Commission Base Vs Chair Rent?
Let’s not waste time & get to the point.
What Is Commission Base?
Commission base is working with the barbershop owner on a specific percentage that is deducted out of your pay per haircut, and you would both agree upon this number before he/she hires you.
Commission Base is usually a 70/30 split. Meaning if you made $100.00 you would keep $70 and give $30 back to the Barbershop owner for allowing you to use their “Chair space” to run your business.
What Is Chair Rent?
Chair rent is a fixed amount of money you pay to the barbershop owner usually done in weekly payments. Paying this will allow you to use their professional establishment to perform your haircutting services.
Pros & Cons Of Both Commission & Chair Rent.
Pros Of Commission:
In the beginning of your career or early stages of working at a barbershop “Commission Base” is excellent!
Jumping into the unknown of the workforce and not having an established client base would make anyone afraid of not being able to come up with a reliable weekly income base to pay forward to the Barbershop your working out
Commission Base completely removes the fear of “Not having enough to pay for space.” because whether you do ten haircuts or no haircuts that day. Your Commission comes out of that percentage.
This gives you plenty of breathing room to start building a strong clientele base.
Cons of Commission:
The Commission based arrangement is only good in the beginning stages, and as you progress in your career, you will start to gain more clientele.
Meaning, in the long run, you could be paying out more for “Commission Base” rather than if you just paid for “Chair rent.”
Allow me to explain, Chair rent is a fixed number the Barber is to pay weekly. Regardless if you do ten haircuts or 50 haircuts for that week, the Chair rent will remain the same.
Meaning any money you receive after that “Chair Rent” threshold is met will be all yours to do as you please.
If you do 50 haircuts during that week using a “Commission Base” work arrangement, You will be paying more using the 70/30 split rather than just the fix rate of funding the “Chair Rent.”
If you do a $25 haircut, to 50 clients that would total: $1,250.00. Then minus “Chair Rent,” for this example, I will say $250, That leaves you with $1,000 at the end of the week to take home.
Now let’s do the same basic math with “Commission base.”
If you cut 50 clients at $25 per haircut, you would make $1,250.
Now do the 70/30 Commission split.
You will be paying out $375 for that week! rather than $225 if you decided to go with “Chair rent.”
You would be losing $150.00 for the week, $600.00 for the month using Commission.
Commission base is fantastic if your a beginner or working at a new establishment to start building clientele.
As you progress and gain more clients, you may want to consider “Chair rent” as it could save you a lot of money in the long run.
This Is Exactly right! Commission has it’s place, but don’t let barber shop owners pull one over on you!