What is your split at the spa (or IC situation)?

[Edward]

Hey guys! I am making a new move and opening up a spa at our massage school. I have a great group of students who are interested in working there, relatively inexpensive space to rent which is available and suitable, and apparently a crazy me who wants to work more! lol Anyway, I want your feedback on what the split is across the country. I plan on providing everything, except possibly laundry. I know that's a big thing, but right now we don't have laundry facilities and I'm not entirely sure if there is company around here that will pick it up. We are in a small town and I'm still investigating that. So, assuming that all else is provided, but the therapist brings their own sheets and washes them (I will bring lots of extra towels and wash them myself) what should the split be, in your opinion?

I am mainly looking to hear what your situation is, i.e. what you are responsible for and what the spa/clinic provides, and what the split is. And what area of the country you're in. As specific as you can get about the area would be helpful so I can compare better.

Also, I tried to do a search on here, but I am search impaired, so any links would be helpful if I'm re-asking a question.

Thanks!

 

[Dev]

What is your split at the spa (or IC situation)?

Just a little food for thought while you're waiting for more complete answers...

Don't focus too much on the perceneforum.xxxe of the split.

MTA gets a 75% cut.

MTB gets a 25% cut.

Who would you rather be?

Not so fast...

MTA works at a location that banks on high numbers to make money. They're charging $45 per massage. MTA is making $33.75 per massage, and making moderate tips.

MTB is working at a high end spa who count on fewer clients spending more money. They're charging $150 per massage. MTB is making $37.50 per massage, and probably getting higher tips.

When you weigh all the information, just make sure you don't weigh the perceneforum.xxxe as much as the value.

 

[JenVT]

What is your split at the spa (or IC situation)?

I totally and completely understand that each situation is different depends on the unique circumstances. Which is why I am asking for everyone's experience across the country, with different set-ups, different clientele, and different companies. I would like to get a cross section. I certainly don't expect most people to answer a similar thing (everyone gets 50%!) and then I get my answer. I would like to hear the varying experiences. Where some people get their music taken care of but have to provide their own oils, sheets, and intake forms. Where some people get everything taken care of but have to book their own appointments. Where some people have to provide every piece of equipment and product there is, but get a fully booked schedule right away.

Please tell me your experience.

 

[Keegan W]

What is your split at the spa (or IC situation)?

We are a small shop (massage and day spa) offering massage, facials, wraps, scrubs, waxing and natural nail services. There are 4 of us, including the owner, she and another girl do massage, I do massage and esthetics and the nail tech is the owner's DIL. We have a 60/40 split.

She pays the overhead, provides washer/dryer and laundry supplies, website, brochures and media advertising, credit card machine and gift cards and any supplies for wraps or scrubs. We provide our own linens, equipment, products, supplies, decorate our own rooms however we want, buy our own business cards and are free to market however and whenever we want. Sometimes we'll go in together on a big newspaper ad or something like that, with all our photos on it and a line or two about our particular services or specialty.

We have contracts that require us to help with all 'side work', laundry, cleaning, answering the phone and scheduling, opening and closing work. Since everyone there pitches in and works together, it's not a big deal. I've been there 5 years, the nail tech has been there 6 and the other MT 3 years. All in all, it works out very well for us.

 

[Taken nme :)]

What is your split at the spa (or IC situation)?

Thank you tranquilspirit, these are the exact details I'm interested in. Sounds like a great set-up for you all! Can you specific who gets the 60 and who the 40?

 

[Pierina]

What is your split at the spa (or IC situation)?

When I get down to NM, shiva, I will absolutely come visit your spa!

Up here in Colorado I have a couple of very different examples to share...
I just took a Saturday shift as an IC in a day spa. Pay is a flat $25/hr massage (55-min. hour, regular charge to client is $70) with 15 minutes between to clean up. The owner pointed out that they prefer to pay on a flat rate because if the spa offers a special, the spa takes the hit on it and it makes payroll much easier than tracking all the perceneforum.xxxes. I have been in situations as an IC making a certain perceneforum.xxxe and have taken a huge hit when there is a deep discount offered on a package or a holiday special. I really appreciate her perspective, and with tips I'm seeing $35-40/hr, and for having everything included, that's not bad at all. I go in, I do great massage, I go home and that's it. And they are booked full on Saturdays

