commision pay plus additional fee per service??
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Replies to This Discussion
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Permalink Reply by NBSkinCare on
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hmm this makes no sense to me, actually.
#1, your employer is YOUR EMPLOYER. Determining these things is her/his job… right?
#2, if you're commission based pay, your % is your %. The employer's % is negotiated to cover the employer's costs.
ie I pay my employee 35% of services (and then payroll/tax that amount). The 65% that I make of each service is to cover: back bar, product costs, materials/supplies, overhead (rent, utilities), disposables, insurance, worker's comp, payroll tax liabilities, advertising, profit, etc etc.
If your employer wants to cover his/her backbar costs, shouldn't that be negotiated out of your commission %..?
And, still, regardless… that is your employer's job to know his/her product and service costs!
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And, honestly, each and every protocol has a different cost per service, that I don't think you, as the employee, would even be privy to because I don't believe your the one ordering the back bar, right?
Some of my facial protocols are $10 in product and disposable costs, some are more, depending on the serums used.
Does your employer expect you to factor in the laundry used per service, the machines used and each cotton round and 4x4?
I just don't see, as the employee, how you're supposed to have that knowledge to make an informed cost per service?
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Permalink Reply by Kelly Forney on
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I know it doesn't make sense to me either I've always received 45% and now my new employer wants to take out a fee on each service. And yes figuring in every single factor which your right I don't do the ordering so have no idea what things cost. Its a fairly new place so maybe I need to see if she can do things differently.
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Permalink Reply by coldsalineplexus on
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Agreed, this is not an appropriate position to put you in. What your employer should be asking instead is for you to keep a detailed accounting of the products and supplies used during each treatment (number of cotton rounds, number of hot towels, use a small scale to determine how much product, number of spatulas, wax strips, number of times you change barbicide averaged over your number of treatments, etc.). So literally everything you touch during a service, so that you can come up with true per-service variable costs (variable as opposed to fixed, which is things like rent, utilities, internet, advertising, etc.). That, I think, is a reasonable thing to ask an esthetician to do because you are the one utilizing the supplies. But asking you to take that information to the next level when you don't know the supply and ordering costs and many other factors is crazy.
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Permalink Reply by Amy Sherman on
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Tell her it's .25¢
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This should be your employer's job, and it's not a hard one. Every manufacturer has cost-per-treatment calculations as part of their customer support. This also allows the employer to audit your product usage -- little worse for profitability than the $100 moisturizer being used up 2x as fast as prescribed.
Keep in mind -- product fees are not unusual, even for employees working on %. Part of the "theory" of % commission is the technician receives higher pay for higher priced services, but usually what is driving the higher price is the higher priced products and extra equipment needed --- the services are not always proportionately longer in time.
So why should the employer invest in more equipment and pay higher product costs AND pay you more for the same amount of your time? Does not make sense to me, which is why I don't believe in % pay.
But again, %, product fees, etc all complicate compensation, when compensation needs to be simple to be understandable and readily calculable for the employee as well as the employer.
This smells an awful lot like the product costs are not being managed properly and instead of managing them and training the staff accordingly, the easy way out is to slap a product charge on every treatment.
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