![]() Team-based pay (TBP) is an alternate pay structure that has gained popularity in the salon industry. “There are lots of owners out there who would make more money if they were a commissioned employee in their own salon,” says Neil Ducoff, founder and CEO of Strategies, a business consulting company for the spa and salon industry. While taking the commission or booth renter route may feel more comfortable, it also may not be the best option. “We had the appearance of a very successful salon on the outside, but internally we were losing $4,000 to $8,000 each month and had no idea how to stop the train wreck. “Our salon was busy, but we weren’t profitable,” says Paul Leubbers, who oversees business operations at Integrity Lash. After six years in business, they had a very busy salon with six lash stylists, all booked one to two months out. Take Pasadena, California-based Integrity Lash, for example. Even if you don’t live in California, many businesses struggle with their payroll structure and maintaining profitability. However, states like California are beginning to make this pay structure obsolete with restrictions for independent contractors. It’s common for many salons and spas to have a commission- based pay structure, where salon workers receive commission pay only (no salary), usually 20 to 50 percent of gross receipts.
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