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How to Set Up a Commission System in Your Barber Shop

By Layrite November 30, 2016 

 

We are big believers in performance.  So it should come as no surprise that when it comes to selling Layrite in Barber Shops, we are also big fans of performance-based pay.

Whether that means barbers get an hourly rate and a percentage of retail sales they make, a bonus at the end of the month or a chance to win a trip to Los Angeles, commissioning barbers for retail sales is hands down the best way to make more money for your shop. And all without having to add an extra chair.

When we took a look at our best selling shops, we noticed that virtually all of them have implemented some kind of commission based system.  Call it what you want but the best bosses share the wealth.

While there are numerous amounts of commission structures to choose from, the easiest one by far is the Straight & Flat system. You set up a flat percentage and barbers receive that percentage on the products they sell.

Now all you have to do is track the sales. If you already use software for your payroll, chances are it has a built in mechanism to track retail sales for commissions. If you’re doing things the old fashion way, here are 3 options to help get you started right away:

Use A Spreadsheet

It’s easy. And to make it even easier we made one for you that you can download here.

Use Quickbooks

When it comes to payroll needs, Quickbooks is essentially spreadsheets on crack. Once you get up and started here’s an article onhow to use it to track commissions paid to employees. 

Use Square

If Quickbooks is the Windows of Payroll, then Square is the Mac. It’s a mobile cash register (imagine ringing up patrons in your chair), appointment book, e-commerce manager and payroll system all wrapped into one. You can even use it to set up reward and referral programs, create gift cards and, of course, track commissions based on retail sales. Check out their Salon/Barber Shop landing page for more. 

Here are some other important things to remember.

Taxes and Commissions

If you’re considering offering your barbers commission on retail sales, or if you’re a barber in a position to receive commissions on retail sales, make sure to pay close attention to how the taxes are calculated.  You’ll also need to account for state taxes.

In Conclusion

Paying your barbers on commission can be a great incentive for top performers and is a way to encourage your barbers to excel. But it’s also important to remember that it may not work for everyone. Whatever the case may be, barbers who want to prove themselves through hard work will take great pride in their results and in turn, create more revenue for your shop -- which is a win win for everyone.

 

 

Topics: Shop Tips

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