Commission?

[bexster]

Hi geeks

I'm rethinking my commission structure as I think I'm paying my staff too much

Reading on here a 60/40 split is basically self employed

I have just had a girl leave the salon to go rent a chair down the road from my salon at £125 per week

she was on £350 per week for me if she hit £1000 takings

Based on these figures she was getting 35% of her wage nearly self employed status using all my stock and equipment.

My current commission stands that they need to hit 3 times there wage then it's 30% of everything over that amount

I would love hear how you guys work it out

I'm thinking of adding VAT into the equation

Also
My girl I have working at the moment hits around £375 per week working 3 days thurs fri sat

Her wage is £160 for the hours

She is taking home 40% of her takings again self employed percentages but I'm paying her tax holiday pay etc.

Can anyone on here give me some advice please on targets they give there staff to keep them in a job, like a min takings requirement and advice on commissions you give..

Thank you in advance

I'm puzzled on how salons keep running
I take around £1200 to £1500 per week and I feel like I'm keeping the business afloat all on my own
We currently are charging £30 for a cut and blow dry and the average colour bill is £40 plus CBD X

 

[ColourGirly]

Sorry but your either employing these staff or they are self employed!!? Not a bit of both how it suits you.

 

[bexster]

I am employing them
I'm just asking for a bit of advice on targets and commission rates and thought I should give a little of insight on what I do now.

Just trying to run my business well and not into the ground
I'm not sure what you mean?

 

[funtimefranko]

I am employing them
I'm just asking for a bit of advice on targets and commission rates and thought I should give a little of insight on what I do now.

Just trying to run my business well and not into the ground
I'm not sure what you mean?

Lots of salons do this commision once you've hit target. I unfortunately worked in one that had impossible targets

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[bexster]

Thx for commenting. X

 

[squidgernetball]

I pay a basic rate of £6.50 per hour, and then 5% commission on all treatments and !0% on all retail.

She has an incentive to book clients with her, and to upsell, but also to retail products.

She doesn't have a target, that is her wage!

Vic x

 

[xkayla_herex]

I pay a basic rate of £6.50 per hour, and then 5% commission on all treatments and !0% on all retail.

She has an incentive to book clients with her, and to upsell, but also to retail products.

She doesn't have a target, that is her wage!

Vic x

This sounds like a great idea, do you do 5% no matter what or does she have to make her days wages first?

 

[squidgernetball]

No its no matter what. It's meant to say 10% for retail, not !0% lol.

She has a great incentive to book clients with her and to rebook and retail.

She is an extremely hard worker and does excellent treatments and customer service. She is also my daughter but I'm a hard faced cow and she has no favours whatsoever.

I told her when she started that if she was crap she was out. She was on 6.50 per hour until she had been qualified 6 months. She asked for a pay rise so I offered her an increased hourly rate or commission. She opted for commission.

Vic x

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[Staceystandeven]

What worked for me was,
Minimum wage to start with then 10% comm on takings over £100
Review as and when
Once takings amounted to 3times their wage 3weeks running we could increase maybe
Then commission on all sales 10%-20% dependant on mark up
Hope that makes sense!
😊

 

[bexster]

Thx for all your advice. X

 

[daydreams01]

Hi geeks

I'm rethinking my commission structure as I think I'm paying my staff too much

Reading on here a 60/40 split is basically self employed

I have just had a girl leave the salon to go rent a chair down the road from my salon at £125 per week

she was on £350 per week for me if she hit £1000 takings

Based on these figures she was getting 35% of her wage nearly self employed status using all my stock and equipment.

My current commission stands that they need to hit 3 times there wage then it's 30% of everything over that amount

I would love hear how you guys work it out

I'm thinking of adding VAT into the equation

Also
My girl I have working at the moment hits around £375 per week working 3 days thurs fri sat

Her wage is £160 for the hours

She is taking home 40% of her takings again self employed percentages but I'm paying her tax holiday pay etc.

Can anyone on here give me some advice please on targets they give there staff to keep them in a job, like a min takings requirement and advice on commissions you give..

Thank you in advance

I'm puzzled on how salons keep running
I take around £1200 to £1500 per week and I feel like I'm keeping the business afloat all on my own
We currently are charging £30 for a cut and blow dry and the average colour bill is £40 plus CBD X

I know what you mean, the overheads in running a salon are phenomenal, I call it my expensive hobby cos as much as I love it, It will be a while before I start making any money from it! I am just over a year in and recently introduced a commission structure for my stylist as an incentive for her to earn more. I give her a basic hourly rate based on NMW and then set a target of £1200 per month, anything over she will get 10% commission added to her wages and. 5% on any products sold. the target is fairly low compared to a lot of salons but I didn't want to to start it too high as I want it to be achievable and realistic. We are a brand new salon with no pre existing clientele so still building the business up. She has hit it every month so far but this is the 3rd month of doing it and her best month yet so I'm hoping it will motivate her even more and increase her rebooking rate.

I would love to pay more than NMW but not in a position to yet so at least this way she benefits if she is busy. I plan to review it annually and gradually increase the commission as she grows her clientele. I would love to be able to pay myself NMW, still waiting for the day when there's enough to pay myself at the end of the month! It feels like I do all the work for no reward at the mo but it's early days so need to be patient!
Sounds like your salon is doing well tho, how long have you been open?


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[Cheshire_Gal]

My view is that it is my job to bring clients in not my therapists and that you should pay them as much as you can and more than the competition. As Lord SUGAR said "Look after your staff and they will look after you". My therapists make my business and what i pay them isn't for the work they do, its to keep them in my salon. They have all been with me over 8 years and they earn good money with excellent perks. Just my views!!!

 

[sdsurge]

Sorry but your either employing these staff or they are self employed!!? Not a bit of both how it suits you.

Agreed.

 

[sdsurge]

My view is that it is my job to bring clients in not my therapists and that you should pay them as much as you can and more than the competition. As Lord SUGAR said "Look after your staff and they will look after you". My therapists make my business and what i pay them isn't for the work they do, its to keep them in my salon. They have all been with me over 8 years and they earn good money with excellent perks. Just my views!!!

Wow, won't find many like you out there.
Keep up the good work.
Love your views.

 

[ColourGirly]

it's not only the amount of pay that keeps staff it's the structure. I left a job because she constantly changed the goal posts. Always saying well I pay you enough (so what does it make I forgot £xxx).

You have to be clear and stick to it, not make it up, employed or self employed. Or decide they get paid too much and change ten goal posts again.

Many of my friends are stuck in salons that pay NMW, with unrealistic vague targets, they are miserable, but the salon has never offer any training so on paper they have 7- 10 years experience but nothing update since NVQ. It's a sad way salon owners make people feel they aren't good enough.

We pay some junior members NMW and o my gosh the training they get is out of this world. They don't whinge about the wage because they know they are going to highly employable great stylists.


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