Management Misunderstandings

As consultants to thousands of career seekers, groomers and grooming business owners for 33 years, we have reason to say, “We’ve probably heard every grooming management problem there is, and many times over.” When you problem solve business problems with clients it’s not a matter of relying solely on superficial evidence such as personal points of view, stories, or a few sheets of bookkeeping problems. That’s where you start and you listen well.

To succeed in determining what our clients know about the business of grooming, we also have to discover what they don’t know. Then we can introduce thought provoking evidence, and move them out of emotional turmoil onto paths of self-awareness in business. We awaken not only the groomer in them, but the manager that is salivating for opportunities to problem solve with us. Remarkable things happen.

During thousands of consultations we uncovered dozens of common myths and misunderstandings about grooming management that fomented into serious business or career problems. They take all the joy out of working with pets. In 2022 some decades old management issues continue. We carefully and kindly expose them, “How did you come to this conclusion?” Most often it is another groomer telling another groomer what they learned from their mentors, or fellow groomers. While there may be truth it is usually coated with obscurity. Sometimes it’s even recycled nonsense.

We never come down clients. Instead we ask for evidence, “Do you have any data of records or financial information that backs your conclusions?” Rarely. We understand. The groomer in us really wants to groom, enjoy the pets and their beauty. The groomer seeks convenience, avoids problem solving and simply accepts what “elders” say. That’s why myths and misunderstandings hang around like living dinosaurs.

We’ve “freed” hundreds of clients from decades old misunderstandings about management. Their endorsements of our publications and services often mention how we helped them to “fall back in love again with my business (or career).” Others didn’t apply what they learned. Some come back after five or ten years and say, “I am ready now. Let’s do it.”

We have no personal stake in what our clients believe. We never ask them to

believe us or to echo our beliefs. We want to awaken the groomer and manager in them, and to marry the two. Once they think like small business managers we have accomplished our biggest goal.

Every grooming business owner is a problem solver, but they cannot be very successful if they cannot reexamine what they were told is true at face value. It’s better they are a pleasant contrarian than recycling past misunderstandings.

The new process of thinking by a businessperson that grooms is different from the beauty of the mind associated with artistic grooming. Selfemployed groomers are two different personas, manager and artist. The artist wants to grooming, the manager wants to “surgically” take apart business problems and once for all put an end to their ill effects. This article will glance upon a few examples still prevalent today. We uncovered more than 100 during our 50 plus years in the grooming industry. Grooming Business in a Box® patterns ways to unlock them and create new insights. Please take nothing personally, we are simply sharing our experiences.

Since when do we associate hourly rates with commission only groomers? We do. It is helpful knowledge for groomers too. Employees can better manage their careers knowing alternate ways to view their compensation and work performance. It may be a real eyeopener for you.

Managers come to no quick conclusions, and where appropriate, “show their work” as math teachers often instructed us in school. Sometimes you cannot avoid math in grooming. All too often when we ask new consultation clients for the math to back their financial opinions on grooming operations we get blank stares. Fine. We will show them basic formulas and then examine their opinions whether true or false. If we accept as fact that for which we cannot do the math, what happens? We get The illustration on the next page labeled “3-6” is from Pet Groomer Wage Systems, a new Grooming Business in a Box (March 2012, 2022). Using the simple formula provided in the illustration any commission groomer can calculate their “Effective Earnings Hourly Wage Rate,” or simply, equivalent hourly rate.

The commission paid groomer featured in the illustration was paid $2,420.75 in gross wages (before taxes) for three weeks of work requiring 113.4 work hours. Had the groomer been paid by an

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hourly wage of $21.34 instead of commission the groomer would have earned precisely the same gross wages.

Now hold on. The manager in you, not the groomer, has gotten some eyeopening information. The groomer earning this income probably has no idea what he or she even earns hourly. Sure it varies by groomer and by business. If the grooming prices are 20% higher one salon from another, the hourly rate will increase when grooming the same number of pets.

In the example as shown the manager knows that paying $22.00 an hour to this groomer perhaps by salary would mean a slight raise. Who says paying by hourly or salary automatically means the groomer earns less. Not so. That is a myth. It can be true from some grooming employers, but here we have established that hourly or commission the groomer can earn almost exactly the same.

We’ve studied the payroll records of thousands of groomers paid by commission. Using this formula and extensive payroll histories we were able to calculate an equivalent hourly wage rate for every groomer studied. Indeed some workdays they earned a higher hourly rate, and other days lower. However, the longer the period of data studied the more accurate the hourly wage rate while at the same employer.

When an employer raises grooming fees, the commission groomer earns more. Employers should expect the equivalent hourly wage rate for commission groomers to likewise increase.

Commission groomers can be intrigued to learn their Effective Earnings Hourly Wage Rate. It’s actually easier for them to budget earnings, and plan their household budgets.

For example, if they are offered eight hours more work weekly, they can quickly multiply eight times their equivalent hourly wage and instantly have a rough idea of the extra earnings potential in dollars.

With commission there are too many variables for an instant projection, such as the types of grooming assignments and unknown grooming fees. When creating a fair and equal salary offer for a commission groomer the Effective Earnings Hourly Wage Rate is critical.

