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Full Version: How many % of commission you pay your nail tech?
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Is that too much if I pay my nail tech 60%, and salon cover everything include gloves, e-file, bits...? It's hard to find a nail tech in Holt, Michigan.
I won't work for less than that.
You might go broke paying that much - depending on your service prices and overhead. 60% should generally only be paid to someone who is full time and very well booked. You will find some who won't work for less (obviously), but you might find that YOUR service and retail profits are going to their pay check and overhead. It really takes an in depth look at the numbers. Feel free to email me privately if you are interested in help with drilling down the numbers.
Years ago we were interestd in becoming an Aveda Salon. I will relay to you what an Aveda sales rep told me when she visited our salon to see if we were a fit for their company:

"If you are providing everything for your employees and you are paying anyone more than 50% commission, you may as well shut the doors because you will not be able to pay your bills and remain in business." She also made comments to the effect that you would be considered a terrible business person in our industry if you paid more than 50% commissions. (I've never met an Aveda rep without an attitude!!)

Don't shoot the messenger, please - just relaying the information as food for thouight.

Personally, as a salon owner that pays an ever increasing mountain of bills, I agree.
Pay them 60%, we still have 40% and that can help out the rent,electric bill....still better than nothing. I'm broke either way.
I agree that 60% is too much. Having owned a salon once, I figured out how much the salon had to make in a day to cover all expenses before being able to make a profit. When a salon owner takes the time to do a daily cost of operation it's very obvious that 60% will be part of a problem instead of a way to make money, especially if the tech doesn't work that much or is not good enough to stay fully booked.

Plus since you're on comm., then that means the salon HAS to pay taxes on you, so whether or not you're making money, you're costing the salon $$.
I have worked as a commissioned employee before. The business provided everything but our metal implements. With that said, I figured out my commission was roughly 27% per service. The business did stay busy consistently. They could have probably bumped commission up to 30-40% and still made profit, however it would have been significantly less. I have now departed that business to start my own, that you cannot expect to pay a service provider more than 40% commission (with supplies provided)and REMAIN in business.
I get 35. That is the max my salon will pay.