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  • Costs of doing business

    Hi, as many of you know I love my job, my business and my employees. Because of this I want them to be happy, this does not mean I allow them to rule me. Over the last several months I have read many things that "tick" y'all off. Many of these things I believe to be "the cost of doing business". I would LOVE to see y'alls opinions on what you feel to be the OWNERS responsibility.

    Here is mine:

    I believe that it is "the cost of doing business" to cover all credit card processing fees. I interviewed a groomer whose Boss used to charge them if their grooming fees or tips were charged on a credit card.

  • #2
    I must say that I certainly don't believe that employees should cover credit card fees. That is just the cost of doing business. I wonder if that's even legal?! I'm not really sure what I can come up with at this moment but I'll be thinking about it....

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    • #3
      Cost of doing business as an owner, or an employer? I'm an owner, used to be an employer- and decided that the cost of doing business as an employer was too high. End of story on that front.lol

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      • #4
        I have heard a lot of salons that make the employee pay for vet bills for any nicks/rashes reactions to grooming etc. a dog may get. I don't even know if this is legal unless it is agreed to in writing upon hiring (It would be like working at stop and shop in the produce department and you didn't see a wet spot on the floor and a customer slipping and falling and suing and stop and shop teling you to pay the amount.)

        As the owner of the business it is your obligation to assume liability for yourself and your employees since they do things your way.

        Or giving an employee their commisison based on a discounted (10% off whatever price) I don't believe that's legal either I think the shop offering the discount is supposed to suck up the discount as on operating expense and the employee is supposed to get the commission of full grooming price.

        Too many shops, in Connecticut anyway are very lazy about their hiring methods. No formal interview and hiring process and then they suprise empoyees with all these "hidden" rules once your working there.

        I hate to say it because I want my own shop within the next two years but there needs to be a little more control of hiring and labor practices in this industry by our Labor Departments because a lot of employers get away with not following a lot of the Labor Laws due to employee ignorance of their rights.

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        • #5
          Roo, I'm with you.

          If I did have employees, I would include continueing education in my costs. In fact, I think I'd make it mandatory....like one seminar a year. A seminar can do so much to refresh and renew the interest.

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          • #6
            WOW, GracyRose!!! That takes the cake.

            Imagine if McDonald's did that to the cashiers, or the gas station attendants got "fined" for people using credit cards at "their" tanks, or the waitresses got "fined" for their tables using a credit card.

            I bet what that salon owner was doing was ILLEGAL. You'd know better than me though.

            Tammy in Utah
            Groomers Helper Affiliate

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            • #7
              Originally posted by DAPER DAWG View Post
              I have heard a lot of salons that make the employee pay for vet bills for any nicks/rashes reactions to grooming etc. a dog may get. I don't even know if this is legal unless it is agreed to in writing upon hiring (It would be like working at stop and shop in the produce department and you didn't see a wet spot on the floor and a customer slipping and falling and suing and stop and shop teling you to pay the amount.)

              As the owner of the business it is your obligation to assume liability for yourself and your employees since they do things your way.

              Or giving an employee their commisison based on a discounted (10% off whatever price) I don't believe that's legal either I think the shop offering the discount is supposed to suck up the discount as on operating expense and the employee is supposed to get the commission of full grooming price.

              Too many shops, in Connecticut anyway are very lazy about their hiring methods. No formal interview and hiring process and then they suprise empoyees with all these "hidden" rules once your working there.

              I hate to say it because I want my own shop within the next two years but there needs to be a little more control of hiring and labor practices in this industry by our Labor Departments because a lot of employers get away with not following a lot of the Labor Laws due to employee ignorance of their rights.
              At the first shop I worked at, the groomers had to pay for 1/2 the vet bill. At the 2nd shop I worked at, we started out in an animal hospital so really there was no charge. Then we moved to a boutique in her own location and I'm not sure what the rule was there---I think she would have paid it but I'm not sure. Thankfully no nasty cuts there.

