Is 50% Commission Too High?

At first glance, many barbers might think that giving away half of their hard-earned pay is just plain robbery! But here's the deal: it all depends on the circumstances.

Scenario 1: Starting Fresh in a Barbershop

Imagine you're a barber just starting out in a barbershop. The barbershop owner provides you with clients, handles marketing, pays the rent, covers software expenses, takes care of cleaning and supplies, and even ensures fresh towels every week. On top of that, they spend time training you to become a skilled barber.

In this situation, a 50% commission is an amazing deal for you! Why, you ask? Because the barbershop owner is doing all the hard work to make sure you have everything you need to succeed. Running a barbershop and building a team while managing day-to-day operations is no walk in the park. It's a ton of effort, is expensive, and often undervalued by those who haven't experienced it themselves. Owners deal with all sorts of challenges and deserve to be compensated for their time and hard work.

So, in this case, with 50% commission, you are winning when you consider all the value you're receiving. Everything is delivered on a silver platter – you just have to show up, cut client's hair, and head home without worrying about the headaches of running a physical business.

Scenario 2: The Experienced Barber

Now, let's flip the scenario. You're a skilled barber with a substantial client base, and you're not relying on the barbershop owner for help with education, getting more clients, marketing, training you, and helping you with your needs.

In this case, yes, a 50% commission might feel too expensive because you're not receiving all those added values. You're bringing your clients and skills to the table, and the owner isn't providing the same level of support. If this is the case for you, consider discussing your current commission breakdown with the shop owner, to ensure you aren’t paying for irrelevant benefits. 

What is important to take into consideration is what the owner puts into the work environment including team culture, cleanliness, marketing, tools, consistent training, etc. The more the barbershop owner puts into the business that you benefit from as an employee, the more commission they deserve for their efforts. No one likes working for free, and for everyone to be happy everyone needs to be compensated fairly. So consider whether the perks you are receiving are worth the commission you are paying.

All About Value

Whether a 50% commission is too much depends on the value you're receiving. If the barbershop owner is handling the heavy lifting and providing you with everything you need to thrive, then it's a fair deal. But if you're doing most of the heavy lifting yourself, it might be time to reconsider your commission structure.