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Tag Archives: commission

Salon products. Retail stock and sales


Back2myroots : A place to share thoughts and grow idea’s. B2MR

How do you as a salon owner decide what products to carry: What will you staff embrace believe in enough to use and sell?

*Is it the Brand?

*Is it the packaging?

*Is it smell?

*Is it cost?

As a retail product when marked up will it be profitability? Is it an all natural earth and environment saving product? How do you decide. Do you trust the sales Rep?

This is big business: you have to get it right on so many levels!

*How much can you mark it up?

*Will it sell? Does it have appeal?

*Do the staff like and support this product?

*Is the support education good?

How much stock do you have to carry? It’s so easy to get sucked in remember many product lines change packaging to re invent it and increase future sales. If you carry to much stock you may get left with old product! Carry only enough stock for a month at a time.Try to pay on 30 days and this way your don’t have money sitting on the shelf. Get staff involved, pay fair commission or incentive. Don’t mark up so much that it cannot sell. Stay on top of stock at all times do not let your friendly sales rep do the ordering for you!!!

Do you need some help with this issues or other matters relating to your business and how to make it a bigger success. Check out the links below for some really useful tools designed to help you get your business growing. OnLine support structured to work with you and support you as you work though the challenges of running and growing your business. Are you ready for a challenge? In order to be able to share these links with you for the past Month i have taken the challenge and worked through the material provided by salon success both audio and PDF books downloads.

It does take allocating some time. it’s not a quick fix Magic pill that does all the work for you. It encourages you. To look at what your doing, why and how, It discuses how to change things look at things and issues in a positive light. Very easy to follow and listen to highly recommended . If it was not would it be here? if you require more info drop me a note or leave me a question.

Mike B2MR

 

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Chair rental or Commissioned staff


Welcome to BACK2MYROOTS B2MR:

Created as a source of advise education knowledge skill experience a place to share thoughts post comments and idea’s on matters relating to hair colouring skill and techniques and anything industry related.

Salon ownership Chair rental

Do you own a salon? Do you employ your staff? Maybe have chair renters are you the manager of such an establishment? Are you an employee? Do you rent a chair. So many question so many options!  I raise this topic as platform to discussion.

Still focusing on service the salon experience but looking at it from a different angle I would like to do this in the order as above.

As a salon owner and employer how do you set a good example? How do you employ the right staff? How do you create the environment that projects ambiance,one that looks amazing yet has the right level of efficient offering professional service. A place that is welcoming creative filled with highly skilled passionate caring stylists. The only way this is possible is to be  hands on with your team leading managing running your salon. From a point of view of having retaining and attracting the right staff in this instance the only way forward for you is to have Salon control.

This includes employing staff paying commission rewarding those who succeed.

As an owner you have very little control over the stylist hours. How they operate if you choose the chair rental route then the stylist renting space from you  running a mini business within  your salon. This can cause issues over pricing hours worked commitment to the salon the greater good!

So some times short term gain is long term agony.Commission creates motivation employing and rewarding staff creates team spirt and friendly competition with in the salon. Greater staff incentive to succeed be the best you can and reap the rewards.

So like so many aspects of business it’s about choices making a decision and making it work the instant knowledge of regular rent or the challenges and rewards of truly running and building a successful business with loyal staff and clients.

So moving on. Do you have a manager?

If so this has to be a partnership that works give and take listen support each other. As a manager you get to not only over see many aspects of the running of the salon but you are also directly responsible for staff employment moral and most importantly service standards knowledge and education.

You get to help to creating the atmosphere the image. you get to grow the salon help it watch it succeed and grow and should be rewarded accordingly. Salon owners that take advantage of hard working managers will lose them along with clients and staff if they don’t respect the role they play and what they contribute.

If you allow Chair rental. How do you control theses stylists when they are paying you rent? How many do you want on a rental agreement. how do you attract them? What hours will be covered by them? How do you manage this when they are in business of running a mini business within your business? Do you provide the receptionist ?

Who keeps the books and takes care of the financial side of things from. Taking clients payment to invoices? Ordering managing stock. Dealing with all tax records and making payment of said taxes?

What support service do you offer them? How do you have an influence on the standard the service they offer? To have a business totally reliant on Chair rental especially if you are not active as a stylist in your own salon or have an understanding of our industry the salon dynamics is quite a risk.

As someone renting a chair. What do you get for your monthly fee? What are your expectations? you and you alone are your business, no owner or manger to blame if things are not going well! if your clients switch to a different stylist or move salon. how to you cope when wanting holidays?

Most stylist who go into a chair rental situation are well established in many cases resent the salon owner who they feel are making a mint out of their work! From you and your client’s Chair renters are not typically team players nor do they want to start their own business. They are not always the best organised in many cases don’t think the what being self employed means or what the ramification might be.

As a renter you still need to be able to have a relationship with the salon owner  you are also responsible for retaining maintaining and bringing in new business providing your working stock, being on time, offering that personal service

Then the things that cross over come to mind does salon owner provide any services in the form of help assistance? Do they keep a level of retail products? Do they provide a receptionist to book greet clients? Do they offer any help with regard to book keeping your personal business management! a repeat from the salon owners point of view but as i said it’s a to way street many aspects will cross over eacht other.

