Are you still running a commission-based salon?

You’re not alone—but know that you’re also not the only one considering making the switch to team-based pay.

Mark Gonzales, owner of Mark Pardo Salonspas, is all for team-based pay. Aside from being a five-location salon owner, Mark is also the CEO of the Aveda Institute in New Mexico, a member of Intercoiffure and the 2 to 10 Project and a certified business strategy coach.

Mark is so proud of the team he’s built at Mark Pardo. With five locations, their bond has never been stronger, and Mark says that camaraderie is due largely in part to his team-based compensation system.

There’s No “I” In Team

Mark Pardo salons started as commission-based salons, which is still perceived as the standard operating compensation in our industry. 

Mark ran his salons this way for years until he stumbled across an article that explained that any challenges you’re facing based on your operational systems often stem from the conditions within your salon. Commission-based compensation leads to an “all-about-me” mentality instead of fostering teamwork and a shared sense of creativity and support. 

Mark decided to do more research on team-based pay. He learned all about financial literacy and how team-based pay makes your employees more aware of how they can make a difference in their business--how they can contribute.

It’s All About Changing Your Mindset

People tend to perceive change as a negative experience. They view it as loss, something that comes with losing a perk or privilege they once had. 

Mark, on the other hand, has always seen change as an opportunity, and it was his leadership and influence that enabled him to convince his stylists of the positives that came with the switch to team-based pay.

As a stylist, choosing to work in a salon environment instead of renting your own booth already says something about how much you value having that community, that support system. Mark decided that it was time to remind his stylists of the bigger picture--that they belong to something bigger than themselves, they’re a part of a team of people dedicated to serving others and growing in their individual careers. 

Time to Level Up

Mark and his team incorporate tips as income. His new employees usually start out around $10 or $15 an hour depending on how well they’re performing within the salon and the system evolves from there.

There are five levels of stylists and your ability to move up depends entirely on your performance and your ability to hit or even exceed your benchmarks. These include stats like client retention rates, average product per service ticket, pre-booking rates, the cut-to-color ratio, etc. All of which contribute to a stylists ability to advance and earn more compensation.

In addition to this system, Mark instituted a bonus system within each individual level that allows them to make anywhere from $150 to $300 more every two weeks in order to keep the momentum going. 

Hourly All the Way

Although commission-based compensation was controllable, Mark never saw it as a motivator. With commission, there is a certain limit that salon owners simply can’t surpass while still maintaining a profitable business. So, your staff settles because they’re under the impression that they’ve reached the top and there’s no way for them to make more in the same number of hours.

Of course, payroll is the biggest cost in any business, so it still has to be controlled and maintained in a healthy way. But for Mark, this came easily with team-based pay. 

With this new compensation structure, Mark is able to make sure that his stylists are making a living, his salon business is, in fact, profitable, and he’s able to provide his team with the luxuries that make such a system sustainable, like health insurance, dental care, paid time off--you name it.

Three Is Easier Than Two

Mark can’t help but chuckle when he thinks about the old saying his mentor, Juut Salon Spas’ David Wagner, used to mutter. “Three is easier than two,” he would to say, suggesting that owning and operating three salon locations was actually easier than two, or even one for that matter.

For years Mark shrugged off this suggestion with a laugh, believing that in no way that more could ever be easier. Of course, eventually Mark opened location number three and realized he couldn’t have his hands in all of the action anymore. 

Instead, Mark found that he had to learn to let go and trust that his leaders could carry his brand without him just fine. Then, Mark was able to step into his larger responsibility, which was to coach and support leaders who would ultimately take care of his legacy and proudly begin to make their own. 

Now, Mark is the proud owner of five Mark Pardo Salonspas and he’ll tell you that it is, in fact, much easier to manage all five locations now than it was when he first opened location number one. Why? Because his employees truly care about the longevity of their brand and the success of their teammates--they’re all in it together. 

Want to learn more about Mark and his incredible group of Salonspas? Listen to the podcast that inspired this blog, episode 190. Will you be at Intercoiffure this year? Direct Message us on social or shoot us an email and let us know, we’d love to meet you!

Are your guests excited to spread the great news about your salon to everyone they know? When they do, are they being thanked? 

If your goal is to begin a program that is easy to manage, you’re in luck! 

Salon Owner and Industry Expert, Kati Whitledge, shares how her staff at Be Inspired Salon works to capture guest referrals and how they thank them for their advocacy when those referrals come through.

In addition to hosting the beloved Beyond The Technique podcast, Kati is the owner of the award-winning Be Inspired Salon located in Madison, Wisconsin, and the creative brain behind Meet Your Stylist, an innovative salon software system that matches potential clients with salon professionals based on services, lifestyle preferences, and personality metrics. 

