Tipping in salons is more than just a transaction; it’s a gesture of gratitude. Clients often tip not just because they love the service but also because they value the relationship they’ve built with their stylist or therapist. It’s a way of saying, “Thank you for making me feel great today,” and it reflects the mutual respect and rapport that grows over time.
Tipping Practices Have Evolved
Traditionally, tips have been given in cash, a small token slipped discreetly into the hands of the stylist with a smile or left in a jar at the reception desk. However, as payment methods have shifted towards cards and contactless options, the culture of tipping has adapted.
At the same time that people are now far less likely to carry cash with them, there’s been growing awareness of the importance of fair tipping practices. Many salons are embracing digital solutions that ensure tips are handled transparently. However, these digital tools often present challenges, sometimes generating tax implications for business owners and delaying how quickly staff actually see the tip in their bank account.
If you are a salon owner looking for more background on the UK’s Allocation of Tips Act, which is expected to come into effect in October 2024, and the options you have for collecting tips and being compliant, you can find all that information on our dedicated website, salontippingcompliance.co.uk.
PhorestPay Card Terminals eliminate the friction that can often plague digital tipping. At checkout, the client can easily pay for their service and add a tip in the same transaction through a subtle tipping prompt displayed on screen. There is no need to ask the client aloud if they want to leave a tip (cringe), no more QR codes, or direct them to a third-party app (hassle).
In fact, because of this seamless flow, Phorest data found that salons that switched to a PhorestPay Card Terminal saw a 25% increase in tips among their staff.
So, we thought we’d ask the question…
What Would You Do with an Extra 25% in Tips?
Phorest asked nearly 200 hair and beauty professionals across the UK what they would do with 25% more tips. Would they spend or save? Interestingly, over 70% of stylists and therapists said they would save.
Then, we asked them to be more specific about how they would put that money to use.
The most popular response among respondents was “Holidays,” with a whopping 60% (we wish we had asked them where they wanted to go!), followed by mortgage at 12%. This goes to show that amidst the pressures of the rising cost of living, 25% extra tips could be what finally gets someone a little closer to making that dream trip a reality.
Here’s a few more ideas of what you could put that money towards:
- Investing in Your Craft: Have you been eyeing upgraded tools? What about that advanced training course you have been curious about? Now could finally be the time.
- Self-Care: Ironically, working in an industry that is all about self-care can make it easy to neglect yourself. Now, you can set aside some funds to devote to recharging and caring for yourself!
- Savings for Big Goals: Devote yourself to more long-term financial goals like retirement (it’s never too soon!) or maybe even starting your own salon one day.
When you get cash tips, it is easy for that money to disappear–quickly absorbed by day-to-day spending when we have it to hand. With digital tips, your savings goals can suddenly look clearer.
Enter PhorestTips: A Win-Win for Clients, Business Owners & Salon Employees
- Instant Gratification: With PhorestTips, your card tips are instantly deposited directly into your account without waiting for payroll.
- Transparency and Compliance: PhorestTips allows you to accurately record your tips, ensuring that you stay tax-compliant. You’ll have a clear record of your tips throughout the year, making it easy to report at the end of the financial year.
- A Seamless Personal Touch: PhorestTips offers clients a simple, thoughtful way to show their appreciation. There is no need for cash or QR codes—just a seamless, integrated tipping experience that complements the personal connection you’ve built with your clients.
Time to Make that Extra 25% a Reality.
Learn more about getting started with PhorestTips.
