commission salon business plan

How to Set Up the Commission Structure for a Salon

by Jill Harness

Published on 30 Jun 2019

When you operate a salon, and you have bad stylists who leave you with negative Yelp reviews and a terrible reputation, then it doesn't matter if your services are affordable, your marketing campaigns are buzzworthy or your location is convenient.

That's why it's important to ensure you bring in the right stylists who attract loyal repeat customers. Of course, the best way to attract good stylists and keep them at your salon is to ensure they are paid well. The best way to do that is to set up a salon commission structure that will keep talented employees motivated to do their best .

" id="hourly-or-salary-wages " class="title"> Hourly or Salary Wages

Paying stylists an hourly or salaried wage can give them a sense of stability since they know what they can expect to be paid, and it also encourages them to do more of the tasks that they won't be rewarded for doing through a commission structure, such as cleaning, answering phones and greeting guests.

Unfortunately, with an hourly or salary rate, it can be hard to incentivize stylists to do more than the bare minimum since these pay structures don't motivate workers to attract new clients, move products or even encourage existing customers to return again.

Hourly rates can create additional problems because if you don't carefully monitor your schedules and make sure workers don't routinely offer to help walk-ins at the end of their shift, then you may end up paying a fortune in unexpected overtime wages , taking a huge bite out of your profits.

" id="commission-or-performance-based-pay " class="title"> Commission or Performance-Based Pay

If you offer each hairstylist a commission percentage, you can solve many of these problems by tying your employees' wages to their performance. Stylists who attract new customers, push product sales and ensure clients return again and again are rewarded for going the extra mile. On the downside, those with commission-based salon jobs may be stressed since their wages can fluctuate drastically from week to week.

A performance-based pay system allows you many of the benefits of hourly or salary pay as well as the benefits of the commission pay structure since you give employees a base rate regardless of performance with an additional commission tied to their performance. Alternatively, many salons offer booth rentals, which means the stylist just pays to rent a space and is an independent contractor who keeps all of her profits.

Experts in the salon industry tend to agree that commission or performance-based payments are the best way to ensure you get top stylists to work in your salon in order to help bring you the most revenue.

Flat vs. Tiered Commission Structures

If you decide to go with a commission structure, you'll need to decide whether you'd like to use a flat commission structure or a tiered model. Either way, the exact terms of your structure need to be very clearly spelled out in your hairstylist commission agreement. A flat structure means you will give a flat percentage of the money made from each service, usually between 35 and 60 percent , as well as a flat rate for the earnings from products the stylists' customers buy, usually 10 to 50 percent .

On the other hand, tiered commission structures are a little more complex, but they offer even more incentives for a worker to do his best. There are two ways a tiered commission may operate. Stylists can either be put in a tier based on their total earnings from that period, or stylists can earn a stacking tiered rate for all services in a tier until they reach the next tier and then all services they perform for that tier are paid according to that rate until they reach the next tier, and so on and so on. Product sales can be included in the same tiered structures or in their own sales tiers.

" id="hairstylist-commission-percentage-example " class="title"> Hairstylist Commission Percentage Example

To make things more clear, it can help to work with an example. Imagine that Denise is an average stylist who performs $1,156 worth of hair services in a week. Emily is highly motivated and does $1,498 in services in that time, and Tom is a little less motivated and only earns $658. Under a flat 45-percent commission structure, Denise would be paid $520.20, Emily would get $674.10 and Tom would earn $296.10.

That's simple enough, but now imagine that they work for a salon that offers 35 percent for stylists who perform up to $750 worth of services, 40 percent for between $751 and $1,000, 42.5 percent for between $1,001 and $1,250, 45 percent for $1,251 to $1,500 and 50 percent for over $1,500. In this case, Denise would earn $491.30 because she would fall in the 42.5-percent tier, Emily would still earn $674.10 since she would be in the 45-percent tier and Tom would earn $230.30 because he would fall in the 35-percent tier.

Stacking Tiered Commissions Example

The stacking tiered commissions can be even more confusing, but imagine the salon offers a stacking commission of 35 percent for up to $500 worth of services, 40 percent for between $501 and $750, 45 percent for between $751 and $1,000, 55 percent for between $1,001 and $1,250, 60 percent for between $1,251 and $1,500 and 65 percent for over $1,501.

That means everyone would earn 35 percent ($175) for their first $500 in services, and then they would get 40 percent for up to $750 in sales, meaning Tom would earn $63.20 for the last $158 earned in this tier, and Denise and Emily would get $100 for their $250.

Denise and Emily would go on to earn 45 percent ($112.05) for between $751 and $1,000 and 55 percent for $1,001 to $1,250, meaning Denise would earn $85.25 for her final $155 in sales, and Emily would get another $136.95. Lastly, Emily would get another 60 percent ($148.20) for her final $247 in sales. That means that in total, Denise would make $472.30, Emily would make $672.20 and Tom would earn $238.20 .

How to Pick a Rate

Commission rates for salons are all over the place, with a handful of businesses offering as little as 35 percent and others offering 65 percent, but the average rate is around 45 percent . While it can be tempting to believe that offering the greatest possible rate will help you attract and retain the greatest possible people, it's important to remember that your salon still needs to make money.

Industry experts widely agree that offering 60 percent commission rates or higher is a surefire way to bankrupt your salon . This is one reason so many salons choose to offer stacking tiered rates, which give their stylists a chance to earn particularly high commissions once they reach a certain level of sales without bankrupting the salon in the process.

Of course, if you notice your stylists' calendars are constantly full, and they're frequently staying late to handle as many customers as possible, you may raise your prices a little since your stylists may hit a glass earnings ceiling because they can't possibly bring in more clients no matter how motivated they are.

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• February 27th, 2024
• Business Tips

How to Write a Hair Salon Business Plan

Are you thinking about opening your own hair salon? Or maybe you already have a salon and are thinking about opening another location?  

Well, when it comes to opening a new salon business, knowing how to write a hair salon business plan can make or break your success. The good news is—we’re here to help. 

In this article, we’ll go over the ins and outs of creating a hair salon business plan. This includes everything from market analysis and financial projections to your goals for the future. Having a plan will help you obtain funding and stay on track as you grow. 

Let’s get started. 

Do I Really Need to Write a Business Plan for a Hair Salon?  

You wouldn’t drive from San Francisco to Boston without either a GPS or a map, right? So, you shouldn’t run a business without a plan either. 

A hair salon business plan is a roadmap for your beauty business. Whether you have two chairs or 200, it’s essential for your ongoing success. 

In fact, opening or expanding a business has a lot more at stake than a drive across the country. You may have saved or taken out a loan to start your salon. And you likely have employees or contractors who are dependent on your business sense, too. 

A business plan gets you organized when you’re first starting out or opening a new location. Plus, it keeps you on track as you grow. You can reach or exceed your goals, but you must know what they are first. And you need to have a detailed set of strategies to use along the way. 

Let’s go back to our road trip metaphor.  

Suppose you want to get from California to Massachusetts. First, you figure out how many miles or hours the journey will take. Then, you divide that by how many miles or hours you can comfortably drive in a day. That’s how many days it will take. Finally, you plan overnight stops along the way for each of those days to make the drive doable. 

A salon business plan isn’t much different. You probably have goals for things like: 

• How much gross income you want to bring in 
• How much profit you want after overhead and labor 
• Ideal business model structure (e.g., booth rent vs. commission) 
• Services you would like to offer clients 
• Places where you’d like to open additional salons 

Without a specific business plan for how to make them happen, those are just pie-in-the-sky dreams. You need a more granular approach to turn them into a reality. 

For instance, how much money do you need to make each month to reach your desired net profits? If that’s how much you need to make each month, what do you need to make daily, assuming you’re open five days per week? How many chairs do you need to have? At what capacity do you need to operate? 

Not to mention, you’ll almost certainly need a formal business plan if you want to get financing for your salon. Salon equipment and real estate can be quite expensive. A bank may loan you money to get set up, but only if they see you have done your homework first. 

Lenders don’t want to back a business that is more likely to fail than to succeed. And new hair salons have an average success rate of 50% in the first three years of operation. 

That means half of those businesses will fail. Most fail not because of a lack of talent or ambition but because the owner doesn’t know how to properly run a business. You can be the best hairstylist in the world. But if you consider things like business accounting and marketing, you will likely lose more money than you are bringing in every month. 

Do you want to be in the 50% of new salons that thrive? Keep reading to learn the step-by-step method of developing a business plan for your salon. 

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

How to Write a Hair Salon Business Plan: Step by Step  

Below you’ll find information on each section commonly included in a business plan. But first, here’s a tip to help you make the most of these categories. 

Use the SMART method for setting goals. What are SMART goals ? They are: 

• Specific – highly detailed, not vague 
• Measurable – able to be quantified with hard numbers and actionable items mapped out to achieve the goal you’ve set 
• Achievable – doable within the framework of your business model 
• Relevant – related to your salon today, not somewhere else or too far in the future 
• Time-bound – tied to specific dates for end goals and milestones 

Any time you set a long-term or short-term goal, ask, “Is it SMART?” If not, dig deeper to get the details you need to make it work. 

Executive Summary  

Think of the executive summary as the introduction to your salon business plan. It gives brief information about: 

• The purpose of your salon and who it will serve 
• Your business objectives (offer something novel, expansion, etc.) 
• How your salon will be different from your competitors 
• Why you think the business will perform well 

For instance, you could talk about how you plan to open a salon in a busy urban area to cater to downtown employees. Your client demographic is primarily white-collar workers aged 25 to 45. 

Your unique selling proposition , or USP, is what makes the salon special. Say it’s that it will offer 20 and 50-minute appointments to fit into standard lunch breaks. Additionally, you’ll have 10-minute appointments for fast services during coffee breaks. 

Customers can get a quick trim on their fringe or ends. Beard and mustache trims are another rapid service you will offer. Everything can be booked and paid for online to streamline the process and get customers in and out in a jiffy. 

