Tracy and Ami at Profiles have “Tech” and “Senior Tech” prices on all the services. It works for them….the techs have the ability to upgrade their levels. The clients aren’t paying for premium services yet getting a newer tech’s work. Set some criteria she’d need to meet…and let her work toward that. Let all the clients know that at some point she will be getting promoted and charging more (so there won’t be AS MUCH whining when she ups the prices, later.)
Another idea….could be setting a price that is discounted from yours….but I’m liking the idea of her earning her way up. K From: [email protected] [mailto:[email protected]] On Behalf Of Maggie in Visalia Sent: Friday, March 14, 2014 4:01 PM To: [email protected] Subject: Re: NailTech:: My First Henchman Ok-- I'm "almost" excited about an employee. Still mostly scared. I'd originally been in the preparation phase of taking on an employee sometime NEXT year, but it makes me sick having to turn away so much business and I happen to know someone who I have faith in who recently got her license and is available now...so now it is. My original plan was to offer hourly plus commission. But offering someone an hourly wage requires KNOWING-- being absolutely, 110% SURE-- that I have the money to make that payroll. Which will require (embarassed throat clearing) me paying off some of my bills to free up some of my money in order to make sure it's there on times when business wasn't. Because we all know that just because I'm turning people down every day NOW, in a couple of months I'll be whining about the tumbleweeds blowing through the hallway:-) So the immediate plan is straight commission. I've been asking around and combing the Internets and it looks like our biz DOES fall into the exemption in California and straight commission is acceptable. A booth renter would pay me $125 a week-- our local going rate being about $100. I'd charge a premium booth rent rate because I have a premium location and, hey! Let's face it, you get to work with ME! Who wouldn't pay extra for that? Right? LOL. So my goal is for my profit to meet-- exceed-- $125/week from an employee. I like that commission will give ME an opportunity to make greater profits too, which is an incentive FOR ME to give up the peace and quiet and share my space. I agree with Karen, it looks like the costs of having an employee will be about 12% of their pay. But I'm swining wide on my math and figuring 20%. Which should fill in any gaps in taxes and fees that are lurking out there to surprise me, and should also balance the fractional increases in cost of business-- for instance, I will have to upgrade my online booking system to a higher level to allow for more than one operator :-( Retail is a non-issue. I don't do enough of it for it to be an incentive at any level. My current thoughts are: 50/50 for $1-$499 60/40 for $500-$999 70/30 for 1000+ At that rate, the 70/30 split would still put $160 in my pocket. I feel that's pretty fair. And I know that if I was on commission and made $1000 in one week for my employer, I'd be pretty disgruntled at only getting $500 of it. The purpose of having an employee is not to run them hard and put them away wet, make them feel used and end up with high employee turn over. What I would need to make from each employee would/will be different depending on my costs of doing business and the costs of having employees: if I offer insurances, paid vacations, other bonuses, etc-- I'd need to re-evaluate. And that's certainly something I have in the back of my mind as the future warrants. Now-- aside from discussion about pay structure and cost of employees, here's another thought I'm wrestling with: I've been doing nails for 22 years. My prices are still just on the high end of average for my area. But, the gal I'm hiring is new. She got her license last fall. This will be her first salon job. I don't think she should be charging the same for services that I do. What's the best way to set up a different service cost for a new tech? Do I set completely different prices for every service if done by her? or do I use the same pricing but with a discount? For instance, if a new set is $60, would her new set be $40? or would it be $60 at 25% off? And what sort of time table should I set up for getting her to the same prices as I charge? Maggie Franklin: Owner & Artist, The Art of Nailz <http://artofnailz.info/> , Visalia CA "Visionary rebel dreamer; obviously way ahead of my time." Maggie Rants [and Raves]@Nails Magazine <http://blogs.nailsmag.com/maggie/> Facebook <http://www.facebook.com/onykophile> From: Karen Hodges <[email protected]> To: [email protected] Sent: Friday, March 14, 2014 8:33 AM Subject: RE: NailTech:: My First Henchman Pretty much what Pam said. I think payroll taxes will be less than 15%. Here’s a link that was the most comprehensive update for 2014 that I found of all the employer’s obligations. Remember Unemployment taxes (Federal and State) have ceilings…you only pay on so-many thousands of their wages. http://www.ey.com/Publication/vwLUAssets/EY-US_Employment_Tax_Rates_and_Limits_for_2014/$FILE/EY-Payroll-Perspectives-Nov I definitely believe in sliding scales based upon performance. Retail in the nail industry is notoriously small---a few bottles of cuticle oil and lotion seem to be typical. 