How to increase your income by giving your stylists a pay raise!

Posted by Jeremy Augusta on

We can all agree on one thing; we all want to have more financial freedom. Stylists are no different, but it's often challenging for many smaller salons to give the stylist a pay raise. The ability to get a raise almost always depends on if the salon has enough revenue to pay more commission. For a salon owner who truly wants to take care of their stylists, it's sometimes a choice between giving the stylist more money to make them happy and changing the salon's bottom line. Suppose the salon is having a bit of a more challenging time (especially post covid)and cannot give the raise. In that case, you may wind up in an awkward position of replacing a stylist and dealing with the lost income of clients who follow the stylist.

That doesn't have to be the case, though. There are ways that you, as the salon owner, can pay your stylist more while increasing your revenue.

The fastest way to generate new revenue for your stylist so they can have a raise is to help them create a hands-on class they can teach in your salon, with you, the salon owner, as the host. However, that is easier said than done. It can be intimidating to create and sell a hands-on class, but it is worth doing. For one, the financial benefits are enormous, and sadly, the economic potential is mostly untapped by salons.

Let's assume you have a stylist who is absolutely amazing with vivid colors. Vivids are a trend that is growing rapidly and is a trend that many stylists want and need to learn. In your salon, you have this stylist who always does fabulous vivids. Maybe that is what s(he) is known for, and it is the majority of the clients they have. This stylist can put on a hands-on class for other stylists to learn vivids in your salon.

For this article's purpose, we will say that the cost of this class your stylist holds in your salon is $400 per person to attend. In this class, we have eight stylists who paid cash for it. As the host of the course, you should receive 20% of commission sales. So, $400 x 8 attendees = $3,200. This means for only one day of additional work for the stylist; she has received payment of $2,560 minus your 20% share of $640. If she does this only four days a year, she has given herself a pay raise of $10,240. That is an additional income of over $10k a year for only four days of extra work per year! That is only four days of work to have a car paid off, a mortgage paid down, or whatever else this person wishes to spend their money on. For your role of helping, your salon has made an additional $2,560 just for helping your stylist make more income for themself. If you have more stylists who can do this, you've doubled that income. There are many ways to score big wins with this situation if you're clever.

An example is that when the stylists are signing up, they will be providing their email addresses, which you can use to market open stylist positions in the future to grow your salon with stylists that you already know care about their continuing education. Another benefit of this is building the ability to market your salon as the salon that other stylists come to for advanced knowledge. That not only will grow your client base, but that reputation will attract A+ stylists who want to work in it.

The hardest part of making this happen is if your stylists do not have the confidence to hold a training session. No problem, to help them get ready, you hold a practice class with your own employees in your salon. That will help the stylist who will be having the class get practice, work out any kinks, get feedback from the coworkers, and help the other stylists gain the confidence to do this themselves.

If you would like to have a hands-on class in your salon held by one of the industry's top professionals, contact us today to discuss the opportunity to have NuLuxe Beauty owner herself, Ashley Augusta, to hold a hands-on vivids class right in your salon!


If you are a retail professional and would like to see your sales and profits increase by offering our luxury products in your business, click here for more information.