 |
| Labor Rate Index | 1.05 | 1.35 |
| Sales Tax | 8.1% | 9.5% |
| Minimum Wage | $14.35/hr | $16.78/hr |
| LLC Filing Fee | $50 | $70 |
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