Please step into the
shoes of the employer AND the employee with us. Both
other a unique insight into the humanistic problems
of commission wages.
If you were the
employee, how could you manage your household budget
not knowing how much you are going to earn day-to-day with an employer that offers you a commission
and an uncertain amount of groomings every work day?
That's what it is like for tens of thousands of
groomers in the U.S.
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Employees paid by salary have a certain or near
certain idea of how much they will make each month,
and after payroll tax deductions how much they will
"take home." From that they can plan how
much net pay they have to cover monthly rent, food,
insurance, car expenses etc. Employers instead
offering them commission and no salary guarantees
can play havoc with a household budget. Slow weeks
happen for many thousands of grooming business
owners unprepared with advanced marketing training,
and what that means is that their commission paid
groomers also experience a slow or "low
paying" week.
Now what are speaking
about here? Stress. Grooming is physically hard
work, and then on top of
that employed groomers are supposed to worry day-to-day or week-to-week if
there will be enough appointments to earn enough
commission wages to meet their household bills.
Indeed, these employees often have no sick pay or
paid vacation either. Stress in grooming? You bet
when you work on commission in a business that has
roller coaster tides of busy and slow seasons. Worse
yet, if you are the new or least senior groomer in a
busy expanding business you may get only the
groomings the other senior staff don't have time to
groom. Where there are 2 or more hired groomers on
commission, don't be surprised if the new hire gets
the leftovers, or worse, no groomings during a
slowdown. Generally, you can kick out the idea of
teamwork in grooming in these operations and say
"Hello stress!" Most groomers think that
this is just the way it is, but it is only in areas
where change has not taken hold that benefits both
the employer and employees.
Obviously the benefit
to the owner paying commissions is that they don't
have to guarantee a year round salary. Well, that's
understandable. However, it's not a credit to
successful management expertise of these worried business owners.
There are many ways to market more business, even
cost-free ways. Since 1987 we have never
consulted with even one, just one, grooming business
owner who did not have at least 30% more business in
their client base by implementing The Madson
Management System in the book, From
Problems to Profits. Using the Madson People and
Pet Marketing Program in Chapter 12 works wonders,
along with support procedures now published in The
Madson Pet Reporter. It's magic to many, but
just practical management expertise to us. Thousands of
readers following the system have proven there is a
lot more year round business if they become a
"marketing manager." Indeed, pet grooming
is gifted with being one of the least affected
trades by major recessions. Most pet owners affected
by recessions still want clean pets in their houses.
A clean pet is not a luxury, it is a practicality
and that can be marketed to pet owners as the value
of regular grooming. History has proven that true again and again. We
endured an eight year serious recession in
California and yet our business grew every year, but
we marketed aggressively, not expensively. We kept
up all salaries too. Many have followed in our
footsteps.
Now at least you know
some of the major reasons for commissions based on
the point of view of employers or employees. Ah, if
it were only that easy. Here is a big twist. Many
groomers, new to salaries, turn them down! Yes, even
if it means they will make the same, and sometimes
more, they turn down a guaranteed salary. We have an
actual case on record in a client business that is a
prime example of this twist. An experienced
full-time groomer was averaging
about $500 a week gross wages on commission. The
owner offered $750 a week on a guaranteed salary.
The groomer said she would quit if she couldn't work on
commission, and did. This was an experienced groomer
who could have never groomed enough in this business
to make the $750 by commission even with
improvements in productivity. We asked the employee,
"Why?" It took some time to get a truthful
answer, and it was, "I feel like I am losing
control when I work on salary." A few months
later she asked for her job back after the reality
of her decision became clear.
Yes, there is a lot of
psychology involved. Remember, about 70% of all
hired groomers one day plan on owning a grooming
business. Maybe working on commission makes them
feel a bit more independent. Don't underestimate
that simple statement, we continue to find more
evidence to prove that statement true. Certainly few
owners explain that switching to salary doesn't mean
you make less if you are following our method in The
Madson Management System, Not a penny less ever!
Yet, most groomer employees think they will make
less on a salary.
Finally, there is an
economic reality of which we the world's experts
since only Find A Groomer, Inc. has ever perused
hundreds and hundreds of financial statements for
grooming businesses. In fact, we can only prove what
we say here with a few hours of presentation at one
of our Workshops and with material available in The
Madson Pet Reporter. But here is a fact. In the
majority of grooming businesses paying a hired
groomer 60% commission, the owner retains about $2
to $4 of their share of each grooming fee after
deducting the 60% commission.
For example, the
grooming fee is $30. The groomer paid 60% earns a
gross wage of $18 leaving the owner $12. From the
$12 the owner must pay employer payroll tax
contributions for the right to have employees,
business insurance, rent, supplies,
maintenance, utilities, advertising and many other overhead expenses.
Studies have shown that the U.S. national average is
for owners to retain about $3 per pet grooming fee
where they pay by commission. Remember, the owner
still has to pay their personal income taxes on the the $3
before it is their "take home" pay,
and that reduces the $3 to about $1.50 to $2 for the
owner.
Paying by commissions
makes it very hard for owners and employees to have
a good financial sense of how the industry of
grooming is best managed. Commission wages are
typically based on having an experienced groomer do
the chores of bathing, drying etc which can be done
by assistants and bathers for much less, and let the
master groomer do what they do best, style. So going
from commissions to salaries means that both the
owner and employee know what to expect to maintain
business and household budgets, respectively. We've
never converted a business where the commissioned
groomer made less, but that's what they all fear.
What a state of confusion, and stress, stress, and
more stress. In the beginning we said that a lack of
business education was one of the biggest problems
of the grooming industry, and perhaps now you can
see this more with what we have presented here.
Actually, these pages are just a brief introduction,
and certainly doesn't represent all sides. The next
concept to truly understanding the economics of
profitable, humane and aesthetic grooming is Madson
Team Trimming matched with great salaries, and most
full-charge groomers that finally experience it
under a great owner-manager see and the feel the
difference in their pocketbook, and in their
physical well-being. Indeed, commission groomers
grooming pets start-to-finish strangely accept the
greatest wear and tear on their bodies,
start-to-finish grooming. Expert groomers don't need
to anything but finish styling, the pure art of
grooming, all day. But that's another story.
If you have a
continuing interest, please read this important article
on commission wages, and consider purchasing our
books at www.groomingbusinessinabox.com.
That's what many readers have done and they have
gone "from problems to profits." They are
entering the new school of grooming management
step-by-step, and most say they would never go back,
and they regret all the years they didn't make
changes. They are getting the education that
compliments their art of grooming, and no wonder
these owners rarely complain of "burnout"
and stress, and even tell us "I fell back in
love with my business." Education matched with
experience is everything! A few hours or days of
learning can make a huge change in a 10, 20 or 30
year career, and yet 90% of today's grooming
businesses won't attend a "business only"
seminar for one day! What more can we say?
Are you going to be
"old school?" Are you going to turn your
back to at least learning about what others are
doing, even if you choose not to follow it? It's not
a matter of right or wrong, the choice is yours. As
we say, "There's more to grooming pets than
grooming pets.™" It's you loving you enough
for the wonderful work you do caring for pets. Groom
and manage wisely in order to provide a modern
managed business for you and your employees that
supports mental and physical well-being (something
the old school forgot a long time ago).