Your answer could end up in our magazine!
Our compensation is education. All classes and shows we attend are free to the stylists. This eliminates tracking retail commissions. Although we should have specific retail goals to meet, everyone does a great job selling and knows the classes and trips to the shows are their reward!
I know this sounds ridiculous but whoever sold the most retail got to wear jeans the following week and pick the radio station we listened to! They also go paid whatever % from service to retail they sold. example: if their services were $1000 dollars and they sold $200 they sold 20% so they got 20%of $200 so they made $40 however if they did $1000 in services and sold $20 that's only 2% so they would earn 2% on $200 which would be .40 I didn't pay over 20% but it put the earning potential in their own hands but to my surprise they rarely took advantage they were more interested in wearing jeans!!! Go figure!!
Right now, my spa is just myself and one booth renter. To motivate her to use the same products I retail and to get her clients to use the products, I offer her 10% commission on retail sales that can be taken off her booth rent total for the week. Last month her keratin iron broke and she did not have the money to replace it, so I gave her a goal to sell $1000 in one month & I would not only give her the 10% commission towards booth rent but I would give her $100 towards her new iron. She sold over $600 in 4 days! Needless to say the month isn't over, I'm definitely getting her the new iron.
My salon pays a straight 20% commission on all retail sales. The average in my area is 10%. I do not feel that is sufficient motivation.
I pay stylists 10% of all retail products sold and will also be implementing a bonus for most retail sold each month in 2013.
Adding service + retail then finding the percentage of retail to that total gives a more accurate % of everything the stylist is bringing in, instead of just retail to service. Here are a few examples of adding service plus retail then finding retail percentage:
s + r = $2400
s+r / r = 16% (16.666, but rounded down to just 16%)
16% of 400 = $64
(if it was just a straight 10%, retail % given would be $40)
if you were to do just retail did not add service + retail then it would look like this:
retail to service % = 20%
20% of 400 = $80
if you were just to do straight 10% of retail, you would be giving $40 from $400 in retail
let's look at it a different way:
s + r $2100
s+r / r = 4.76% (rounding down- 4% or rounding up- 5%)
4% of $100 = $4 - 5% of $100 = $5
(now if you were giving straight 10%, you'd be giving $10, an extra $5 or $6 they didn't "earn")
average shampoo & conditioner purchase $40
average styling product purchase (2 products) $40
if you can get your stylists to sell what they use on a client, that's $80 in retail (at least!) on a haircut & style (average ticket $40). They just retailed 150% (s+r divided by r) of that one service. Can you see the potential in getting them to sell retail?
I hope this makes sense!
Yvonne Rosales said:
Sliding scale based on retail sold. Between 10 - 20% commission. I'm interested in figuring out Tracy's way??
We offer up to 20% or commission equal to retail/service total. Must meet .5 units per guest. Paid monthly.