Am i paying too much commission ?

[The Nail Room]

Hi all you nail geeks,

Its been a while since i last visited and i am getting on alot better now, i am having doubts as to wether i should carry on working where i am or wether to work from home. I am currently working in a very small village hairdressers who are very busy, however i don't rent the room upstairs i give them comission on what i take which is 40% i also have to buy all the products etc.. does anyone have any views on this as to wether this is right or too much ??

Any advice would be helpful

Many thanks Kelly.

 

[The Beauty Shed]

Sorry, I have no experience but that sounds way too much to me!!!! I wouldn't even think of renting anywhere that took a percentage of profits anyway to be honest, I think it should be a set monthly payment. You wouldn't pay a percentage of your wage to rent your house would you? Anyway that's just my 2 pennies worth! LOL! I aint helped much have I!

 

[Lellipop]

Hi,
It does seem to vary on how much you are taking. But as a rule of thumb the norm is 75/25 the 75% being yours. I would not be prepared to buy all my products and pay 40% of my taking's each week. Sounds like these people are robbing you.
Hths

 

[The Nail Room]

Lesley,

I no i thought it was alot and the sad thing about it all is that she is a friend so i really don't no what i am going to do ! i have a little boy who i have to pay to put in nursery and it just isn't paying for him to be there . I have been really quite at the mo and my friend doesn't try and push business for me like tonight i have got to travel 15 mins to get to work at 7.00pm just for a chin wax hardly worth it by the time she has robbed me of her 40% and i have paid petrol i keep asking myself is it worth it or shall i just pack it all in !

 

[Lynn@harvs]

Hiya Kelly,

40% seems high for a room in a village salon - once you buy all your products,pay tax & nat. insurance, cover your travel etc. you then need to sit down and work out if it's still worth it.

I was so excited about getting space in a salon that I overlooked a lot of really important issues (including rent) and didn't go with my gut intsinct. The experience hasn't put me off doing nails (far from it!) but it has knocked my confidence in other areas.

So, I would sit down and think carefully and then perhaps negotiate a better rent or look elsewhere.

Feel free to PM me if you want any more advice or help!

 

[Lellipop]

Hi Again,
I would definitely try to reduce the % that you pay her, Otherwise if you can keep your clients I would try and move else where.

 

[vicky]

I was paying 25% when i worked in a salon!!

 

[kjw]

I think that paying 40% of the profits would be more fair - 40% of your turnover sounds way too high!

 

[Naughtynails]

I would expect to pay around 25% to 30% but i really think it depends on the area and the type of salon but 40% is a bit steep

 

[Nailsinlondon1]

Hi there,
the main point is are you happy there ???
Is business good ???
Ok if yes then why not try to re negotiate............
You can try this for a few ideas:

40% your current deal, but introduce a bonus scheme...... say anything over a certain amount and then get say 15% on top............say you take £300.......your cut after this would be £180 basic and £45 on top for bonus.15% added from the £300 you earned.........£225 total............

stay with the 40% but she buys the stock and pays towards any training ....but all profits on retailing are yours

25% - 30% rent and you pay for all your expenditure..........


HTH