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You’re not the only one who has wondered what percentage of your salon fee actually goes to stylists. This question is often asked by stylists who are looking for independence, as well as clients curious to know where their money is going. What a stylist earns depends on how they work — whether they rent chairs, work for commission or work independently in a salon suite.

Stylists on a Commission Basis

In a salon environment, the majority of stylists begin with a commission-based model. The stylists earn a certain percentage for each service performed, while the salon retains the remainder to cover overhead expenses like rent, utilities and supplies.

• Commission rates for stylists: They usually earn 40% to 60% of the amount paid by clients.
• If you pay $100 for your haircut, the stylist may take home between $40 and $60 before tax.

This model is ideal for new stylists that may not yet have a stable clientele. The salon is responsible for bookings, advertising and inventory. The stylist has limited control over scheduling and pricing, and their income is heavily dependent on salon traffic.

Stylists who work on an hourly basis or are paid a salary

Salons in high traffic areas or chain salons may pay hourly wages. The income can be modest, but this setup is stable.

• Earnings for hourly stylists range from $15 to $25 an hour. Sometimes, they receive bonuses or commissions on product sales.
  
• Security is preferred over independence for those who like predictable schedules and paychecks.

Booth Rental Stylists

The financial structure of stylists who rent chairs or suites changes dramatically. They don’t split the payment of each client with the salon; instead, they pay an agreed-upon weekly or monthly rental fee.

• Rent can vary from $200 per week to $600 per weekly, depending on the location, amenities and utilities included.
  
• After subtracting taxes, rent and supplies, stylists retain 100% of the money they earn.
  

This model is very popular with established stylists who have loyal clients, as it gives them full control over pricing, schedules and branding. It comes with some responsibilities, from maintaining inventory to marketing services.

Salon Suite Stylists

Salon suites go one step beyond booth rentals. Salon suites are fully-equipped mini-salons that stylists can rent. The stylists run their own business while enjoying privacy and creativity freedom.

• The flat fee is $250-800 per week depending on the size and amenities.
  
• They keep all their earnings, excluding business expenses.
  

This means that a stylist can “take home” 70-90% or more of the money paid by clients. However, this also means that he/she must budget for things like retail stock and software.

The Bottom Line

What percentage of the money you pay your stylist does he or she actually earn?

• In a salon with a commission, the percentage is usually between 40-60%.
  
• Renting a booth, suite or other space can range from 70-100% depending on the expenses.
  

Your stylist’s income is influenced by more than the cut or color that you get. The income of your stylist is influenced by the business model they use, their experience and how much freedom they have chosen for themselves. Every stylist has the same goal, whether they work at a salon that is based on commission or in an independent suite. They want to provide excellent service and build a career which rewards their talent.

This post was written by a professional at Salon Sequence. Salon Sequence Studios offers a wide variety of services for hair, skin, and nails with experienced, independent salon professionals. Relax and enjoy your day of beauty with our talented beauty professionals, in your own private suite. Salon Sequence Studios leases studios for independent beauty professionals as well, so if you are looking for Salon Booth Rental St Petersburg FL, come in and showcase your skills and make our clients feel at ease. Call to inquiry on salon rentals near you with Salon Sequence today.