I remember back in the 1990’s when I worked in a salon as a service provider, tips were a big deal in my life. Tips weren’t “play money” for me. They purchased groceries, and helped pay my monthly bills. Tips were largely given in cash back then, but now most over 90% of tips are given on credit card.
How has tipping on credit cards changed our industry for both owners and service providers?
In the past when service professionals were being tipped with cash, everyone was happy…
* The salon owner didn’t have to pay processing fees on cash tips;
* The service professional received immediate gratification, both personal and pocketbook
* The customer was assured their service provider knew how much they tipped.
(And to be perfectly blunt, tax compliance was not as much an issue with cash tips.)
Now enter credit cards, and all of the above benefits go away..
* Now, the average salon owner is paying upwards of $3500.00 yearly in tip processing fees
* In many salons the service providers now wait for tips to be included in their bi-weekly payroll
* The customer wonders if the service provider knows what they’ve tipped (so they tip less)
* And…tax compliance is now a must due to the transaction’s transparency.
I don’t work in the salon anymore, but I am a regular salon guest for hair services, nails, and spa treatments. Depending on the salon, sometimes I can tip on my credit card, sometimes there is an ATM (eyesore) in the reception area, and one other time the front desk told me to bring CASH for tip when she confirmed my appointment. I understand salons are trying to avoid the credit card processing fees, but all of these seem awkward as a salon guest.
How has TIPPY help change this awkwardness into a positive action for the salon guest experience?
We believe Tippy’s kiosk solution helps provide a positive guest experience by keeping tipping simple and convenient. Since the guest chooses the service provider’s name/picture on the kiosk, they know the tip is going directly to their service provider. The kiosk also gives “tip suggestions” to make it easy for the guest to choose what % tip they would like to give. The great news is, salons that have put Tippy in place are reporting that the service providers are actually receiving 30%-35% greater tip amounts than they were getting in the past.
As I mentioned earlier, when I was a service provider, tips were part of the income I depended on, and they were instant gratification that a guest loved their service. If I had to wait for my tips to be given in my bi-weekly paycheck, I think that would have bummed me out.
How has TIPPY helped not only the “great feeling of the tip”, but $$ to the service provider faster?
During set up of the TIPPY kiosk, each service provider indicates their personal bank account number, and can even link the kiosk to their smartwatch or smart phone so they know immediately the client has tipped them! These tips are deposited directly into the service provider’s accounts every next business day, thus avoiding waiting for their bi-weekly payroll. Using the TIPPY mobile app the service provider finally knows how much they are making in tips!
Salon owners have their hands full on a day-to-day basis. They are constantly thinking of everything from increasing revenue to recruiting and retaining team members. And often they are behind the chair full time.
How can TIPPY help salon owners simplify their life and reduce stress?
We’ve asked salon owners what their #1 issue is, and they consistently respond, “ Hiring and retention.” And btw, their #3 issue is tipping. Tippy solves both. By offering a tool that gets service providers’ tips up 30%-35% higher than normal industry tipping averages, Tippy serves a great recruiting and retention tool for salons.
And btw, for salon owners TIPPY saves 100% of processing fees on tips, which averages $3500 per year for the average salon. And the TIPPY dashboard makes accounting for tips super easy!
ARE YOU READY TO GIVE TIPPY A TRY?
Summit has an offer for you…
It’s 3x FREE…..
- 30days Risk FREE
- and if… when you decide to keep it, the first 3 months are FREE!!!
Call (855) 831-2323 or ask your Summit Consultant for more details.
Offer expires 9/16/19