Have you ever wondered how much a hairstylist actually makes per year? We're walking through what you can expect to make your first few years behind the chair both at a commission based salon or as an independent stylist working for yourself (at a salon suite or booth rental).
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Have you ever wondered how much a hairstylist actually makes per year? We're walking through what you can expect to make your first few years behind the chair both at a commission based salon or as an independent stylist working for yourself (at a salon suite or booth rental).
Can I ask you a favor? If you enjoy the show, will you follow us and leave a 5 star review? This helps our show move up in the charts to help more stylists. Thank you!
Welcome to the Aspiring Stylists Podcast with Tracey Franklin. Where to begin, grow and aspire to become the best stylist you can be. Whether you're thinking about becoming a stylist opening a salon, or developing your skills as an experienced stylist the next step of your beauty career starts here. Each week we'll discuss strategic ways to design, plan and execute on becoming a stylist that excels behind the chair and above the bottom line. Here's your host, Tracey Franklin.
Tracey Franklin:
As a stylist, your primary sources of income are going to come from your service and your product sales. And hopefully you are building a generous clientele and are able to factor in your tips as well. The two most common business models are commission or independent contract. Both of these are great models, but they vary greatly in your benefits. Commission salons are typically going to train you well and include continued education down the road. They also typically have a strong marketing structure to attract a lot of new clients. And based on your availability as an entry level stylists this is going to be very beneficial. And it's really going to affect your income in those first few years. Now, Booth rent allows total independence, whatever products you like, whatever services you believe in, and an established stylists with a strong following, I understand how this can be a very appealing model, I do recommend doing the math because you may be surprised if you're thinking about doing it for the money. The average starting salary for a new hairstylist in the United States is $32,000. Now, this is the average and you may hear that number and think okay, but remember, this is an average. So in these calculations are stylists that make as low as 12,000 mixed in with those that are making $50,000 a year or more experience and specialization are obviously going to influence your earning potential. Now experience speaks for itself, practice makes better, right? We all know that. And that's going to appeal to a potential client. But there are plenty of people out there who won't pay for experienced stylists pricing, they want it fast, they want it cheap. That's just how they like it. Having something you specialize in can be a big draw, especially if it's something that not a lot of people in your area are offering. And being able to charge more for something rare or something you're really really good at, increase your earning potential, you're gonna face financial challenges as a new stylist, your paychecks for one thing are going to be all over the place. One week, it's$1,000. In the next week, it's half of that. And it can make budgeting really difficult. Here you are, depending on your people to show up hoping their kid doesn't get sick or a snowstorm isn't in the forecast, or maybe a client that's booked for a five hours $600 service is going to leave a hole in your schedule and in your paycheck. So there are ways that you can be strategic about increasing your service prices right and it needs to happen over time, your price increases have to be based on merit on you being more valuable somehow, you can't just give yourself a raise because you feel like it, you can get away with small ones for inflation. But a 10 to 20% Raise which is standard in our industry is going to have to be earned. You need to look at things like your percentage of time booked and how many clients that you have or pre booking and make sure that your metrics are supporting your price increase. So this is a tipping industry. And I think it's fair to depend on them. But if you do, this has to be treated like real money. If you count on them as part of your income, how you support yourself how you pay your bills, then be careful about blowing that crisp 50 Just because it's sitting in your pocket, you may need it later. There are going to be typical ongoing expenses for any stylist. Any stylist at any time could need to replace a blow dryer or invest in a new pair of shears. Maybe there's a class you'd like to take or a new gadget you'd like to try. And these sorts of investments can cost as little as a couple 100 all the way up to a couple$1,000. And no matter what business model you work, you will likely be responsible for things like this. As an independent contractor, you're going to be purchasing all of your color, all of your back bar, all of your everything, everything will be on you and with the type of fluctuations that you're going to have in this industry. A savings account is a really good way to say set aside some money for those weeks that are