Why Do Elite Barbers Prefer Comission
Big-name barbers are now charging more than ever before in the history of barbering.
Yet, most of them do not own their own shop nor do they booth rent, most of them work by salary or commission.
But why? Who in their right mind would give up 40% of their earnings? Paying a weekly flat-fee just seems to be the most efficient way for most elite barbers, but is it really?
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We hope to improve your management of time, money, clientele, and energy.
Let’s examine both sides, explaining in-depth what each one has to offer, I guarantee you’ll have a different perspective by the end of this article.
The preferred method by most shop owners, this method takes some responsibilities away from the owner and it places them on the renter.
This method is popular because of the amount of freedom from all parties.
The owner is only responsible for providing utilities, a chair, station, mirror, and light.
The renter is responsible for marketing, product, clients, booth rent, and any additional equipment of their choosing.
Preferred by high-end shops & barbers. It places most of the responsibilities on the owner and it allows barbers to worry only about cutting hair.
In this method, the owner is responsible for everything a elite barber might need to succeed. Clients, marketing, product (pomade, gel, etc.), materials (neck strips, cool care, alcohol, blades, etc.), equipment, station, towels, etc.
Which One Works Best?
Let's say you rent a booth at an average barbershop. You hustle and build a clientele, you now charge $30 for a cut and a beard.
But you used product and material which cut your profits to about $28. Not to mention the $185 fee at the end of the week to cut.
Then you find out that a shop is hiring downtown and they only work by commission.
Your first question logically would be "how much?" They tell you about 40%.
This would make most barbers run for the hills, but you, being business-minded, decide to ask them how much they charge for their service.
And that’s when the magic happens, they tell you they charge $60 for a cut and beard. That’s $36 for you, $6 more than you were charging doing booth rental!
On top of that, you don’t have to worry about clients, they have the clients who will pay that kind of money. In most cases, they’ll even provide you with a commission on products, paid time off, insurance and bonuses.
Which One Should You Do?
This all depends on the pricing and quality of the shop, and how much are you willing to sacrifice.
You can work at a shop where you earn $25 but the atmosphere is negative, or you can work in a professional environment earning $23 a cut. It’s a matter of preference.
If you find a commission shop where you can end up earning more than what you’re earning doing booth rental, then it might be a smart move to go there.
When you work under commission, you have to look at the owner and think, is he worth the investment. The payout differential between booth rental and commission should be considered as an investment in the business, and you have to ask yourself if the business is worth your investment.
Which one do you prefer and why?
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