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	<title>
	Comments on: The Futility of Tiered Pricing and the “Level” System	</title>
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	<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html</link>
	<description>Backstabbing, bitchfits, and Botox...there&#039;s no business like the beauty business.</description>
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		<title>
		By: Tina Alberino		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-32042</link>

		<dc:creator><![CDATA[Tina Alberino]]></dc:creator>
		<pubDate>Sun, 08 Sep 2019 18:32:19 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-32042</guid>

					<description><![CDATA[In reply to &lt;a href=&quot;https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-32030&quot;&gt;SeekerOfFacts40&lt;/a&gt;.

You&#039;re absolutely right that this type of information really is only relevant to people who have written offers, which is why I ALWAYS recommend never accepting any position without one. (Not just the offer letter, but a copy of the employee handbook and any other agreements you&#039;re asked to sign.) Unfortunately, it&#039;s extremely typical of companies that exploit workers to make excuses for why they can&#039;t provide that documentation. Sometimes, it&#039;s a matter of policy (in small, single-location salons). In others, it&#039;s the deliberate action of a bad manager (which we see often in large, corporate salons that don&#039;t want to be associated with those bad recruitment tactics--or get sued).

While it&#039;s unlikely to make you feel better, this doesn&#039;t just happen in our industry. Workers in all positions in every field across the world get scammed, mistreated, and exploited all the time. The best we can do is be skeptical and demand accountability when we can. You did the right thing. It&#039;s unfortunate, but you really can&#039;t trust anyone or take them at their word. A good employer won&#039;t expect you to.]]></description>
			<content:encoded><![CDATA[<p>In reply to <a href="https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-32030">SeekerOfFacts40</a>.</p>
<p>You&#8217;re absolutely right that this type of information really is only relevant to people who have written offers, which is why I ALWAYS recommend never accepting any position without one. (Not just the offer letter, but a copy of the employee handbook and any other agreements you&#8217;re asked to sign.) Unfortunately, it&#8217;s extremely typical of companies that exploit workers to make excuses for why they can&#8217;t provide that documentation. Sometimes, it&#8217;s a matter of policy (in small, single-location salons). In others, it&#8217;s the deliberate action of a bad manager (which we see often in large, corporate salons that don&#8217;t want to be associated with those bad recruitment tactics&#8211;or get sued).</p>
<p>While it&#8217;s unlikely to make you feel better, this doesn&#8217;t just happen in our industry. Workers in all positions in every field across the world get scammed, mistreated, and exploited all the time. The best we can do is be skeptical and demand accountability when we can. You did the right thing. It&#8217;s unfortunate, but you really can&#8217;t trust anyone or take them at their word. A good employer won&#8217;t expect you to.</p>
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		<title>
		By: SeekerOfFacts40		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-32030</link>

		<dc:creator><![CDATA[SeekerOfFacts40]]></dc:creator>
		<pubDate>Sun, 08 Sep 2019 10:27:52 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-32030</guid>

					<description><![CDATA[Hi Tina, 

I have many opinions and comments on this topic, firstly I want to say I absolutely appreciate what you do Tina and hope to meet you someday, and two without writing a novel, what I need to point out is that in many states, including the one I live in.. the law states employers are not required to give employees their employment agreements. 

The employment agreement is what holds such pay structures and breaks things down for employees as well company policies, and most all “written” contractual benefits to any type of degree. Even though my state is an “at will state” for both employees and employers, I’ve also been told by lawyers “that it’s an employers state.” In stating just this little bit... I was negated any and all oral promised pay performances, “pay types,” and literally paid what they felt like paying me even though I had proof that the GM deleted my original hours of my on boarding time period, and picked a random date (to which I wasn’t even in the salon that day at all, or city, I was getting a certification that can also be proven) and chose random hours and lied on my time sheet to change my original on boarding date because they didn’t pay me for the hours and they didn’t give me my promised bonus for recruiting half of the salon stylists just 2 days before grand opening that they referred to as an “salon stylist performance bonus.” I had it in text from the recruiter that sought the help and made the offer. 

So these kinds of systems are only really relevant to employees that actually receive their genuine offers in hand, and there are signatures and dates by both them and the employers. 

Things aren’t relevant unless they have something to show proving they were actually ever told this was in deed the pay structure. 

