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⬅️ swipe Which salon model makes more and why? That's a tricky question. While on paper commission salons should be able to make more, they often have little to no profit. I cover a lot about this on my page and how to create a more profitable salon structure with systems for your team in my Salon Owner business packages. Link in bio for more info ⬆️ The only reason many stay afloat is due to the owner still working behind the chair and essentially they get a booth paid for by the salon. I don't know about you but getting a booth in exchange for the work it takes to run a salon is not a fair trade. Rental salons are limited by how much they can make because the busier the salon gets, the higher their costs are without making any more money from the services their team is doing. Their cost to operate goes up each year even if they charge the same for rent. But they only go in the negative or have zero profit if too many of their stations are empty. If the Stylists are slow or use way too much product, it doesn't cost the salon. A commission salon can gross millions and still have no profit after paying wages, payroll fees, color costs, overhead and more. Every decision their team makes in the wrong direction costs the salon. I would guess that most Independent stylists lose 15k to 20k per year behind the chair. They still make money though because they are only responsible for themselves. On the flip side, a salon full of 10 commission Stylists who lose that much results in 150k to 200k of lost revenue and a loss of about 75k to 150k to pay to operate the salon after the Stylists are paid their wages 😬 While there is more to be made there is so much more to be lost and it's in the hands of their team whether that happens or not. Our industry needs salons to be successful because not everyone will thrive in a suite and so many need the training and support they provide. It's important that there is a better understanding of how salons operate and how you as a Stylist can either help build a salon that supports you or contribute to its demise. We see 80% of salons close within the first 18 months and many Stylists who ➡️ continued in comments
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