How Do Hairstylists Get Paid? Understanding Hair Salon Payment Structures

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In the bustling world of beauty and personal care, hairstylists are crucial in helping clients look and feel their best. However, the intricacies of how these professionals earn their living can be as varied and complex as the hairstyles they create.

From commission-based systems to booth rentals, salon payment structures can significantly impact a stylist’s income and career trajectory. Let’s examine how hairstylists get paid and explore salon expenses that influence their earnings.

Commission-Based Payment Structure

The commission-based model is one of hair salons’ most common payment structures. In this system, stylists receive a percentage of the total service cost for each client. Commission rates vary widely, typically ranging from 30 percent to 60 percent of the service price. For example, a stylist who performs a $100 haircut and color service would earn $50 if their commission rate is 50 percent.

This system benefits salon owners by encouraging stylists to perform more services and upsell clients on additional treatments or products. For stylists, especially those building their clientele, it allows them to earn more as they become busier and more efficient.

However, the commission-based model has its drawbacks. Stylists may find their income fluctuating significantly based on the number of clients they see. Additionally, they might feel pressure to rush through services or take on more clients than they can comfortably handle to maximize their earnings.

Salary Plus Commission

Some salons have a hybrid model that combines a base salary with a commission. This structure gives stylists a guaranteed minimum income while offering the potential to earn more based on performance. The base salary is typically less than a stylist might earn in a purely salaried position, but it provides more stability than a commission-only model.

This system can be particularly beneficial for new stylists still building their clientele. It allows them to have a predictable income while they develop their skills and customer base. As they become more established, the commission portion of their earnings can become more significant.

Booth Rental System

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The booth rental system is becoming increasingly popular in the hair industry. Under this model, stylists operate as independent contractors within a salon. They pay a fixed fee to the salon owner to use a chair or booth. In return, they keep 100 percent of their service earnings.

This structure offers stylists the highest earning potential and the most independence. They have control over their schedules, the products they use and their pricing. However, it also comes with increased responsibilities. Booth renters are typically responsible for buying professional hair color products, tools and other hair supplies. They must also manage bookkeeping, taxes and client relationships.

For salon owners, the booth rental system provides a steady, predictable income from rental fees. However, they have less control over the salon experience and may find maintaining a cohesive salon culture challenging.

Hourly Wage

While less common in high-end salons, some establishments, particularly chain salons, pay their stylists an hourly wage. This structure provides stylists with a stable, predictable income regardless of how many clients they see.

The hourly wage model benefits new stylists and those who prefer a more predictable income. However, it could limit earning potential compared to commission-based or booth rental systems. Some salons offer bonuses or incentives based on performance or product sales to supplement the hourly wage.

Profit Sharing

Some salons have a profit-sharing model where stylists receive a percentage of the salon’s overall profits in addition to their base pay or commission. This structure fosters a team-oriented environment and encourages stylists to contribute to the salon’s success.

Product Commission

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In addition to service commissions, many salons pay stylists a commission — typically 10 percent to 20 percent — on retail product sales. This can be a substantial income source for stylists skilled at recommending and selling hair care products to their clients.

This system benefits both the salon and the stylist by encouraging product sales, which can lead to increased client satisfaction and loyalty. However, some stylists are uncomfortable with the pressure to sell products, fearing it might negatively impact their client relationships.

Conclusion

How hairstylists get paid can vary significantly depending on the salon’s structure, location and business model. Each payment system has advantages and disadvantages, and what works best depends on the individual stylist’s career stage, goals and working style.

By understanding how they can earn income, stylists can make informed decisions about their careers and maximize their earning potential.