Massage Establishment Owners

112 members

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This group will discuss massage aspects from the owners viewpoint and try to give ideas on how to save money and activities concerning therapists.
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Fair Commission Rates

by Monica Marsh

Oct 15, 2009

Hi, I have just opened my very first, very own day spa! Before opening my own place, I worked at a couple salons paying booth rent, so I am not very familiar with commision rates. During my training 4 years ago, I was told that an average commission was 60-40 with the massage therapist getting the 60% Now-a-days it seems like these new establishments and franchises are employing therapist for less than 15% per massage. As an active massage therapist, however, I find these rates to be ofensive and simply just too low! I have a couple girls that would like to work for commission rather than booth rent and find myself unawrae of what commission to set. Clearly, as a business owner I would rather make the higher percentage, but not if its unethical.
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  • up

    Steve Ibach

    I pay a flat rate per treatment regardless of what we charge. The rate varies per treatment but averages about $30 per hour plus gratuity. We provide everything for the therapist and do not expect them to do anything additional (like wash, etc.)

    I like the flat rate because I can focus on marketing without worrying about how the therapist will react if have a 50% coupon, etc.

    Dec 3, 2009

  • up

    Relax & Rejuvenate

    I am with you for a variety of reasons.

    1) Simplicity. Do a massage, you know what you make. No complicated math. You are paid for your time.
    2) Discounts and promotions are my decision, not the therapists.
    3) % does not make any sense. Pay in a commission environment = Volume * Average Rate * % commission. How can anyone judge one variable without fully knowing the other 2? We have had potential technicians walk away because our % is "not fair", even though we pay more per service than they were currently getting. Sorry if it is not fair to pay you more.

    As a rule of thumb -- whatever your compensation scheme -- total therapist compensation should be 45% or less to make the investment in an establishment and all the associated expenses and liabilities pay off.

    Steve Ibach said:
    I pay a flat rate per treatment regardless of what we charge. The rate varies per treatment but averages about $30 per hour plus gratuity. We provide everything for the therapist and do not expect them to do anything additional (like wash, etc.)

    I like the flat rate because I can focus on marketing without worrying about how the therapist will react if have a 50% coupon, etc.

    Mar 12, 2010

  • up

    Jean Ann Scholefield

    Thank you Monica for asking my question for me! thank you everyone who responded with the answers i also need!

    Jul 11, 2010