Salon calculators · Tanning lotion commission

Tanning lotion commission calculator

Enter one employee’s lotion sales for the month and your plan — a base rate and a higher rate past a sales line — to see their commission and what the salon keeps after the lotion’s cost. It opens on an example; type over it.

This month

At retail price, for one employee.

Wholesale as a share of the retail price.

The plan

Monthly lotion sales. 0 to pay one rate on everything.

The higher rate is paid on

Lotion commission this month

$175.00

An effective 11.7% of $1,500.00 sold

How it was worked out

Up to $1,000.0010% of $1,000.00$100.00
Above $1,000.0015% of $500.00$75.00
Commission$175.00

What the salon keeps

Lotion sales$1,500.00
Cost of the lotion50% of sales−$750.00
Commission−$175.00
Salon keeps$575.00

How it’s worked out

The example pays 10% on lotion sales up to $1,000 and 15% above that. An employee who sells $1,500 earns 10% of $1,000 ($100) plus 15% of the $500 above the line ($75): $175, an effective 11.7%.

If the higher rate instead applies to every sale once the line is reached, the same month pays 15% of $1,500: $225. The difference is the jump at the line — reaching $1,000 adds $50 at once.

For the salon, lotion costing half its retail price leaves $750 of margin on $1,500 of sales. After commission it keeps $575 on the first plan and $525 on the second.

Common questions

How much commission do tanning salons pay on lotion?

Around 10% of the retail price is a common starting point, often rising — to around 15% — once an employee passes a monthly sales line. Lotion usually carries a much higher margin than tanning sessions, which is why it is worth paying for.

Should the higher rate apply to every sale or only the sales above the line?

Paying it only above the line is smoother and cheaper. Paying it on every sale once the line is reached creates a jump — in this example, crossing $1,000 adds $50 at once — which drives a push near the line but also invites holding sales back or timing them. Pick one on purpose and write it down.

Is commission paid on the full price or the discounted price?

On the price the client actually paid. If lotion is discounted, bundled with a package or returned, commission should follow what the salon really collected.

Why does the calculator ask what the lotion costs?

To show what the salon keeps after paying for the lotion and the commission. A rate that looks small as a share of the price can be a large share of the margin.

Related

Paying lotion commission to a whole team? CommissionBoard for tanning salons calculates it from your POS report and shows each employee how close they are to the next rate while there is still time to sell.

Want this for your whole tanning team?

We'll set CommissionBoard up with your lotion, upgrade and membership plan and show you the staff view in a 15-minute walkthrough.

A 15-minute walkthrough with your own numbers. No obligation.

Free to use, nothing to sign up for, and nothing you type into the calculator is sent anywhere — it all runs in your browser.