Calling all Hair salon Managers or stylists

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I'm planning on opening a new hair salon. My stylists who apply want to know what commission  I offer. I know most places give a percentage once the stylist triples her salary.
so my question is this: 
How much is the norm percentage? does it get applied to the whole amount of what she did, or whatever is over the triple limit. So lets say she gets  $100/ day and %10 commision when she triples the salary.
if she does $330 of services, is she getting $33 bonus or will she get %10 of anything over the $300 (triple the salary) so essentially $3.30 commission.
I just made up the %10. I'd like to know whats the norm percentage and when does it get applied.
I've done research but still quite confused 
Thank you 

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Most salons that I have seen the stylists are independent and just pay a flat monthly rent for their space at the salon. Sounds like they are going to be employed by you is that correct?

So you still haven't done anything after first starting to ask questions about this over 2 years ago?
https://www.fatwallet.com/forums/finance/1398138

I don't believe most salons pay a salary at all. It's my understanding that the usually pay ~50% of sales with no hourly/daily pay.

I am aware of two models. First you rent the booths out, and every stylist is independent. The other is a strait commission model with up to around 50% of sales going to the stylist.

Is this a professional salon or something conveniently located by the entrance to a mall?

ymprncess said:   I've done research but still quite confused 
Thank you 
 

  What have you been researching for the past 2 years, that you still dont understand the industry standard compensation structure?

yes, hourly. not renting out chairs.

a professional salon. not in the mall. not a franchise like a lemon tree.

wow, impressive. I have done quite a bit, and in the final stages. The commission question won't make a big difference because I will pay hourly salary yet I'd like to be fair and keep my employees motivated.

ymprncess said:   wow, impressive. I have done quite a bit, and in the final stages. The commission question won't make a big difference because I will pay hourly salary yet I'd like to be fair and keep my employees motivated.
  Why do you think stylists are going to work for hourly when the standard compensation is ~50% of services?

New stylist who do not have any clientele will be the only ones that will work for minimum wage plus tips and let you keep all the service fees.

letsspendlotsofmoney said:   New stylist who do not have any clientele will be the only ones that will work for minimum wage plus tips and let you keep all the service fees.
  The only time I've ever heard of stylists working for an hourly wage was at a nursing home.

There are many Salons that pay hourly, just to name a few SuperCuts, lemon Tree, JCP salon... The Benefit for stylisy is knowing they have a paycheck even if the salon is not very busy.
 

ymprncess said:   There are many Salons that pay hourly, just to name a few SuperCuts, lemon Tree, JCP salon... The Benefit for stylisy is knowing they have a paycheck even if the salon is not very busy.
What incentive do the stylists have to do more work other than tips?

A friend of my wife outsourced sewing work to a woman in our community. When she was paid hourly she was very slow, but when she was switched to being paid piecemeal her productivity more than doubled.
 
Let the stylists earn their pay piecemeal, rather than giving them little incentive to do more work during their shift. That forces them to share pay risk as well.

stanolshefski said:   ymprncess said:   There are many Salons that pay hourly, just to name a few SuperCuts, lemon Tree, JCP salon... The Benefit for stylisy is knowing they have a paycheck even if the salon is not very busy.
What incentive do the stylists have to do more work other than tips?

A friend of my wife outsourced sewing work to a woman in our community. When she was paid hourly she was very slow, but when she was switched to being paid piecemeal her productivity more than doubled.
 
Let the stylists earn their pay piecemeal, rather than giving them little incentive to do more work during their shift. That forces them to share pay risk as well.


That arguement can be made for any job. People will take advantage of hourly wages unless they have a vested interest in the company.

ymprncess said:   There are many Salons that pay hourly, just to name a few SuperCuts, lemon Tree, JCP salon... The Benefit for stylisy is knowing they have a paycheck even if the salon is not very busy.
  Stylists who will work for an hourly wage are those who aren't good enough to attract their own repeat clientele, and need the chain's brand name to get random people in their chair.

With an hourly pay structure you are clearly going low-end, and you'll have a tough time competing with the chains.  Hiring good, established stylists will require commissions, but they'll also come with an existing client base that only helps you.

I don't understand. They don't get commissions until they triple their salary. Their salary is $100/day without commission. So they have to get their salary up to $300/day before they can earn commission. But they can't earn commission, so how are they getting their salary up to $300/day?

Sounds like a brilliant plan from an owner's perspective if you can scam some stylists into thinking they're going to earn a commission with some language in the contract that talks about commissions. /sarcasm

marginoferror said:   I don't understand. They don't get commissions until they triple their salary. Their salary is $100/day without commission. So they have to get their salary up to $300/day before they can earn commission. But they can't earn commission, so how are they getting their salary up to $300/day?

Sounds like a brilliant plan from an owner's perspective if you can scam some stylists into thinking they're going to earn a commission with some language in the contract that talks about commissions. /sarcasm

  The way I read it, stylist would get $100 plus 10% of sales as long as sales are over $300, so there is an incentive to produce.

Quikboy4 said:   
marginoferror said:   I don't understand. They don't get commissions until they triple their salary. Their salary is $100/day without commission. So they have to get their salary up to $300/day before they can earn commission. But they can't earn commission, so how are they getting their salary up to $300/day?

Sounds like a brilliant plan from an owner's perspective if you can scam some stylists into thinking they're going to earn a commission with some language in the contract that talks about commissions. /sarcasm

  The way I read it, stylist would get $100 plus 10% of sales as long as sales are over $300, so there is an incentive to produce.

  In a system like this, the incentive would need to be much higher.   Like 50% of sales over $300.   So in the example in the OP, with $330 in sales, they would earn $115.   



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