IC at Salon...how to get paid on GC?

[Karma of the Poodle]

The salon where I am an IC sells gift certificates.  I am their only MT and I'm wondering how I should be paid for them, or if I should supply my own.  Everyone at the salon is an IC and I'm not sure how they get paid on GC.  Should I:1) Wait for them to be redeemed then have the salon write me a check.2) Go through the stubbs every week or month to tally up how many GC for massage were sold and get paid before they are redeemed.3) Supply my own GC and have the customer write the check to me directly.Some customers have paid the salon a lump sum for a GC that says it's for facial, pedicure, massage...but doesn't specify enough to know how much each of us should be paid.There have been a bunch of GC sold since I joined them that are for just massage and I feel I should be paid before they expire.  I am thinking I ignorantly went along with their GC system, instead of supplying my own, because how will anyone get paid for those grouped services GC?  Has anyone encountered this type of situation?  Should I ask to be paid on all the GC for massage that have been sold since I joined them then establish my own GC system?  I am planning to speak with the owner about the issue, I was just wanting to get some feed back from those of you who have been around the block and are more business savvy then I at this point.Thanks so much for your information and advice!

 

[michellemoniquexx]

IC at Salon...how to get paid on GC?

GCs/Packages are yet another reason why I wish the industry would get away from being paid a % on a service. You did not decide to discount, you are not deciding how the discount is allocated.Nonetheless, you should be paid for the work you do when you do it. (your option 1)Option 2 - If you leave before you do the work you are paid for, you have to pay the salon back. Too complicated for everyoneOption 3 - If you leave, the customer has to find you. What if they want to buy a GC for other services too? Then they have to pay you for one and the salon for the other. Again, too complicated and not customer friendly.One way to think about it is an extremely exaggerated version of the question. If the salon did nothing but sell GCs for 6 months, then in the next 6 months all were redeemed, how should that be handled?GAAP - generally accepted accounting principles - are pretty clear that the salon should not count a GC revenue as a sale. It is an advance payment against which they incur a liability to deliver the value. A Sale (revenue) and your pay (Salon's Expense) don't get recorded until the service is delivered (P&L or Income Statement activity). Until then, it is just an increase in cash and a corresponding increase in liability (a balance sheet activity).

 

[Sexy Dude]

RelaxandRejuvenate-  Thanks for your quick response!  At Christmas I advertised for Massage Gift Certificates and got a great response.  One of the co-owners told me to let them know how much they owed me from the GC sales and they wrote me a check.  Sometimes they have the customer make the check out to me directly, but other times the check is made out to the salon.I pay the salon a % of my monthly sales which includes any GC sales I've been paid up front for.  So why would I still owe them for unredeemed GCs if I left?Also, why would it be too complicated for the customer to find me if I left?  Surely they wouldn't have a problem finding their stylist if their stylist left.  If a customer comes in for a massage and a hair service, they generally pay us separately, and if they only happen to have one check, they'll make it out to the salon and the salon writes me a check immediately.So is it standard practice for the salon to keep the GC money until the GC is redeemed?  What if it isn't?  Do they still keep the money?Does anyone else have experience/thoughts on this?I really appreciate it!

 

[stacie]

IC at Salon...how to get paid on GC?

When I worked at the salon as an IC they did all the advertising for the gift certificates, they provided them and they got paid all the money for them. Even if the GC was just for a massage at the time of purchase (and this was often the case)... they would keep the money until the service was performed, though they attach one of my business cards advertising myself at the salon to it as well.The benefits of handling it this way are mainly for the client I think... if in the end the person who received the GC doesn't want the massage... they can almost always use shampoo, conditioner or a haircut. *Shrug* Clients like that option I think.

 

[Pompal 09.]

Thanks Maestra!  Yes it makes sense.  I'll talk to the owner and make sure we are on the same  page.