How to pay your stylists commission

If you own a salon and are considering adding a commission stylists to help your salon grow, you may be trying to figure out how to base the commission structure. It can be confusing to figure out, but, we’re here to help!

Commission structure can vary widely from salon to salon. Sometimes, they can even be different from stylist to stylist in the same salon. Some start out with high commission, some stylists work their way to a higher commission with seniority. For the salon owner, figuring our how to fairly compensate their stylists without hurting their own bottom line is often one of the owners main concerns. 

Below we have the industry standards listed to help you more easily set up your commission structure. 

Hair


30% -50%+ if on a commission only. Typically, a new stylist will start with the smaller percentage and work their way up as they experience and time behind the chair. 

You can also use a tiered commission structure. Using a tiered structure allows you to compensate your stylists based on greater performance, allowing them to strive to be busier and make more upsells, which makes them more money and your salon more money. In our salon, every $500 extra they make is a 5% increase in commission. 

Retail- 

5%-10% of retail cost. This is one you do not want to ever go above 10%. Going higher is a financial liability you would create for yourself, making product sells almost not worth it. 

 

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.