Hi if anyone could please advice me I would truly appreciate it.  I opened up a spa business in which hair services will be offer.  I am in the process of hiring a hairstylist and I am negotiating a commission.  She will be buying all the products she will use. I will be supplying the space and equipment as well as promoting for customers.   Would a 65% to her 35% to the spa be a fair commission? What is usually the percent one would give in this situation? 

Thank you,

Emilsi

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Comment by Debb Rooney on April 5, 2014 at 2:43pm

Very fair. I supply my own products, majority of equipment and get 60% commission.  I do get 100% of my retail products that I order, pay for , etc. I just moved in 2 months ago and our agreement was that she would do marketing, advertising & let me use her POS for at least 3 months or more.  I help her out up front when not busy. After 3 months we will enter another agreement on advertising & marketing costs.  As far as using her POS, I am really trying to keep my business separate from hers so I am working on getting my own system for that. She also does all the cleaning & supplies all supplies for the facility. She even mops & dusts my room. I do my own laundry.  Good luck. I would come work for you for that commission.

Comment by Michele on March 18, 2014 at 5:57am

Wow, a tube of color & developer costs about $10 & its 2 retouches on the average. Im not sure where your spa is located, but I have in the past been in skincare sales for 14 yrs & have had discussions like these often with spa management, You will lose your shirt at that arrangement, Most learned the hard way. You need to consider what utilities, advertisement, marketing, reception, laundry, sundries, cleaning, maintenance, lawn & plow care ect, costs. There so many hidden costs that add up. The highest I have ever heard of  is 50/50, they purchase product, spa owner takes care of all I mentioned above, & I only hear that figure occasionally I do not agree its fair. Personally I see the norm in my area to be  55% owner 45% stylist. Why would you consider allowing a stylist to make more than you at your spa??? If they were there own spa, it would not come down to a 65% profit margin for themselves.  You may do a tiered % where they make a little more % in the beginning while they are building there inventory & a clientele but it decreases over a year until it is at a set figure.  I suggest you research this more.& have a very detailed contract, & no compete clause. Dori Soukup [google Insparation] has excellent spa management dvd's & webinars packed with business building info, If she is ever speaking at a trade show, catch her class..these topics are discussed.  Good Luck.

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