Wednesday, September 7, 2011


Some New Stats on that Last Little Transaction Between a Client and Her Stylist

For most service providers in the salon, the tip continues to represent a significant percentage of take-home pay. But sometimes, these dollars that do nothing for the salon’s bottom line offer owners a headache in boosted credit card processing fees and reporting responsibilities to the Internal Revenue Service.

When asked what the average top percentage a stylist in the salon would pull in, here’s the breakdown:

2% of owners reported that an average tip represents less than 2 percent of the service fee
10% of owners feel tips hover around 5 percent
32% reported average tips of 10 percent
32% say tips are closer to 15 percent
16% think their average tips are 20 percent
• While a lucky 8% reach a tip average of more than 20%

When asked if they allowed tips to be added to credit card transactions…

83% of owners said Yes
17% said No