Question 1

Should my barbershop rent chairs to barbers or pay them commission?

Accepted Answer

Commission earns more once a barber produces more than about $590 a week, but you carry the payroll, the supplies and the job of filling their chair. At 50% commission on $1,800 a week, the shop keeps about $768 after payroll tax and supplies; chair rent at $250 a week is $250 with far less risk. Rent suits barbers with their own following; commission suits a shop that brings the clients.

The two models are different businesses. On chair rent, the shop is a landlord: fixed income, no responsibility for the barber’s bookings, and little control over how they work. On commission, the shop is the employer: more income per busy barber, but the shop pays whether the chair is full or not.

The break-even is simple to work out. Take the share the shop keeps per dollar of service revenue on commission after payroll costs and supplies — about 43 cents in the example — and divide the weekly rent by it. Above that level of production, commission earns more; below it, rent does.

Who brings the clients should decide it. If new clients arrive through the shop’s name, location and booking system, commission captures the value the shop creates. If barbers arrive with their own book and would take it with them, rent is the more stable arrangement.

Worker classification rules differ by country and state, and a renter who is controlled like an employee may legally be one. Check how the arrangement should be set up before changing it.

Question 2

Booth rent vs commission for a barbershop owner

Accepted Answer

Commission earns more once a barber produces more than about $590 a week, but you carry the payroll, the supplies and the job of filling their chair. At 50% commission on $1,800 a week, the shop keeps about $768 after payroll tax and supplies; chair rent at $250 a week is $250 with far less risk. Rent suits barbers with their own following; commission suits a shop that brings the clients.

Question 3

How much should I charge a barber for chair rental?

Accepted Answer

Commission earns more once a barber produces more than about $590 a week, but you carry the payroll, the supplies and the job of filling their chair. At 50% commission on $1,800 a week, the shop keeps about $768 after payroll tax and supplies; chair rent at $250 a week is $250 with far less risk. Rent suits barbers with their own following; commission suits a shop that brings the clients.

Question 4

Is commission or chair rent more profitable for a shop?

Accepted Answer

Commission earns more once a barber produces more than about $590 a week, but you carry the payroll, the supplies and the job of filling their chair. At 50% commission on $1,800 a week, the shop keeps about $768 after payroll tax and supplies; chair rent at $250 a week is $250 with far less risk. Rent suits barbers with their own following; commission suits a shop that brings the clients.

Should my barbershop rent chairs to barbers or pay them commission?

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