Maybe after work hours, your salon will be open for more traditional appointments. And you’ll have more quickie services available for businesspeople going out at night. They can get an updo, blowout, or style refresh before a date. On Fridays, you’ll offer manicure services too. 

In your business plan, you’d want to outline howyour USP will help your salon be successful. For our example, you might say you believe the salon will do well financially because of three factors: 

• The area is currently underserved by hair salons. 
• You are catering to the needs of businesspeople in your locale. 
• You hired an experienced stylist who’s bringing their clients with them. 

You don’t have to get into a ton of detail yet. This is a proverbial bird’s eye view of your business proposition. You could, however, outline a rough roadmap of how you envision your business will start and where you see it going in one year and five years. 

For instance, perhaps you plan to start with one location and 10 chairs. Five years from now, you want to open two additional locations. At that time, you will add new services like brow waxing and makeup consultations. 

You can mention market analysis in this section, too. Market analysis looks at competition and consumer needs in your niche. However, there will be a place later in your business plan to address this in more detail. 

Remember, your executive summary is an investor or lender’s first impression of your salon business. Therefore, you want to make it shine. 

Company Description  

This section goes into detail about the structure of your company. How long have you been in business? Who are the owners and managers? 

You’ll also want to review how many employees or contractors you plan to have. Will they be employed under W2 status, or will they contract as 1099 workers? 

Will hair stylists pay you a fee for the use of a chair? Will your salon take a cut of their fees? How will tipping be structured? 

For example: 

• Our salon is a startup organization that is not yet in business. 
• It is co-owned by two stylists who participate 50-50 in leadership. 
• There will be 10 chairs in total in the salon. 
• Eight contract stylists will be working as 1099 independent contractors. 
• Contract stylists will pay a monthly chair rental fee and a percentage of their billables to the owners. 
• All tips will go to the employed stylists, with a percentage going to a shampoo assistant. 
• Contract stylists make a commission on products sold in the salon. 
• You will also have two paid receptionists who will be W2 employees. 

You will go into more detail about financials in the Services and Pricing section. But this section should give readers an understanding of the basics of your planned salon operations. 

You can also include funding or investing requests in this section. Again, you will have further opportunity to dive into financials later. But touching on what you need to open or expand gets readers primed as they go through the next four sections. 

Market Analysis  

The market analysis section of your business plan is another area where you can wow readers and make your salon stand out. It answers the question, “Why you, and why now?” 

Remember, you don’t want to fit in with all the other salons in the area. Instead, you want yours to be unique . 

Your hair salon might be unique because of its business model, like the hypothetical one described in the executive summary. Or it could be you have a string of well-known stylists. 

Perhaps you offer extra luxury services and product lines. Maybe you offer great prices. It could be the whole vibe of your salon that’s one of a kind. Maybe it’s a retro nod to the ‘70s or a high-tech glimpse into the future. 

You don’t want to pitch your salon with a kitchen sink-style of features. After all, when you appeal to everyone, you really appeal to no one. But you can list several unique attributes that will give you a competitive market edge. 

In this section, you’ll show what the current market is like in your location. How many other salons are within a mile or two? Who do they cater to? Is there a gap you can fill to capture more market share? 

Be realistic. If everyone who comes through your door is on a tight budget, you can’t offer $300 color jobs. You need to match your services to your demographics. 

If you’ve ever sold a real estate property, you’ve done something similar to a business market analysis. You or your agent prepare “comps” or comparables. The comps show how your property is special, while reviewing what the rest of the area has to offer. 

Whether your salon is brand new or you’re opening a new location for your existing salon business, you may need to conduct market research. You can do this on your own or hire a consultant to do it for you. 

The more populated the area in which you operate, the more complicated market research is likely to be. If you’re in a suburb or rural community, there may only be a few hair salons to compete with. 

Don’t forget to include how your USP and ability to fill a need relates to industry trends. Let’s use the example above. There is a current national trend towards more online conveniences for salon customers. So, offering online payments and booking is going to help you stay at the front of the curve. 

Also, employees are feeling busier than ever these days. They struggle with work-life balance. And many are returning to the office after working remotely for several years. 

Your salon leverages this trend as well by providing stress-free quick appointments that fit into work breaks. Workers can get their hair done over their lunch hour and make better use of their personal time after work. 

If you have an existing business that you’re expanding, you can survey your clientele. Maybe you’re going to a second location because it’s underserved. Or perhaps you’re adding more services because that’s what clients want.  

It’s great to be able to give objective data that says there’s a need for your services. 

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

How do you plan to promote your new salon or additional location? That’s the focus of this section of the plan. 

Some common salon marketing methods include: 

• SEO website 
• Social media accounts 
• Paid advertising 
• Loyalty programs 
• Cross-promotion with other businesses 
• Flyers in area office buildings 
• Bulk mailings with coupons 
• Free makeovers 
• Local news editorial coverage 
• Online review platforms 

An SEO (search engine optimized) website is a great place to start promoting your business. You can add other components later. An optimized website is set up to rank higher on search engines like Google and Bing. 

How do you improve a website’s SEO? 

• Use keywords related to your exact services that clients would search for when looking for a hair salon. 
• Be sure to mention your location multiple times on the website, including your state and local landmarks. 
• Add a blog for value-added content with links to authoritative sources. 
• Get your salon mentioned on other websites and in social media mentions. 

This section overlaps with your market analysis. You’ll be using your unique selling proposition to focus marketing campaigns. Every marketing effort is an opportunity to promote what makes your salon stand out. 

Talk about how you plan to cement the two cornerstones of a healthy salon business: 

• Repeat customers who book appointments regularly 
• New customers who keep things fresh and balance natural attrition 

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

Here’s where you can go into more detail about your salon’s company structure and staff payment plan. You can include elements like credentials here, particularly if you or a manager have a business background or education. 

Don’t simply list how you plan to pay workers. Explain why this is best for your salon business’s long-term financial health. 

Are you and any other owners taking a salary? What corporate structure are you using (LLC, S corp, etc.)? Your state may determine how you want to set this up.  

Speaking with an accountant can clarify questions for you, especially about taxes. 

Services and Pricing  

This section of your hair salon business plan outlines the meat and potatoes of what your salon will offer. It is essentially a menu of all the services and treatments you provide. It also includes prices for each. 

You can mention why you chose the pricing model you did. For example, if you’re serving affluent clients in a resort area, you can justify charging a little more. Or you might do group pricing because you serve a lot of bridal parties. 

Don’t forget to add any products you plan to sell. Why is carrying these items beneficial to your business? 

Financial Projections  

Financial projections are the nuts and bolts that lenders want to see. They’ll also keep you on the right path as you grow your salon. 

You’ve already outlined your services and pricing. Now, it’s time to do the math and calculate what that means in terms of income. 

Answer these questions first: 

• What do you expect your salon to gross (total income) in a year? 
• What are your overhead expenses (rent/mortgage, staff, utilities, wholesale supplies, etc.)? 
• What portion of your expenses are due to payroll? 
• Do you have to make capital purchases for equipment? Will these be paid with a lump sum, financing, or rental payments? 
• What is the net profit you expect (gross income minus overhead and expenses)? 
• Where do you predict expenses or income will change over the next few years? 

You want to make your business plan financial projections look truly professional. So, break them down into these categories: 

• Sales forecast – total sales expected over the next several years 
• Expenses budget – all the costs you need to operate 
• Profit and loss (P&L) statement – a 12-month summary of revenue versus expenses 
• Cash flow statement – how cash moves in and out of your business, including monthly payments 
• Projected balance sheet – items that aren’t in your P&L, like interest debt, equity, and other factors that affect the net worth of your business 
• Break-even analysis – what you need to earn (at least) to make your expenses and start turning a profit 

A certified public accountant (CPA) can help you put together this part of your business plan for a reasonable fee. It’s well worth it if it helps you obtain investors or bank funding. 

How You Can Start Writing a Hair Salon Business Plan Right Now  

Ready to get started on your hair salon business plan today? Use these tips right away to make it both convincing to lenders and helpful as an internal roadmap: 

• Write a mission statement. To write a solid executive summary, it’s helpful to first compose a mission statement. This delves into why you want to open your business in the first place. Some people include this in their executive summary. Others keep it private and use it as an inspirational jumping-off point. 
• Include milestones in your financial projections. These are points where you will examine progress and see if you’re on target. Be ready to course correct if you’re not hitting your goals. 
• Compile an appendix. It’s a good idea to include an appendix in your business plan with copies of extra materials. This is an ideal place to include photos of your salon, certifications, licenses, and financial documents. It will keep everything organized for you and make you look more professional to lenders. 
• Enlist help. If you have questions about certain sections of your salon business plan, consider consulting with the appropriate professionals. Paying a one-time fee to an attorney or CPA can save you money and headaches down the line. You could even consider hiring a business manager to deal with office and financial issues. 
• Research your competition. If you’re not sure what services to offer or how you stand out, do some in-person recon. Visit competitor salons and check out influencers on social media. How can you align with service gaps and trends to make the most of your business? 
• Explore salon management software. Salon management software can save you a lot of time and make your job a lot easier. For instance, you can use it to quickly and easily generate reports to keep a pulse on your performance. It’ll also help you with other tasks related to your financial success. The best salon management software can automate appointments, keep track of inventory, and assist with marketing. 

Learn How to Manage a Hair Salon Business with SalonBiz  

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Average Salon Commission Rates: Understanding Salon Compensation

Tina alberino.

• August 31, 2019

“I’m a cosmetology student. Recently, I learned that most stylists are paid on a commission basis. I don’t understand what that means or what a normal paycheck looks like. How does commission compensation work? What are the average commission rates? Do new graduates make less money and go up eventually? There’s so much I don’t understand, and I’m worried about what my paychecks are going to look like once I’m out.”

Salon Compensation

Before I can answer your question about how commission works, you have to understand that there’s a distinction between how legal commission compensation works and how commission compensation typically works.