Second example is a 5-star world famous resort where some of my friends have worked. It is POSH and they have very high standards. The spa charges $135 swedish and $150 deep tissue for a 50-minute massage. The MTs are paid an hourly employee rate of $8 (doing massage or not, but usually they are busy) :shock: The spa automatically tacks on a 20% gratuity to the bill, which the client can dispute and change or remove if they wish (and apparently it does sometimes happen). Here's the deal: Of that 20% tip, the MT is given 17% tip while the remaining 3% goes to the house. The MT does not receive a perceneforum.xxxe of the service, that all goes to the spa. So the MT's pay is $8/hr plus some of the tip. :shock: :shock:
So on a swedish "hour", MT makes $8 + 22.95 tip =$30.95,
deep tissue $8 + 25.50 tip =$33.50
This is IF the tip is not reduced or eliminated, and there are generous patrons that tip well over the 20% as well.

I'm feelin' pretty good about my situation, comparatively...

 

[Jovita]

What is your split at the spa (or IC situation)?

I know this isn't exactly current, but in 2007-2008 I worked at a wellness center that gave me a 35/65 split (I paid the center 35%/massage, 25% for chair mx gigs they set up).

The center is in upstate NY, between Albany and Saratoga Springs. It gets a small influx of tourists during the track season, but most of the clientele is local middle to upper middle class.

A 1 hour massage was $65. About 75% of my clients tipped and the average tip was $10.

Our contract included helping staff the front desk to take appointments, etc. for 4 hrs. one day a week, or that we work it out with the other staff, or a volunteer, to have our time covered. We were allowed to take a walk in if no one else was available.

Center provides table, table warmer, bolster, CD player, intake forms (or we could use our own), credit card machine, and gift certificates (for the CC's and GC's the owner deducted 5% when she gave us the payments).

I provided sheets (& did my own laundry), CD's, oils, and my mat for Shiatsu sessions.

I did all my own marketing, though we occasionally all chipped in on a big ad for the center in general.

I hope that helps, and that I didn't leave anything out.

 

[spaghetti arms]

What is your split at the spa (or IC situation)?

I get a flat rate per service where I work part time. This is at a resort/club. This works well because members get one price and guests another ect.. I always know what I am getting. If you do a perceneforum.xxxe decide how you will handle any promotions or discounts. MT's do not want to make less because you offered a special, IME. Also where I work after your first 10 appointments of the week the flat rate goes up. This is a nice perk for people who work hard! Also the tips are what I would consider to be very good. Normally $15-$20 per massage. I consider this part of my pay.

 

[CARNAGE *Anti-YOU]

What is your split at the spa (or IC situation)?

Sorry, I guess that would matter, huh? We get 60, the shop owner takes 40. If we opt to be oncall rather than in the shop (with say, an hour notice), it's a 50/50 split but aren't expected to help with any of the side work. Since I've been there, only one person opted to do that but she wasn't very busy and didn't stay long. I tend to hang around the shop, since we do get some walk ins or someone wanting to come right then and there. I don't want to sit home just waiting for that call, plus I like my coworkers and don't mind being there all day. She's pretty flexible too, if we've had a slow day and don't have anything in the afternoon, she'll say 'Go ahead and go home'. We kind of take turns doing that, so we all get an early out sometimes.

We also do the scheduling according to seniority, up to 5 services a day, before the next person. But it never works out that some are full and some have nothing because someone who is lower down on the seniority might have the only opening that a person wants. And we try to accommodate people's likes regardless of seniority. If someone really wants a deepdeep massage, I'll often hand them over to the other girl because she does such good work whereas I like doing Swedish the best so those new clients tend to be scheduled with me. There isn't competition to race to the phone and try to get all the bookings or new clients because of the way the owner has us do it. Plus, we all just work together really well and we all look out for each other.

 

[juicygirl172]

What is your split at the spa (or IC situation)?

I can't recall for sure, but I believe in 2002 I was getting a 60/40 (60 me / 40 spa) split at a place I worked part-time. If I run across an old thread with my info in it and it is different than above, I'll post back.

We should have a few old threads on the subject... I'll add it to my "to do" list, unless someone beats me to adding the links here for you. Don't forget, if you find links related to this quest (before someone else), add them here for others who may need cross-threads in the future.

 

[Arraf]

What is your split at the spa (or IC situation)?

Your rates and payscale will probably vary depending on what your goal is...

Is this a full-service REAL spa - or will it be more of a new graduate clinic/training environment offering reduced rate services?

Will you also be selling retail products?

