There are many who’s wondered about how much of your salon’s fee is actually going to stylists. The question is frequently asked by stylists searching to be independent as well as customers interested in knowing where their money goes. The amount a stylist makes depends on the way they workwhether they lease chairs, earn commissions or are employed on their own in salons.

Stylists on a Commission Basis

In salons stylists generally start with a commission-based system. The stylists are paid a specific percentage of each service they perform in the salon, and the salon gets the remaining amount to cover costs for overheads like rental, utilities, and other the like.

  • Commission fees for stylists: They typically make between 40 and 60 percent of total amount that clients pay them.
  • When you are paying $100 to get a haircut, the stylist will get somewhere between $45 and $60, minus tax.

This is a great model for stylists who are new and do not have a steady clientele. Salons are responsible for advertising, bookings and inventory. The stylist is in control over pricing and scheduling and their earnings are highly dependent on the amount of traffic to their salon.

Stylists that work on an hourly basis receive an hourly rate

Salons that are located in areas of high traffic or chain salons could pay hourly rates. The earnings can be low however this model is stable.

  • Hourly stylists earn between $15 and $25 an hour. Sometimes, they earn compensation or bonuses on sales.
  • Security is preferable to independence for those who want routine schedules and regular paychecks.

Booth Rental Stylists

The structure of the financials for stylists renting chairs or suites can change dramatically. They do not split the cost of each customer with the salon. Instead they pay an agreed monthly or weekly rental fee.

  • The rent can range between $200 per week and $600 per week, depending on the area the amenities and utilities that are included.
  • After deducting rent, taxes and other supplies, stylists keep 100% of the cash they make.

This model is extremely popular among established stylists who have many loyal customers, because it allows them to have full control over their pricing, schedules and branding. It also comes with duties, from maintaining inventory, to marketing and sales.

Salon Suite Stylists

Salon suites go beyond booth rentals. Salon suites are mini salons that stylists are able to rent. The stylists operate their own business, while having the privacy and freedom to be creative.

  • The flat rate is $250-800 per week, based on the dimensions and amenities.
  • They keep their entire profits, excluding any costs for business.

That means that stylists could “take home” 70-90% or more of the cash received by clients. But it also implies that stylists should budget for things such as the retail store and software.

The Bottom Line

What proportion of the money that you spend on your stylist the stylist actually make?

  • In a salon that has commissions typically, the commission is between 40-60 40% to 60%.
  • A space, a suite or another space could cost between 70 and 100 percent, based on the cost.

The income of your stylist is affected by more than just the cut or color you receive. The earnings that your stylist earns is determined by the model of business they employ, their expertise and how much autonomy they’ve decided to grant their own. Each stylist shares the same objective, regardless of whether they work in the salon that works on commission or work in an independently-owned suite. They wish to offer excellent service and create a successful career that will reward their talents.

This post was written by a professional at Salon Sequence. Salon Sequence Studios offers a wide variety of services for hair, skin, and nails with experienced, independent salon professionals. Relax and enjoy your day of beauty with our talented beauty professionals, in your own private suite. Salon Sequence Studios leases studios for independent beauty professionals as well, so if you are looking for Salon Booth Rental St Petersburg FL, come in and showcase your skills and make our clients feel at ease. Call to inquiry on salon rentals near you with Salon Sequence today.