How does legal commission compensation work?

In a salon that complies with federal wage laws, employees are compensated one of two ways:

Commission plus hourly: Employees are paid an hourly wage plus a commission on their gross or net sales. In salons that utilize this structure, expect the hourly wage to be higher and the commission to be very modest, or vice versa. (You’re not likely to find a salon that pays a high hourly rate and a high commission.)

It’s not unusual for commission bonuses to be conditional upon performance, which means you may not qualify for any commission bonuses unless you hit certain sales benchmarks.

Commission versus hourly: Employees are paid an hourly wage or a commission on their gross or net sales, whichever is higher. At the end of the pay period, your hourly wage total is compared to your commission wages. You get the higher amount.

In these salons, it’s not unusual for the salon to use your ability to “hit commission” as a measurement of your job performance. Often, other metrics are also factored in (like your client retention rate and the salon’s overall traffic), but if you consistently don’t out-earn your hourly wages, and your metrics don’t add up, you could lose your job.

How does commission compensation typically work?

Commission only: In a good deal of privately-owned salons, salon owners pay a commission of your gross or net sales. Compliance with prevailing wage laws is unlikely. You may also find yourself being classified as “1099” (self-employed, despite the fact that you aren’t given the autonomy legally due to a self-employed person). If so, you’ll be responsible for paying the entirety of your employment taxes (15.3%—double what it would be if you were properly employed). You also won’t be eligible for a variety of federal protections you would normally be entitled to. Additionally, you may be responsible for providing your own product or will have the cost of products deducted from your paycheck.

Many salons deceptively offer high commissions, conveniently omitting the hidden costs of working for them.

“Average” Commission Rates

In non-compliant salons, expect to be offered commissions that range from 40-70%.

In compliant salons that pay hourly versus commission, commissions are unlikely to exceed 35%.

In compliant salons that pay hourly plus commission, expect more reasonable numbers proportional to the guaranteed base pay and the salon’s prices. If the salon pays a decent hourly wage, don’t expect the commission to exceed 15-20%. If the salon only guarantees the prevailing minimum wage, the commission may reach as high as 30% (but you very likely will have to hit sales goals to earn those rewards).

How much money do salon professionals make each pay period on average? What will my paycheck look like?

A variety of factors impact your paycheck, many of which you have little to no control over. The four most critical are:

• The salon’s compensation structure. Are you being paid hourly only, hourly vs commission, hourly plus commission, or commission-only?
• Your employment status. Are you properly and legally employed or are you a so-called (misclassified) independent contractor?
• The salon’s prices.
• The salon’s practices. Is the employer covering the product costs or are they deducting the cost from your paycheck (aka “committing wage theft”)?
• Your individual pay rate.
• Your productivity and sales performance. How fast do you work? What are your total sales? Can you predict what your average sales totals will be? (If you’re not a psychic, the answer is no…no, you cannot.)

If I had a dollar for every time someone asked me this question, I’d have enough money to pay people to never ask it ever again.

Why “Average Commission Rates” are Worthless Information

In the absence of all the data outlined above, the “average” commission rate is worthless information because percentages are relative to the amounts they’re being applied to. Time and time again, I see professionals telling other professionals they’re being “ripped off” if they’re being paid less than 50-60%, without having any of the information necessary to determine whether or not that’s actually the case.

For instance, who makes more per service?

• Colorist 1 is paid 35%. The salon charges $200.
• Colorist 2 is paid 50%. The salon charges $120.
• Stylist 1 is paid 60%. The salon charges $25.
• Stylist 2 is paid 20%. The salon charges $150.
• Manicurist 1 is paid 30%. The salon charges $65.
• Manicurist 2 is paid 55%. The salon charges $18.

In each example, the professional compensated the lower commission rate out-earns the professional who receives the higher commission rate. Yet, if these professionals were to reach out to the Facebook Brain Trust (my intense sarcasm here is extremely intentional), each would be told they’re “being screwed” by their employers and encouraged to pursue rental. (Pro tip: Rental is independent business ownership , and it is expensive .)

To evaluate salon compensation and determine whether you’re receiving a good offer, you have to understand how percentages work.

Furthermore, you have to understand how an individual’s productivity and the salon’s traffic can impact their earnings. Those who are capable of delivering efficient services to a large number of clients tend to earn more money, as do those who can upsell and retail (turning $60 tickets into $200 tickets).

Do salon professionals get raises?

In complaint salons that utilize hourly-versus or hourly-plus commission systems, you can expect your base wages to increase over time. Commission increases are highly unlikely in “plus” salons, but may occur in “versus” salons—just don’t hold your breath for those increases to get anywhere near 40%.

Keep in mind that each time the salon’s prices increase, so too will your commission bonuses.

Salons have exceptionally high operating costs, with labor constituting the biggest chunk of our expenses. Collectively, us salon owners walk a fine line, doing our best to keep our compensation and our pricing competitive while keeping our costs as low as possible. As a salon management consultant who specializes in balancing those numbers for a wide variety of salon owners across North America, let me tell you—it is not easy. (If it were, my services wouldn’t be in such high demand and my business tools wouldn’t sell nearly as well.)

If you choose to work in a non-compliant salon, raises are highly unlikely.

After all, if the owner is so cheap, irresponsible, or mathematically deficient that they won’t ensure prevailing wage compliance or pay the 7.65% employment tax rate they’re legally required to cover, what makes you think they’re going to give you a raise?

When it comes down to it, you’ll have to evaluate each salon job offer you receive individually, comparing base wages, commission rates, salon traffic, and all the other pertinent facts. Until you have that information—and even afterwards—it’s hard to say what your checks will look like. You, as an individual, have to decide if you’re passionate enough about this career to accept that uncertainty and adjust your lifestyle accordingly (if a lifestyle adjustment turns out to be necessary). Unfortunately, our industry has a really high attrition rate, due in large part to that unpredictability (but in no small part due to the lies many new beauty students are sold by school recruiters ).

Sad Fact: Very few of us are financing private Submarines.

As with all new careers, it’s important to understand what you’re getting into. Those who love this business enough to accept it despite its flaws stand to enjoy prosperous, long-term careers, but Step One to learning whether you’re one of those people is to get informed. While I’ve provided a ton of information for free on this site, you can also check out my first book, The Beauty Industry Survival Guide , for an unfiltered assessment of the professional beauty business—the good, the bad, and the ugly.

THE COMPENSATION AND PRICING MEGAKIT

Stop pulling your prices off your competitor’s brochures—or worse—out of thin air. Get the beauty industry’s most comprehensive and accurate pricing and compensation calculation tool and get profitable today!

THE MICROSALON OWNER’S COMPLETE BUSINESS TOOLKIT

A wealth of information and tools for self-employed professionals! If you rent a booth or suite, operate a home facility, or freelance, you can’t afford to go without The Microsalon Owner’s Complete Business Toolkit.

THE SALON LANDLORD’S TOOLKIT

Do you rent space to beauty professionals? The Salon Landlord’s Toolkit contains a comprehensive guide to rental salon ownership, a rent calculator, and a lease component checklist!

THE SALON OWNER’S EMPLOYEE ONBOARDING KIT

Everything a salon owner needs to know about how to attract, recruit, train, and retain top talent—including how to design job descriptions, compelling employment ads, and fair employment agreements.

THE POLICY CREATION AND ENFORCEMENT PACK

A 55-page PDF with everything you need to understand why certain policies may be required, who should and shouldn’t implement them, and when and how to introduce them in your salon.

THE SALON EMPLOYEE SUITCASE

The Salon Employee Suitcase makes income tracking simple, no matter how complicated your employer’s compensation structure is. Learn your rights and ensure every paycheck adds up.

THE EDUCATOR’S PRICING PLAYGROUND

Planning to start a beauty school or host classes? Account for your overhead costs and will automatically calculate your prices! Test different price points to evaluate your profits per term and per year.

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Database security 101: how to protect client information, the 2024 dol rule change, highlighting humanity: embracing gender diversity in salons, a brush with the law: the debate over cosmetology licensing, why you’ll never succeed at salon management, [aasm] “is the salon owner required to track our hours”, how to get hired at any salon with no clientele (even if you’re a recent graduate), unreasonable compensation: how the commission-only system fails salons and professionals, 2 responses.

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Booth Rental Vs. Commission Salons: Which Structure Is Right For You?

One of the most important career decisions you will make as a beauty professional is whether you want to rent a booth or work for commission. Spoiler alert: there’s no right answer. The best choice for you will largely depend on your individual circumstances. Is working on a team important to you, or are you interested in building your own personal brand? Whatever your needs may be, we are here to help make your decision easier.

Here are a few pros and cons for both environments:

COMMISSION SALON

• (PRO) Your work day ends when you leave the salon. Working for commission means your salon owner handles running the business (marketing, product purchasing, and clientele growth). This allows you to focus on improving your skills and developing yourself as a professional. At the end of the day, there is no need to stress about the logistics of your hair salon booth rental or rental agreement.
• (PRO)  Your paycheck is guaranteed. Every salon’s payment structure is different, but many traditional salons offer a salary or hourly wage on top of commission earnings. Additionally, you are not responsible for rent. This means, even if there are days when no clients show up, you are not losing any money on expenses on a hair salon booth rental. Most hair salons also offer health insurance and retirement savings which can add up to thousands of dollars a year.
• (PRO)  You have a team. Working with a team of stylists grants you opportunities to learn from your peers, cross promote, and look to other stylists for support and encouragement. Also, if a client ever decides to drop by, a team member is always there to greet them.
• (CON)  You run the risk of working for a bad salon. We’ve all heard horror stories about salon owners who take advantage of their employees. It is important to do your research and choose a salon with the right environment and management for you.
• (CON)  You have less freedom. As part of a salon, you are required to work certain hours on specific days. You will not be able to market your own personal brand and some stylists find that working for a salon can stifle their creativity as opposed to working as an independent contractor. In some cases, you may not be allowed to add personal touches to your station.
• (CON)  You have to share your earnings. Hair salon commision rates can range from 35% – 60%, however, it’s common practice for salon owners to deduct the cost of the products from your paycheck, bringing the total earning down to as low as 25%.

