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Once you have sat down, you will be shown a menu with 3 options, below are the ones given for Blood Elves:
Hair Style
Here, you will be able to select from hair styles available to your race - you will be given options ranging from the ones you saw at the character creation screen, to a few new ones added with the Barber Shops. There is a possibility more will keep on being added in future patches.
Hair Color
You will be able to change the color of your hair here to all those other colors you were offered during your character's creation.
Facial Hair / Features
In this final option, you will be able to change your facial hair as you see fit.
Depending on your Race, you will have different options available, for example, Tauren get to change their Horn styles and Horn colors, as well as their Facial hair, but nothing else - Undead get to pick new face styles, Draenei get to customize their horns, and so forth.
What's interesting is the fact each modification you make has a new name, so every hairstyle has its own name, as does every single facial change or modification you make, some are really creative! The name is displayed up top, where the comb and scissors are.
Once you have changed your character's looks to your liking, you will see an additional amount of gold quoted below the options; this is the amount you will pay in order to get your desired changes. The more options you change, the more it will cost.
Cost Scaling
Since it'd be unfair for low-level people to be excluded from this type of content, Blizzard has scaled the amount of money required to change hairstyles and features to the character's level, so while a level 70+ character may pay anywhere from 8 to 15 wow gold for some haircuts, the low level players will see this same price but in silver.
If it is the first time you get a haircut, you will get the Haircut Achievement, worth 10 points! Therefore, as you like, you can have your hair cut anytime and anywhere in the barber shop.
