How to Set Commissions in Your Salon
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Are you constantly coaching your salon team to hit commission targets? If so, your commission scheme might be doing more harm than good, turning you into a full-time system manager instead of a business owner. This traditional approach often leads to unpredictable payroll, resentment over pricing decisions, and a constant recruitment merry-go-round.
In this episode, Phil Jackson challenges conventional thinking and reveals three critical shifts to your salon's wage structure that will boost team motivation, improve profitability, and give you back control.
WHAT YOU'LL DISCOVER:
DO YOU ACTUALLY NEED COMMISSION?
* Phil argues that a higher, flat rate pay offers significant advantages.
* **Predictable Planning:** Your wage bill is stable, allowing for easier cash flow management and yearly planning.
* **Pricing & Marketing Freedom:** You can make strategic decisions (e.g., packages, loyalty deals) without impacting team pay or creating resentment.
* **Recruitment Appeal:** A guaranteed wage looks far more attractive to potential recruits than a minimum wage plus commission, especially in a competitive market.
PAY AS MUCH AS PROFITABLY POSSIBLE
* Contrary to instinct, paying the most you can profitably afford is a smart business move.
* **Retain Talent:** Minimum wage team members won't stick around. Paying well reduces costly, draining recruitment cycles.
* **Easy Pay Rise Conversations:** When you're already paying top rates, future pay rise discussions become straightforward. You can explain that increases require changes in their performance or contribution to the business's profit goals.
IF YOU'RE COACHING COMMISSION, IT'S BROKEN
* Commission is designed to be self-driving and motivating. If you's constantly pushing your team to hit targets, the system isn't working.
* **You're Doing Commission's Job:** Bolting on incentives or holding meetings to push retail means the commission itself isn't motivating the team; *you* are.
* **Coach for Salon Needs:** Instead of individual commission targets, coach your team towards what the *salon* needs to be profitable and secure for everyone, working backwards from your overall profit goals.
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📊 RESOURCES:
Get Paid Properly: getpaidproperly.com
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💬 WORK WITH ME:
1:1 Coaching: https://buildyoursalon.com
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🎧 LISTEN:
YouTube: https://www.youtube.com/@BuildYourSalon
Spotify: https://go.philjackson.me/Spotify
Apple Podcasts: https://apple.co/3MZp6jP
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CHAPTERS:
0:00 - Introduction: The Problem with Commission
1:00 - Do You Actually Need to Pay Commission?
1:30 - How Flat Rate Pay Boosts Planning
2:05 - Unlock Pricing and Marketing Freedom
3:00 - Make Your Salon More Attractive to Recruits
4:15 - Pay Your Team as Much as Profitably Possible
5:00 - Master the Pay Rise Conversation
5:50 - If You're Coaching Commission, It's Broken
6:40 - Coach for What the Salon Needs
7:50 - Recap: Three Shifts for Salon Pay
8:20 - Explore Commission Models with Phil's Course
#SalonCommission #SalonWages #SalonProfitability #TeamMotivation #SalonBusiness
Questions? phil@buildyoursalon.com