Here in New Zealand, the average salon commission is 40%. Working on a $4,000 weekly earning at that 40% rate, here is what you're looking at.
After 15% GST is subtracted off that $4,000, your gross (before tax) pay is $1,360.
Now compare that to renting a chair with the same $4,000 in takings. As a self-employed contractor, you claim GST on your business expenses like rent and stock. That brings your effective GST closer to 10%. Here's how the numbers break down:
That's $2,800 in your pocket compared to $1,360 on commission, from the same $4,000 in takings.
At Killer & Collab, we have tailored memberships for different needs. All are subject to GST, but you get to claim this back and subtract it from your own GST:
Compare this to what you're paying per day at a commission-based salon. With $1,000 through the till, you're paying $400 of that per day to the salon. At Killer & Collab, you pay between $83.30 and $130 per day depending on your membership. Over a working month, that difference adds up fast.
When you rent a chair, you're running a business. That means costs beyond just your weekly rent. In a typical barebones rental, you may also be billed for power, water, wifi, basin products, towels, insurance, and security. These additional expenses accumulate quickly and can turn "affordable rent" into an unpredictable moving target each month.
The great news is that our Collab memberships cover these hidden costs and give you and your clients a seamless, professional experience. Your chair rent includes Keune shampoo and conditioner at the basin, client refreshments including teapots and cups, towels, capes, wifi, phone, power, water, alarm security, and insurance.
So your costs are just what belongs to you: colour, working stock and tools, an online booking app, and an accounting or POS system (Hnry, for example).
At Killer & Collab, we turn those variable costs into zero costs. You know exactly what you pay, every week.
The average salary of an Auckland stylist is $59,233 before tax. Being self-employed can be life changing.
The beauty of being self-employed is you set your services, hours, and prices. The more you work on your social media presence, online reviews, and word of mouth, the busier and more in demand you will be.
When you contrast the capped wage against keeping your earnings and just paying out your few expenses, there is no cap on what you can earn. You decide how much you work and what you charge.
Tools like Hnry, an app that automatically handles your tax returns and ACC payments, make your obligations easy to manage. You see exactly what you earn and what you owe, with no surprises at the end of the tax year. That removes the fear that "tax will take it all."
Self-employment puts you in control of your income, your schedule, and your career growth.
