June 8, 2018 – With the recent migration from cash to plastic, more and more customers are demanding the convenience of credit card tipping. As a result, salon owners are facing increased processing fees, and service providers are being forced to wait up to two weeks to receive tips in their bi-weekly paychecks. Salons nationwide have tried various solutions, ranging from disallowing tips on credit cards and instead installing ATMs, much to the disdain of the customers as well as the stylists; or allowing tips on credit cards, but then “playing bank” by dispensing cash at the end of each shift, creating an accounting nightmare.
Enter Tippy, a new disruptive tipping system.Tippy launches nationwide in August 2018, and provides a seamless solution for salon owners to optimize tipping. The solution allows all tips on cards, however, there are no more processing fees for the salon owner. In addition, the stylists get their tips, next day, deposited directly into their bank accounts. Due to the unique user interface the company has created, stylists are reporting tips increasing as much as 35%.
The solution is the brainchild of Terry Mckim, Tippy’s co-founder and CIO. Terry recognized the problem while serving as Director of Sales and Marketing for Lords & Ladies Salons, with seven locations in the surrounding Philadelphia area. Terry’s industry knowledge is the driving force of Tippy’s early success. The issue of tipping is a problem recognized by industry-insiders, and has been solved by an industry-insider.
Another factor contributing to Tippy’s early success was the recruitment of Terry’s brother-in-law, David Tashjian, to help architect the custom payments solution and run the company. Mr. Tashjian, an entrepreneur whose last success was also in the payments’ space, was able to navigate the appropriate banking and payments’ providers and build a highly customized solution.
The results of Tippy’s 14-month beta test exceeded expectations, garnering national attention, and the commitments of industry titans like Pat Parenty, former President of L’Oreal’s Professional Products Division, where he was responsible for the development of well known market leading brands including Redken, Matrix, L’Oreal Professional, Pureology, Kerastase, and others.
Also joining the Board is Michael Sampson, who spent over a decade at L’Oreal, and is currently CEO of Kate Somerville Skincare LLC.
And finally, Doug Von Allmen, Founder of Beauty Alliance and lead investor in BehindTheChair.com, endorsed the product by signing on as Tippy’s top investor. His goal is to build a company that helps the beauty professionals that were so important to his prior successes.
As Terry Derr, owner of Lords & Ladies and an early investor in Tippy, states, ” Salons focus on services and products, often forgetting there is a third business vertical – tips. Optimizing this can be an important factor in employee retention.”