It’s really a concern for me when I see that a salon owner has opted to booth rent because they have struggled so hard with commission-based stylists.
It’s concerning to note that so many owners believe that they can’t afford commission booths. I have found that it’s because of many factors:
- Stress of the paperwork
- Withholding of taxes
- Health insurance and so on
Truthfully many Owners don’t know how to do the paperwork.
I have also found that the lack of customers for this commission stylist becomes a problem. It’s all in the marketing of building clients the right way that does not cost a huge investment in money.
So, if you don’t have enough new customers for that commissioned stylist, then the owner will sometimes sacrifice some of his or her clients to this stylist. Then, that takes money out of the owner’s pockets.
Just this one system alone can fill the appointment book in abundance for that new stylist. The owner never has to sacrifice their hard earned customers. With a small amount of appointments on the books for this stylist, it becomes a problem over time if you don’t implement it correctly.
The owner has a hard time justifying the commission station. It’s just a stressful cycle that goes on and on until the owner can’t do it anymore or the stylist quits because they can’t make the money they want and walk away.
Then they both believe booth rent is the answer.
This is so far from the truth that it makes me sad to see that financial independence goes out the window for that owner and stylist. When worked correctly that station alone could make that owner and stylist the money they deserve to have.
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