Hair Salon BOOTH RENTAL

• (PRO)  You set your own schedule. As an independent stylist, you are able to work the hours that fit your lifestyle best and be available for clients on their time instead of the salon’s. In fact, you could only come into work on the days you have appointments and use the rest of your time working on things like marketing and taking classes.
• (PRO) You control the branding. Renting a hair salon booth allows you to express yourself creatively. You design the aesthetic of your space, you choose the products, the towels, the business cards, etc. You control your image and the style of your services and you can target a specific clientele without worrying about who the salon (as a whole) attracts.
• (PRO)  You keep what you earn. This one speaks for itself. In an article by  “Revolver,” a stylist that worked for commission for over a decade explains the potential financial benefit of transitioning to booth rental.

“I was charging $50 for a haircut and making 49% of that at my commission salon. If I did $5000 in services in a month average, after commission, taxes, and deductions I went home with roughly $2000/ month (not including tips). It’s enough to live on, but it’s a pretty modest life.

Skip forward to the same service numbers as a booth renter. I was paying $250/week for a chair, plus estimate another $200-400/month in expenses (color supplies, accounting, etc). For that same $5000/month in revenue, I was now keeping $3600-3800 of it, plus tips. That’s 80-90% more money in my pocket at the end of each month for the exact same amount of work.”

• (CON)  You have more responsibilities with booth renting. As a booth renter, you are responsible for the upkeep of your own business. You are in charge of growing your clientele, restocking supplies , and keeping up with industry trends. Keep in mind, more responsibilities often leads to more rewards. This valuable business experience could prepare you for opening a bigger salon studio with employees in the future.
• (CON)  There are more expenses. You may not have to pay commision as a renter, but you will have several more expenses to keep track of. You will be in charge of keeping revenue reports and making sure you meet your financial goals each month.
• (CON)  You won’t have the reputation of larger salons. Reputation plays a major role in the success of a stylist. Many stylists who are new to the industry find it difficult to build a clientele without the reputation of a salon to lean on.

We asked pro hairstylist,  Alin Fekete , to share his advice for professionals thinking about branching off on their own.

PRO TIP:  “I think many hairdressers go through a similar experience, they work for someone for a while, they build your clientele, and then they hit a wall. There is a freedom that comes with managing your own business but it also comes with a high responsibility.

Take your time – don’t let your emotions get the best of you. When you are working for someone and they are taking 50% it doesn’t feel the best, but make sure you are ready to branch out on your own. Make sure you have a good amount of clients. Make sure, for yourself, that you are actually ready in terms of the talent and experience you have to offer. And that is something only you can answer for yourself.”

Being your own boss is a rewarding choice, but it takes commitment and perseverance. Make sure to evaluate where you are in your career and set goals for where you want to be in the future. With the right  tools , no matter which path you choose, there are always opportunities for success.

Thinking about expanding your business? We have the tools to help you get started  here.

For more helpful tips like these, check out these articles:

• Are Existing Clients As Important As New Clients?
• Is Your Business Instagramable?
• StyleSeat Tools That Could Change Your Business

One thought on “ Booth Rental Vs. Commission Salons: Which Structure Is Right For You? ”

I find that after towels and supplies, taxes, reception, paying an assistant, marketing, liability insurance, accounting etc there isn’t much of a difference. Also my salon has another assistant to apply colors for me if I’m too busy. I get the commission and I haven’t even worked on the client. This gives me two extra hands to double book with no extra charge to me. How does this fit into the equation? E

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Booth Rent vs Commission: The truth about spa and salon commission structures

We surveyed salon and spa professionals to find out how they utilize commission and booth rental models to get paid.

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About the Spa and Salon Compensation Survey

In an effort to provide beauty and wellness professionals with valuable insights about current industry trends on compensation, we conducted our own comprehensive beauty and wellness compensation study.

We surveyed hundreds of owners, managers, and staff across the United States and Canada to determine the most common compensation models, how payments and tips are handled, which commission structures are the most popular, and much more.

This results below show the results of this survey in regard to spa and salon booth rental vs commission compensation structures .

This article addresses statistics pertaining to retail commission, sliding scale commission, commission rates, deductions taken from commission, commission tracking, and frequency of pay, as well as how booth rent is determined, how it is collected, and how often it is collected.

For more information on salon and spa industry compensation, check out the the Salon and Spa Compensation Survey and Hourly vs. Salary Payroll data .

Spa and Salon Commission Structure

Commission is the most commonly used form of compensation in the beauty & wellness industry.

Seventy-five percent (75%) of owners & managers reported that they use commission as a form of compensation for their staff

Forty-two percent (42%) of staff reported that commission is the primary way that they are compensated

Retail Commission

The majority of respondents that identified as owners or managers of a business reported that they offer commission on retail sales made by their employees.

Ninety-three percent (93%) of spa and salon owners and managers pay retail commission

Sliding Scale Commission

Sliding scale commission is payment to staff as various percentages of their sales within set tiers.

For example, an employer may pay a service provider 40% commission (also known as a 40/60 commission split) on all sales from $0 to $3,000 within a given time period and 45% (also known as 45/55 commission split) on all sales from $3,000 to $6,000. Sliding scale commission is generally used to motivate and incentivize staff to increase their sales.

Thirty-three percent (33%) of spa and salon owners and managers use sliding scale commission

Spa and Salon Commission Rates

Spa and salon owners, managers, and staff members reported their commission rates with the majority saying they pay or are paid rates between 40 to 59 percent .

Owners & Managers

Minimum commission rates paid.

Sixteen percent (16%) of owners and managers reported that they pay a minimum commission rate of less than twenty percent (<20%)

Thirteen percent (13%) of owners and managers reported that they pay a minimum commission rate between twenty percent and twenty-nine percent (20%-29%)

Twenty-one percent (21%) of owners and managers reported that they pay a minimum commission rate between thirty percent and thirty-nine percent (30%-39%)

Thirty-six percent (36%) of owners and managers reported that they pay a minimum commission rate between forty percent and forty-nine percent (40%-49%)

Fourteen percent (14%) of owners and managers reported that they pay a minimum commission rate over fifty percent (>50%)

Maximum Commission Rates Paid

Eleven percent (11%) of owners and managers reported that they pay a maximum commission rate of less than thirty percent (<30%)

Eleven percent (11%) of owners and managers reported that they pay a maximum commission rate between thirty percent and thirty-nine percent (30%-39%)

Twenty-five percent (25%) of owners and managers reported that they pay a maximum commission rate between forty percent and forty-nine percent (40%-49%)

Thirty percent (30%) of owners and managers reported that they pay a maximum commission rate between fifty percent and fifty-nine percent (50%-59%)

Twenty-three percent (23%) of owners and managers reported that they pay a maximum commission rate over sixty percent (>60%)

Staff Members

Rates reported by staff members.

Seven percent (7%) of staff members reported that they receive a commission rate of less than twenty percent (<20%)

Twelve percent (12%) of staff members reported that they receive a commission rate between twenty percent and twenty-nine percent (20%-29%)

Twelve percent (12%) of staff members reported that they receive a commission rate between thirty percent and thirty-nine percent (30%-39%)

Seventeen percent (17%) of staff members reported that they receive a commission rate between forty percent and forty-nine percent (40%-49%)

Forty-four percent (44%) of staff members reported that they receive a commission rate between fifty percent and fifty-nine percent (50%-59%)

Eight percent (8%) of staff members reported that they receive a commission rate between sixty percent and sixty-nine percent (60%-69%)

Zero percent (0%) of staff members reported that they receive a commission rate over seventy percent (>70%)

How Common is a 60/40 Commission Split Salon or Spa?

While a 60/40 commission split salon or spa seems to be the most desired commission structure for many beauty and wellness professionals, only eight percent (8%) of staff members report receiving a commission rate of over fifty-nine percent and only twenty-three percent of business owners and managers report paying staff a maximum commission rate over sixty percent (>60%).

Commission Deductions

Owners, managers, and staff were asked if deductions are taken from the commission they pay or receive.

Thirteen percent (13%) of respondents reported that deductions are taken from the commission they pay or receive for credit card processing fees

Twenty-seven percent (27%) of respondents reported that deductions are taken from the commission they pay or receive for cost of supplies

Sixty percent (60%) of respondents reported that no deductions are taken from the commission they pay or receive

Additional Commission Data

Owners, managers, and staff members were asked about how they keep track of their hours and how often employees are paid.

The majority of respondents use software to keep track of how much commission is owed to staff members, followed by a combination of software and spreadsheets. The most common pay frequency for commission employees is bi-weekly, followed by weekly pay.

Commission Tracking

Fifty-four percent (54%) of respondents reported that they track commission with salon and spa software

Fifteen percent (15%) of respondents reported that they track commission with manually using spreadsheets

Thirty-one percent (31%) of respondents reported that they track commission with a combination of salon and spa software and manual spreadsheets

Frequency of Pay

Fifty-four percent (54%) of respondents reported that pay or are paid via commission bi-weekly

Twenty-seven percent (27%) of respondents reported that pay or are paid via commission weekly

Ten percent (10%) of respondents reported that pay or are paid via commission semi-monthly

Five percent (5%) of respondents reported that pay or are paid via commission monthly

Spa and Salon Booth Rental / Suite Rental Structure

Booth rental / suite rental was the least common form of compensation reported by those that participated in the survey.

