60/40 split

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Exfoliate

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Hi all!

Does anyone here do 40% to salon.. 60% therapist split?

I pay for all products/refreshments/PPE/cleaning products/marketing...however im wondering what the etiquette is in general for all other things in the salon. For example if they need an extra lamp/fan/stool. If you provide the products and a set up originally when they started. Would all extras like that then be their responsibility?

Yes we have contracts, however i didnt add this at the time. You could say it is therefore upto me but im only looking to hear from those in this situation and what they do about that specific thing.

Thanks in advance
 

BannerPenguin

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60% usually goes to whoever supplies the products. Refreshments, cleaning, ppe, and marketing is all the self-employed therapists responsibility.
 

TheDuchess

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I don’t do this at present but I’m considering it. There is also a danger that your tenant is in fact a worker contracting their labour and you are legally responsible for holiday pay and other statutory obligations.

Between employee and self employed business owner there are two other intermediary levels - self employed contract worker (who pays their own tax) and contract worker who is treated as an employee for most rights. Even a self employed contract worker can be termed your employee if you treat them like one - providing a turn key set up as you describe so they just provide their labour. As they have no loss apart from not earning I think they fail the test of being in business for themselves. To be in business you have to have costs or losses when you don’t earn, not just a risk of earning nothing.

Leaving this to one side, imagine you are a serviced accommodation air BnB landlord. You’d analyse your guests needs and focus on a particular niche to help you build repeat business - if you notice you are getting lots of 3-4+ night bookings maybe your guests will value a small fridge? Being responsive to your tenants needs and anticipating their requirements will keep them loyal and content but they won’t be happy if they find that they can’t claim their expenses at the end of the year because HMRC says all their income comes through you and classes them as employees. Not having equipment expenses to claim and having low expenses relative to earnings is one of the triggers for an HMRC query.
 

Exfoliate

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Hi yes thank you, aware of all that :) was just asking about added extras and what individual salon owners choose to do about added extras.
 

TheDuchess

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Well I’d do it on a case by case basis - I wouldn’t want to tie myself into “in principle” obligations. If I had a lash tech in high demand and bringing in far more in commission than a newbie start-up, I’d be wooing her to ensure she was happy. I’d have a business plan to invest back a percentage of my gross income.

If I had two tenants complaining that one had things bought that had been refused to the other I’d be able to quote my agreement and point out that extras are not automatically included. But I would discuss the business case and explore what return I’d get - for instance if I had tenants going home because they were Hot, I’d have a fan installed and an order in for blinds/awnings/whatever I could think of pronto.

I have thought about this because I am setting up a new venture for self employed techs in premises which will be gradually customised and upgraded over time. I think if you treat commercial letting as a business which you nurture and grow, you’ll never be short of quality tenants.
 

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