Chair rental vs commission

The two models in brief

On commission the stylist is usually employed by the salon and earns a share of the services they carry out, often alongside a basic wage. The clients are the salon's clients: the salon sets the prices, buys the product, runs the diary and takes the money. A busy month pays the stylist more, a quiet one less, and the salon's income moves with them.

On chair rental, also called renting a chair or a station, the stylist pays the salon to use a chair, and in the UK the rent is usually paid weekly. The takings belong to the renter; the salon receives rent. Some salons charge a flat rent, some a share of takings, some both. A genuine renter is normally self-employed: they bring their own clients, set their own prices, often use their own products and sort out their own tax.

Employment status comes first

As a rule of thumb, a renter who works the hours you set, uses your products at your prices and takes the clients you book for them starts to look a lot like an employee. A real rental arrangement gives the renter real independence, and you give up some control in return.

Commission: pros and cons

• The salon keeps control of prices, service standards and the client experience.
• Lower risk for a newer stylist without a following: a quiet week doesn't leave them owing rent.
• Client records stay with the salon, so the client list doesn't walk out of the door with a stylist who leaves.
• Downside: the sums are more involved. Base, rates, retail commission, tips and card fees all need tracking, or pay day turns into a debate.
• Downside: as an employer you take on wages, holiday pay, pension and payroll admin; check the details with your accountant.

Chair rental: pros and cons

• Predictable income: you know the rent coming in each week.
• The renter chooses their own clients, prices and products, which suits experienced stylists with a loyal following.
• Less day-to-day admin for the owner: there's no need to track every line by person.
• Downside: an empty chair looks like the renter's problem but ends up being yours too, and unpaid rent has to be chased.
• Downside: you give up some control over standards and pricing, and a renter's clients usually follow the renter, not the salon.

Break-even: which model earns more, and for whom?

The simplest comparison is the break-even point: the level of weekly takings at which both models leave the salon the same amount. Below it, chair rental is better for the salon; above it, commission is. For the stylist it is the other way round.

Count costs as well as takings. On commission, product, card fees and retail stock usually sit with the salon, along with wages and employer costs. On rental, agree which of those move to the renter before you trust the comparison.

The third way: fixed wage + bonus

Some salons settle in the middle: a fixed wage plus a bonus on takings above a threshold. It reassures stylists who are new to the salon and still building their client base, while the salon takes on a fixed cost. Set the threshold and bonus rate carefully, and remember that a wage brings employer duties such as minimum wage and holiday pay.

Which model suits whom?

1. 1

   New stylist, new salon

   Commission or wage + bonus. Low risk for the stylist, and the salon keeps the client list.

2. 2

   Experienced stylist with their own clients

   Chair rental or hybrid rent. The stylist wants independence; the salon gets predictable income.

3. 3

   Busy salon with a big team

   Usually commission. Prices and standards are run from one place, so the commission rule must be clear.

4. 4

   Specialist studio

   Nail and lash technicians often rent a desk or a room rather than a chair.

Different stylists in the same salon can work on different models. What matters is that each person knows their own rule and can see their own figures. For the commission side, read how to calculate staff commission; for specialist studios see nail and lash studios.

Both models in Makastam

In the Makastam staff commission module each stylist gets their own rule: commission, fixed wage + bonus, or chair rent. Chair rent can be a fixed amount, a share of takings, or both; it is deducted from the stylist's account each period, and outstanding balances and payments are tracked separately. Wage, fixed rent and the bonus threshold are entered as monthly amounts and split across the days when you use daily or weekly pay periods, so for a weekly rent agreement you enter the monthly equivalent.

When a rule changes, the new version applies from the date you choose and past periods stay as they were. Each stylist sees only their own account and confirms the period. To set the prices behind all of this, see the guide on how to price salon services.