How Booth Rent Amount is Determined

How rent amounts are determined, according to owners & managers:

Seventy-four percent (74%) of respondents reported that booth rent is owed based on a standard flat amount

Seventeen percent (17%) of respondents reported that booth rent is owed based on a percentage of sales

Nine percent (9%) of respondents reported that booth rent is owed based on a combination of standard flat amount and a percentage of sales

Booth Rent Payment Collection

Participants were asked who collects payments from clients:

Twenty-two percent (22%) of respondents reported that payments are collected by renters

Forty-eight percent (48%) of respondents reported that payments are collected by the business

Thirty percent (30%) of respondents reported that payments are collected by a combination of renters and the business

Rent Payment Frequency

Participants were asked how often rent payments are collected

Seventeen percent (17%) of respondents reported that rent payments are collected weekly

Fifty-eight percent (58%) of respondents reported that rent payments are collected monthly

Twenty-five percent (25%) of respondents reported that rent payments are collected on an other interval

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Sliding Commission Scale Hair Salon Explained

Working through the details required to ready your salon to open or for existing salon owners, paying your employees is an important consideration. There are a number of methods you can choose from to compensate your employees. Consider the tax and payroll situation in your state and your comfort level with each before choosing a pay system.

While there is not one best system for everyone, being aware of what each payroll system entails is a key component for your decision-making process. Remember pricing at salons differs state to state. Continue reading for information on compensation plans for hair salons. 

Table of Contents

Details of a Sliding Scale Commission

Your goal with any compensation package is to retain valuable employees. In addition, you want a loyal base and steady stream of customers. Many owners feel that the sliding scale commission method is a great way to achieve employee retention and repeat customers.

The intent of a sliding scale payment method is to incentivize your employees to increase their sales. Stylists at salons that use this payroll practice are usually employees of the salon. Since they are employees of yours, as the employer you have obligations to them as they do to you.

Furthermore, as you consider your compensation plan, remember you are also obligated to laws that regulate employment and benefits. FLSA, Fair Labor Standards Act requires that what you pay your employees must at least equal the federal or state minimum wage. You need to meet whichever is higher of the two – federal or state. There are also overtime wages to consider.

When determining your commission rates, do not set the percentage so high that you are not a profitable salon. This would not benefit anyone. Ranges between 40 to 50 percent are most common. Included in the sales, are the services performed by the stylists and the products sold by the employee.

Negatives to consider, this can create silos of employees. There is not an incentive for teamwork or salon goals. Stylists could feel as though they are competing with each other. This can change the climate of your salon, which can adversely impact your business. Also, in this model, you have created customers loyal to a stylist, not to your salon. If the stylist leaves, so do the customers.

However, a sliding scale encourages stylists to keep a full booking of customers. You as the owner want all the chairs filled and styling products sold. A sliding scale can help you accomplish both.

How much should you pay yourself as a salon owner?

Salary or hourly compensation.

For employees paid by the hour or as salaried, they have the benefit of knowing what they will earn each week. You as the owner can set the pay rate for your employees. Rewards for working toward a fully booked chair can be included in your pay rate calculation. For new stylists, who do not have a solid client base, this will make you an attractive employer.

Stylists who always have a full schedule and sell products reach maximum earnings under the sliding scale commission. Using a salaried system, these employees can be further recognized monetarily. They bring consistent business to your salon. Additionally, these regular customers will typically be sharing their satisfaction with your salon. This can bring new business to your other stylists.

Other Ideas

As the owner, you need to select a compensation method that you are comfortable with. The goal of any employee payment plan is to attract and retain stylists that share the goals of you and your salon. Your employees need to be compensated at a fair wage for their work; you need to make a profit so that the salon is successful.

Blended – Hourly and Commission

Salon sharing.

You can also develop a profit-sharing system. This involves everyone in the salon. A combination of product sales, services, and productivity is required. You need to calculate the options. Typically to convert to this system, you will pay your employees more per hour than they were earning on a commission basis. Everyone in the salon must support each other. It necessitates a change in philosophy.

Separating Product Sales

In the sliding scale pay system, product sales are usually part of the total sales on which the commission is determined. You can separate product sales as its own category. Monthly goals can be set. On these achievable sales, you can then reward your stylists with a percentage of their sales.

Paying for Seminars

Related questions.

What does it mean when a salon says it rents chairs?

What is an independent stylist?

An independent stylist is like freelancers in any field. As an independent, a stylist can work anywhere. They can go to customer’s homes; they can rent a chair, or an independent can have customers come to them. Pricing for services is completely up to the independent stylist to determine.

About the author. Entrepreneur and Salon Business Fan.

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5 min — Published on January 10, 2024 in Growing your salon’s revenue

Salon Salaries: 4 Payment Structures for your Staff

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The most important factor for any salon isn’t its location, atmosphere, or marketing. It’s the stylists you hire to make your clients happy. I’m sure you’ve noticed that your clients often return to see a specific stylist in your salon. You’re lucky to have your team and the best way to go about showing appreciation is by paying them fair salon salaries. Not to mention, a great team who have loyal clients can help grow your salon’s revenue .

Many salons vary in how much they pay their stylists, as well as how they go about setting up their pay systems. We explore the pros & cons of each of the different methods of paying your staff. Hopefully you’ll soon have a better understanding of what’s best for your salon salaries.

The four main types of pay structures for salon salaries:

Hourly rate.

Hair stylists have the most stability with their paychecks under the hourly pay structure. They know they’ll be getting paid regardless of whether they managed to bring in any clients or not. Stylists are also confident in knowing that they will be getting paid for all of the other tasks that come with the job like cleaning, greeting guests, answering phones, marketing work, etc.

With that said, your higher performing stylists may not be a fan of this model. They may end up doing more work than their lower-performing counterparts, but won’t be getting paid for their extra efforts. To add to that, your stylists may not feel encouraged to upsell products or work harder to bring in more clients, because they know they’ll be getting paid the same regardless.

Sure, you could change the hourly rate according to individual performance, but this can be hard to justify if you get questioned on it. Stylists are always talking to each other, and you should assume they know how much the others are being paid. If you decide to pay hourly rates, you may want to introduce a secondary incentive program based around performance.

At the time of writing, the median hourly rate for a hair stylist in Australia is $25.99 AUD ($17.28 USD or £13.65 GBP) – link is same, add to end. In the UK, the average hourly rate is £8.90 GBP ($16.95 AUD or $11.27 USD). In the beauty industry, the average hourly rate for a beauty therapist in Australia is $30 ($19.84 USD or £15.70). The average hourly rate for a beauty therapist in the UK is £12.31 per hour ($23.52 AUD or $15.56 USD). 

Annual salary

Although people may assume that it’s reserved solely for desk jobs, an annual salary is another avenue for salon owners to consider. An annual salary has many of the same benefits of an hourly position. Your stylists are guaranteed to get paid even if they weren’t able to get any clients, and they’re being compensated for all of the other tasks that come with the position.

The biggest drawback of an annual salary for a hairstylist however, is that they won’t be getting compensated for any additional work they do outside of working hours. If there’s a last minute client or someone that wants to show up before official hours, it could be cause for concern.

An annual salary has the same drawback as an hourly wage. Stylists will be getting paid the same rate no matter the work they do.

At the time of writing, the average salary for a hair stylist in Australia is $55,000 AUD ($36,399 USD or £28,788). The average salary for a hair stylist in the UK is £24,769 GBP ($47,312 AUD or $31,201 USD). For Beauty Therapists, in Australia the average annual salary is $58,500 AUD ($38,712 USD or £30,626). In the UK, the average annual salary is £24,000 ($45,861 AUD or $30,327 USD).

Commission based

This option offers no base pay, instead giving stylists a high commission rate on the clients they bring in and the retail products they sell. If there is a rockstar stylist that brings in a whole slew of clients and gets a lot of work, they can look forward to a pretty hefty payout. Commission based pay structures encourage employees to work hard because they know that they need to be continually finding work if they want to get paid.

The downside of a commission based structure though, is that stylists that are new or struggling to find work are going to have to deal with making little to no money. This is something that can weigh on their minds heavily and cause stress.

It should be noted that a commission pay structure encourages stylists to build their own list of clients that may leave with the stylist if they ever choose to quit. If this has happened to you, see our blog on ‘ Whose client is it anyway? ‘.

A commission pay structure compensates stylists based on a percentage of the salon revenue per service. This varies wildly between salons so it’s up to you to work out what works best. Can you afford to give your stylists 30%, 40%, or even 50% of the profit from a particular service?

Here’s a guide to help you decide on the best commission rate for salon or spa staff .

Performance based

Performance based pay structure is a mixture of the previously discussed salon salaries. It’s similar to a commission structure in that stylists receive more pay based on how much work they’re putting in. In this situation however, they still have an hourly or annual rate.

This pay structure gives your stylists peace of mind. They’ll rest easy knowing that they are always receiving a certain amount of money. It has the added benefit of providing extra motivation, knowing they’ll receive more money with each additional sale.

The disadvantage is that when things are slow, your employees may receive checks smaller than what they’re used to. Unfortunately this will be out of your control. In addition certain stylists may be not work any harder because they’ll be getting paid either way. Having stylists with this sort of attitude can often breed resentment within the team, and lower morale. This method of paying salon salaries really depends on the type of people in your team.

A successful performance based pay structure requires a fine balance between offering a fair base wage, and enough of a performance bonus to offer incentive without bankrupting the salon. It’s by far the hardest pay structure to get right, but if done correctly can boost your salon’s performance significantly.

Figure out what’s best for your team

Every option for salon salaries has its own pros & cons. Thorough research will ensure you’re making the best decision for you and your stylists. As always, run any ideas for change past your team; whatever you decide on won’t work properly without everyone being on board.

Check out the full guide

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How To Pay Salon Employees: 4 Models You Can Use

Looking to hire salon employees? Explore these four payroll options to ensure you pay your staff correctly and keep your business running smoothly.

No credit card required.

Congratulations! Your business is growing and you’re thinking about adding employees to your salon. Just as important as finding the right people for your clientele, you’ll need to determine how your new employees are going to be paid.

At GlossGenius, we’ve worked with thousands of beauty professionals (including hairstylists, barbers, nail artists, estheticians, makeup artists, and more) who have successfully taken their business to the next level, and now it's your turn!