more disappointing than rewarding. So we've got our booth rental costs and how that compares to your potential earnings in a commission based salon. Well, in the beginning, and I say this a lot, I find commission salons will help most stylists earn more faster, they will also prepare you and push you towards success as quickly as possible, because it's good for you and for the salon owner for you to be booked and busy. Having an M book stylist is very expensive. I feel like that kind of leadership. And that kind of accountability is really valuable. on down the road, when you need less of this, when you're like, Hey, I got this and you feel like you can earn more on your own. Maybe that's an option, and some will and some won't. If you are a highly motivated stylist, you might find yourself slipping, and you could end up making less. So if you're not a business person, you don't understand the numbers, then trying to manage your inventory costs for your products that you sell or you use can be difficult. I've seen stylists do this in a few different ways. Some just saved tabs off their color boxes, some keep a list some use of fun inventory app, I found the easiest way to know what I need to put back into the business is to go by percentages, you shouldn't be spending more than 7% of your total services on back bar. And this is going to include any color or shampoo or styling products that you're going to need. So in that sense, if you did $1,000 worth of services, your budget or your products for the following week would be $70. This is assuming that you're just replacing right not totally stocking, if you've let your inventory get low, then you're gonna know you're gonna have to spend more for your retail it's 50%. So that means if you sold $500, in retail, you should be reinvesting $250. There are lots of hidden cost, right? Lots of unexpected things that we might not anticipate, as a commission stylish, you will be responsible for very little the owner is going to handle it. As an independent, you may not consider certain things, things like taxes, insurance, but you should, you should also be considering your retirement, it's never too early and you're not corporate. So how are you going to support yourself and provide for yourself later, that's not something you want to have to figure out later. That's something you need to be preparing for. Now. There are lots of little things that are going to slip your mind like boil gloves, laundry soap, but you're going to need them and they're not cheap. How to taxes impact your net income, especially if you're renting a booth. If you're independent 100% of your federal and Social Security tax is on you, you need to make sure you get it paid, you need to make sure you get paid on time. Now if you're an employee, the salon owner is going to match your Social Security tax. So that's a huge savings for you. It is an expense for the salon owner, but it's part of the commission structure, the employer is going to withhold those from your check and make sure that they get turned in properly. We need to have strategies, we need to know how we can minimize our operation costs. And I say hey, you need to beware of shiny objects, you're going to be tempted, you're going to be tempted to buy all the things and offer all the things but you need to make sure it's going to pay off. Because you might have equipment and a skill set sitting around collecting dust, make sure you're aware when prices go up and pass that on to a guest or find some way to increase your prices. Or you're going to end up making less doing the same work. I talk a lot about having a niche or specializing in something I do feel like it's a great way to increase your earnings, you will just be better at some things and you will enjoy certain services more and getting really good at that means being able to charge more for it. But it's not the only way. Being dedicated to good service and connection with your clients will take you farther than any specialization. Well, as a salon owner, I fully understand how important selling retail is to the overall salon economy. But individual stylists may not see it that way. I do think it significantly boost your income. And I think it's for more reasons than you think. Yes, you get that little percentage on your paycheck. And that's great, right? No sweat off your back and your clients have great products that they can use at home. I feel like for clients selling them the appropriate products so that their hair can look better for longer and so that they're able to fix their own hair at home builds a lot of trust and it can create long term retention with your guests. I don't see anything wrong with running specials and having promotions to increase your booking and to help you make more More money, I would much rather see a stylist be doing something for a discount than sitting around for free, you do have to be careful about offering these opportunities too often or they're going to lose their appeal. A stylist that has too many promotions can come off kind of desperate. So you need to be strategic. Do you need more experience at something and need practice, this is going to be a great service to offer, right? Anything that you want to get better at, or find a service that doesn't cost too much money to perform and just added on for free. A