And after I voiced a complaint to the DM, my tires were slashed. After I did the “speak out to corporate.” They promised my employment agreement they just needed me to send where I was told these things and by whom as well the proof on all other matters. 

After I did that as my end of the bargain, I was told via email by corporate that by law they don’t have to give me my employment agreement and to subpoena them for it. I have an interesting recording too. 

I went to see lawyers. That’s when I learned it’s an employers state and there’s not enough money involved here to go up against this corporation.. that what they did is wrong but that unfortunately there’s no law saying they can’t be rude, that I wasn’t 40 yet, I was 39... 40 now and within the number of days to report buy told had to be 40 on the day of retaliation and age discrimination, and that they didn’t have to give me my employment agreement. I said they took my information and altered it to accommodate themselves. They committed fraud, they fraudulent altered multiple documents. 

Bottom line... it didn’t matter and moral of the story, I didn’t matter. 

The fact is I messed up. I didn’t think to demand on day one the GM give me my employment agreement when she stated “it’s too many pages and stated she had copies” in her car... I should have said unacceptable I need the original or not accepted the job and warned the others. 

The police are still trying to obtain the video of the men I witnessed the night my tires were slashed in June. 

The police in another city are still investigating the identity fraud I suffered and still suffer right after I quit that job when I realized what they were doing and I witnessed my GM fraudulently alter my check to accommodate herself from trouble not paying, covering that she and the salon manager collected my bonuses, and last but not least that she wanted our store to rank in higher sales and in order to do that stylists have to have less missed days and the store has to show more sales in service in a shorter period of time. We won that period. That means quarterly bonus for her and the salon manager. 

And as for me... I’d have to sue in their Corp state. Far away. 

I lost so much. 

I now rent.... and have so many questions and feel bitter. 

I have zero healing and zero understanding as to how this is professionally possible and or legal. I never even saw the employee handbook. Yet expected to just know what it all entailed....]]></description>
			<content:encoded><![CDATA[<p>Hi Tina, </p>
<p>I have many opinions and comments on this topic, firstly I want to say I absolutely appreciate what you do Tina and hope to meet you someday, and two without writing a novel, what I need to point out is that in many states, including the one I live in.. the law states employers are not required to give employees their employment agreements. </p>
<p>The employment agreement is what holds such pay structures and breaks things down for employees as well company policies, and most all “written” contractual benefits to any type of degree. Even though my state is an “at will state” for both employees and employers, I’ve also been told by lawyers “that it’s an employers state.” In stating just this little bit&#8230; I was negated any and all oral promised pay performances, “pay types,” and literally paid what they felt like paying me even though I had proof that the GM deleted my original hours of my on boarding time period, and picked a random date (to which I wasn’t even in the salon that day at all, or city, I was getting a certification that can also be proven) and chose random hours and lied on my time sheet to change my original on boarding date because they didn’t pay me for the hours and they didn’t give me my promised bonus for recruiting half of the salon stylists just 2 days before grand opening that they referred to as an “salon stylist performance bonus.” I had it in text from the recruiter that sought the help and made the offer. </p>
<p>So these kinds of systems are only really relevant to employees that actually receive their genuine offers in hand, and there are signatures and dates by both them and the employers. </p>
<p>Things aren’t relevant unless they have something to show proving they were actually ever told this was in deed the pay structure. </p>
<p>And after I voiced a complaint to the DM, my tires were slashed. After I did the “speak out to corporate.” They promised my employment agreement they just needed me to send where I was told these things and by whom as well the proof on all other matters. </p>
<p>After I did that as my end of the bargain, I was told via email by corporate that by law they don’t have to give me my employment agreement and to subpoena them for it. I have an interesting recording too. </p>
<p>I went to see lawyers. That’s when I learned it’s an employers state and there’s not enough money involved here to go up against this corporation.. that what they did is wrong but that unfortunately there’s no law saying they can’t be rude, that I wasn’t 40 yet, I was 39&#8230; 40 now and within the number of days to report buy told had to be 40 on the day of retaliation and age discrimination, and that they didn’t have to give me my employment agreement. I said they took my information and altered it to accommodate themselves. They committed fraud, they fraudulent altered multiple documents. </p>
<p>Bottom line&#8230; it didn’t matter and moral of the story, I didn’t matter. </p>
<p>The fact is I messed up. I didn’t think to demand on day one the GM give me my employment agreement when she stated “it’s too many pages and stated she had copies” in her car&#8230; I should have said unacceptable I need the original or not accepted the job and warned the others. </p>
<p>The police are still trying to obtain the video of the men I witnessed the night my tires were slashed in June. </p>
<p>The police in another city are still investigating the identity fraud I suffered and still suffer right after I quit that job when I realized what they were doing and I witnessed my GM fraudulently alter my check to accommodate herself from trouble not paying, covering that she and the salon manager collected my bonuses, and last but not least that she wanted our store to rank in higher sales and in order to do that stylists have to have less missed days and the store has to show more sales in service in a shorter period of time. We won that period. That means quarterly bonus for her and the salon manager. </p>
<p>And as for me&#8230; I’d have to sue in their Corp state. Far away. </p>
<p>I lost so much. </p>
<p>I now rent&#8230;. and have so many questions and feel bitter. </p>
<p>I have zero healing and zero understanding as to how this is professionally possible and or legal. I never even saw the employee handbook. Yet expected to just know what it all entailed&#8230;.</p>
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		<item>
		<title>
		By: Tina Alberino		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27675</link>