With employees, you have total control over their schedules, offered services, and which clients they get to work with – you can even allow your self-employed team members to get paid directly through the app with Separate Bank Accounts, or run payroll directly through GlossGenius in just three simple steps. Our all-in-one beauty booking app can help harness the potential and profitability that comes with expanding your empire .

Join the waitlist for GlossGenius Payroll and get three months of payroll services completely FREE!  Reserve your spot now.

Below, we’ll walk you through the most popular payroll options for independent beauty professionals to help you find the perfect fit for your flourishing business!

Try GlossGenius free for 14 days!

4 ways to pay your staff as a salon owner.

Here are four pay structures salon owners can use:

1. Hourly Wage

The simplest of your options is to pay an hourly rate. Perfect for varying schedules and newer employees who may be working as your assistant or whenever you need an extra set of hands.

• Pros: Paying hourly allows you and the employee to always know how much they are being paid, while being a great way to keep your employee costs low.
• Cons: Keep in mind you’ll have to keep track of how long your employees work and motivate them to upsell your clientele without any additional compensation.

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An annual salary is not just for professionals behind a desk. Depending on your business, this could be the best way to slay. Unlike hourly-based pay, your employee will have a set schedule.

• Pros: You won’t need to keep track of your employee’s hours and their pay covers all the side jobs and additional tasks they complete between clients.
• Cons: You may need to find things for them to work on during slow periods in order to keep this model cost-effective for your salon business.

3. Commission Pay

Having commission structures based on bookings is the best way to accommodate employees of all levels and nurture a career growth path. Your employee can work hard to build their skills and client lists and will directly feel the results of their effort on payday. This is excellent for salons with retail products for your employees to upsell.

• Pros: A commission-based payroll option can equal a happy team and a happy profit and encourages stylists to invest even more in their client relationships!
• Cons: This requires more hands-on money management practices and is difficult to budget for. With this approach, having a good relationship with your accountant will go a long way especially when tax time rolls around !

Note: The United States labor laws require that a business takes careful consideration into the prevailing minimum wage against the commission earned during a specific pay period.

4. Team Or Performance-Based Pay

This option cultivates a supportive environment by working together, often providing a more well-rounded business with employees specialized in different areas. This method gives the salon and business owner more control over the company culture and payment structure.

• Pros: Your employees will have a regular paycheck and can be more flexible with their time behind the chair. They have more time available for promoting the business, honing their skills, and servicing clients without needing to rush.
• Cons: Over-performers may feel they’re carrying the weight of the brand on their shoulders, so be sure to keep an eye on each employee’s performance and find ways to keep them all on track to meet the collective goals of the business.

Overall, choosing the right salon compensation structure comes down to many factors within your own business. There is no right or wrong answer. You are investing in your brand and will be successful as long as you take the time to choose the best option for you!

Master Payroll for Your Salon with GlossGenius ‍

As a salon owner, it is essential to carefully consider how you will pay your employees to ensure your business remains profitable while keeping your staff satisfied. Of course, the compensation model you choose is just as important as the payroll tool you'll use – with GlossGenius Payroll , all of your service commission, product commissions, and tip data are automatically integrated, so you can pay your staff in minutes.

Each of the four payroll business models discussed in this post has its pros and cons, and it is crucial to weigh them against your business's unique needs before making a decision.

Whether you opt for hourly pay, annual salary, commission pay, or team or performance-based pay, the key is to find a compensation model that works for your business and your employees. By taking the time to make the right choice, you can ensure the continued success of your salon staff .

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Kroger and Albertsons defend merger plan in federal court against US regulators’ objections

Faye Guenther, president of local UFCW 3000, hugs Carol McMillian, bakery manager at Kroger-owned King Soopers and member of Local 7, after a news conference about the Kroger and Albertsons merger outside the federal courthouse on Monday, Aug. 26, 2024, in Portland, Ore. (AP Photo/Jenny Kane)

A grocery cart rests in a cart return area with a sign for Albertsons grocery store in the background on Monday, Aug. 26, 2024, in Lake Oswego, Ore. (AP Photo/Jenny Kane)

FILE - A customer exits a Kroger fueling center on June 26, 2019 in Flowood, Miss. (AP Photo/Rogelio V. Solis, File)

Kim Cordova, president of UFCW 7, center, speaks to reporters after a news conference about the Kroger and Albertsons merger outside the federal courthouse before a hearing on the merger on Monday, Aug. 26, 2024, in Portland, Ore.(AP Photo/Jenny Kane)

Carol McMillian, bakery manager at Kroger-owned King Soopers and member of Local 7, speaks about the Kroger and Albertsons merger during a news conference outside the federal courthouse before a hearing on the merger on Monday, Aug. 26, 2024, in Portland, Ore. (AP Photo/Jenny Kane)

People line up outside the federal courthouse before a Kroger and Albertsons merger hearing on Monday, Aug. 26, 2024, in Portland, Ore. The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. (AP Photo/Jenny Kane)

A worker returns grocery carts at an Albertsons grocery store on Monday, Aug. 26, 2024, in Lake Oswego, Ore. (AP Photo/Jenny Kane)

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PORTLAND, Ore. (AP) — Supermarket chain Albertsons told a federal judge Monday that it might have to lay off workers, close stores and even exit some markets if its planned merger with Kroger isn’t allowed to proceed.

The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. But the Federal Trade Commission sued to prevent the $24.6 billion deal, alleging it would eliminate competition and raise grocery prices in a time of already high food price inflation .

In the three-week hearing that opened Monday, the FTC is seeking a preliminary injunction that would block the merger while its complaint goes before an in-house administrative law judge.

“This lawsuit is part of an effort aimed at helping Americans feed their families,” the FTC’s chief trial counsel, Susan Musser, said in her opening arguments on Monday.

Musser said Kroger and Albertsons currently compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. Shoppers benefit from that competition, she said, and will lose those benefits if the merger is allowed to proceed.

Customers also are wary of the merger, the lawyer said. In Santa Fe, New Mexico, for example, 278 shoppers wrote to the FTC to express their concerns about a combined Kroger and Albertsons, which would own five of the city’s eight supermarkets.

But Kroger and Albertsons insist the FTC’s objections don’t take into account the rising competition in the grocery sector. Walmart’s grocery sales totaled $247 billion last year compared to $63 billion in 2003, for example; Costco’s sales have grown more than 400% in the same period.

“Consumers are blurring the line of where they buy groceries,” Albertsons attorney Enu Mainigi said.

Mainigi said Albertsons’ customers now spend 88 cents of every dollar at competitors that range from Aldi and Trader Joe’s to Dollar General. Albertsons can’t compete with larger rivals that have national scale, but joining forces with Kroger would help it do that, she said.

Kroger attorney Matthew Wolf also defended the proposed merger.

“The savings that come from the merger are obvious and intuitive. Kroger may have the best price on Pepsi. Albertsons may have the best price on Coke. Put them together, they have the best price on both,” Wolf said.

The two sides also disagree on Kroger and Albertsons’ plan to sell 579 stores in places where their stores overlap. The buyer would be C&S Wholesale Grocers , a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.

The FTC says C&S is ill-prepared to take on those stores. Laura Hall, the FTC’s senior trial counsel, cited internal documents that indicated C&S executives were skeptical about the quality of the stores they would get and may want the option to sell or close them.

But Wolf said C&S has the experience and infrastructure to run the divested stores and would be the eighth-largest supermarket company in the U.S., if the merger plan goes through.

The commission also alleges that workers’ wages and benefits would decline if Kroger and Albertsons no longer compete with each other.

Before the hearing, several members of the United Food and Commercial Workers International union gathered outside the federal courthouse in downtown Portland to speak out against the proposed deal.

“Enough is enough,” said Carol McMillian, a bakery manager at a Kroger-owned grocery store in Colorado. “We can no longer stand by and allow corporate greed that puts profit before people. Our workers, our communities and our customers deserve better.”

The labor union also expressed concern that potential store closures could create so-called food and pharmacy “deserts” for consumers.

For people in many communities across the U.S., when a grocery store shutters, “their only source of food actually is walking to the nearest gas station,” said Kim Cordova, the president of UFCW Local 7, which represents over 23,000 members in Colorado and Wyoming.

Mainigi argued the deal could actually bolster union jobs, since many of Kroger’s and Albertsons’ competitors, like Walmart or Costco, have few unionized workers.

U.S. District Judge Adrienne Nelson is expected to hear from around 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding whether to issue the preliminary injunction. If she does decide to temporarily block the merger, the FTC’s in-house hearings are scheduled to begin Oct. 1.

But Nelson’s decision will seal the merger’s fate, according to Wolf. He said the FTC’s in-house administrative process is so long and cumbersome that merger deals almost always fall apart before it’s through. Earlier this month, Kroger sued the FTC, alleging the agency’s internal proceedings were unconstitutional and saying it wants the merger’s merits decided in federal court.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the case on the FTC’s side. Washington and Colorado filed separate cases in state courts seeking to block the merger.

Kroger , based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs , Smith’s and Harris Teeter. Albertsons , based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together, the companies employ around 710,000 people.

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Equal Business Opportunity & Inclusion Plan - August 13

Documents related to an overview presentation of the Equal Business Opportunity & Inclusion Plan, presented during a meeting of Committee of the Whole on August 13, 2024.

Download Presentation (PDF, 1MB)

Kroger, Albertsons defend merger plan in federal court against U.S. regulator objections

The federal trade commission sued to prevent the $24.6 billion deal, alleging it would eliminate competition and raise grocery prices. albertsons, owner of jewel-osco, said nixing a merger could mean layoffs..

Faye Guenther, president of local UFCW 3000 (yellow shirt), hugs Carol McMillian, bakery manager at Kroger-owned King Soopers and member of Local 7, after a news conference Monday about the Kroger and Albertsons merger outside the federal courthouse in Portland, Ore.

