The two families, linked by marriage, were devastated by the loss of five family members who drowned at Warrnambool on January 2.

Fundraiser organiser Peter Ludbrook said 40 Ballarat hairdressers had volunteered their services for the day.

Mr Ludbrook, from Touche Fine Hairdressing, said hairdressers had been run off their feet, with almost 200 people booking in for a trim.

"Some people have been here since 10am and haven't stopped," he said.

He believed the community should support the families in their time of need.

"I thought that these people had been affected by a tragedy that happened at the same time as a world-wide tragedy, and they got a little lost.

"It was a huge tragedy that could have happened to any of us."

Mr Ludbrook said funds raised would be donated to the Salvation Army's appeal for the family.

"It's been a really great day," he added.

"I'm really proud of everyone and the time they have donated today.

"We also want to thank the University of Ballarat, for letting us use their hair and beauty centre," he said.