MENU
SEARCHWhen salon owner Mitchell Eubanks brings in the tipping platform Tippy, he realizes multiple benefits--he stops playing banker and saves on credit card processing fees; his stylists get their tips deposited into their bank accounts more quickly; and his clients have a convenient mechanism for tipping on their credit cards.
A client uses Tippy to tip her service providers after her salon visit.
As a salon owner who also works as a stylist, Mitchell Eubanks approaches ownership from a stylist’s point of view, and he believes his team members shouldn’t have to wait to get their tips until their paycheck.
But paying out tips at Mitchell Wade Hair Salon in Oviedo, Florida—especially those that came through on credit card transactions—was requiring Eubanks to play banker, and it was screwing up his cash flow.
“For example, when a client paid for a service on a Friday or Saturday, we sometimes don’t get the deposit from the credit card company until Monday, so I was floating that money,” he said. “And, I was being coached by my accountant that this was a bad practice.”
Eubanks considered banning tips on credit cards because of the high merchant fees, but he knows the majority of clients rely on their plastic and being able to tip on their card. He also didn’t relish the idea of hosting an ATM in his reception area, so he resigned himself to the fact that paying the fees on tips was simply a cost of doing business.
At last year’s Data-Driven Salon Summit, Eubanks met Terry McKim and David Tashjian, the CIO/founder and CEO/president of Tippy, a tipping platform built specifically for the beauty industry. The platform offers clients the convenience of tipping service providers on a credit card, and the gratuity is deposited directly into the service provider’s bank account and is available the next business day.
Eubanks brought Tippy into the salon shortly thereafter and found it has been a win for his clients, his team members and him.
McKim, who worked for eight years as director of marketing for the Lords & Ladies Salons in Reading, Pennsylvania, recognized the need for a tipping platform.
“My goal was to bring back the personalization and instant gratification of tipping to financially empower stylists,” he says.
Here’s how it works: After a client pays for a service, they are invited to use the client-facing kiosk to leave a tip. Based on the ticket total, Tippy suggests either different dollar amounts or different percentages, which help clients with the math. If more than one service provider worked with the client that day, the client can opt to split the tip among team members. The client swipes the card again, and a small convenience fee is added to the tip amount to cover the credit card processing fee. The service provider receives a notification on their phone through the Tippy app, and the tip is added to their daily piggy bank, allowing them to track tip totals throughout the day.
Because Tippy is a stand-alone system, it doesn’t matter which software management system a salon uses. The annual fee covers the cost of the equipment and is a fraction of what a typical salon pays in merchant fees annually, so it saves the salon owner money throughout the year.
Tip income through Tippy is tracked and reported, which requires stylists to be compliant on paying taxes. While that might be a deterrent for service providers who aren’t exactly honest with the IRS, McKim and Tashjian say Tippy gets overall tips up an average of more than 30%, and net tips (annual tips minus merchant fees) up 21%.
“That’s due to a few different factors—the tipping screen is personalized with pictures of the service providers that worked with the client that day, and the suggested tipping amounts on the screen are a gentle reminder what clients should be tipping for good service,” Tashjian says.
“In addition, our stylists’ phones ping when the tip goes into the account, and often they’ll call out a thank you to the client for their generosity as they are leaving, so clients quickly realize that their stylist knows how much tip they left them,” Eubanks says.
For stylists, reporting their full income, including tips, documents that they are earning more each year, which can be helpful when qualifying for financing for a car or house. As an added bonus, many stylists using Tippy find it’s easier to save money.
“I love that the tip goes directly into my back account and I get to see it grow and build. When I got cash (tips), I felt like it was free money and I spent it like crazy, and now I find I don’t spend as much and I can watch it grow,” says Talia Hightower, a master stylist with Mitchell Wade Hair Salon.
“The whole team has been really pleased since we brought Tippy on board—the stylists are getting more tips and saving money, the front desk doesn’t have to track cash tips all day, and I’m no longer playing banker or paying merchant fees on tips,” Eubanks says. “Plus, Tippy’s customer service is awesome—one of our team members recommended allowing clients to split the tip between service providers, and they created that feature right away.”
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
The former CFO of Perdue Farms and owner of Hardy Seafood, Terry Owens delivers a wealth of wisdom and strategies for entrepreneurs in his new book, "Business is Simple."
After scaling her single-location salon business, SALON TODAY 200 Honoree Amy Pal recently sold her six-location Whip Salon for seven figures. Using the six Ps for maximizing a business's value, she's ready to help her peers do the same.
Buried inside the One Big Beautiful Bill Act are federal solar tax credit changes that deserve your attention now. Two of the credits that matter most to commercial property owners, the Investment Tax Credit and the Production Tax Credit, are still available, but only if you move fast. A third, the Commercial Building Energy Efficiency Deduction, has a hard termination date that is closer than most people realize.
Up to 40% of hair stylists ghost the salon interview stage, leaving owners trapped playing endless phone tag with uncommitted applicants. This data-driven report breaks down why traditional job boards create recruitment friction and reveals the modern messaging strategies high-growth salons use to get pre-qualified talent to actually show up. Learn how to transition from cold calling to high-conversion conversations that protect your time and fill your chairs.
Sponsored by Beautista
Spit fests, hostile threats, and even an overachieving matchmaker--SALON TODAY readers share their craziest client tales and how their team handled these tough situations with professionalism and grace.
Keeping your appointment book full when clients are in vacation mode takes more than a good Instagram post. It takes a plan. The 2026 Summer Marketing Calendar from Meevo gives salon, spa & med spa owners a month-by-month roadmap with sharp themes, key opportunity dates, and campaign ideas specifically designed for the beauty & wellness industry. Here’s to your summer season working as hard as you do!
Sponsored by Millennium Systems International
AI is transforming the beauty and wellness industry, and the future is about empowering people, not replacing them. Discover how Phorest AI helps salons, spas, and med spas across North America respond faster, personalize every visit, and keep human connection at the heart of the client experience.
Sponsored by Phorest
Owner Michaella Blissett-Williams credits her General Manager Gloria Hortua with [salon] 718's year-over-year, double-digit growth and says she's been able to scale the company to eight locations because she can rely on Hortua to manage daily operations.
Shine Time: Aluram’s High Shine Line Delivers Moisture and Shine with Clean Ingredients
Sponsored by Aluram
Elyse Rogers is an uplifting presence at The Headroom who makes the team feel heard even in stressful situations. Owner Danielle Cherewyk sings her praises in this installment of Meet the Manager.
Despite a slight and predictable decline in client traffic for Q1, resilient pricing power is driving year-over-year revenue growth in salons. The KIM Report's Alain Audet reviews the data and what it's telling us about the state of professional beauty.
Same-store revenue grew just 2% for the second straight year—and new guest visits declined across every segment of the industry. The 2026 Benchmark Report reveals where growth is actually happening, which verticals are pulling ahead, and what the data says about where your business stands right now.
Sponsored by Zenoti
Hair restoration is entering a new era driven by regenerative science. This paper explores how Exosome technology is transforming treatment outcomes by targeting hair loss at a cellular level. Discover why EXOGROW is leading this shift.
Sponsored by Dermapenworld
A salon brand is much more than a logo. In this thought-provoking blog, Leon Alexander, Ph.D., walks you through the difference. SALON TODAY suggests sharing this article with your team and leading a discussion at your next huddle, asking the team to define your business's brand.
