Thinking of giving your team commission on retail sales?
If you're wondering whether to give your team a cut of their product sales – and how much to give them – here is what to consider:
What should you offer?
Most salons offer their stylists somewhere between 10% to 15% commission on retail sales. This means if a stylist sells a $30 shampoo, they might earn $3 to $4.50 from that sale. Some places go as high as 20% for high performers or during special promotions. The key is finding a sweet spot that motivates your team without eating into your profits too much.
Why offering commission on retail benefits you?
Extra motivation
When your team gets a piece of the pie, they're more likely to recommend products they truly believe in. It's not just about selling – it's about earning extra income while helping clients maintain their looks between visits.
Better client care
Stylists who are invested in retail sales often spend more time educating clients about their hair care needs. This usually leads to happier clients who get better results at home.
More income for your team
Commission gives your stylists a way to boost their earnings beyond just their service income. This can help you attract and keep great talent.
Higher retail sales
When done right, commission typically leads to better overall retail performance for your salon.
The 2 main considerations:
Training your team
Your team needs to know your products inside and out to sell them effectively. But it's not just about product knowledge – it's about teaching them how to make recommendations that genuinely help clients without coming across as pushy. The goal is to keep that great customer service your salon is known for while adding product recommendations that make sense for each client. Think of it as extending their care beyond the salon chair, not just selling for the sake of sales.
Cost to your business
Remember, every dollar you give in commission is a dollar less for you and the salon. While we definitely want to reward and value our team, we also need to protect the longevity of the salon. You need to make sure the increase in retail sales are worth the commission you're paying out. It's about finding that sweet spot where everyone wins – your team feels motivated, your clients get great products, and your salon stays financially healthy.
Setting expectations:
Start with clear goals and expectations. Let your team know exactly how the commission system works and what they need to do to earn it. Some salons have found success with these approaches:
Starting with a lower commission rate and increasing it as stylists hit certain sales targets
Offering higher commission during slower months to keep retail sales steady
Including retail sales training as part of your regular team meetings
Creating friendly competitions with extra rewards for top sellers
Also consider talking with your team about their comfort level with product recommendations and what would motivate them to focus more on retail. Their input might surprise you and help you create a program that really works for everyone.
What to look at next:
Your profit margins: Look at what you're paying for products and what you're selling them for. Make sure you can afford to share some of that difference with your team.
Your current retail performance: If your retail sales are super low, commission might not be your first step. You might need to work on product knowledge and client communication first.
Your tracking system: How will you keep track of who sold what? Make sure you have a good system in place before starting a commission program.
The rules of the game: Will you offer commission on all products or just certain ones? Will everyone get the same rate? Think about what makes sense for your salon.
Retail commission can be a win-win when done right. Your clients get products that help them maintain their style, your team earns more money, and your business grows its retail sales. The key is finding the right balance for your salon and making sure everyone understands how it works.
Before you jump in, take some time to crunch the numbers and think about what would work best for your team. Remember, you can always start small and adjust as you go. The most successful commission programs are the ones that feel fair to everyone involved and actually help your business grow.
Ready to get clarity on your salon's financial performance? Schedule a free discovery call to see how we can transform your business.
The Glow Standard organizes financial data to help salon owners make better business decisions.
