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Permalink Reply by Cindy Greenwood on August 22, 2012 at 9:14am

I worked for two places that charged a product fee (in addition to the commsiion split).

But BOTH of them were 10%.

Commision of 50% is on the higher end of average. There is a place I know of they pays their staff 25% (LOL - none of my friends work for her!). I turned down an offer of 35%. And have worked for 45%-60% in the past.

For facials many vendors estimate product costs to be between $5-$15 and even higher if you are using ampoules and expensive masques. $5 is on the low end. Not figuring in equipment costs, my cost for facials run about $10 in product. So you would be surprised.

I think adding on other fees is overkill. The 50% they are taking IS your booth rental. If you are a renter you should be supplying product.Although, I don't know alot about booth rental as it is prohibited in my state...

If THEY are supplying product, they are acting more like an employer than a landlord, aren't they?

Do you have a written agreement that spells all this out?

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Permalink Reply by Aranka Lalla on August 23, 2012 at 5:16am

Hi Cindy, thanks for your reply , it is very helpful, as being new, there's still a lot to learn. 

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Permalink Reply by Susanne Schmaling on August 23, 2012 at 9:18am

Based on your question I am assuming that you are an independent contractor. If that is the case then you should be providing your own supplies. You should also have a contract that outlines what you are paying for and should be able to deduct your expenses at the end of the year. You should also be getting a 1099 from the spa if they are paying you a commission on the retail. This set up could be audited by tax authorities very easily, in fact there is a big push with the IRS to look specifically at the beauty industry.

If you are actually an employee (they are taking taxes out) then what you are really making is less than a 50% commission, but you fall under employment law for your state. This may give you some additional protection such as receiving at least minimum wage when required to work certain hours.

As far as the backbar fee, I have seen lines that are as high as $25 per facial. It depends on what is being used, is it just product or all of the sundries, utilities, towels etc added in?

I owned a Day Spa for several years and the situation that you are describing would definitely keep me up at night and cause a nightmare for my accountant. If you need any additional help feel free to get a hold of me at sschmaling@ascpskincare.com.

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Permalink Reply by Aranka Lalla on August 23, 2012 at 5:59pm

Hi Suzanne, thanks as I truly appreciate your input as I am an IC and have learned a lot.

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Permalink Reply by Karen Hurley on August 26, 2012 at 4:26pm

In other words, this spa has offered you an opportunity to pay for use of space, only when you produce.

That's actually a pretty low risk, secure arrangement.  Keep in mind the owner pays whether you produce or not.

A $10.00 fee for the use of products and equipment is actually pretty fair, considering that if you go 30 days with no booked clients, the spa is paying to have the room available, if you don't generate any revenue.

The only way to know if this is truly fair is to find a space in your area that you have to pay for by the month - and provide your own supplies.  This means you pay whether you have clients or not, and 'pay' to have products available for purchase.

"Professionals" are usually paid by the service (productivity) in an environment they -RENT- space from. 

Your employer is assuming the risk of no productivity, and paying accordingly.  It is a very different world when covering expenses, and there is no producitivity to cover costs.

 

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