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3 Important Financial Management “Tips” For Salon Owners
Are you dealing with credit card processing fees; tracking tips for taxes; even looking for ways to motivate your clients to tip your stylists well and often to supplement their incomes and keep them doing hair at your salon happily ever after? Tippy claims to reduce credit card processing fees for salon owners and increase tips for service professionals.
May 9, 2019
Salon owners, find out how to avoid credit card processing fees, track tips and invent hair salon tipping for your team.
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4 min to read
Are you dealing with credit card processing fees; tracking tips for taxes; even looking for ways to motivate your clients to tip your stylists well and often to supplement their incomes and keep them doing hair at your salon happily ever after?
As a salon owner, you’re busy managing all kinds of financial matters, large and small. From product inventory, productivity and staff retention to finding the best price for coffee stirrers, it’s all on your agenda. And while it may not always top your list of financial issues to address, hair salon tipping definitely plays into the big financial picture.
One of the first salons to use Tippy—Lords & Ladies in Pennsylvania, with seven locations—has found a new technology that eliminates the pain points of tipping. They’ve adopted Tippy, a tipping platform built specifically for the beauty industry. Tippy claims to reduce credit card processing fees for salon owners and increase tips for service professionals, and Lords & Ladies team members say they are thrilled with the program.
“Tippy has made such a huge impact in my life,” says Kayla Stockman of Lords & Ladies’ Pottstown location. “We have had Tippy for a little over two years, and I have been able to pay off my car, build a deck onto my house and go on two vacations without touching my personal funds. Having my tips go into a separate account is as if the money is never there. I am able to save so much more!”
Reduce Credit Card Processing Fees
Tippy is a simple, plug and play, stand-alone system that works hard to save money for salon owners by reducing credit card processing fees. With Tippy, clients’ tips go directly to their service providers’ bank accounts rather than being added to their credit card charges. That means your service professionals collect their tips the very next business day, and you never again have to be the banker. “I love Tippy!” says Abby May Joseph of Lords & Ladies in Gilbertsville. “I was nervous in the beginning because it was new to me and I was unsure if not having cash tips would make a difference in my everyday life. That changed quickly. I’ve saved so much more money with Tippy!”
Reinvent Hair Salon Tipping
Here’s how Tippy works. At check-out, clients are presented with a forward-facing tablet that lets them choose the tip amount that will be paid directly to their service professionals. The tip is recorded instantly on the app each service professional downloads on his or her phone. This process makes it a personal matter between customer and service professional, and because of that, clients are inclined to tip more than they might if they were using cash or adding the tip to their credit card charge. Tippy reports that the industry average for credit card tips in salons is between 16% and 16.5%. With Tippy, credit card tips are now averaging 21.75%. “My tips are bigger,” confirms Bri Zeiber, of Lords & Ladies in Sinking Spring, PA. “And because it’s so convenient and easy to use, clients are less inclined to tip in cash, so I save more than I spend!”
Track Tips Easily And Accurately
For salon owners, Tippy’s dashboard makes tip tracking easy. You can invite and manage staff, customize tip reporting and track and motivate service professionals. And because the tips go directly into individual bank accounts, service professionals not only keep track of their tips, they can set goals and save money. “I treat my Tippy checking account as a separate savings account,” says Abby May Joseph. “I use the money strictly for big purchases or vacations. I love watching the money add up day to day and through the weeks. It’s a great way to track your money consistently.”
Reduced credit card fees, higher tips for happier service professionals, an easy and accurate system for tracking tips—the Lords & Ladies team believes Tippy is everything salon tipping technology should be. With Tippy, they can save thousands, watch individual service professionals earn more and live better and get back to the business of sourcing those stirrers!
Topics:business adviceTippysalon technologybusinesstippingsalon softwareSalon ManagementBusiness ManagementSalon FinanceTechnologyTechnology ToolsIn The KnowIndustry NewsPhoto Gallery
Originally posted on Modern Salon
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