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Misconceptions Arising from 50/50
Commission Wages
Occasionally we answer the phone
and it is a wonderful member of
the grooming industry known for
lecturing on grooming business
topics at leading trade shows.
They know we have a lot grooming
business experience offering
year round management training
and we make a good sounding
board to discuss ideas for their
next lecture topic. Usually with
great angst they come to a point
to take on commission and salary
wages. We enjoy humoring them by
saying, "Why would you ever do
that to your speaking career?"
Or, "Great! Did you just
graduate from a conflict management
class and want to get your feet
wet addressing this subject in
public with a room filled with
groomers?"
Beneath the humor we really mean
it. Lecturers speaking on groomer commissions and
salaries are guaranteed only one
thing, no one will be snoring in the back row.
There's always been 2 topics
that are a surefire way to get a
room of quiet groomers fired up,
cage drying pro and con, and
commission wages versus salary
wages.
As we discovered on
Page
4 of this Main Menu, it's
not true that groomers paid by
salary always earn less when
compared to being by commission for
the same work performance. For
most but not all employed
groomers the common point of
view is that you make better
wages with commission, but common
points of view are filled with common
misconceptions. Here we want to
address another common misconception about
commission wages. Again we offer
this information to set the
stage for an open discussion
about commissions and salaries.
By open discussion we mean that
no one has to throw rotten
tomatoes at the discussion
leader introducing many points
of view on this volatile
subject.
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Where you have people on
different sides of a topic there
must be a valid basis for their
points of view. Everyone in
grooming has points of view on
commission and salary wages, and
usually strong ones indeed. As
consultants we have found a lack
of numerical evidence for any
point of view and that leads us
to label them as "opinions
without proof." At our workshops
we open the floor to discussion
asking employed
groomers paid by commission how
much is your take home pay for a
day's work compared to the
owner's take home pay earned by
their hiring you? It's a good
question, and NEVER has an
answer come really close the
reality of the answer we prove
here. Again, we're not proving
our point of view but saying,
"Look at how little most owners
and employees know their
financial working relationship."
A lack of knowledge usually
leads to
misconceptions, so let's get our
minds open by analyzing some
financial facts so we can truly
go into discovery and find
workable solutions to a more
profitable industry for both
owners and employees.
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50/50 Commission Grooming
Fee Analysis
$35 Service Fee for
Miniature Schnauzer Groomed
Start to Finish by Groomer |
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50% Commission Employed
Groomer |
Employer |
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50% Share as Wage |
$17.50 |
50% Share for Owner |
$17.50 |
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Payroll Deductions (average) |
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Federal & State Payroll
Contributions
Paid Out of Employer's
Pocket |
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Federal Income Tax (15%) |
-$2.63 |
FICA etc (Social Sec &
Medicare) |
-$1.34 |
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FICA etc (Social Sec &
Medicare) |
-$1.34 |
FUTA (prior cap) |
-$0.12 |
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Adjusted Net Payroll |
$13.53* |
State Unemployment (3.5%
average) |
-$0.61 |
* State level payroll
deductions not
included here due to state
variations. |
Business Overhead
Allocation* |
-$7.00 |
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Owner's Adjusted Prior Taxes |
$8.43 |
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Owner's Personal Payroll
Deductions (average) |
for $8.43 share |
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Federal Income Tax (15%) |
-$1.27 |
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FICA etc (Social Sec &
Medicare) |
-$0.65 |
FICA etc (Social Sec &
Medicare)
(employers pay twice on
their wages) |
-$0.65 |
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Adjusted Net Payroll Owner's
Share |
$5.86** |
* Rent, utilities, supplies
etc. costs
averaged for one year per
pet groomed
** State level payroll
deductions not
included here due to state
variations. |
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