How do salon owners get paid

But things have changed drastically and for the better since then. Once again, the numbers fluctuate across different states and cities. To that end, here are a handful of tips to help increase sales and profits as a hair professional.

Upselling and cross-selling are classic techniques within the beauty industry. When well-executed though, they allow salons to not only to maximize sales, but to give their clients greater value through expert recommendations and advice. Have a good knowledge of treatments and products.

Why should the client go for deep conditioning instead of the regular treatment? Answering these questions effectively requires deep service and product knowledge, so make sure you and your team brush up on the ins and outs of your offerings.

Tap into their resources or see if they could hold a training session at your salon. Choose the right moment. If you are going to cross-sell, the interaction needs to feel authentic.

This means that timing is crucial — if your sales pitch is out of context, the client is more likely to decline. It gives the impression that you care more about making money than about satisfying customers. Needless to say, pushy or aggressive sales tactics are also a big no-no.

Ease of booking also has massive advantages for you as a stylist. Admin is a frustrating, but necessary part of the job, and an online booking system helps keep this to a minimum. Not having to dash off to answer the phone constantly creates a much better experience for clients and allows you to dedicate more time to profit-generating activities.

One example of a business that offers convenient booking options is Salon Citrus in Georgia. Salon Citrus has an online booking portal that allows clients to schedule appointments at all hours.

For best results, allow your clients to book appointments using the platforms that are most convenient to them. While expenses such as rent are fixed, there are other costs that you can influence. Consider the following:. Avoid overstocking inventory. Carrying a range of products is a big upfront cost for any salon. Use your sales history to track which products are the most popular so that you can place orders accordingly. Reduce waste.

Using extra foil or leaving behind excess dye might not seem like a major issue, but this adds up quickly over time. It means ordering materials more often, which increases your overheads substantially. Be mindful of utility costs. Services like water, power, and internet are essential, but there are ways to keep the cost down. Small steps, like making sure that all the lights are turned off at the end of the day, will make a big difference to your bills! Save time. Regular employment means the personal care professional is paid an hourly rate and commissions on products and up-selling of services.

Some salons also offer their employees benefits and paid vacations. Personal care professionals who rent a booth or space in a salon pay the salon owner a fee to use the space and, in some instances, a percentage of any sales they make while working in the salon.

In most cases, a beauty salon owner will make more money by renting space than by employing personal care professionals, provided the professionals renting the space have sufficient clientele. When the economy is good, people flock to beauty salons to get full days of treatment. However, when the economy is declining, some services are not utilized as much.

For example, a woman might still get her hair cut and colored but skip the manicure and pedicure. This will affect how much a beauty salon owner makes. How much a beauty salon owner makes will depend on the amount of overhead the salon has, such as utilities, supply expenses and wages paid to employees. Also, the number of customers and how much the salon charges for services will influence how much a salon owner makes. This gives you an additional tax-free source of income. There is more information on the government website about setting up a limited company.

One option for salon owners is to pay themselves a salary as they would any other employer. Sole traders then pay regular income tax on any other profits. If you later register yourself as a limited company, you can also pay yourself through dividends.

Paying yourself as a salon owner can become complex, especially when you are first starting up and are unsure of how much profit you will make. When loans are also involved, it is always best to make sure you get professional financial advice. Similarly, getting into trouble with the tax office is a serious issue! Hiring an accountant can really help out if you are unsure of the best way to pay yourself a salary as a salon owner. Take a look at our full selection to find what you need today — next day delivery available.

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