Pricing based on chair rental vs commission - the math surprised me

I was doing my taxes last week and ran the numbers on chair rental vs commission for the first time in 8 years. A stylist I know takes 70% commission at a fancy salon downtown, but I found out that after she pays for her own color, backbar, and the extra self-employment tax, she actually keeps less per hour than I do renting a chair at my spot for $450 a month. The breakdown shocked me because everyone in my salon keeps telling me commission is the only way to go. Has anyone else actually crunched both numbers for their specific city or situation?

3 comments

3 Comments

nancyg1414d ago

everyone in my salon keeps telling me commission is the only way to go" - yeah, that's just what salon owners want you to believe. Did the math myself and commission ate my lunch.

jamie80413d ago

Commission ate my lunch" - what commission split were you seeing?

claire_grant3413d ago

$450 a month for a chair sounds like a steal honestly. I'm at $550 in a mid-size city and the extra freedom with my own schedule makes it worth every penny. That 70% commission sounds good on paper but after they nickel and dime you for color and backbar it really adds up. I feel like a lot of stylists never actually see the full picture until tax time hits.