Jenny Kane/AP Photos

PORTLAND, Ore. — Supermarket chain Albertsons told a federal judge Monday that it might have to lay off workers, close stores and even exit some markets if its planned merger with Kroger isn’t allowed to proceed.

The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. But the Federal Trade Commission sued to prevent the $24.6 billion deal, alleging it would eliminate competition and raise grocery prices in a time of already high food price inflation .

In the three-week hearing that opened Monday, the FTC is seeking a preliminary injunction that would block the merger while its complaint goes before an in-house administrative law judge.

“This lawsuit is part of an effort aimed at helping Americans feed their families,” the FTC’s chief trial counsel, Susan Musser, said in her opening arguments Monday.

Musser said Kroger and Albertsons compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. Shoppers benefit from that competition, she said, and will lose those benefits if the merger is allowed to proceed.

Customers also are wary of the merger, the lawyer said. In Santa Fe, New Mexico, for example, 278 shoppers wrote to the FTC to express their concerns about a combined Kroger and Albertsons, which would own five of the city’s eight supermarkets.

But Kroger and Albertsons insist the FTC’s objections don’t take into account the rising competition in the grocery sector. Walmart’s grocery sales totaled $247 billion last year, compared to $63 billion in 2003, for example; Costco’s sales have grown more than 400% in the same period.

“Consumers are blurring the line of where they buy groceries,” Albertsons attorney Enu Mainigi said.

Mainigi said Albertsons’ customers now spend 88 cents of every dollar at competitors that range from Aldi and Trader Joe’s to Dollar General. Albertsons can’t compete with larger rivals that have national scale, but joining forces with Kroger would help it do that, she said.

Kroger attorney Matthew Wolf also defended the proposed merger.

“The savings that come from the merger are obvious and intuitive. Kroger may have the best price on Pepsi. Albertsons may have the best price on Coke. Put them together, they have the best price on both,” Wolf said.

The two sides also disagree on Kroger and Albertsons’ plan to sell 579 stores in places where their stores overlap. The buyer would be C&S Wholesale Grocers , a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.

The FTC said C&S is ill-prepared to take on those stores. Laura Hall, the FTC’s senior trial counsel, cited internal documents that indicated C&S executives were skeptical about the quality of the stores they would get and may want the option to sell or close them.

But Wolf said C&S has the experience and infrastructure to run the divested stores and would be the eighth-largest supermarket company in the U.S., if the merger plan goes through.

The commission also alleges that workers’ wages and benefits would decline if Kroger and Albertsons no longer compete with each other.

Before the hearing, several members of the United Food and Commercial Workers International union gathered outside the federal courthouse in downtown Portland to speak against the proposed deal.

“Enough is enough,” said Carol McMillian, a bakery manager at a Kroger-owned grocery store in Colorado. “We can no longer stand by and allow corporate greed that puts profit before people. Our workers, our communities and our customers deserve better.”

The labor union also expressed concern that potential store closures could create so-called food and pharmacy “deserts” for consumers.

For people in many communities across the U.S., when a grocery store shutters, “their only source of food actually is walking to the nearest gas station,” said Kim Cordova, president of UFCW Local 7, which represents more than 23,000 members in Colorado and Wyoming.

Mainigi argued the deal could actually bolster union jobs, since many of Kroger’s and Albertsons’ competitors, like Walmart or Costco, have few unionized workers.

U.S. District Judge Adrienne Nelson is expected to hear from nearly 40 witnesses, including the chief executives of Kroger and Albertsons, before deciding whether to issue the preliminary injunction. If she does decide to temporarily block the merger, the FTC’s in-house hearings are scheduled to begin Oct. 1.

But Nelson’s decision will seal the merger’s fate, according to Wolf. He said the FTC’s in-house administrative process is so long and cumbersome that merger deals almost always fall apart before it’s through. Earlier this month, Kroger sued the FTC, alleging the agency’s internal proceedings were unconstitutional and saying it wants the merger’s merits decided in federal court.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the case on the FTC’s side. Washington and Colorado filed separate cases in state courts seeking to block the merger.

Kroger , based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including the brands Ralphs , Smith’s and Harris Teeter. Albertsons , based in Boise, Idaho, operates 2,273 stores in 34 states, including the brands Safeway, Jewel-Osco and Shaw’s. Together, the companies employ about 710,000 people.

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Food industry executives push back on Kamala Harris’ plan to fight “price gouging,” corporate greed

Harris promised to crack down on “excessive prices unrelated to the costs of doing business” by food suppliers, by joy saha.

Democratic presidential nominee Kamala Harris is planning to enact the first-ever federal law against corporate price gouging in the food and grocery industries, much to the frustration of some major corporations and food executives. 

In a speech made last Friday, Harris promised to crack down on “excessive prices unrelated to the costs of doing business” by food suppliers and grocery stores, including those involved in big mergers and acquisitions. Harris noted that amid the rising cost of groceries — which have gone up by 25% between 2019 and 2023, faster than other consumer goods and services, according to the U.S. Department of Agriculture (USDA) — several food companies are raking in more profits. Foods like bread are now about 50% more expensive than before the COVID-19 pandemic, Harris said.

The current vice president specified that she is looking to target businesses that are illegally hiking up prices and not “playing by the rules.” Harris added that competition within the food industry is ultimately necessary to help bring down the high cost of food nationwide.

However, food companies begged to differ, arguing that price hikes are imperative due to high inflation which has caused the costs of labor and raw materials to increase greatly.

“We understand why there is this sticker shock and why it’s upsetting,” Andy Harig, vice president of Tax, Trade, Sustainability & Policy Development at the Food Industry Association (FMI), told the Wall Street Journal . “But to automatically just say there’s got to be something nefarious, I think to us that is oversimplified.”

In response to Harris’ plan, the National Grocers Association said, “The proposal calling for a ban on grocery price gouging is a solution in search of a problem,” adding that its members are also reeling from inflation in the same vein as consumers.

Harris’ focus on corporate price gouging comes a few months after President Joe Biden called out so-called “shrinkflation” — the phenomenon of items shrinking in size, quantity, or, even, quality while their prices remain the same — during his annual State of the Union address to Congress. 

“Too many corporations raise prices to pad the profits, charging more and more for less and less,” the president said. Biden previously called out shrinkflation in anticipation of the Super Bowl and asked companies to “put a stop to this” in a game day commercial.

“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won't notice,” he said. “I'm calling on companies to put a stop to this.”

Despite his criticisms of high food prices, Biden failed to wield executive power to target food retailers and major corporations at the center of the issue, per the request of several progressives. Food prices have surged by more than 20% under the Biden-Harris administration, compelling Republicans to claim that “Bidenomics” has failed the American people.

Former president Donald Trump, at a rally in Pennsylvania, called out Harris’ recent proposal: “After causing catastrophic inflation, Comrade Kamala announced that she wants to institute socialist price controls.”

“Prices will come down,” Trump proclaimed to voters during a speech last week addressing his return to the White House. “You just watch: They’ll come down, and they’ll come down fast, not only with insurance, with everything.”

“Prices will come down and come down dramatically and come down fast,” he added, specifying that deflation — a term he refrained from using himself — would happen across the economy.

Such massive price drops would ultimately be more harmful than beneficial, many economists have decried. In conversation with CNN , Justin Wolfers, an economist at the University of Michigan, decribed Trump’s pledge as “unrealistic.”

Want more great food writing and recipes? Subscribe to Salon Food's newsletter , The Bite.

“The way to bring about deflation would be to create a massive recession. That would cause businesses to start cutting prices,” Wolfers said.

Economists have also criticized Harris’ plan, saying it could create more problems for consumers. Many even likened it to the wage and price controls imposed by Richard Nixon in the early 1970s. 

“This is not sensible policy, and I think the biggest hope is that it ends up being a lot of rhetoric and no reality,” Jason Furman, a top economist in the Obama administration, told the New York Times . “There’s no upside here, and there is some downside.”

According to the United States Department of Agriculture , prices for all food are predicted to increase 2.2% in 2024. Food-at-home prices (defined as grocery store or supermarket food purchases) are expected to increase 1% while food-away-from-home prices (defined as restaurant purchases) are predicted to increase 4.3%.

In 2025, prices for all food are predicted to increase 2%, with food-at-home prices expected to increase 0.7% and food-away-from-home prices expected to increase 3%.

about Kamala Harris:

• "The spark that ignites the flame": Black sororities flex "collective power" for Kamala Harris
• The DNC did not unify Democrats. Donald Trump did that long before
• The power of Kamala Harris' simple DNC message: Freedom is what normal Americans want

Joy Saha is a staff writer at Salon. She writes about food news and trends and their intersection with culture. She holds a BA in journalism from the University of Maryland, College Park.

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Kroger’s Nearly $25 Billion Merger Is Bad for Shoppers, F.T.C. Says

The Federal Trade Commission, which is trying to block Kroger’s plan to acquire Albertsons, said in court that the merger of grocery giants would also hurt workers’ pay and benefits.

By Danielle Kaye

Reporting from federal court in Portland, Ore.

A trial that could determine whether the two largest supermarket chains in the United States can merge opened in Portland, Ore., on Monday, pitting the grocery giant Kroger against regulators who argue that its takeover of Albertsons would eliminate competition at the expense of consumers and workers.

Before Judge Adrienne Nelson of U.S. District Court, the Federal Trade Commission and the supermarket chains laid out their arguments in court for the first time, as union representatives and workers protested the deal on the courthouse steps. Less competition, the agency’s lawyers said, would give Kroger more leverage to raise prices on millions of consumers.

The highly anticipated proceedings, set to last three weeks, come as high food prices have become a critical focus in the presidential race. Vice President Kamala Harris, the Democratic presidential nominee, has backed a federal ban on price-gouging in the food and grocery industries to combat high grocery costs.