Kati is incredibly passionate about helping others in the industry develop their own success stories, and today she’s sharing her secrets for building an easy-to-manage referral program in order to help you capture those leads.

Capture Data with Client Intake Forms

An easy way to catch wind of a word-of-mouth referral is to ask every new guest how they heard about your salon. You can do this with your client intake form. 

At Be Inspired Salon, the client intake forms are digital. They made a non-public webpage that they have saved as an app on their iPads in the salon. When a guest visits for the first time, they give them the iPad and have them fill out their information. They include the question, “How did you hear about us?” Which prompts each guest to check all that apply.

The reasons they add the disclaimer, “please check all that apply”, is so that they can track their return on investment for all advertising platforms. This could include Google, Facebook, Instagram, Meet Your Stylist, a local magazine, radio, a partnering business, a friend, or other. When a guest selects “friend”, there is a drop down box which prompts them to fill in their friend’s name. 

Even if you’re not ready to go digital with your client intake forms, you can effectively apply these same principles in print.

Give the Gift of Added-Value

After you have an easy way to capture the names of guests who have referred you new guests, it’s so important to show your appreciation. 

That being said, Kati also stresses how important it is to make sure that how you choose to show your appreciation in turn adds value to their experiences at your salon. What she means by that is, you always want to give more, not offer them a lesser price. 

Many salons will promote offers such as, “Refer a friend and you’ll both receive 20% off your next visit”. But did you know that this devalues your services and products and in the mind of the buyer? It tells them that your services and products are actually worth less. 

Instead, Kati suggests that you use value-based propositions such as, “Every time you refer us a new guest, we will gift you with a $10 shopping pass to use at our salon!” In the verbiage alone, there is a huge difference in the value you’re offering.

Show Your Appreciation with a Hand-Written Thank You

Regardless of what value-added gift you give, consider a thank-you note as a touch point in your relationship. 

For example, at Be Inspired Salon Kati and her team sit down once per week with their list of guests who have given referrals. They write each guest a handwritten thank-you note and mail them out later that day. 

“Thank you” letters are a lost art and people love the special feeling of receiving a personal card in the mail. In the note, Kati and her team leave a simple message, such as, “Mary, thank you so much for referring Connie to us! We appreciate your advocacy and we appreciate you. Please enjoy this $10 shopping pass at your next visit!”

The lesson for today is if you employ a referral program, make sure it’s easy to manage so you never have to worry about dropping the ball. Add valuable gifts to show your appreciation, and think of a personalized way to thank each guest who is going out of their way to spread their love for your brand.

To listen to the podcast that inspired this blog, check out episode 189, and if you’d like to learn a little bit more about our host, Kati, check out her website and don’t forget to subscribe to the Beyond The Technique podcast for more incredible industry insight.

There’s a strong sense of responsibility that comes with being a leader but you also have to be open to learning new things and facing new challenges. Sometimes that means admitting that you aren’t always the most knowledgeable person in the room. 

Salon Owner and Industry Expert, Kellie Johnson, is no stranger to the struggle that comes with finding your place as a leader. Today, she’s here to share her advice on becoming the kind of leader you want to be.

We introduced you to Kellie in our Beyond The Technique Podcast, but if you missed her previous interviews we’ll give you a quick recap: Kellie is the owner of the renown Elan Studio and a council member of The EmpowHERment Project. Aside from her career in the beauty industry, Kellie is also a certified Hypnotherapist and Professional Coach. With expert industry insight, she offers her best advice for becoming a strong leader within your salon. 

Salon Owners, You’ve Got to Stay True to Yourself

Kellie has always been passionate about learning new things and building on her experiences in order to grow. She believes that being a good leader is about becoming the best version of yourself--somebody that you would look up to--and that takes time. 

For Kellie, her first three years in business were her most challenging. She struggled to find structure, she wanted to please everybody, and at the end of the day, she simply wasn’t putting her own needs first.

Now, Kellie looks back on those times and she’ll tell you that learned a lot along the way, but the most important lesson she took away from those early years is that you absolutely have to lead with love and you can never compromise on your own values. 

A True Leader Invests in Their Team

Kellie is a strong believer in the idea that salon ownership isn’t about making money, it’s about growing people. She makes it her mission to create as many opportunities for her team as she can with the hopes of building their confidence one step at a time.

At Elan, they do focus on technical skill training, but Kellie also brings in speakers and industry experts who can educate her team on personal development and build on the intrapersonal skills that are truly a testament to a stylist’s strength behind the chair.

Kellie believes that education and opportunities for growth are crucial in creating a positive salon culture. Kellie works hard to empower her team to take their career into their own hands, by building their confidence both in and outside of the salon.