These are all things to consider things that cut into that i just want to do hair and keep 100% of the take it can be quite complex.

Insurance both personal third party liability who is responsible for this? It would be my  suggestion both parties are responsible why? One as owner  providing the salon a place for clients to come to the stylist as the one performing the tasks applying the products taking a fee, both should be covered how is this dealt with?  much to consider.

With all these different examples of in salon situations one thing is inherent the need to communicate the need to work together the need to create the best environment and standard of service to retain clients. a  healthy codependent relationship built on trust understanding and striving for a common goal stability and business success.

In my book it’s a no brainer the challenge and having the control being master of my own ship and destiny wins every time. Find and work with the right team the success and reward will follow.Nothing good in life is ever free or easy. If it is if it seem’s to good to be true if it’s a business plan that offer’s instant gratification.

Whilst Chair rental works for many on both sides think about what as a salon owner or some one about to start a salon it is you really want.Don’t lose sight of your dream your vision your goal. How do you want the service’s you offer delivered.

I do not suggest that stylist renting chairs are all unprofessional i know from experience this is not the case. However for both side it is a union that should not be entered into lightly.

lots to consider what are your thoughts and views?

Mike B2MR

 

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The Salon Commission/ Chair rental.


Welcome to BACK2MYROOTS B2MR;

Created as a source of advise education knowledge skill experience a place to share thoughts post comments and idea’s on matters relating to hair colouring skill and techniques and anything industry related.

copy right pending.

A topic has arisen that is a follow on from my earlier posting ownership management chair rental. It’s how we look at salary commission based earning or Chair rental. What is a fair rate a fair way to compensate salon owner and stylist without causing decent and work place break down and issues.

For the most part stylists after training will move around a few times trying to find a fit a work place that allows them to build up a good client base a place they can earn what they see is a good wage.

In many cases as time goes bye and experience is gained and our stylist starts to get busier bring in more money to the salon, as this happens resentment can set in with regard to ratio of pay to turnover.

How can this be prevented what are the signs of an unhappy Staff!

In many cases the staff room gossip signs of apathy lateness, work standard dropping,standard of service suffering.

Most stylist will think about and see things that exist within their work bubble a simple world of I do my clients they pay X at the end of the day i have brought in X and sold Y yet my take home pay is

only X and that’s before i pay Tax, I do all the work it’s not fair my boss should get so much after all what do they do!!

Commission can be mixture of guaranteed basic and commission targets as a productivity incentive or just commission. what is fair well of course as we get busier more established build our client base we can earn more on a regular bases but the thresholds will always be  how many clients can we do how much do we charge whilst maintaining standards and service!

It is a natural progression for stylist to look to get a bigger cut of the pie choices start your own business not easier or look at chair rental.

This gets interesting chair rental was when it first came out was quite visionary a stylist pays to rent a chair a space pays X per month and runs a small business within a business. Of course the down side is having to pay that rent whether you are busy or not! having to keep books pay your own tax. stock appointments you are your own little self employed Business.

As an evolution of this a new chair rental business scenario has come to my attention.

A stylist rents a chair fro a monthly fixed fee but also pays a percentage of their take to the salon owner. Hum! for the this owner provides salon reception sales support motivation marketing skills sounds good its seem’s to be a blend between commission based and self employed.

But lets look at this with some bogus numbers.

Lets say our stylist is busy and turns over £1000.00 per week


£1000.00 x 4 = £ 4000.00 Month 50% commission  stylist earns £2000.00pre tax

now lets look at chair rental

£1000.00 x4 = £ 4000.00 lets say chair rental £800.00 month  stylist take £3200.00 out of this they have to pay all expenses and Tax, insurance, stock assistance, everything. but the larger take is appealing.

£1000.00 x4 = £ 4000.00  then chair rental £ 800.00 month share of commission 50% 50% splits

so our £ 4000.00 a month less £800.00 = £ 3200.00 divided x 2 = £1600.00

This would be £1600.00 for the stylist. £ 2400.00 salon owner.

Although the stylist left the salon in our first example paying commission for a better deal more control a bigger piece of the pie the down side is booking keeping paying tax keeping accounts.

From a Stylist point of view strait chair rental is the best deal but involves a lot more work and commitment from a stylist it’s time to grow up and take responsibility for your self your actions.

The example that seems to offer the worst deal from a stylist point of view is rental and turnover split!

For this to work the split has to be less on the turnover  to make it as appealing as just chair rental the split would have to be Rent + 25% take fro the salon owner.


By nature Stylist will always want to move on find a place where they feel they are making a fair wage for there skill,  they will always feel they are working making money for the boss or owner it’s natural

not always realistic given the costs of doing business.

In closing I think it is because of the above options many choose to become home based or mobile stylist,

I do however think that there is a fair balance that affords both salon owners and stylist  away of coming together to work and create a successful business that provides for all the key is communication honesty, discussing goals oh and not being greedy yep being fair you need each other .

hope this is helpful to all those trying to work out a career or business Move.

None of the above take into account charging VAT and keeping records and paying revenue for this said Tax. you are in essence a tax collector this Money should be put to one side.

Mike.

 

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