		<dc:creator><![CDATA[Tina Alberino]]></dc:creator>
		<pubDate>Fri, 05 Apr 2019 14:10:48 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-27675</guid>

					<description><![CDATA[In reply to &lt;a href=&quot;https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27658&quot;&gt;menahair&lt;/a&gt;.

It&#039;s nice to see systems that are structured in ways that aren&#039;t arbitrary, so in that respect, your system makes more sense than most. However, if the professionals are all operating at different price points, you&#039;re likely overcomplicating things unnecessarily.]]></description>
			<content:encoded><![CDATA[<p>In reply to <a href="https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27658">menahair</a>.</p>
<p>It&#8217;s nice to see systems that are structured in ways that aren&#8217;t arbitrary, so in that respect, your system makes more sense than most. However, if the professionals are all operating at different price points, you&#8217;re likely overcomplicating things unnecessarily.</p>
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		<title>
		By: menahair		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27658</link>

		<dc:creator><![CDATA[menahair]]></dc:creator>
		<pubDate>Fri, 05 Apr 2019 05:27:28 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-27658</guid>

					<description><![CDATA[Hi! The level system that I have in place seems performance based. Meaning they have to meet 4 specific criteria and take specific classes before advancing to the next level. It actually is very clear and there’s no question on whether someone deserves to advance. I’m I mistaken? However, if there’s a system that’ll motivate even more than I will def look more into it. Thank you for the information!!]]></description>
			<content:encoded><![CDATA[<p>Hi! The level system that I have in place seems performance based. Meaning they have to meet 4 specific criteria and take specific classes before advancing to the next level. It actually is very clear and there’s no question on whether someone deserves to advance. I’m I mistaken? However, if there’s a system that’ll motivate even more than I will def look more into it. Thank you for the information!!</p>
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		<title>
		By: Tina Alberino		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27131</link>

		<dc:creator><![CDATA[Tina Alberino]]></dc:creator>
		<pubDate>Tue, 26 Mar 2019 21:07:03 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-27131</guid>

					<description><![CDATA[In reply to &lt;a href=&quot;https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27113&quot;&gt;Shannon&lt;/a&gt;.

Hi Shannon! I spent all day making audio recordings for a bunch of articles and intentionally skipped this one so I could expand it further.  On Thursday, that expansion will be done, and I will be including transition strategies that I&#039;m positive you&#039;ll find helpful. There&#039;s more than one way to move away from this system and because salons are so individual, it will be necessary to find a strategy that works for your clients and employees. If the options I provide on Thursday don&#039;t seem like they&#039;ll be compatible with your business, or if you&#039;d like to develop a more specific implementation plan, then we can make an appointment to work something out, but definitely wait until Thursday before booking, just in case. :)]]></description>
			<content:encoded><![CDATA[<p>In reply to <a href="https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27113">Shannon</a>.</p>
<p>Hi Shannon! I spent all day making audio recordings for a bunch of articles and intentionally skipped this one so I could expand it further.  On Thursday, that expansion will be done, and I will be including transition strategies that I&#8217;m positive you&#8217;ll find helpful. There&#8217;s more than one way to move away from this system and because salons are so individual, it will be necessary to find a strategy that works for your clients and employees. If the options I provide on Thursday don&#8217;t seem like they&#8217;ll be compatible with your business, or if you&#8217;d like to develop a more specific implementation plan, then we can make an appointment to work something out, but definitely wait until Thursday before booking, just in case. 🙂</p>
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		<title>
		By: Shannon		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-27113</link>