You Can’t Go Getting Your Feelings Hurt

Kellie reflects on one of the hardest lessons she had to learn as a new salon owner, which was that you can’t take anything personally. Letting your emotions get in the way of your leadership is disruptive for the entire team.

Of course, in a creative industry like ours, we’re constantly surrounded by incredibly sensitive, emotionally intelligent individuals who sometimes let their feelings get the best of them, salon owners and leaders included. 

Kellie believes that as a salon owner, you have to remember that it isn’t about you. You have to be able to see past your own emotions and reactions in order to help your team grow, both personally and professionally. 

How to Stay on Top of It All

Being a leader comes with quite a bit of responsibility and responsibility requires discipline. Kellie manages her stress by practicing meditation. As a salon owner, it can be quite easy to get overwhelmed with all of the little things you need to get done during the week, the month, even the year. 

Kellie recommends starting your day with a solid 20 minutes of meditation to simply check in with yourself. Prep for your day and what you hope to accomplish in those 24 hours. Don’t get ahead of yourself, don’t start thinking about the next day or the week ahead, just focus on what you want to get done that day. 

Then, check in with yourself again in the evening. Reward yourself for your hard work and give yourself a pat on the back for everything you were able to check off of your list! 

Meditation is one of the healthiest forms of stress management out there and anybody can do it. For Kellie, it has completely changed the way she looks at her to-do list.

If you’d like to learn more about Kellie and her incredible journey in the beauty industry, listen to the podcast that inspired this blog, episode 186. Be sure to also check out our other Beyond The Technique blog featuring Kellie’s incredible industry insight, “Five Ways to “Wow” Your Clients and Improve Your Salon Experience.”

Have you ever considered including an employee stock ownership plan in your salon’s business model? Well, it’s time to start!

Doug Cole, owner and founder of Cole’s Salon and self-proclaimed life-long learner, is here to teach you a thing or two about growing your business and giving back to the people who have helped you along the way. 

How to Know It’s Time to Grow

Doug is the proud owner of five beautiful salon locations with prospects of a sixth on the way, but he’ll tell you that he grew into each new location for exactly the same reason, it was simply time. 

He admits that he may have handled things differently than other entrepreneurs, because as soon as Doug ran out of space in one location, he eagerly opened another. After five years in his first salon, his team had outgrown their space and he quickly grew tired of turning down incredible talent. So, along came location number two, and well, you know the rest. 

Doug has such a heart for the people of Cole’s Salon, and he said it simply broke his heart not to bring people into their incredible community, especially as their reputation grew and so many young stylists were showing interest in his brand. 

Not Just Bigger, but Better

Of course, there are other areas you must grow in in order to have five successful salon locations. Doug and his team always focus on getting better before getting bigger. 

Doug struggles with dyslexia, and for years he avoided any kind of learning that would pose a challenge for him due to his disability. He worked hard, and he was an incredible kinesthetic learner, but for several years of his life he was afraid of putting in the extra effort required to tackle the things that challenged him the most, like reading and writing. 

At 26, Doug decided he had had enough and he wasn’t willing to let his disability hold him back any further. He found a mentor who challenged him to do an hour of learning per day, a habit that he’s carried into his 70s because it fills his mind with different ideas and possibilities for the future.

Doug’s commitment to learning is built into the culture at Cole’s Salon. His entire 375 person team is comprised of passionate individuals who are excited to climb their way to the tops of their careers—and the view just keeps getting better. 

Giving Back and Building Loyalty

After 15 years in business, Doug realized that so many of his best people had been with him since the beginning. His stylists grew with him and his brand, his managers had taken over their own salon locations, his front desk employees grew into leadership positions and for the most part, his best people stuck around. 

Doug’s employee retention rates were practically unheard of and he wanted to find a way to give back to everyone who helped shape his brand. Doug sat down with his tax attorney and they came up with the idea of implementing an employee stock ownership plan for all of the people of Cole’s Salon.

Another 30 years later, Doug proudly maintains 70% ownership of Cole’s Salon, and the other 30% is in the hands of his trusted team of employees. The tax breaks are pretty sweet and the Cole’s Salon brand has never been stronger. Doug’s employees are so proud to have part ownership of their company. Their loyalty runs deep and the brand continues to grow even bigger every day. 

Of course, with such a big appetite for education, Doug believes that the best is yet to come. He’s got so much more to learn, and he can’t wait to share in the abundance, there’s always enough to go around!

Want to learn more about Doug and his inspiring salon business model? Listen to the podcast that inspired this blog, episode 185. And be sure to check out Cole’s Salon for more details on their incredible salon culture.