Rental v. Commission? New luxury beauty salon opening - help needed!

[Blossom Ellis]

Good Afternoon Everyone!

Firstly; I'm knew to salongeek, but after taking a look round, this looks fantastic - I'm looking forward to receiving/giving advice and taking part in this community.

I'm after a little advice / some opinions really...

My luxury beauty spa 'Blossom Beauty' will be opening in the new year, but I am hoping to stray from the typical employee set up. Many therapists are poorly paid and some aren't given as much respect as they perhaps could deserve - this is what I've been told on countless occasions.

I'm hoping to create a professional, respectful, lavish beauty environment, where therapists are truly respected, and can earn a decent wage, whilst creating a living for myself.

Do any of you out there have any opinions on Rental (weekly) v. Commission?

I was thinking of charging £125 per week (£25 per day) for the following:

* access to all facilities in the luxury beauty spa (Sienna X Butterfluy Booth, two rooms with massage couches, three/four manicure/pedi stations, makeup / ear piercing chair/hair dresser set up) with all equipment already there - e.g. galvanic facial machine, high frequency machine, UV sterliziation etc...

* laundry

* marketing / advertising done for them, to include a page devoted to them on the website, and business cards/loyalty cards in their own name, under my branding)

* appointments taken for them, client care and payments done for them

* stock ordering done for them (saving them VAT and time, but they have to pay for the stock)

* uniforms provided - to keep with the brand image

* locked cabinet for stock - so they don't have to lug backwards and forwards

*opening times of 9-5 Tues-Fri, with Sat 9-3

*salon cleaning done for them

*set price list based on the location and therapists choice (all opinions averaging out) so they could earn more than they were previously charging

ALL they'd pay for it weekly rent, stock and annual insurance.

I'd cover all business rate, rent, water, electricity, insurance to include contacts and public liability, etc etc etc


Do you think this is better than commission? I think they'd have a chance to earn more? - at £25 a day, one nail tech could do one acrylic nails for an hour, and then spend the rest of the day making profit?

Opinions wanted please!!!

Thank you in advance.

[Holistic2010]

Good evening,

We do exactly this, but price really depends on your area? We charge £25 for a half day with all the extras (exc external advertising). I have done the commission and rental route, and in my opinion rental is easier and much less complicated! There is so much to consider in this, and I have learned a lot of valuable lessons in business along the way.

My best advice, research your Market and see what others charge. Please don't undercharge yourself as you will find it very tricky to increase your prices, and be prepared for issues which my arise. Please, please, also do your contracts well, get help if necessary ( I can recommend a good HR support if necessary)

Good luck! :D xx

[BeautyQueen88]

I'm going to be opening a salon and I'm thinking of doing a profit split of say 60%-40% in their favour and if they make over a certain amount per week, it would be 70-30% in their favour. This way over the busy periods I still make more. Instead of only being able to make the same amount per week.
Not sure of anyone's thoughts on this...

[babezone]

yeah sounds good, when you say acsess to do you mean they can cover those treatments aswell or do you mean they can have those treatments themselves.

obviously im not sure what the average rent is in your area but could it be about £125 a week with a salon opening mon-sunday. maybe that would be something to think about just depending on how much they want to work then they may see it as theyl get 7 days for £125 else where not 5.

but like i say im not sure if your price is cheap or average etc for your area. are you close to many salons, how would their rent fair if there are no clients to start with as it will take time to build up a client base etc. obviously once its up and running they will most likely earn more then they have to pay rent but they may struggle to make even the first month or more.

xxx

[fairydust]

What if they have a quiet week? What if takes a while to build up a clientelle? Maybe start lower and then increase after 6-12 months

[deanosnana]

I've merged the two duplicate threads. :)

[j8yba]

surely this is just the same as them being self employed isn't it? or am I missing something, it doesn't sound anything new here? it's pretty much what we do.

apologies if I've misread.

[j8yba]

also make sure you have definately worked out your overheads and running costs, things like rent, energy, insurances, accounting cost, cleaners, etc.

also how much is it costing you to set this up, how long will it take before you make your money back?

if youre only charging a set fee to each, you're never going to make any more money than that figure.

so I would be very careful and make sure it's the right decision.

[Geminikelli]

I've done away with self employed after being stitched up twice!

Things to remember are:

What if all therapist decide to not come in which they can come and go as they please and you have no say in this all you can do is have a mutual understanding that you want them in certain hours.

Phone bill!!! Take this into account my phone bill tripled with just one extra self employed person who constantly used the phone fr business use but I'd not calculated that into my costings.

Advertising, leaflets e are not cheap esp at first as you will be giving them out here there and everywhere.

Keeping it fair if everyone is sitting around and you have a walkin who does it?

Will you be having any employees including yourself? If so then draw up your contracts with a solicitor for s.e. including clauses that any walk ins are salon clients I.e yours

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