Posted by the wax queen on 3/1/2012, 2:31 pm, in reply to "Re: Standard Commision"
Hello All! What a great thread. I started answering yesterday but wasn't in the right mood to be as professional as I wished.
Loraine: I ain't picking on you...
As an owner we BREAK EVEN giving 40% in commission. Break even. If I have an employee that kicks ass and takes names I would negotiate commission on sales or offer a different method of pay that can reward the employee and allow a profit. One of the things many employees never realize is the owner has to make a profit off of you or it isn't worth it to be an owner.
I am not saying anyone on this thread is right or wrong. But if you (as in everybody) has not been an owner it is almost impossible to convey what a huge and hard task it is. If you rent or lease your own spot and work as an individual and self employeed estie you will make roughly the following profit:
at $5000 you make 40%
at $7000 you make 50%
at $10,000 you make 57%
This is taking into account what I would consider average prices for costs, rent etc.
Now, who buys the products? Who does the marketing? I figure it is the owners job to provide you with a clean well represented salon and to bring clients in the door. Also to have all the products we need to do a great service and sell retail. As an employee I think it is your job to bring people in the door, sell them products and rebook them. Then hopefully we can all make money in a career we love.
Lastly...if I had an employee bringing in $10K a month I would kiss the ground you walked on providing a good percentage of that was sales. It is in retail sales that we can all earn more money to spread around, not the services.
cheers all!
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