Tipping in the service industry
September 26, 2018 at 2:09 am
(This post was last modified: September 26, 2018 at 2:13 am by Joods.)
Heated debate going on right now between myself and a friend of a friend on Facebook about this very topic. She believes that aside from the food service industry, places like salons, shouldn't have tipping. She feels that there should be one set price to pay and that's that. She says that because she's a teacher, she doesn't get tips to do her job so why should someone who cuts hair for a living.
So.... my response was basically that salon owners don't offer benefits that her job offers. We don't get retirement options, disability options or healthcare. As a teacher, she isn't working on commission. She isn't required to have a certain percentage of her students earn A's in order for her to earn a living wage.
As a stylist working in a private salon - I get paid straight commission only. I don't get an hourly wage. I don't get paid if there isn't someone sitting in my chair. I also cannot rent my chair. It's illegal in my state and in the majority of the US, for a cosmetologist to pay for a chair or booth rental. Barbers can do it, but a cosmetologist cannot. Aside from that - let's look at the commission rate: It's less than 50% of the cost for services. Commission on retail sales is even less - usually between 7 and 15% and you only get that if you meet certain service dollar goals.
We work part time and get no benefits.
The standard tip for a service in my field is 15 - 20% of the total.
So if someone wants haircolor and it's $100, the amount I make off of that can be anywhere from $35 to $45 depending on the commission rate. Add a tip of $15 or $20 and I get a minimum total of $50 and I haven't had any taxes taken out of that yet. I might have had to take two hours to do your hair.
Where I live, total standard deductions on a paycheck are a combined 22%. So, taking 22% out of $50 leaves me with $39 in my pocket. Some might say that's not bad for two hours worth of work, but if I didn't get the tip, then based on a $35 commission job, after taxes, I'd be looking at $27.30 for two hours worth of work. That's $13.65 an hour.
I didn't go to school and spend $18,000 and have to pay to become licensed in my state, only to end up earning so little. That is not a livable wage when you support five people in your house. So we need and rely on our tips.
Thoughts here?
So.... my response was basically that salon owners don't offer benefits that her job offers. We don't get retirement options, disability options or healthcare. As a teacher, she isn't working on commission. She isn't required to have a certain percentage of her students earn A's in order for her to earn a living wage.
As a stylist working in a private salon - I get paid straight commission only. I don't get an hourly wage. I don't get paid if there isn't someone sitting in my chair. I also cannot rent my chair. It's illegal in my state and in the majority of the US, for a cosmetologist to pay for a chair or booth rental. Barbers can do it, but a cosmetologist cannot. Aside from that - let's look at the commission rate: It's less than 50% of the cost for services. Commission on retail sales is even less - usually between 7 and 15% and you only get that if you meet certain service dollar goals.
We work part time and get no benefits.
The standard tip for a service in my field is 15 - 20% of the total.
So if someone wants haircolor and it's $100, the amount I make off of that can be anywhere from $35 to $45 depending on the commission rate. Add a tip of $15 or $20 and I get a minimum total of $50 and I haven't had any taxes taken out of that yet. I might have had to take two hours to do your hair.
Where I live, total standard deductions on a paycheck are a combined 22%. So, taking 22% out of $50 leaves me with $39 in my pocket. Some might say that's not bad for two hours worth of work, but if I didn't get the tip, then based on a $35 commission job, after taxes, I'd be looking at $27.30 for two hours worth of work. That's $13.65 an hour.
I didn't go to school and spend $18,000 and have to pay to become licensed in my state, only to end up earning so little. That is not a livable wage when you support five people in your house. So we need and rely on our tips.
Thoughts here?
Disclaimer: I am only responsible for what I say, not what you choose to understand.