Kroger and Albertsons defended the $24.6 billion deal, which would be the biggest supermarket merger in U.S. history, saying it would bolster their leverage with suppliers and improve competition against major retailers like Costco, Amazon and Walmart. But the F.T.C. — backed by a chorus of unions, consumer advocates, politicians and independent grocery chains — reiterated its position that the merger would probably result in higher prices for groceries and worse conditions for workers.

The deal “would eliminate the competition that shoppers and workers depend on in one fell swoop,” Susan Musser, the F.T.C.’s chief trial counsel, said in her opening statement. “This lawsuit is part of an effort aimed at helping Americans feed their families.”

In bringing the case, the F.T.C. has been joined by the attorneys general of eight states, including California and Illinois, as well as the District of Columbia. It’s part of a regulatory push under the Biden administration to rein in corporate consolidation in an array of industries, including airlines, Big Tech, book publishing and pharmaceuticals.

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States keep denying RFK Jr.'s requests to be removed from their ballots, which was key to his plan to help Trump win

• Robert F. Kennedy Jr. suspended his presidential campaign to help Donald Trump win.
• But Michigan, Wisconsin, and Colorado denied his requests to be removed from the ballot.
• The status of his request in North Carolina, a key swing state, is still unclear.

Robert F. Kennedy Jr. dropped out of the presidential race last week to help former President Donald Trump win, but things aren't going quite as planned.

While announcing the suspension of his long-shot presidential campaign, Kennedy said he was specifically removing his name from the ballot in about 10 swing states.

"Our polling consistently showed that by staying on the ballot in the battleground states, I would likely hand the election over to the Democrats, with whom I disagree on the most existential issues," Kennedy said at a news conference before endorsing Trump .

But at least three states have already disrupted Kennedy's plan.

Michigan, a key battleground state , said it was too late for Kennedy to withdraw as the nominee of the Natural Law Party in the state. Kennedy got on the ballot by convincing the small party to nominate him, earning only two votes.

"Minor party candidates cannot withdraw, so his name will remain on the ballot in the November election," Cheri Hardmon, a spokesperson for Michigan's secretary of state, said in a statement to The Detroit News.

"The Natural Law Party held their convention to select electors for Robert Kennedy Jr. They cannot meet at this point to select new electors since it's past the primary," she added.

Wisconsin, another crucial swing state , also denied Kennedy's request to be removed from the ballot.

The Wisconsin Elections Commission voted 5-1 against removal on Tuesday, citing state law that says "any person who files nomination papers and qualifies to appear on the ballot may not decline nomination."

Colorado, notably less competitive for Trump than Michigan or Wisconsin, also denied Kennedy removal from the ballot.

Related stories

Kennedy's campaign didn't respond to a request for comment from Business Insider.

However, Kennedy succeeded in getting himself booted from the ballot in some important swing states, including Arizona, Nevada, and Pennsylvania. He's also been removed from Florida, Ohio, and Texas ballots.

Whether he can be removed from North Carolina's ballot is unclear. On Tuesday, election officials in the state told The National Desk that Kennedy's name was already printed on some ballots.

Outside those states where he's trying to be removed, the Democrat-turned-independent-turned-Trump-ally has still been encouraging his supporters to show up and vote for him in November.

Watch: Speaker of the House finally elected, ending three weeks of leaderless chaos

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Trump Says He’ll Announce a Plan to Make US the ‘Crypto Capital’

• Trump’s sons have been promoting a crypto DeFi project
• Fourth collection of Trump themed NFTs were launched this week

Donald Trump speaks at the Bitcoin 2024 conference in Nashville on July 27.

Donald Trump appears to be taking an even deeper dive into the digital-asset world, saying that he’ll unveil plans to ensure that the US will be the “crypto capital of the planet.”

The former US president and current Republican Party nominee for the office wasn’t more specific in a video message on the X social media platform on Thursday. The post included a link to World Liberty Financial, a decentralized finance project that his sons have been promoting. While few details have been revealed, the metadata of the website describes the project as the “cutting-edge” DeFi platform that will connect users with “decentralized finance’s best tools for secure, high-yield crypto investments.” Crypto publication CoinDesk first reported the details from the site.

THE CASE OF

Leon trotsky, report of hearings on the charges made against him in the moscow trials, by the preliminary commission of inquiry into the charges made against trotsky in the moscow trials, held april 10 to 17, 1937 at avenida londres, 127 coyoacan, mexico, john dewey, chairman carleton beals (resigned) otto ruehle benjamin stolberg suzanne lafollette, secretary reported by albert m. glotzer court reporter of chicago, illinois, transcribed for the trotsky internet archive by david walters, august–september 2000 see also the related work not guilty: report of the commission of inquiry into the charges made against leon trotsky in the moscow trials.

Introduction to the Merit Publishers, 1969 Edition , by George Novak FOREWORD REPORT TO THE COMMISSION OF INQUIRY FIRST SESSION Opening Statements – Biography of Leon Trotsky – Early revolutionary activity – Revolution of 1905 – Opposition to World War – Sojourn in America – Role in October Revolution, Civil War, Soviet Government – Expulsion from Party – Exile – Activities Abroad – Copenhagen – France – Norway – Arrest SECOND SESSION Mexico – Loss of Citizenship – Family – Writings on Terrorism – Petrograd, Warsaw, Brest-Litovsk – Archives – Danger of Bonapartism – Policy of Comintern – Lenin’s Testament – Vyshinsky’s Charges of Anti-Leninism THIRD SESSION Relations with Lenin – Open Letter to Central Executive Committee – Relations with Defendants – The Troika – Bloc with Zinovev and Kamenev – Expulsion of Opposition – Capitulations – Olberg – Radek FOURTH SESSION Trotsky’s Attitude Toward Defendants, Zinoviev-Kamenev Trial – Radek – Capitulators – Relations with Defendants – Loyal Opposition – Communications with USSR – Blumkin – Copenhagen – Return – Meeting with Son – Witnesses – Sedov’s Passport – Telegram to Herriot – Hotel Bristol – Danish Press FIFTH SESSION Testimony of Trotsky’s Secretary on Copenhagen Hotel Bristol – Sound Film to Opposition – Olberg – Romm – Trotsky’s Removal to France – Landing at Cassis – Trip to Saint Palais – Fire – Life in Saint Palais – Bagnères – Barbizon – Discovery – Press Attacks – Romm – Documentary Evidence SIXTH SESSION Precautions on Trip to France – Documentary Evidence – Romm – Pyatakov – Trotsky’s Life in Norway – Knudsen’s Telegram to Vyshinsky – Norwegian press – Trotsky’s Proposition to Moscow Court – Pyatakov – Certain Defendants SEVENTH SESSION Soviet Treason Law – Aftenposten on Pyatakov – Hrasche – Ciliga on Confessions – Brobnis – Tsentralnaya Explosion – Industrialization, Five-Year Plan, Collectivization – Soviet Statistics – Trotsky’s Warnings – Attitude on Terror – Kirov Assassination – Communications with USSR EIGHTH SESSION Terroristic Tendencies Among the Youth – The Question of Conspiracy – Attitude Toward Change of Soviet Régime – Omission of Molotov from List of Victims – Defense of USSR – Clemenceau Thesis – Fourth International – Spain – Position in Case of Attack on USSR NINTH SESSION Stalinist Policy in Spain – Foreign Policy of Lenin and Trotsky – Soviet Union in a Capitalistic World – War and Socialism – Attitude toward Germany and Japan – Alliance of USSR with Capitalist Countries – Lenin’s Trip Through Germany – Polish War – Struggle Between Left Opposition and Stalinists – Theft of Archives – Finances – General Denial of Charges. TENTH SESSION History of Bolshevik Party – Governing Bodies – Membership in 1919 – Constitution of Soviet Union – Council of People’s Commissars – Members in 1919 – The Soviets – Relations Between Party and Government – Democratic Centralism – Dictatorship of the Proletariat – New Constitution – The Socialist Revolution – The Question of Propaganda – Revolutionary, Individual and Thermidorean Terror – The Hearst Press. ELEVENTH SESSION Bureaucracy and Fascist Alliances – Terrorism – United Front and Popular Front – Party Purges – Sabotage – Trotskyites in Siberia – Muralov’s Confession – Method of Securing Confessions – Removal of Stalin – Accusations in First Trial – Soviet Law on Evidence – Pyatakov’s Alleged Flight – Socialism in One Country – Relations with Lenin – Distortion of Revolutionary History – Borodin in Mexico – Communist International. TWELFTH SESSION Demand for Investigation of Mr. Beals’ Question – Mr. Beals’ Resignation – Statement of Chairman – Statement of Counsel for Witness – Letter from Socialist Party – Bolshevik Discipline – Slogans of the Opposition – Phases of Party Struggle – Constructive Work – The Menshevik Trials – Lenin’s Testament – Left Opposition – International Revolution – Dictatorship of the Secretariat. THIRTEENTH SESSION Part I Part II Part III Closing Speech of Counsel for Witness – Questions of Mexican Labor Organizations – Statement of Counsel for Commission – Trotsky’s final argument: Why Is an Investigation Necessary? – Is the Investigation Politically Admissible? – The Opinion of Professor Charles A. Beard – A “Purely Juridical” Examination – Autobiography – My “Juridical” Situation – Three Categories of Proofs – The Mathematical Series of Frame-ups – The Political Basis of the Accusation: Terrorism – The Kirov Assassination – Who Drew Up the List of “Victims” of the Terror? (The Molotov “Affair”) – The Political Basis of the Accusation: “Sabotage” – The Political Basis of the Accusation: The Alliance with Hitler and the Mikado – Copenhagen – Radek – Vladimir Romm, “Witness” – Pyatakov’s Flight to Norway – What Has Been Refuted in the Last Trial? – The Prosecutor-Falsifier – The Theory of “Camouflage” – Why and Wherefore These Trials? APPENDICES In re: Copenhagen – Supplementary Statement by Albert M. Glotzer – Factual Corrections – Correspondence – Why and Wherefore These Trials?

Last updated on: 20.4.2007