1/2/2023 0 Comments Team based pay salon software![]() ![]() Everyone can expect to make a minimum amount but is responsible for earning extra on top of that. This kind of salon commission contract offers employees stability and the extra incentive to sell more products/ services and attract new clients. Some disadvantages include the fact that a new stylist may struggle to make enough money this way because they’re still building their client base and haven’t had time to market their services, and if each stylist doesn’t make the equivalent of the minimum wage that week or month, you may be legally obligated to pay the difference. Salon owners are also less likely to lose money on wages during a slower week. One advantage of this structure is that it motivates stylists to make more money by actively marketing services, bringing in new clients, upselling and encouraging product sales. Often this amounts to about 30-50% of the service’s fee, with a small amount paid back to the salons for the cost of backbar materials. Stylists working at these salons make money solely based on commission from services. ![]() Let’s take a closer look at each strategy: Salons that pay commission can either do this instead of an hourly wage, offer a mix of both commission and hourly earnings, or even treat each stylist as an independent contractor and rent out a booth to them. Salon owners have a lot of options when it comes to offering stylists commissions. The terms of your salon commission agreement depend on your needs as a salon owner, what your stylists are happy to be paid, and any salon commission laws in your state or country. You can even offer your team commissions on product sales. Some salons in the industry pay less experienced stylists a lower commission rate, adjust commissions based on targets achieved- high commissions are earned when your stylists consistently hit or exceed targets, or even use a mixed hourly pay and commission model. This commission rate varies between salons, but is often around 30-50% of the service’s cost, minus a small backbar charge to cover materials used (this is usually just a fixed amount of a few dollars and pays for the costs of things like chemicals or hair products). ![]() So, how does salon commission work? Many salons pay their stylists a commission percentage for each of their services, in order to compensate them for their great work and incentivize bringing in new clients. ![]()
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