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Posted By:yogimama on: 8/14/2007 7:08:55 AM


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yogimama
Posts: 2

HELP Commission Rate!!!
Posted: Tuesday, August 14, 2007 7:08:56 AM
I started working at a wonderful salon in March of this year after jumping around after graduating two years ago. The salon I'm at is perfect, high energy, I had an almost FULL book after a few months of being there. All in all, I love it. However, I have one BIG problem. Our commision rate is basically at 35% they say its at 45% but after all our product service costs thats all we really end up making. Its really distressing busting my butt all week to really be making a fraction of what I brought in. My boss has said multiple times that she would love to give us more but our high rent and costs don't allow it. We do get retail bonuses but those don't really add up. I don't want to leave this salon, but I really need to be making more of what I bring in. I feel like I deserve it. At the same time, if there is no money to give us after expenses then I understand where my boss is coming from.

I feel like I'm stuck between a rock and a hard place.

hues4you
Posts: 2566
Platinum Member

yogimama
Posted: Tuesday, August 14, 2007 7:49:01 PM

Dear yogimama


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russnyc
Posts: 1145
Platinum Member

Costs
Posted: Wednesday, August 15, 2007 4:37:36 PM
Hi

Commission rates aren't really something you can negotiate your first year in a salon. I would wait until Christmas or ask other senior people if there is a bonus at the end of the year. Generally speaking, the salon is taking an educated risk by hiring you and you kind of have to accept it for the first year... BUT here's a great way to negotiate. It's going to hurt a bit, but in the long run it will pay off-

First, you are going to go to your boss and tell her that you want to challenge yourself, to do this you need to keep impeccable records. You are going to shut yourself off from accepting any new walkin or non referral clientele. Convince your boss that you want to show her you can not only float the clients you do now, but build out a whole new clientele that is twice the size.

By not feeding you any new clients, you will depend more heavily on referrals and maintaining the clients you do have already. Do it for about two months, and if your pay decreases dramatically, you really have no right to demand a larger cut that what you're getting now.

HOWEVER, if your totals shoot up, and suddenly there's this whole new clientele appearing on your books, it's ALL YOU. You can demand a greater percentage because you are pulling new clients in.

Find a way to approach her with this idea. If you are handling a lot of traffic but half of it it walkin traffic all day long, it's not you, its her- she should be hiring another stylist already to cover the overflow.

Know what you are worth before apporaching her, but honestly it's too soon to shake the tree.

yogimama
Posts: 2

Posted: Wednesday, August 15, 2007 6:27:02 PM
commission rate is the same for everyone.. including senior stylists.

From what I have overheard, I'm not the only one who feels that the rate isn't high enough.

Also, GREAT IDEA. It will take alot of guts but its a great way to find out what you're made of!

russnyc
Posts: 1145
Platinum Member

Idea
Posted: Thursday, August 16, 2007 5:05:16 AM
I can tell you the past year I've had to do exactly this because they hired so many new people. It's wonderful because all the people know each other, and you don't get the wackos that hop chair to chair. I also notice that my tempo has eased a bit, I'm not frantically trying to get things done, I've slowed down and the clients appreciate me more. Also, I'm busy even when other stylists that rely on walk-in traffic are slow.

If the senior staff isn't making higher commission, try approaching her OTHER than using a demanding tone. Find several senior staff and set up a meeting with her and ask questions like;

What do you want out of us?
How can we make more money?
What services can we grow?
What kind of commitments do you need from us?
What do you want to see planned better?

I'll be honest and come out and say its pretty common for senior staff to be tight lipped about what they are getting for commission, and they want to protect it.

Are you charging premium prices? $100 for a cut?

On her side, is she providing extras like a team of assistants and a cleaning crew?

My commission is around 35% but we have half a dozen assistants that will do blowouts and apply color, a cleaning woman, and a full reception staff that handle almost all of my scheduling so I don't have to. The salon is one of the best in NYC, and there's always a newness and freshness to the salon. The money is easy and the salon has a great reputation.

You may make 45-50% commission at another salon, but that has disadvantages because there's no money left for things like this that make all the difference, or things start to "cheapen out", there's no extra money, paychecks get delayed, you run out of product because there's no budget for new inventory. I've run salons and can tell you even paying 40 percent the profit margin is low because of skyrocketing rent and utility increases (someone has to pay for all that AC).

She's running a business to make money, you can't ask for a bigger slice until you've proven you can make HER more money, CONSISTENTLY, AND by YOURSELF. Any walkin client that newly falls into the door is sort of her property, not yours, and she had PAID to get these people in with rent, massive utility bills, labor, and marketing, even if she doesn't advertise, if her salon is in a high traffic area or street level, believe me, she PAYS for it!

Be able to pull up your sales data and SHOW HER the minimums you have produced, and that you can GUARANTEE a specific amount of money coming in every month, ABOVE the average for any stylist. If your sales are all over the place, or you only get 1 or 2 referrals every week, you are in NO position to demand anything.




However, if she has you working like a dog, I would map an exit strategy taking your clients with you, however, it won't look good on a resume at all unless you have spent a year or so there. Also, clients usually have to come to you at least three times before you can pull them away from their chosen salon.

Are there senior staff that have been there more than a year? Why would they stay if they have a problem with commission?


pashn8
Posts: 10

wait a minute...
Posted: Monday, August 20, 2007 3:51:44 PM

First, take a look at the amount of mula ($$$) you are taking home in tips.  This is income and must be reported as such.

Next, take a look at your paystub and see how much SS you are putting in(maybe we'll get it, maybe we won't{no choice though:) that is matched by your employer.

You can make more at a salon that pays 35% than you can at a salon that pays 60%.  How?  The salon that pays 35% can afford to do advertising, be in a great location, and STAY in business!

Oh, and the "I brought in" part.  Please be aware that unless you are a renter, you are an employee that gets paid a commission on sales of services.  These same services will be done by you or someone else who agrees to the terms.  Your employer pays you out of the money they make.  Not the other way around.

Read the first two sentences of your post back to yourself.  Stick with that and you will do fine.  Don't ruin a good thing!  If you are good at what you do, the money has a way of taking care of itself.