income of Median hourly wages

income

Median hourly wages in May 2008 for hairdressers, hairstylists, and cosmetologists, including tips and commission, were $11.13. The middle 50 percent earned between $8.57 and $15.03. The lowest 10 percent earned less than $7.47, and the highest 10 percent earned more than $20.41 according to the United States Department of Labor. While much of this depends on whether the cosmetologist is paid hourly, salary, contract or commission, and whether they rent a booth and have increased overhead expenditures. The cosmetologist's wages may also depend on the ability of the cosmetology professional to market themselves, upsell products and services, and expand clientele and improve client loyalty. Other factors include the size and location of the salon or beauty business, how many hours worked, local tipping habits, and competition from other beauty businesses. The 2003 NACCAS Job Demand Survey suggests that there is a shortage of salon professionals in the working world, so cosmetologists and salon professionals have increased earning power. The salon industry has little to no unemployment.^[4]

Cosmetologists are paid in a variety of ways:

Hourly or Commission: Cosmetologist have an houly wage and a commission percentage, and at the end of a pay period they are payed whichever is greater of the two. This system is set up to comply with state and federal minimum wage laws.

Hourly plus Commission: In addition to an hourly wage, a percentage of the money made from the provision of services is given back to the cosmetologist as income. Sometimes the percentage is a set amount, and sometimes the cosmetologist must reach a certain goal before the commission is paid.

Booth Rental: All of the revenue derived from services provided is paid to the cosmetologist performing said services. In this arrangement, the cosmetologist is an independent contractor and pays a rental fee or a "chair fee" for the usage of salon facilities. Typically the cosmetologist has to provide all of their own supplies and book their own appointments.

Hourly: Strictly hourly wage; most of the time cosmetologists keep their own client tips, but sometime client tips are pooled and distributed evenly amongst all beauty professionals working in the salon (tip pools are illegal in many states). Many corporate and small chains are trending toward this compensation structure, for it promotes a more controlled product by ensuring that employees are responsible for following company standards and policies.

Tips: Cosmetologists often make a considerable portion of their income from client tips.

Product Sales: Usually a commission is given on retail products sold, regardless of compensatory structure.