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I have been a salon owner/operator for five years now & I currently have 5 chair renters and myself as the only nail tech but would like to eventually change over to commission. My girls that I have now will stay chair renters but as they leave I want to convert their chairs to commission. How exactly is this done? I would supply everything but maybe their tools right? What is the average commission split? I need to be able to increase my revenue and the renting thing is just not working. I want to keep the girls I have though because we are such a good team! We have all been together for four years now and it's wonderful, but the salon needs more money. My services, retail and rent is the only income. I feel if I could make money off of more services, that would help, but not sure how you make the commission fair to both the employees and the salon. I know some salons have both renters and commissioned employees and thought this might be something that could work for my salon. Any thoughts or suggestions are greatly appreciated! Thank you! Smile
Commission = Employees, with all the responsibilities/taxes/insurance, etc. You should consult a CPA to make sure you structure it legally.
Thanx Jamie! I already planned on that for sure! I was just trying to get general info as to what the normal split is. I know they will be employees that is a given but I want to make sure i do a fair split. Not sure what the going commission rate is as I have never been an employee, always booth rented or owned. I am assuming it would be 50/50 or 60/40 but not sure. I was just trying to get info from other owners. Thanx for your response!Smile
I suggest a guaranteed hourly rate to cover minimum wage and then a step commission beyond that based on service dollars.
When I started out I got 30%!!!!! Next salon gave me 40%!!! Salon im at now gives her commission girls 60 which is so much more then nice! You could easily do 40/60 I know alot of girls here in ny get paid 40%. 10% for product then split 50/50
At the risk of sounding like a broken record Smile the only way to know what is a "fair" split is to know exactly what your costs are. Every single little thing that you pay out in overhead, every item bought to run the salon, everything for services, etc. Don't forget a replacement fund for worn out furniture, equipment, tools, etc. Only when you have this information will you be able to really know for sure what you can pay and still take some profit for the salon.

I think that it's Inspiring Champions who has a systematic way to switch you over from booth rent to commission and they can also help you work up your costs and com. split. An experienced coach from a reputable company can be a worthwhile investment in your long term success.