10% of 6 bucks is not a great incentive. But if you have extensive inventory…gifts and accessories, skin care, hair care, etc, then I would make it 10% on the first $50 per month, 12% on the next, %15…and so forth. I would not pay more than 25%....because there are so many factors: shipping, the cost of pricing and shelving (somebody’s time was used), degradation of product that sits and must be trashed, shrinkage (pulled from shelf and used in a service and forgot to reimburse…or walked out!), etc. As for commission….I personally believe that IF this person is an employee…and I am the employer…I should supply the products and pay a lesser commish to start. If it’s a newbie and I am having to train and oversee her work, make it right when there are goofs, etc…..40%....maybe for a probationary time 60 days….and an evaluation….and if there’s progress, a raise. Once it’s established this employee is fully functional, she can work toward a goal each week….once her gross service income is somewhat stable at a certain level, (eg. If 3 weeks out of a month she hits her goals for 3 months) then she gets another raise…and a higher standard to work toward. I think this should be laid out and measurable and obtainable. Making the percentage a whim of the owner is not motivating. I think the max should be 60% for a senior tech who needs no supervision…and once her weekly goals are stable at that level, give her the chance to booth rent. I never liked having a ceiling on what I could make. I worked for one day spa bringing in 1200-1500 per week but I could only make $700? I didn’t feel the product costs and overhead for my work were anywhere near $400-$700 per week they were making off the sweat of my back. I believe in writing things out…having a policy book. When there are questions that come up…”What does the policy book say?” I believe you should enforce the policies evenly. Always. And don’t worry about hiring a Mini Me…..it’s good to have different personalities that can mesh. Some people will float to her, and some will float from her to you. I think you should make it clear from the beginning that clients are free to shift between you. You should make it a point of letting that happen….have her do your repairs…you do hers…so clients get used to either of you. Yes, Magz…you will have die hards that would rather walk on their lips than give up their appointments with you…but there will be some that will be relieved that there is now a little breathing room in the scheduling…and they will still get to be in your sublime presence! Hit us up with your questions…you know we’ve got your back! Karen From: [email protected] [mailto:[email protected]] On Behalf Of Maggie in Visalia Sent: Friday, March 14, 2014 1:05 AM To: 1Nail Tech list Subject: NailTech:: My First Henchman So it looks (gulp) like I've hired an employee. HELP!!!! What am I doing? I was planning on doing this about a year from now, but as it currently stands I have absolutely zero openings after 5 p.m. FOREVER-- until somebody quits or dies. I'm turning away business daily and that doesn't include how many people may be unable to book online that I never even know about. It's time. I'm kinda, sorta aware of how much an employee will cost me in the way of payroll taxes, disability, unemployment, worker's comp, etc, etc, and so on. I'm guestimating about 20% of what I pay the employee. All current research indicates it should be closer to 15%. ???? Our profession seems to fall into the exemption area for paying straight commission. I'd like to be able to pay her hourly, but that's not going to happen just yet. So I've been trying to work on a sliding scale commission structure from 50/50 to 60/40 to 70/30. Now. I know there are some of y'all out there who've been down the employee path... I need information. I need guidance. I need comfort. I need a stiff drink. What am I getting myself into? What am I not paying attention to? What's going to bite me in the butt later? What am I missing? Mostly-- can anyone help me with my commission structure? My goal is to make this (eventually) more profitable than renting the booth out at the going rate of $100-$125 a week. Naturally-- that won't happen till my new henchman is more established. I'm not JUST about the money, I want to groom a good nail tech who will be a valuable asset to not just my own salon, but our industry through out her future as a tech. But dang! If this isn't just scary as all heck. Maggie Franklin: Owner & Artist, The Art of Nailz <http://artofnailz.info/> , Visalia CA "Visionary rebel dreamer; obviously way ahead of my time." Maggie Rants [and Raves]@Nails Magazine <http://blogs.nailsmag.com/maggie/> Facebook <http://www.facebook.com/onykophile> -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout.
