Advice needed..rates

[dee78]

Im currently paying a rate for nail bar which is £100 per week, the woman who's shop i work in wants to change to a percentage 40/60 60 to me, i buy my own products, she will do my advertising. Oh and vat will need to be added on to her amount. I dont think this is good, what do you think im really not sure.

Cheers

 

[AndyP]

Key question is how much do you turnover and how much do you spend on advertising - If you turnover £500 pw week and she wants 40% of that tell her to do one as your rent would go up to £200pw. If you only turnover £300 and spend £50 pw advertising it is not such a bad deal. Are you in a hairdressers by any chance because 60/40 is a hairdresser split. Overall i think you should hold firm or start looking for other premises unless she is going to provide all your insurances etc. but look back at your takings and costs for the last year and work out what you made by paying £100 rent and then work out what you woudl have made by paying the split and i think you will find the answer staring at you in the face.

 

[dee78]

thank you for your reply, i will do just what you have said.

Thanks, much appreciated.

 

[femmefan]

Another thing to possibly be wary of is whether the new method would classify you as being part of her business. ie, if she pays your advertising she may be able to claim your client records actually belong to her business and that you are not in fact a seperate business. I think you would need a written agreement that your client records are your own responsibility and will be taken with you if you leave.

Maybe I'm being a bit paranoid here, but I have heard some strange stories. Perhaps some other geeks with more experience in this could help with advice.

Cheers,
Hazel :hug:

 

[RedAdmiral]

No Way! You buy your own products, insurance, training, etc. etc. She wants to capitalise on your takings or your clients. I have paid commision and it never really worked in my favour. You are paying enough per week to cover electricty, water, rates as it wasnt you who pulled £100 out of the air when you started. If you havent had an increase in five years or something then yes maybe you need to pay her more as natural inflation grows every year if not stick to the agreed price but chances are she doesnt want to hear it.

 

[oey]

Just a quick question - why does she want to change?

 

[dee78]

Hi guys,

Thanks for all your replys, she wants to get more money out of me. Ive ended up leaving, for the best.

Thanks again