		<dc:creator><![CDATA[Shannon]]></dc:creator>
		<pubDate>Tue, 26 Mar 2019 14:44:45 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-27113</guid>

					<description><![CDATA[Hi Tina,
I have been wanting to get away from this tiered pricing model for years, but worry about losing business, and really unsure how to transition.  Is this something that you offer in consulting? (Helping to walk through the process) 

Thank you!
Shannon]]></description>
			<content:encoded><![CDATA[<p>Hi Tina,<br />
I have been wanting to get away from this tiered pricing model for years, but worry about losing business, and really unsure how to transition.  Is this something that you offer in consulting? (Helping to walk through the process) </p>
<p>Thank you!<br />
Shannon</p>
]]></content:encoded>
		
			</item>
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		<title>
		By: Tina Alberino		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-26353</link>

		<dc:creator><![CDATA[Tina Alberino]]></dc:creator>
		<pubDate>Mon, 11 Mar 2019 15:05:05 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-26353</guid>

					<description><![CDATA[In reply to &lt;a href=&quot;https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-26291&quot;&gt;daniellang&lt;/a&gt;.

About five years ago, a good deal of my consulting clients were choosing to shift away from the &quot;level&quot; system. Under the level system, professionals found the system to be unfair and employers found it unbalanced, since employees were awarded for inevitable accomplishments (like attainment of seniority or technical proficiency). Basically, it wasn&#039;t encouraging or rewarding the right behaviors. 

We implemented a few different strategies and monitored the outcomes and feedback from both professionals and managers. Those strategies included:
1.) performing routine assessments and assigning wage increases (not price increases) to deserving professionals,
2.) structuring bonus systems that reward superior performers with higher commission rates (making the bonuses contingent upon the attainment of sales goals, similar to structures found in other sales-based businesses),
3.) giving exceptional professionals new job titles and expanded responsibilities (typically supervisor and/or technical educator status).

These solutions ranked favorably among the professionals, encouraging them to strive to attain sales goals and earn bonuses and promotions. These systems also encouraged them to take more interest in their schedules and focus more on upselling and on client retention. 

a.) Since increased idle hours negatively impacted their ability to hit their goals, they were more likely to speak with management about streamlining their work hours and/or finding ways to become involved in the salon&#039;s marketing plan.
b.) Since they were no longer being awarded higher commissions for every service and had to actually earn those bonuses, upselling became a priority.
c.) Since retention factored into their overall performance assessment, professionals became more diligent about rebooking and securing standing appointments.

Switching to a performance-based system resulted in every professional showing interest in their own performance. They monitored their numbers daily, sought assistance with improving their metrics (both from within and outside of the salon), and became more involved in the salon&#039;s success overall.

I can&#039;t at all take credit for this system, as it has been in place in many corporate salons since the mid-90&#039;s, but I can take credit for making it more functional and effective. The corporate systems that turned so many professionals and salon owners off to the entire concept were severely flawed, offering professionals exceptionally low wages and low bonuses while also requiring them to maintain obscene performance levels. They had few systems in place for promoting employees and giving them more responsibility, and those pathways they did have involved putting the employee in intensely thankless and low-paid management positions that usually required them to give up doing the work they love. Because corporate salons are corporate salons, both professionals and management typically had little to no control over the salon&#039;s marketing and were helpless to do much at all to increase traffic and boost their metrics. As someone who spent years working for those corporate enterprises, it was easy to see what they were doing wrong and modify it for small business owners.

