Booth rent vs commission: which is more profitable?
How to compare the two for your salon, with a worked example.
Commission usually brings in more profit per chair when the stylist is busy, and booth rent wins when chairs sit empty. Compare the profit the salon keeps from each chair per week under both setups, after wages, product, card fees and the stylist's share of overhead.
A side-by-side example
| Per chair per week | Booth rent | Commission (45%) |
| Stylist service sales | $2,000 | $2,000 |
| Salon income | $250 rent | $2,000 |
| Stylist pay plus tax | $0 | $970 |
| Product and card fees | $0 | $220 |
| Salon keeps before overhead | $250 | $810 |
Made-up numbers. At $2,000 a week, commission keeps more. At $800 a week, commission keeps about $320 while booth rent still keeps $250, and front desk, marketing and backbar costs can flip it.
What the comparison leaves out
Commission salons usually carry the front desk, booking software, marketing, education and backbar. Booth renters cover their own. Commission salons also control pricing, scheduling and the client experience, which builds a brand that is worth more if you sell. Booth rent is steadier but the salon has little say in how the chairs are used.
If you pay hourly or a guaranteed base, slow weeks cost more than in a pure commission setup. See minimum wage and commission.
How to decide with your own numbers
Pull each stylist's weekly service sales and what you paid them. Subtract product and card fees. Compare what is left to the booth rent that chair would bring. Do it by stylist, because the answer is often different for your busiest and your newest people.
Quick answers
Is booth rent or commission more profitable for a salon owner?
Commission usually keeps more per chair when stylists are busy. Booth rent is more profitable when chairs would be underused or when payroll and overhead are high.
What is a typical salon commission rate?
Many commission salons pay roughly 35 to 50 percent of service revenue, often with tiers and a lower rate on retail.
Can a salon mix booth rent and commission?
Yes, some do. Check your state's rules on worker classification first, since renters must truly run their own business.