"Team Based Pay is more than just a pay system, it is a manner in which a strong culture can be built around the good in the industry, and that also discourages the bad. I only know of two actual systems, one I created and one Neil Ducoff of…"
"Jen as far as profitability for a Professional Salon here are the numbers I can support from experience. I believe that theoretically profit margins can be between 3% and 13% on services (the profit engine is in retail sales and is outside of the…"
"Yes, Adam, I figured as much. This is the part of the industry narrative that is simply missing, and why so many hairstylists fail and/or struggle to make a living. From what I see, essentially beauty school students have come to the idea that…"
"Adam, these numbers translate to just shy of $50,000 per year (figuring another $200 per week in tips). I would think that this puts your lowest tier stylists in the top 10% of all hairstylists in the U.S. In an industry with such a huge stylist…"
"I received an e-mail alert about this thread so I must have participated somewhere. I probably noted that in a commission environment it is possible to pay about 40% to the stylist before the profitability fails for the salon to want to support that…"
"Good post and good comments, but nothing in ever going to improve in the Professional Salon industry unless something is done about the problem of booth rent. There is not a single problem the industry faces that can not be directly correlated to…"
"Booth rent isn’t actually a business model, but rather a description of a number of things. First and foremost is that the “salon” owner is actually in the business of property management. They may be a stylist, too, but running…"
"The core of the issue is really about value. Customers don’t make decisions based on money, they make it based on value.. Money becomes a convenient fiction that overshadows the issue of value (e.g. $10.00 means nothing to the cash rich pop…"
"Great answers. I’ll add to Mr. Dorso. Here is how the culture of booth rent plays out, and it is quite interesting, albeit is the downfall of the industry. But people’s hair will continue to grow, so there will be a need for salons and…"