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Beauty Salon Commissions are a Dead End Game

By January 19, 2023March 13th, 2024Salon Spa Blog
Old days booth renting in a hair salon was a dead end game.

If you work in a beauty salon, and your income is based on commissions, we are here to tell you that you are involved in a dead-end game where the cards are stacked against you.

A bold statement?  Most definitely!  A somber statement? You betcha!  Do we have an alternative to suggest?  Hold onto your hats, Momma, because we have news which can blow those hats off.

We are Salon & Spa Galleria, serving the Greater Fort Worth area with twenty-two salon suite rental locations. Call us at 972-691-7300 for more information and to arrange for a tour of our facilities.

Now, let’s take a realistic look at beauty salon commissions.

How beauty salon commissions work

If you have ever stepped foot in a beauty salon/hair salon/nail salon, in the last 100 years, you saw the traditional business model.  There are multiple working stations, each station operated by an “employee,” who is actually an independent contractor, and those employees service customers with perms and shampoos and cuts and whatever else happens in a beauty salon.

When the task is completed, the customer go to the reception desk, and pays for services rendered.

What customers are not aware of is what happens to their money once they pay it.  In traditional beauty salons, approximately 40% of that money is paid to the “employees” as their commission, while 60% of the money goes to the beauty salon owner.

This is the traditional beauty salon business model. It’s how it has been done for over one-hundred years, and it is still being done today.  It is in no way a get-rich environment for the employees, but it is a steady job and a somewhat guaranteed income, with no risk involved.  For the owner, it is a good investment.  Beauty salons are traditionally a good business investment, and as long as good service is provided, at a fair price, most beauty salons do quite well . . . for the owner.

We have absolutely nothing against beauty salon owners

Listen, we are in business too, and the whole point of owning a business is to make money, so we have nothing negative to say about beauty salon owners.  This traditional business model is designed for the owners to make the bulk of the profits, and why shouldn’t they? They invested capital to start the business; it is their investment capital which is at risk should the business fail. They certainly deserve the bulk of the profits for shouldering a bulk of the risk.

The Salon & Spa Galleria way of doing business

However, we have a different approach to this traditional business model.  We eliminate the owner from the equation, we shrink down the traditional beauty salon, and we make the “employees” the owners of their own independent businesses.

Here’s how it works.  We rent our luxury salon suites for as little as $50 per week. Included in that rent price are all of your utilities and almost all of your secondary costs.  In the salon suite rental, you operate your own business, a one-person business where you are the owner and the operator, and you keep 100% of your profits.

We benefit by keeping our salon suites rented, and you benefit by making 100% of the profits rather than 40% in commissions.

Imagine your income increasing by 60%.

It’s a win-win for everyone involved.

A final word about Salon & Spa Galleria

Salon & Spa Galleria is locally owned and operated, and we have twenty-two locations to choose from in the Greater Fort Worth/Tarrant County area. Call us today and arrange for a tour of our salon suites.  We are in the business of making dreams come true.