Beauty Balcony to rent - how would this work?

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classixuk

Well-Known Member
Joined
Dec 10, 2006
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Location
Liverpool, UK
Hi everyone,

Here's an unusual one that I hope you can help me finalise before I place an ad in the recruitment section here.

We have a couple of hairdressing salons in a posh suburb of Liverpool, UK. and have been in business successfully since 2001. We are planning a £20,000 refurbishment of the main salon at the beginning of February.

The space is rather large (over 1,500 sq ft) and spread over a main ground floor and a mezzanine (or balcony if you like) overlooking the main styling area.

Currently, the mezzanine houses our colour studio (colour bar, 6 stations and 3 backwashes) and we do all of our colouring services there before taking the clients downstairs to the styling area to be cut and dried.

We have hundreds of clients, mainly between the ages of 25-55, and before embarking on the refit, we gave over 100 of them a questionnaire to fill in last October-November to see what they wanted in the salon.

Basic beauty services came pretty high on the list, with 89% saying they would have a manicure with us every 6 weeks if it was available in the salon. Basic waxing services, brow shapes and tints also scored highly. LOL, they even told us the ideal price they would like to pay for each service, so we have average prices for individual services that our customers have agreed - if it cost that much, I would keep coming back.

Now, most hair salons that offer space for beauty, generally offer a nail desk, or at best, a beauty room.

But our salon is spacious and large, so I don't really want to do that. My idea is that if we move the colour studio during the refit to the back area downstairs, it would free up the entire mezzanine (450sq ft) and flooded with natural light, for beauty services.

I would hope that this would be a nicer working environment to come to each day than a little room with no windows. Plus, it means that the clients and therapists feel more connected with the rest of the salon and it's team as they can see over the mezzanine and into the salon and reception (a large mirrored wall allows the mezzanine to be seen from the street and also reception).

As a qualified hairdresser and successful business owner, I don't believe in charging a weekly rent for the space. It takes the incentive away completely for me and my team to help the therapist succeed and feel part of the team.

Our hairstylists have always been on commission only as self employed, and are happy with how that works (one has been with us almost 6 years, so we must be doing something right). Each stylist works with us, and we work with them to maximise takings and profits.

Of course, with the stylists, we provide everything - from retail and colour to appointment cards and training (even give them cash to go on holiday with, and get them cheap accountants to handle their tax returns). In return, the stylists commit to make sure the salon is attended for the full opening hours by at least one stylist, and train the juniors. They also vote on what to collectively charge clients based on the recommended prices that we get back from the salon questionnaires. I guess you could say that our stylists concentrate on what they are good at (hair and people) and we concentrate on what we are good at (establishing them as busy stylists and enabling them to make as much money as possible from their time in the salon).

I (and the team) want to have the same relationship with the therapist.

I feel that the only way this will happen is if the therapist and the salon work in a similar way, and "becomes part of the team". That way, the stylists and beauty can cross promote between eachother.

I don't feel that it would be appropriate for me to provide the products for the therapist (after all, that would be like a nail tech providing me with colours and retail - how would she know what I prefer to work with, or even what I need), but I can certainly help her get discounts on the products she wants to use, and look for cheaper alternatives to help her maximise profit (we have done that for the stylists already).

What we are providing though is hundreds of clients who actually want beasic beauty services, 450sqft of space to work in (with the threapist's own signage on the stairway), a reception and someone to book appointments, phoneline, water, electricity and a great team to feel part of (and yes, probably some holiday pay too LOL).

I guess it's a chance to be in business for yourself, but not by yourself, if you know what I mean.

This isn't your typical "here's a small room, let's do a 60/40 split, thanks" type of scenario.

What would you say would be a fair commission split to get access to the above? The therapist would be doing mostly basic beauty services such as nails, waxing, brow and lashes, eye treatments (based on the demand we received from our clients) and would be able to use/supply the products they like to use. They can also employ assistants to help them get through more clients if they wish as the sapce is big enough for 3 people to operate (the stylists usually ask us to employ the assistants for them under our employer's status with Inland revenue and they then take a slightly smaller commission to help pay towards the cost, but it can be done the other way too). We provide the rest of the stuff.

I think that a 60/40 split in this scenario is a non-starter as we are providing so much - the clients, advertising, huge space, holiday pay, fixtures and fittings, business advice, and a newly refitted salon to work in etc. that it would leave us with no profit. It needs to be workable for both sides.

What would you recommend or do you think is fair?

Thanks for your time.

EDIT TO ADD: Actually, just reading this back, I suppose that if it saved the therapist a trip to the wholesalers and helped her cashflow, we could order her preferred products to be delivered on our salon account, and then deduct the cost from her commissions at the end of each month. Would that be better/easier?
 
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I dont know much about the business side of things when in a big salon cause i work from home and i am the only therapist. But i just wanted to say that your salon sounds fab,would love to see it. You seem like a very fair and highly motivated person to work for and along side. know it doesnt help you any but just wanted to pass comment. hope you get someone good and it works well for you.:hug::hug:
 
if they were to provide their own products, and were just paying you for space and utilities, i would say 60/40 or 65/35% in their favour.