Pet groomer employees are not overpaid in the common understanding of that statement. If there is one exception it would be employers paying 70% to 75% commission to employees. Once you add W-2 based employer taxes and overhead, indeed the owners paying more than 55% to 60% are actually losing money on every groom.

Ironically we’ve seen this scenario several times and it was time for owners to learn how to crunch payroll numbers. Now let’s move on to the more ugly use of the statement, “Pet groomers are overpaid!” It often originates from frustrated employers “trying to make a living” as a grooming business owner. It seems none of their employees understand their plight. Our phone has rung on many occasions with anguished employers that simply couldn’t find a way to make a profit in grooming while their employed groomers were making $35,000 to $90,000 a year.

We’ve done hundreds of successful conversions from commission to salaries. We explain the process to employees until they know how the offer is fair and based on actual performance. It’s an essential formula introducing fair salary rates. Any employer changing groomers from commission to hourly/salary should use this fair system. It is true that many employees simply don’t understand the financial challenges of being a grooming employer. Unless they have been a grooming employer why would they? Should they have to? No. The financial challenges are real, and not always a sign of ineffective or poor management. Most service industries keep payroll costs under 40% but in grooming 50% to

T H E B U S I N E S S S I D EPetGroomer.com Magazine 74 April / June 2022 eGroomer Journal January / March 2014 74 PetGroomer.com Publications

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60% is common. It’s frustrating for the management of staffed grooming businesses. making it illegal to pay groomers by 1099 classification.

The illustration on the previous page labeled “3-3” is from Pet Groomer Wage Systems, a new Grooming Business in a Box CD (March 2012, 2022). It’s just one of many examples of why employers or hired managers develop a distorted viewpoint of pet groomer wages. In this illustrated case, the brash employer feels like screaming at employees, “Your 50% commission is not the same as my 50% commission share. You take home $253.26 from your share, and my take home share is only $53.04!” Owners call us and vent this frustration. They wonder why employees don’t understand their plight. It’s all quite dramatic.

If the owner is willing to put aside their anguish and attitudes toward the entire situation, especially their employees, we might accept them as consultation clients. Otherwise we refer them to our publications for help. There are proven ways for employers to earn a profit without lowering wage levels a single penny. In the meantime, until they get the knowledge and apply it, there are employers continuing to spread the myth that pet groomers are overpaid.

One of the biggest misunderstandings in the pet grooming industry is the term, “Quality Versus Quantity.” Because it is used in so many ways it is becoming meaningless, and argumentative.

When used correctly it can describe a business or employer whose standards of operation put artistic styling, and even the safety of people and pets at risk. However these instances are not common, and usually short lived. We may open a can of worms but let’s look a the more questionable uses.

Job candidates sometimes use the term to imply they are seeking a business where they can work at their own pace. Why not just say that? They may feel they are slow by comparison to other groomers. That’s OK. They cannot go wrong by simply stating their honest productivity levels and the desire to work at a casual pace they propose. There are employers facing the chronic shortage of pet groomers and willing to work with them at their pace. There is no need to criticize others that favor reasonable productivity in return for best wages.

Now perhaps you can see why paying groomers by 1099 flourished at one time and some states intervened There is no conclusive evidence that the amount of time spent on a grooming ensures quality. In fact, at some point

taking too much time can stress pets, and delay what all pets really want, to be reunited with their owners.

Some people use quality versus quantity in snide manner. In fact, this use is becoming more common. It’s not only rude but sometimes 100% inaccurate, as most snide remarks and generalizations are. When used this way the source is usually barking about medium-sized or large salons. For some reason, they believe a business that serves 20, 40 or more pets a day can only be done by putting quantity before quality. It can be so harsh they make it sound as if the business is abusing quality, people and pets, yet somehow these businesses built up this tremendous pet owner demand. It doesn’t make sense. We don’t imply a large business cannot take a turn for the worse and decline. It happens. However, where is the evidence supporting this stereotypical generalization and to explain why many groomers criticize large businesses for not being purveyors of quality?

Maybe the critics don’t understand the term “quality grooming.” What is quality? Pet groomers charge for their time first and foremost. Every quality groom does have a minimum requirement in terms of time, but doesn’t that vary by the skill of the groomer? Quality is the level of skill and expertise of the groomer. It’s also their accommodation to return pets to their owners in a reasonable time to minimize

separation anxiety. Quality is also about safety, supervision, products used, tools and equipment, customer service and management.

It’s quite a large package, but somehow the biggest naysayers focus on time, and the more time spent the better the groom.

In the chart below we present the 2010 results of a study of 20 West Coast grooming businesses. We compared hands-on grooming time of one-person businesses with staffed businesses having at least 3 groomers and 4 bathers and/or assistants. If “hands-on grooming time” is a good measure of quality, then the large businesses in this study are the ultimate in quality. Most of the one-person businesses did little or no hands-on drying, whereas the larger businesses used no cage dryers and every pet was attended during its drying time.

Our conclusions is that adages about quality versus quantity are often meaningless, and even prejudicial.

We need as a body of professionals to stop dividing ourselves with diatribe and work toward agreed upon standards as a profession. Less controversial myths and misunderstandings are next. ◄