Hair stylists often earn commission based on their services and product sales. Medioimages/Photodisc/Photodisc/Getty Images Many salons have a commission-building system in place to encourage stylists to bring in business and compensate them for their work. While commission is common among salons, the type, amount and structure of the commission varies significantly from salon to salon. Some salons establish set rates for every stylist, while others increase rates for stylists with seniority or stylists who exceed certain monetary amounts. The exact percentage of commission that a stylist earns can vary based on seniority, with junior stylists typically earning the lower end of the commission scale. Some salons use a graduated commission scale in which stylists who meet certain monetary goals receive an increased commission rate for the additional business they bring in above that amount. In 2012, hairdressers, hairstylists and cosmetologists earned an average of $12.88 per hour, including commission, according to the Bureau of Labor Statistics.
This comes to about $26,790 per year. Commission Structure Some salons pay stylists on a commission-only basis, meaning they receive no salary or hourly pay. However, this structure can be difficult for newer stylists who may not have a large customer base. Some salons offer a salary or hourly wages for the first few months before switching to commission-only pay. Other salons implement a hybrid salary-commission system in which employees receive a minimum salary or hourly pay, along with commission. Stylists working within a hybrid system often receive lower commission rates than those working in commission-only salons. Commission-Earning Services Salons often give stylists commission for both styling services and hair-care product sales. Stylists are expected not only to attract clients for shampoos, cuts, colorings and stylings, but also to promote certain products and encourage their clients to purchase them from the salon. Some salons have different commission rates for salon services and product sales.
As with styling services, commission from product sales may work on a set rate or a graduated scale. Booth-Rental Salons Rather than hiring employees, some salons simply rent out chairs in their salon to independent stylists for a flat monthly fee. In this model, the salon owner is effectively just a landlord, collecting monthly rent from each stylist. Booth-rental stylists do not receive a commission, but they are typically able to pocket 100 percent of the earnings from their services. This model provides very little incentive for stylists to sell the salon’s products, as they are typically unable to earn commission from the sales. : How to run a beauty salon: costsHairdresser Career Development Systems: Booth Rental: Is it Right for You?Bureau of Labor Statistics: Hairdressers, hairstylists and cosmetologists Photo Credits Medioimages/Photodisc/Photodisc/Getty Images Suggest an Article CorrectionAll Locations / New York / Long Island / Huntington Huntington Huntington Station, New York About This Location Sola Salons is a local village of independently-owned and operated boutique salons, offering a full range of beauty services including hair, nails, skin care, waxing, spray tanning, teeth whitening, boutique clothing, jewelry and more.
We are located on West Jericho Turnpike in Huntington Station, about a half mile west of 110 in the King Kullen / Rite-Aid shopping center. We are just around the corner from the Walt Whitman Mall. If you're a stylist interested in working for yourself in a private salon studio, give us a call at (516) 584-4229 to arrange a confidential tour. We only have a few studios remaining. If you're a customer looking for a uniquely private, professional service from one of our experienced beauty professionals, please click the Find a Professional button above or come visit our location today. Move-In Special $500 cash move-in allowance, first two weeks rent free Your Life, Your Style® Studio Amenities Fully enclosed, private, locking studio High-end styling chair and shampoo bowl Full-spectrum lighting and oversize mirrors Luxurious cabinets and fixtures Individual ventilation in each studio Instant and abundant hot water supply Onsite laundry and shared amenities All utilities and Wi-Fi included And much more...
Salon Professional Benefits Keep 100% of your profits Access group insurance and Sola discounts Escape salon politics and drama Manage your own schedule Personalize your salon space Set pricing for services and products Sell the retail products you love Play your own music Enjoy private conversations Looking for a Salon Professional? Contact Us forLeasing Information Huntington Call Dan for leasing information (516) 584-4229 I love that I have my very own space where I can do business the way I want to, and that I can decorate as I like. I get to focus on my clients without any salon drama to interfere. Katina Eisenbeis, Katina's Salon View More Testimonials Join our community and experience a level of creative independence and career support you won't find anywhere else. See What Others Are Saying View Sola Testimonials Find a Salon Professional At Huntington SolaCosmetologists who work as employees on a commission basis keep a percentage of the income they bring into the salon through the services they perform, typically 50% of the total amount.
Although as an incentive, some salons will pay their stylists on a sliding scale, with the greater the amount of money brought into the salon by the cosmetologist, the higher the percentage she will be allowed to keep, sometimes 55% or even 60%. Cosmetologists who are paid on a commission basis are also paid a percentage of the total amount of retail products they sell, usually 10% to 15%. The salon owner provides all the products and supplies used by commissioned employees, including shampoo, conditioner, permanent wave rods, hair color, and towels, and also pays the business expenses. The employee usually supplies her own combs, brushes, shears, blow dryer, curling irons, clippers, and other specialty items. Commissioned salon employees normally work a schedule set by the salon owner or manager, use the supplies (such as shampoo and permanent waves) that the salon owner purchases, and sell the retail product lines that the salon owner chooses to offer for sale. Many salon owners will pay all or part of the fees for continuing education for their employees, and some offer fringe benefits such as vacation and sick pay.
Other than keeping an appointment book for their clients, the bookwork necessary for a commissioned stylist is usually not extensive or complicated. Advertising is also the responsibility of the salon owner, although word of mouth is undeniably the best advertisement of all. Individual hairstylists usually have their own business cards and the responsibility of building their own clientele belongs to them. Many cosmetologists who are self-employed own their own salons, but a growing number of the self-employed lease booth space or a chair from the salon’s owner. In this case, workers provide their own supplies, and are responsible for paying their own taxes and benefits. They usually pay a monthly or weekly fee to the salon owner, who is responsible for utilities and maintenance of the building. Booth rental cosmetologists enjoy greater freedom but also have greater responsibilities than commissioned salon employees. In exchange for their rental payment, they usually receive a vanity, mirror, hydraulic salon chair, and access to shampoo bowls, towels, and chair or “hood” dryers, all provided by the salon owner.
The independent contractor must purchase all the products she uses on her clients as well as the retail products she chooses to sell, and like the commissioned employee, she furnishes her own shears, combs, brushes, styling tools and numerous other specialty items as well. Independent contractors pay their own registration fees for continuing education, and do not receive fringe benefits through the salon. Owners of booth rental salons may or may not advertise their business; independent contractors are often responsible for their own marketing. When it comes to taxes, there is a great deal of difference between an employee and an independent contractor. Independent contractors must also hold a state sales tax license, collect sales tax on their services and retail sales, and periodically send the sales tax collected to the state in which they practice, while commissioned employees don’t have to worry about any of that, as it is all the responsibility of the salon owner. Because they are not employees and federal income tax is not withheld from their pay, independent contractors are required to pay self-employment tax and usually file quarterly estimated income tax payments to the Internal Revenue Service to avoid having to pay their total tax bill at one time.
Because their tax returns are more complicated to file than those of a regular salon employee, independent contractors often enlist the help of a bookkeeper or accountant when tax time arrives. It is important that independent contractors keep accurate business records and receipts of all income and expenses, while salon employees have no need for keeping most of these records, although business expenses such as license fees and equipment may be claimed as a deduction by both employees and independent contractors. Independent contractors are free to set their own schedules, can come and go as they please between clients, and maybe even take a second job or a class. They are able to choose the product lines they want to use and to sell. While all this freedom is very appealing to many cosmetologists, most wait to become independent contractors until after they have a steady clientele built up, because whether or not they have any appointments on their books, they must pay their rent and purchase supplies to stay in business.