You dont make as much money in beauty as you do in hair, due o the fact you can only be with one clie at any one time. not like applying a colour on client A then doing a CBD on client B while client A cooks IYKWIM.

A therapist, working a 6 or 7 hour day, should be averaging at least £150 a day. especially if your saying you have so many clients waiting.

If you were to pay for products you could probably expect to ask 45 - 50% in 'rent' (...or offer the therapist 50 - 65% commission same either way! lol.)
 
hi i run a big soon to get bigger salon in the city centre, if i were you i would help the therapist get the product he or she prefers, taking a fixed amount off the commission monthly start off by 65% in your favour increasing their commission to 40% then 50% according to retention of client base and at the end of the day if you get a good allrounder i believe 60-40 in their favour will keep your clients and your good name, i would also start them on a trial basis and give incentives according to product sales (which you provide)according to industry guidelines,:) your salon sounds great wish you all the best the right person or persons will come to you and the right :idea: :hug:
 
rock chic said:
I dont know much about the business side of things when in a big salon cause i work from home and i am the only therapist. But i just wanted to say that your salon sounds fab,would love to see it. You seem like a very fair and highly motivated person to work for and along side. know it doesnt help you any but just wanted to pass comment. hope you get someone good and it works well for you.:hug::hug:

Thanks Rock Chic

katelisa said:
if they were to provide their own products, and were just paying you for space and utilities, i would say 60/40 or 65/35% in their favour.

You dont make as much money in beauty as you do in hair, due o the fact you can only be with one clie at any one time. not like applying a colour on client A then doing a CBD on client B while client A cooks IYKWIM.

A therapist, working a 6 or 7 hour day, should be averaging at least £150 a day. especially if your saying you have so many clients waiting.

If you were to pay for products you could probably expect to ask 45 - 50% in 'rent' (...or offer the therapist 50 - 65% commission same either way! lol.)

Thanks for your reply katelisa.

65/35 in their favour would be a no goer for us. They would be getting the entire area (it is the size of a small shop) and could easily support 3 therapists working at once.
You said that a busy therapist might take £150 a day, so if we work that over 5 days full time it = £750 at best. On a 65/35 split, it would mean that we end up with £262.50 for the week, out of which we are paying for the receptionist to answer the calls, providing the furniture, phone lines, heating, lighting, water, press advertising, credit card facilities as well as paid holidays and business advice before paying our own rent and rates for the building. If there is anything left for us (which would be doubtful), the taxman wants 20% straight off the top.
That would be bad business for both of us. The therapist would be happy for a while, but would end up de-motivated when we stopped taking an interest in promoting her services. After all, if there are 8 hours in a working day, I am hardly likely to devote much time to promoting a part of the business that earns me £20 a week profit.
So how could we make it work for both us to benefit?
 
hi i run a big soon to get bigger salon in the city centre, if i were you i would help the therapist get the product he or she prefers, taking a fixed amount off the commission monthly start off by 65% in your favour increasing their commission to 40% then 50% according to retention of client base and at the end of the day if you get a good allrounder i believe 60-40 in their favour will keep your clients and your good name, i would also start them on a trial basis and give incentives according to product sales (which you provide)according to industry guidelines,:) your salon sounds great wish you all the best the right person or persons will come to you and the right :idea: :hug:

Sepherina, you obviously have experience running a salon and building teams successfully (that much is obvious by the fact you are expanding).
Do you employ your therapists, or do you have them as self-employed?

Many thanks.
 
Hi
I've been keeping an eye on this thread as its an interesting one!
You seem to be offering an excellent deal to the prospective person.
But in my experience you are not going to get much more of a cut than 35-40%. I think the only way you are going to increase your profit from this venture is to reduce some of your offerings:
  • Holiday pay? Why would you pay them this?
  • Card machine- at least charge them the amount you have to pay for each card transaction.
  • Advertising- why not split this 50/50 ?
I employ 3 Therapists in a Spa in the Lakes. I pay for the products I use, the Therapists wages and any improvements I want to make to the treatment rooms. We split printing costs for brochures and gift vouchers and I pay for any other advertising like posters, appointment cards etc. I also pay for outgoing calls.
The split is 65% to me and 35% to them. It hurts when I have a good week but it does help when things are quiet as I dont have to hand over as much.

I hope this helps. Just thought you may want to get info from other people's situations.

Michelle
 
You said that a busy therapist might take £150 a day,

:!: nooo, an average therapist, not a busy one!! :green:

a busy therapist should take approx £200 - 250 a day depending on what the day is filled with. also dependant upon pricing in your area of course.

i also agree with the last post, if you want to make more out of it i would be tempted to offer less.

for instance, if you are paying someone holiday pay, surely they are an employee?!?! if they are self employed then holiday pay is their responsibility. as is advertising.

it sounds to me like you (naturally) want the benefits of a hard working self employed therapist, that has drive, passion and skill, but want to also be in control of them so they 'fit in' to your salon and way of working like an employee.
 
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In all honesty I would find it all a bit confusing !

I would rather be employed straight up or just rent the space for a set amount.

At best I think you could do a 70/30 split. Would you not consider employing a few therapists and a beauty manager ?
 

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