treatment that cost you$2 to perform and holds a $30 value to guests is a great way to go and a great way to fill your book. I think for the most part working in a high end salon and an affluent area will impact what you make. And I feel like it can be a good strategy for a stylist. So a $20 service and Cookeville versus a $50 service in LA. Let's talk about that. Let's talk about the cost of living. So does this mean you should move to LA probably not unless it's your dream. I will say that every community has areas or establishments that offer that big city feel. So you're gonna be working in a luxury salon in your own neighborhood and it's going to impact what you can charge a haircut at a walk and chain salons gonna run you about $12 The stylist is good, the haircuts good, but very little experience is offered that same haircut and a high end salon will cost you $40 The stylist is still good, the haircut is still good. But you also get a scalp massage and a blowout and a well crafted environment that just feels luxurious. Planning for financial stability and a fluctuating market is mind boggling. It's hard and even the best circumstances, it is manageable when you stay aware of the areas that you can cut back. And again, when those supplies go up, you go up when a tube of color goes from $10 to$12. And you don't defer that to the client. Again, it's like doing that same work and making less over time. In a recession you need to concentrate on the services that people get no matter what a woman collecting, unemployment will still budget for her gray coverage, trust that and her husband will still budget for his haircuts. So it's really important that we don't get too big for our britches. Just because we're an extension badass doesn't mean that we shouldn't pivot when it's necessary. As a hairstylist, no matter what you're going to need to make sure that your insurance needs are covered. A commission stylists should have some kind of disability insurance in case they're injured. A liability policy isn't a bad idea. But you will usually fall under the salon policy umbrella for any work related instances. Of course, you need health insurance. And as of yet, this isn't really a benefit that I see in the majority of salons. Now, if you're independent, you will need a policy that protects you that protects the clients you serve and all of your equipment. What kind of policy you need is going to depend on what sort of Salon you work at. People ask me a lot like how can a stylist prepare financially for slow seasons. And I mean, life happens and business fluctuates for any professional and you have to play unlike anyone else, you have to pay attention to the trends. So you need to keep good records so that you know what time of year you're going to slow down so that you know you need to buckle down and have some money set aside. And you also know hey, maybe this is a good time to offer a special, some new way of promoting yourself. I mean, you just have to be aware awareness is the magic. A lot of stylists become educators and brand ambassadors and I think it's a great way to pay it forward and really keep your own skills sharpened. If you're really good at it and become a super successful educator. There's also a lot of earning potential. In my opinion, this is really an act to move. After you've built a good clientele, you're making good money and now you're looking to branch out and try something new. One of the biggest assets an educator can bring is real world experience. So starting this type of thing too soon could limit your impact. Being a brand ambassador is a lot of fun, and it's a great way to stay up to date on all the new products that are coming out. You know what a big advocate I am for continuing education and that's because I do believe it impacts the stylists earning potential. A stylist that learns more, earns more. A stylist that never learns anything new doesn't have anything new to offer their clients. When you go to shows and you attend classes, you show your clients that you take this seriously. You show them that they can count on you to bring something new to the chair and it's not always going to be the same ol same ol so why is it that an Experience, stylists have so much more opportunity. Doing something over and over again is going to make you better at it. And you're also going to pick up some speed along the way. Time is still money and being able to shave off 15 minutes here and there is going to make room for more opportunities for you. People like hearing that a stylist has experience. It's very comforting for them. The more knowledge you have, the more in demand you're probably going to be. When you're booked out six 812 weeks at a time you are in high demand, and it's definitely time for level up.
Morgan Franklin:
Thank you for joining us on this episode of anytime soon. The Aspiring Stylist Podcast with Tracey Franklin. If you enjoyed listening and you want to hear more, make sure you subscribe on Apple Podcast, Spotify or wherever you find your podcasts. The Aspiring Stylist Podcast with Tracey Franklin is a Morgan Franklin Production. Today's episode was written and produced by Morgan Franklin editing and post-production by Mike Franklin. Want to find out more about Tracey and the Aspiring Barber and Beauty Academy go to aspirebarberandbeauty.com