              Now I'm at an animal hospital and they will generally cover it I think. I had one fairly bad cut (no stitches, it was an ear) and the hopsital covered it--they just snipped a piece of skin while the dog was getting spayed, that solved the problem, except the permanent "blip" in that dogs ear.

              Tammy in Utah
              Groomers Helper Affiliate

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              • #8
                I know that (at least in my state) it is illegal to charge the consumer more to use a credit card (to offset credit card fees), so I would assume, it would be against the labor laws to charge the "provider of services" (employee) the cost of the fees as well.

                The cost of doing business is the employers (business owners) responsibility. If you start dividing up all the "costs" (advertising, insurance, taxes, rent, utilities, etc), you wouldn't have any employees to earn YOUR income. It is simply rediculous to assume that the business owner/employer could apply these types of "charge backs" to their employees! The cost of goods/services should be calculated in the prices you charge to the CONSUMER!!!!!!!!!!!!!!! If you can not charge enough to recover your cost, then you should NOT be in business, period!

                As stated by Daperdawg, "I hate to say it because I want my own shop within the next two years but there needs to be a little more control of hiring and labor practices in this industry by our Labor Departments because a lot of employers get away with not following a lot of the Labor Laws due to employee ignorance of their rights.", I feel that too many of us are not informed or educated about our state and federal laws when it comes to business (employers and employee's alike). Ignorance is no excuse when it comes to the law. For example, someone I know (who has been in business for a LONG time, has been hiring employee's without the proper documentation for the I-9 form and has hired some non-us residents. They are now in hot water with the government and each incident could cost them 10 grand per violation. This could bankrupt the business and close down a three generation family-owned operation. The owner is pleading ignorance to the laws and regulations, as the accountant didn't inform them of the I-9 requirement.

                You should be able to find information about your state and federal labor laws here;
                http://www.law.cornell.edu/topics/Table_Labor.htm

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                • #9
                  There is a lil country grocery just up the street. If you use your debit card, its so much a transaction, something like 10 cents...if you use credit card I think its a lil more...its added to your final grocery bill!! its legal here..hes just passing on the convenience charge I guess.
                  Last edited by hairdevil; 05-13-07, 09:22 AM. Reason: typo

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                  • #10
                    How about a printed employee manual that has everthing from defining the probationary hire periods to whatever so that the employee(s) know what is expected of them and of the employer. While the owner has a benchmark for all decisions relating to the employee(s).

                    Credit card fees are tax deductible for the employer as is most "cost of business" issues. It would be very illegal to charge back the employee and then take a end of year tax deduction.

                    I'm not a tax guy but I believe that the difference between a regular grooming and that offered with a coupon can be deducted. I believe it can be added as an advertising deduction, but you will need the coupon and matching receipts of service if ever audited.

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                    • #11
                      I am going to address some of these:

                      When employees are commission they have to be guaranteed a minimum amout (equal to the number of hours they worked x minimum wage). Then if their commission is higher they "commission out". This is a federal law not by state.

                      Since they are guaranteed minimum wage- the commission can be on "tendered amount" this means minus coupons and dsicounts.

                      Also, since they are guaranteed minimum wage you may take credit card processing fees off of the commission amount.

                      Since, they are guaranteed minimum wage you may pay commission on any amount above the vet bills.


                      I am enjoying reading all of your thoughts on this. Remember that this is your opinions. Please don't get rialed up and start thinking people are breaking the laws.

                      As an emplyer- I pay 45%, cover ALL CC fees and vet bills. But, I only pay commission on amount received not retail price.

                      Look at it this way: If I go and buy a Lexus and haggle the price down. Do you think that the salesman is going to get his commission of the sticker price...NO. He will receive his commission on the amount received.

                      I feel that I do ALOT of other perks to compensate. Plus, if they have a $3 off coupon the difference to the employee is $1.35 from their commission on a pet they may not have had because this coupon brought them in. I do NOT force any employee to do coupon dogs, they can give that away to another groomer but they DO NOT get one of that groomers dogs.

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