Professional Practices and Salon Business
Getting paid
There are three common compensation models. Commission pays a percentage of service revenue, often with a draw or a scale that rises as revenue grows. Booth rental pays the stylist a fixed weekly or monthly fee for space and leaves them self-employed - responsible for their own taxes, supplies, and liability. Hourly or salary pay is subject to wage-and-hour law, including minimum wage and overtime. Know which model you are in; the tax and insurance consequences differ sharply.
Pricing
Price from costs, not from competitors. Add labor (your time at a target hourly rate), overhead (rent, utilities, insurance, supplies), and profit, then divide by realistic service capacity. Retail sales and rebooking are the two most reliable growth levers in a service business.
Business structures
A sole proprietorship is simplest but offers no liability shield; partnership, corporation, and LLC each change liability and tax treatment. Carry professional liability insurance regardless of structure.
Client relations and records
Consult before every chemical service, ask about allergies and prior services, document the formula and timing on the client record card, and protect confidentiality. Handle complaints in private, listen without interrupting, and offer a remedy within policy. Never discuss one client with another.
Ethics and image
Charge consistently, do not disparage competitors, respect the scope of your license, and keep your station and personal presentation professional.
Traps
Questions often imply that booth renters are employees (usually not) or that a quoted price given verbally is not binding (it can be).
Rule of thumb
Price = (labor + overhead) ÷ (1 − target profit margin). If retail is a tiny fraction of service revenue, you are leaving money on the table.