I was just wondering if someone can help me out? I currently work at a salon in NJ. It is a new, beautiful, huge salon and spa. The menu is based on the level system and the pay is a sliding scale %. We are charged $7 per color service (which is amazing since the color only costs $4 a bottle). I am new and on the first tier of the level system, since I only recieve 45%, after the color charge is deducted, plus taxes and benefits that I pay for, I only take home about 20%. Now the owner is trying to implement this "new charge" if we are slow he is going to deduct $30 from our pay per slow day. I asked what constitutes as a "slow day" and never got a straight answer. So.... I don't know if there is one, two or no clients whether or not I'm going to lose $30. If for some reason I have a day in which I don't have any clients, this means I owe the owner $30. Doesn't this sound like I'm paying a fee... like a I'm renting space?  I should mention again that I'm in NJ and booth rental is illegal. Any thoughts, opinions? I really need some advise.

P.S. Britboy, I've read quite a few of your posts and although opinionated, you do have a lot of great advice. PLease help!

Thank you for your advise. I understand that I have no control over taxes and benefits. Thats just something I'm going to have to live with. I've worked in a couple other salons and spoke with friends in the business and I still think that $7 is a little high. If a client has really long hair we will charged double the $7 and if the person gets a single process plus highlights, we will also get charged double. Regardless, I know there is nothing that I can do about this charge either. I'm going to contact the Labor Dept. and also the Board of Cosmetology. I don't know if the Board will be able to help me with this situation but I need to talk to them anyway... I've been researching opening my own salon for about 6 months now... working on the business plan, researching prices for furniture, utilities, advertising , products, etc., but that's a completely different thread! Be sure to stay tuned!

Thanks again for the advise. I really appreciate it!

Hi Funny

When you said "The menu is based on the level system and the pay is a sliding scale %" did you mean that the client pays less for entry level stylists and entry level stylists are also paid a lower percentage? Just asking, as I assumed that was what you meant.

The idea of a $30 dollar charge for slow days and the fact that the owner gave no particulars when asked, is leading me to think maybe he said that in a rash moment. I don't think he can do that especially in NJ. Not only could complaints come in but as you said it is a non booth rental state and I don't think with a new salon an owner would want to go there. Maybe he is out on a limb with expenses at the moment and was reacting emotionally. I don't know. I'm not sure complaining about product costs being taken out before commissions are determined is valid as many salons do that, but the slow day charge sounds concerning.

Has this owner owned other salons or other businesses? Finding stylists in NJ is not all that easy especially if they have a pre existing clientele, but even if they don't finding good people is hard. (One reason an owner shouldn't be saying things with no particulars, rashly, if he was. This slow day charge comment, has me worried that the owner may not be a people person, and that isn't a good sign, especially for an owner. Instead of making threats which will render the salon without stylists, he should be presenting ideas stylists might try to bring in more clients.) 

What area of the state is the salon in and what are the prices for services? The median income in the surrounding area and the visibility of the salon are as important as how fancy and large the location is, in NJ anyway. I've seen some 4 chair salons with several people waiting and several processing simultaneously and I have also seen large salons with empty chairs and not enough stylists even if the chairs were to be filled. (That's probably true in every state though.) Doesn't the salon charge more for long hair, extra for single processes with highlights? If you accept/understand a color charge and you are on a commission percentage than although the color charge is increased with these things, so is the price of the service and the commission amount becomes higher in dollars.

NJ has great variations in service pricing around the state depending on the demographics of the neighborhood. Single process, color on average ranges from $45 to $70, foils anywhere from $70 to $140, although I am sure there are some higher and lower. I have been noticing that the important variables in prices charged for hair services are location and decor, and the least important is salon size. Of course the reputation of the stylists is also very important as is the image of the salon. What are the prices like and how do they compare to the competition in the area? Having a 45% commission would equal more money on a $70 color service ($31.50 before material costs, taxes and benefits) than even a 60% commission on a $45 color service ($27 before materials, taxes and benefits). So when stylists look for salons to work in they should consider the prices for services as it is just as important as the commission percentage.

Start up costs, selections, and ideas is a good idea for a new thread! Maybe under the management owner section?

If your still at this salon your working for PEANUTS!!!! 

Get away fast........ if you dont then your just foolish!

 Follow the herd ..................and your likely to step in poo-poo!!!!

funhairgirl, when you complete your cost per service analysis for your business plan...$7 per color chemical service is pretty accurate, and yes double if more than one color service is done.    Be sure to ask them for clarification on the new daily charge, good luck

I've been researching opening my own salon for about 6 months now... working on the business plan, researching prices for furniture, utilities, advertising , products, etc., but that's a completely different thread! Be sure to stay tuned!