I always think that, in service industries where you are paying someone for their expertise and not a product, tips are unnessary. It's built into the price...

If the service isn't part of what you're paying for and you are paying for a product, then tips for good/great service are appropriate. Restaurants are a good example. You're primarily paying for the food, not the service. Tips are expected in a restaurant because you are partially paying for someone to deliver the food you ask for. In the case of a buffet, I don't tip because I'm not getting any extra service.

If someone has done a great job, then I tip no matter what (just like here in MA). For a nice haircut and friendly service, I typically add $2. That's about 15%.
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I would say a $2 tip is a minimum. I tend to tip well because I know the people getting the tips often rely on them to supplement their salary.

I don't mean to put down hairdressers or waiters (I have worked in food service myself), but I will make the unfair generalization that they need the tip more than I do. If I can afford a decent haircut and a nice restaurant I can afford to tip on the more generous side to make their day.
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For hair dressers a tip of 10-15% is fine.
I also tip $2 or $3 to the person that washes my hair
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I would say $2 dollars.
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I highly recommend tipping your barber, especially if you plan on returning to that location for future haricuts. It is also a decent thing to do, since that person is rendering a service. I normally tip 20%, but it is up to you.
The website referenced below offers a guide for tipping in various situations.
Scroll down to "Barbers, salons, spas" for specific tips on how to tip! They recommend a gratuity of $2-3, but personally, I would tip $4 on a $16 dollar haircut.

Source(s):
http://www.findalink.net/tippingetiquette.php

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