In my experience over the past several years, several interviews, several job offers...
the days of a higher than 50% commssion split are LONG gone. Most spas are experimenting with and trying to offer different compensation programs. In our area commission splits to the service provider vary from 35% to 50% tops. In addition many spas add on fees ranging from product fees to credit card processing fees(on tips).
Some are trying a low hourly rate so that the service provider stays on-site, then they switch to a commission after a certain amount (I think this is the most sneaky type of compensation I've seen yet - the person is either doing hour massages for $8 OR they are not being compensated for their time they spent doing other things for the spa should they make the commission cut off).
Some offer just a flat rate.
Some have the service provider pay a room rental fee per service, and charge additional fees for credit card processing, scheduling, laundry service, and product fees.

In your area I see a LOT of places having the therapists sign a lease agreement and pay rent - even while requiring them to stick to the centers menu and products.

In the long run it is probably easiest to just go with a commission split. Better for everyone!
But I think that you are looking at offering closer to 40% to start, not 60%.

 

[Haruhi-X]

What is your split at the spa (or IC situation)?

Thanks everyone! This is extremely helpful. I definitely intend to pay my therapists the same no matter what discounts I give. They will not be penalized for that, nor will I ever ask them to work for free (chair massage, etc). My whole idea with this spa is to create an environment where therapists love to work, and are respected and well-treated. As a therapist myself who has worked in "good spas" and "bad spas" I have somewhat of a handle on this, but looking at it from this viewpoint is a little different. I need to make it profitable as well. I know that's possible, it just takes thoughtfulness and research, which is the point of this thread.

I intend this to be a real spa. We currently have two treatment rooms and a yoga studio. The yoga studio will serve as "overflow" if we have groups or other parties who are okay getting massage in the same room. If we're successful, there are more rooms available in the same building and we can eventually have up to 5 or 6 rooms. We do not have a shower, which I regret. We'll see if we can add one if it looks necessary.

We will be an Ayurvedic Spa, focusing on Ayurvedic therapies like abhyanga and shirodhara, using organic herbal oils and plan to sell individual sizes of the different herbal oil blends. We already have some yoga products for sale, yoga/massage CDs, as well professional sizes of massage oils and lotions. But, retail is not a big focus. Also, we don't have much space for it.

naturalhealing, can you say what your flat rate is and how the resort prices their massages?

Chris, I would love to see you down here in NM, hit me up when/if you come!

squash_blsm, thank you very much for your perspective, that is very helpful!

When will Mr. Burns chime in?

 

[Emzzy]

What is your split at the spa (or IC situation)?

naturalhealing, can you say what your flat rate is and how the resort prices their massages?

The flat rate for a one hour massage is $40 which is half of the guest rate and more than half of the member rate. On hot stones, they charge $130 and we get $75. So it just varies, treatments with more set up, training and clean up are paid taking that into consideration. Bonus pay adds 3-5 dollars per service. I average take home $50-$65 per hour with tips.

 

[Wott Wott]

What is your split at the spa (or IC situation)?

Massage Envy gives you $10-13 an hour plus SOME of the tips. Complete crap. Some ME corporates came to our school cause they were opening up one down the street, and trying to recruit us. I'm happy to say none of us went.

 

[noone]

What is your split at the spa (or IC situation)?

I am an ic at a wellness center, we get a 50/50 split. Everything is provided for us. Full time
Front desk for booking appts/answering phone, laundry service, supplies, marketing( although very little is done), business cards, owner eats the cost of promos, etc. The only things we have to do is be on time, act professionally, provide quality massage, keep clients coming back, and change our sheets after sessions. I haven't seen any other place in my area offer higher than a 50/50, most spas offer a very low hourly wage. But maybe the ones that do have a lower therapist turnover rate and don't hire as often.

One way to set your rates is to figure out the costs for setting up and running the place and how much you need to take home to survive/thrive, and then figure out how much is left to pay mts.

Another idea- I havenoticed a big trend around here with massage places offering various classes and workshops to bring in extra funds. Some examples- ongoing yoga, meditation, Yamuna foam rolling, tai chi, and other movement based classes, diet/nutrition workshops, energy workshops( intro to the chakras, reiki classes, etc), mala necklace making workshops, numerology/astrology workshops, etc. The opportunities are endless. Since you have that big room it would be perfect!

 

[{Zombiez like brainz}]

What is your split at the spa (or IC situation)?

