Supply Price and What It Does to Commission
Taking the cost of materials off the top before commission, and why the rate a stylist sees may not be the rate they are paid on.
Colour costs money. Cuts do not. Paying the same commission percentage on both means the shop absorbs the product cost entirely, which is why supply price exists.
Where it lives
On the service, under Pricing and Commission:
- Supply price — what the materials cost you.
- Reduce supply price from commission — whether that cost comes off before commission is calculated.
The arithmetic
A $200 colour with a $40 supply price, a stylist on 50%:
- Without supply-price reduction: commission is 50% of $200 = $100. The shop keeps $100 and pays $40 for product, netting $60.
- With supply-price reduction: commission is 50% of ($200 − $40) = $80. The shop keeps $120, pays $40 for product, and nets $80.
The stylist's effective rate on the ticket is 40%, not 50%.
The rate stylists see
That gap is what Show Full Commission Rate (Features Configuration → Ticket Settings) addresses.
- On — commission rates are displayed at their agreed value (50%) even though the supply price lowered the effective rate.
- Off — the displayed rate reflects what was actually applied.
It changes only the number staff see. It never changes what is paid.
Both choices are defensible. Showing the agreed rate keeps the conversation about the deal you struck; showing the effective rate keeps it about the money. What is not defensible is picking one without telling your team which they are looking at.
There is a matching per-member preference, so you can make the choice for one person.
Products
For products, supply price is your cost, and it is the basis of your margin reporting. Whether it reduces commission is the same switch.
Where to see the effect
- Earnings and the Period Summary show what was actually earned.
- The commission breakdown on a ticket shows how it was reached.
- The Revenue by Service and Service Performance reports show which services actually make money once materials are counted.
A practical warning
Supply price only helps if it is roughly accurate. A menu where half the services have a supply price of zero because nobody filled it in is worse than one where the field is unused — it looks like data and is not.
Set it on the services where materials are a real cost, and leave it empty everywhere else.