View Full Version : Rental negotiation
Hi,
Im looking to rent a beauty room in a new premises where client base potential is rather large, no other competition within walking distance.
The landlord wanted 50/50 profit split, but I wanted to do a daily rate, I suggested £20 (bear in mind im mobile at the minute and doing it casually so do not really have a client base so to speak) the landlord has lots and lots of contacts (I go to his bootcamp class and there are 80 ladies there, he also hosts Zumba classes, PT training etc) and the beauty room will be in his headquarters.
I stated im looking to work Thursdays 2pm-9pm, Fridays 9am-5pm (poss later if need be) and Saturday full day until I have more clients.
He replied today saying he will do £40 per day then what I make above that is mine, or would do a 3 day rate at £100. Im thinking this is quite high to start off with as it will take a while to build client base. How do I word my negotiation ????
Many thanks Lisa
I would suggest looking in the local area, at the monthly cost of renting from an independent landlord.
Estimate your monthly bills. rates etc.
Add them together to give you an idea of how much it would cost to rent per month.
Multiply by 12togive you your theoretical annual overheads
Divide by 365 to get your daily overheads if you were renting independent.
then use this as a basis for negotiation. 'I could rent a shop down the road for xx per month'
I would try not to get hung upon his contacts, He could have a million women in various clubs, doesn't mean they will come to you. Remember this is business, business should be based on fact not potential.
You could always negotiate a scheme such as £xx per month, and 10% on any clients that he refers to you. that gives him an incentive to get clients in you door, without you having to pay out on the basis of clients that may one day come.
hope that helps
Also as a side thought, does his rate include utilities etc?
£100 for 3 days does sound alot, how much space are you getting?
I used to pay just under £300month for a very large shop front, and cellar. Obviously i had bills on top.
It had its own access and parking.
this was 5 years ago tho.
Thank you for your speedy reply ! £x per day plus 10% commision for him on clients he refers sounds good ! Thanks for the idea on working out my costs too - hadn't thought of doing it that way so will do a bit of homework and work it all out.
There is parking, his cafe and studio has a large class front and my room will be seen through the window on the road, it includes all bills and there is a toilet facility etc. There is space for my treatment bed, desk, chair and spray tan tent so just the right size.
Ive never been too good with maths and to top it off im not a very good negotiator - suppose I need to be a little bit less timid and be more shrewd if im setting up my business !!!
Thanks for your very valued advice x
no prob.
Do you have an email address, i will put together a spreedsheet so u can just put in the numbers and it will work out the daily rent for you.
Prob a good idea to toughen up. ;-)
Thank you so much, that would really be appreciated ! My email is LEESSE77@yahoo.co.uk. Thanks again for all your guidance !
Harlequin
12-07-12, 06:47 PM
no prob.
Do you have an email address, i will put together a spreedsheet so u can just put in the numbers and it will work out the daily rent for you.
Prob a good idea to toughen up. ;-)
Sorry to jump on here, but would I be able to bother you for this spreadsheet also? Currently putting together a business plan and this would be really helpful.
course you can. Whats your email address? If you don't want to post it just PM me it.
Harlequin
12-07-12, 06:57 PM
course you can. Whats your email address? If you don't want to post it just PM me it.
My email is carolinemcguigan@ymail.com
Thanks so much :)