Massage Envy is a great place for new MT's to start. It allows them to refine their skills and work on their time management during a massage.
We all have to start somewhere.
I just look at a lower paying position as a trade-off for gaining much needed experience.
Chiropractic offices are also a great way to get your hands on a lot of people.

Not every facility is eager to hire fresh outta school hands,
With each job getting many applicants, experienced hands always get preference.
And a person that has invested years of training and experience usually gives a MUCH better massage. (notice I said usually - no need to nit-pick...we all know that there CAN be exceptions.. in my personal experience however,I have never received a better than okay massage from a newbie, and don't think that I should pay the same higher rate for that)

Massage Envy gives you $10-13 an hour plus SOME of the tips. Complete crap. Some ME corporates came to our school cause they were opening up one down the street, and trying to recruit us. I'm happy to say none of us went.

 

[Callie :)]

What is your split at the spa (or IC situation)?

I am an ic at a wellness center, we get a 50/50 split. Everything is provided for us. Full time

Better hope the labor dept does not visit your wellness center or they will be bankrupt by the fines for treating ICs as employees and you will all be looking for work.

 

[michael c]

What is your split at the spa (or IC situation)?

Thanks R&R! IC vs. Employee is an important concern for me. It seems like most places do call their people ICs, even if they are treated as employees. Is this perhaps why so many places charge "supply fees" or "laundry fees" and the like? So that the therapist is shown to be paying for their own things, even when the spa provides them.

This article was interesting: http://www.massagetoday.com/mpacms/mt/article.php?id=13388

From that I gathered that there is a lot of weight given to whether an IC *can* control what they do, but it doesn't really matter if they take advaneforum.xxxe of that fact? Like, go ahead, bring all your own sheets if you want. Or you can use our laundry here and I will charge you a $2 laundry fee per session??? Maybe this discussion should be split into another thread, but it is definitely related for me, and a big concern. I had a tax accountant tell me that as long as my therapists register for their resale license (in NM it's called CRS, or gross receipts tax id) and file all their income, but claim it as a deduction (cause I'm already charging sales tax on it, they don't have to) then they'd be seen as ICs who are in business for themselves.

As far as using the big room for yoga, I already do! I have regular yoga classes scheduled throughout the week and run a massage school in that space as well. That income should not be there to "make up" for what I lose on the spa. The spa has to be set up in such a way that it pays for it's own space, receptionist and other expenses, and then is profitable on top of that, making it worth all the trouble.

 

[Bananaz!!]

What is your split at the spa (or IC situation)?

As the article points out, 90%+ of establishments probably are not in compliance with IC/EMP regulations. But given that so many establishments are MTs owned and and run, we can't chalk this up to greedy business owners exploiting the work force. The guidelines are just that, and there are exceptions to each of them, but you won't know if you are right until you face the audit. Here is a perfect example.

Guidelines say you can't control how, when, where or what materials/products/supplies are used by an IC in performing the work. OK, fair enough.

but if my spa offers a service menu of Eminence Organics facials, the customer expects to get a facial using certain products and done in a specific fashion -- step one is cleanse, two is tone, three is masque, four is acculift massage, etc. YOu can't do the masque first! As an IC, if you don't delivery an Eminence Organic facial to the MANUFACTURER's specifications, then you did not comply with the terms of the contract. Is this the spa determining how things are done, or the IC who certifies they will provide an EO Facial, as understood by the industry?

Furthermore, if the client wants an EO facial at 4pm on Saturday at the only EO certified establishment in your town, when the establishment contracts the IC to perform the service, who is "controlling" when and where the work takes place? Do the guidelines mean the IC has to call the client and mutually agree on the time and place for the service to happen to avoid the spa from falling afoul of the guidelines? That is a service nightmare.

So to answer your question, yes, one way to minimize exposure to the unknown interpretations of the guidelines is to charge the various fees (often they are attributed to greed/cost control, with the other benefit being IRS compliance attempts). But they do need to be broken out in the contract. PRovide your own EO products, you fee is X., bring your own massage table, you get $Y more, etc.

Starts to get pretty complicated, especially if an MT ICs for avrious locations. Most people just want to do their jobs and be left alone, but the danger in any gov't regulation/guideline is that it does not take much for it to sprial out of control into un-intended consequences -- like business bankruptcy and unemplloyment -- for people just trying to make a living.

 

[Kenji]

What is your split at the spa (or IC situation)?

At my spa, which is located in a plastic surgery center, gives 65% commission with a $12 an hour base pay. The provide sheets, lotions, everything. Health insurance, dental, 401k, etc