Keep the discount between 9% and 14% of the cycle's revenue
A free-haircut reward sized right sits between roughly 9% and 14% of the total revenue across the visits leading up to it — that's the range covered by an 8th-visit-free threshold (≈11%) up through a 6th-visit-free threshold (≈14%). Below that range, the reward feels too distant to motivate anyone; above it, the shop is giving away more margin than the loyalty program is likely earning back in extra visits.
This is purely a function of the stamp count, not the haircut price — a 30 SAR shop and a 50 SAR shop land on the identical percentage discount at the identical threshold, since the free cut and the paid cuts scale together.
Stamps vs points for margin control
Sizing a reward without losing margin is more direct on a stamp card, where the discount is a single, fixed percentage set once. A points card requires setting both a points-per-riyal rate and a redemption threshold, which gives finer control but takes more work to size correctly.
| Mechanic | How margin is controlled | Effort to size correctly |
|---|---|---|
| Stamp card | One threshold sets a fixed discount percentage | Low — pick a threshold, check the table below |
| Points card | A rate (points per riyal) and a redemption threshold, both adjustable | Higher — needs modeling against your actual price list |
| Balance card | Not applicable — it deducts a prepaid amount, no discount to size | N/A — a different problem entirely |
The discount at each common threshold
Run through the standard thresholds to see exactly where the 9–14% target range sits.
| Threshold | Discount | In target range (9–14%)? |
|---|---|---|
| 5th visit free | ≈20% | No — too generous for most margins |
| 6th visit free | ≈14% | Yes — the upper edge of the range |
| 8th visit free | ≈11% | Yes — comfortably inside the range |
| 10th visit free | ≈9% | Yes — the lower edge, but a longer wait |
The trade-off between margin protection and motivation
A 10th-visit threshold protects margin best at roughly 9%, but on a 3-week haircut cycle that's about 30 weeks to reach — long enough that some clients drift away before ever seeing the reward, which defeats the purpose of the program. A 6th-visit threshold reaches the reward in about 18 weeks, a meaningfully shorter and more motivating wait, at the cost of a few extra points of discount.
For most single or two-chair shops, 6 or 8 visits is the sensible middle ground — close enough to reach that clients stay engaged, far enough that the discount stays inside the 9–14% band that protects margin.
- 6th visit free: ≈14% discount, ≈18 weeks — fastest reward inside the target margin range
- 8th visit free: ≈11% discount, ≈24 weeks — a common middle-ground choice
- 10th visit free: ≈9% discount, ≈30 weeks — best margin protection, but a long wait
- Below 5 or above 10 visits generally falls outside what most barbershops should offer
A worked check against real margin
Take a shop where a haircut costs 35 SAR and the barber's labor and product cost is roughly 20 SAR, leaving about 15 SAR margin per cut — roughly 43%. A 6th-visit-free reward gives away one 35 SAR cut after five paid ones, which comes out of that margin pool: five cuts generate 75 SAR of margin (5 x 15), and the free cut costs the full 35 SAR cut price, or about 47% of the margin earned across those five visits.
That's a meaningfully bigger bite out of margin than the 14% revenue-based figure suggests, because the reward is measured against margin, not revenue. Shops with thinner margins per cut should lean toward the 8th or 10th-visit threshold rather than the 6th, specifically because the margin hit is proportionally larger than the revenue hit.
Setting a reward that holds up over time
Work through the sizing decision in this order.
- Step 1: calculate your real margin per haircut
Subtract labor and product cost from the haircut price to find margin, not revenue.
- Step 2: check the discount as a share of margin, not revenue
A 14% revenue discount can be 40%+ of margin on a thin-margin shop — run both numbers.
- Step 3: pick a threshold from the 6–10 visit range
Lean toward 8 or 10 if margin is thin; 6 is fine for shops with healthier margin per cut.
- Step 4: set it up as your [stamp card threshold](/en/how-to-create-a-stamp-card-in-waya)
Configure the chosen visit count once the margin check is done.
- Step 5: hold the threshold for at least a year
Avoid adjusting it once clients have started accumulating stamps under the original terms, and export the data if you need to model changes offline first.
Frequently asked questions
How big should a free-haircut reward be without hurting margin?
Aim for a discount between roughly 9% and 14% of the cycle's revenue — an 8th- or 6th-visit-free threshold, respectively — and separately check that percentage against your real margin per cut, since a revenue-based discount can be a much bigger share of margin.
Does the reward percentage change with the haircut price?
No. The discount percentage from a given stamp threshold is the same regardless of price — a 30 SAR and a 50 SAR haircut both discount about 14% at a 6th-visit-free threshold.
Why does margin matter more than revenue for this decision?
Because the free haircut costs the shop its full price, which comes out of margin, not revenue. A 14% revenue discount can eat 40% or more of margin on a shop with thin per-cut margins, which changes which threshold actually makes sense.
Is a points card easier or harder to size correctly?
Harder — a points card needs both a points-per-riyal rate and a redemption threshold set correctly, versus a stamp card's single threshold, so it takes more modeling to size a points reward without losing margin.
What threshold is safest for a shop with thin margins?
8 or 10 visits, since both keep the discount closer to 9–11% of revenue, which is a smaller bite out of a thin margin than the 14% a 6th-visit threshold produces.