There are some management strategies that play into this, though. Salon owners may also have to modify the way they communicate with employees and become more diligent about showing gratitude routinely. While the compensation system does a good deal of the heavy lifting, it&#039;s up to the employer to create a culture that motivates and enthuses professionals so they feel more invested and as if they have a degree of ownership and control over their own success and that of the business.]]></description>
			<content:encoded><![CDATA[<p>In reply to <a href="https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-26291">daniellang</a>.</p>
<p>About five years ago, a good deal of my consulting clients were choosing to shift away from the &#8220;level&#8221; system. Under the level system, professionals found the system to be unfair and employers found it unbalanced, since employees were awarded for inevitable accomplishments (like attainment of seniority or technical proficiency). Basically, it wasn&#8217;t encouraging or rewarding the right behaviors. </p>
<p>We implemented a few different strategies and monitored the outcomes and feedback from both professionals and managers. Those strategies included:<br />
1.) performing routine assessments and assigning wage increases (not price increases) to deserving professionals,<br />
2.) structuring bonus systems that reward superior performers with higher commission rates (making the bonuses contingent upon the attainment of sales goals, similar to structures found in other sales-based businesses),<br />
3.) giving exceptional professionals new job titles and expanded responsibilities (typically supervisor and/or technical educator status).</p>
<p>These solutions ranked favorably among the professionals, encouraging them to strive to attain sales goals and earn bonuses and promotions. These systems also encouraged them to take more interest in their schedules and focus more on upselling and on client retention. </p>
<p>a.) Since increased idle hours negatively impacted their ability to hit their goals, they were more likely to speak with management about streamlining their work hours and/or finding ways to become involved in the salon&#8217;s marketing plan.<br />
b.) Since they were no longer being awarded higher commissions for every service and had to actually earn those bonuses, upselling became a priority.<br />
c.) Since retention factored into their overall performance assessment, professionals became more diligent about rebooking and securing standing appointments.</p>
<p>Switching to a performance-based system resulted in every professional showing interest in their own performance. They monitored their numbers daily, sought assistance with improving their metrics (both from within and outside of the salon), and became more involved in the salon&#8217;s success overall.</p>
<p>I can&#8217;t at all take credit for this system, as it has been in place in many corporate salons since the mid-90&#8217;s, but I can take credit for making it more functional and effective. The corporate systems that turned so many professionals and salon owners off to the entire concept were severely flawed, offering professionals exceptionally low wages and low bonuses while also requiring them to maintain obscene performance levels. They had few systems in place for promoting employees and giving them more responsibility, and those pathways they did have involved putting the employee in intensely thankless and low-paid management positions that usually required them to give up doing the work they love. Because corporate salons are corporate salons, both professionals and management typically had little to no control over the salon&#8217;s marketing and were helpless to do much at all to increase traffic and boost their metrics. As someone who spent years working for those corporate enterprises, it was easy to see what they were doing wrong and modify it for small business owners.</p>
<p>There are some management strategies that play into this, though. Salon owners may also have to modify the way they communicate with employees and become more diligent about showing gratitude routinely. While the compensation system does a good deal of the heavy lifting, it&#8217;s up to the employer to create a culture that motivates and enthuses professionals so they feel more invested and as if they have a degree of ownership and control over their own success and that of the business.</p>
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		<title>
		By: daniellang		</title>
		<link>https://thisuglybeautybusiness.com/2019/03/tiered-pricing-and-the-level-system.html#comment-26291</link>

		<dc:creator><![CDATA[daniellang]]></dc:creator>
		<pubDate>Sun, 10 Mar 2019 08:12:16 +0000</pubDate>
		<guid isPermaLink="false">https://thisuglybeautybusiness.com/?p=16665#comment-26291</guid>

					<description><![CDATA[This is very interesting and I&#039;d like to learn more about what alternative you could see work. Can you please expand on how you would address the things that the level system tried to solve in the first place: how do you allow your senior staff progress in their career and earn more (not just from being busier but from a higher level of skill) while also creating an environment that motivates and promotes more junior professionals? It seems to me that by not having any differences in price, it&#039;s solving one problem but could maybe create others?]]></description>
			<content:encoded><![CDATA[<p>This is very interesting and I&#8217;d like to learn more about what alternative you could see work. Can you please expand on how you would address the things that the level system tried to solve in the first place: how do you allow your senior staff progress in their career and earn more (not just from being busier but from a higher level of skill) while also creating an environment that motivates and promotes more junior professionals? It seems to me that by not having any differences in price, it&#8217;s solving one problem but could maybe create others?</p>
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