Friday, June 11, 2010
It just makes me want to cry when I see some salons paying ridiculously high percentages to their staff - thinking they have to do that to keep them. Having been a salon owner for years as well as coaching many owners, I know that most salon owners wage % is far too high. To run a profitable business you don't want your total wage % to be any higher than 45%. There are so many things to factor into this to ensure it is a win/win for both the owner and the staff. Pricing, timing of appointments, client management, rostered hours... the list goes on. However if you bear that in mind you won't go wrong. Many staff are commanding a high % because they've got away with it (or they need a high percentage to get a good wage due to their low sales) - but why pay someone a high percentage and run at a loss? Don't get me wrong. A hairstylist or beauty therapist can earn great money on a lower percentage - as long as everything (as above) is set up properly. We've had staff stay with us for many years due to the fact they couldn't earn the same money anywhere else. That’s why I'm on a huge drive to help hairstylists and therapists grow their sales. Its not as hard as it seems!
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