'non Tipping – Could It Work In Your Business?

Chances are an individual’s opinion of a cosmetology professional is not likely the same that they have towards a degreed professional. Some of the differentiation may come from the caveat that “professionals”, in the traditional sense (i.e. lawyers, doctors, etc.) do not receive “tips”. But it is important for the general public to know that, not only are cosmetologists very talented, skilled, artistic, and passionate individuals, they are also professionals committed to changing people’s lives.

Tipping in the beauty industry, started in the early 30’s & 40’s when housewives performed hair services in their kitchens for pennies on the dollar. For example, perms can take anywhere from 2 to 4 hours, and when only charging menial fees, a tip was greatly appreciated. Well, jumping into the 21st century, beauty practitioners have skyrocketed from practicing in their kitchen, to practicing at multi-million dollar facilities all over the nation.

In order to practice cosmetology, you have to obtain a license and be recognized by the state, meet certain requirements, and uphold certain standards according to the facility you practice in.

The beauty industry is a very lucrative and exciting field where opportunity for success and financial well-being never cease. “To insure proper” service, also known as “tip” is widely practiced tradition in our industry even today. This tradition is being challenged by some salons who feel it is not needed to ensure “proper service” or adequate compensation.

Here are some benefits for both the consumer and the business on creating a “no tipping policy”:

Consumer:
• “No longer suffering from “Tip Anxiety.” Do I pull out my wallet and give her a gratuity? I gave one to the woman who shampooed me earlier, but should I have done that? And how much should I tip, anyway? Some percentage of my bill? A flat five bucks? More? Do I put the money in her hand? Or place it on the counter of her work station? And what if I don't have exact change? Can I add a tip to my credit card receipt? Or stick a note in an envelope that says she'll find a tip later in the day under a rock at the northwest corner of 16th and K?”1

• “First of all, is tipping a reward for good service or protection against bad service? Is paying a tip a way to buy something you should be getting for free (good service) or is it a way to guarantee that something bad won't happen to you? If it's the latter, we're getting uncomfortably close to extortion.”1

• In a study, when consumers didn’t have to tip, more retail products were purchased, where retail = retention, with statistics saying that clients who purchased one product had a 30% return rate, two products increases to 60%, and 3 products increases to a 90% return rate.

Business & Technician
• "We're professionals," he said. "We charge according to the value of our services." 1
• Technician’s overall feel prouder now that they are treated as professionals.
• The business no longer has to claim a greater income on credit card tips, that actually wasn’t received, as they were paid to the technician.
• Less taxes paid on income.
• Less bank trips for change to refill cash drawers, therefore making deposits easier and fewer mistakes on cash drawers.
• Profit & Loss Accuracy.
• Receptionist no longer feels intimidated or pressured by consumer and technician and don’t get blamed for a small tip or no tip.
• Referrals increase due to consumer wanting to thank them.
• National average wage for cosmetologist increases, due to accurate claiming of salaries, thus creating more of a desire to enter the profession.

Although tipping has long since been a staple in the Cosmetology industry, it may be an outdated practice. There are ways and benefits of creating a “no tipping” approach in your salon or spa!
Author:Terry Folawn

By: Terry Folawn

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