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Selling can be a tough job – tough on the ego, tough on the energy level – which explains why it can be extra challenging to motivate your young actors to stand on that salon stage, face their fears, engage with every guest, and sell each of them multiple tanning and beauty products!
No. 1 Undisputed Tanning Salon Fact: lotion sales performance is and will always be the most significant piece of the profit and loss pie chart. In other words, if you want to make more money, sell more lotion.
Most top-earning salons with the highest lotion sales implement some form of performance-based pay program (PBP). Whether that means an hourly rate plus percentage of sales (commonly called commission), or some type of cash/prize bonus for hitting a sales goal, or both – all these are considered performance-based
Call it what you want, but the top salons “share the wealth” by structuring creative, well-conceived PBP programs.
The staff was previously paid a straight percentage commission (anywhere from 4-10% depending on the product type); but when their state raised the minimum wage, they found it necessary to change things up.
LPPA of < $1.49 makes $0
$1.50 -$2.00 = 4% of product total
$2.01 – $2.99 = 8% of product total
$3.00 – $3.99 = 10% of product total
$4.00 – $4.99 = 15% of product total
$5.00 & up = 20% of product total
This salon’s management staff reports that since converting to this system, they have paid out more commissions overall, but have also made more as well. With $3,800 in lotion sales, the top seller made just under $700 in commission, as well as an additional $150 from sales of teeth-whitening and EFT packages.
The business also has a monthly goal for each salon, as a whole (based on the previous year’s total). For every $1,000 sold beyond the goal, every team member gets $25 in Bonus Bucks to spend on lotion, upgrades, spray-tans – basically, anything in the salon. In January, the team blew the goal right out of the water and they each earned $125! Management decided to change it up for February and treat the team to a “fun night” – dinner, bowling or whatever they choose – if they hit their sales goal. Great motivation!
Do it! Kick off your new PBP program now and watch your salon’s sales HOP to new levels.
David McFarland is a National Educator for Sun Evolutions, offering brands including Supre Tan, ProTan, Fiesta Sun and Playboy. He is a face-to-face sales and beauty product fanatic who gauges his success solely on his effectiveness at selling real product to real, live salon customers.
Copyright 2016 ist Magazine