Chair rental AGAIN!

[Nikkif]

:irked:Currently buying salon. Existing owner wants to stay on and split money on her appointments 66% to her 33% to me (owner), with me supplying everything. Am I being had? What are normal %'s and in who's favour? Please help!:irked:

 

[Poshfloss]

Hi Hun,
Why is she selling the salon? If she still wants to work there then I cannot understand her selling!!!
I think she wants her cake & to eat it too.
I don't think it is a good recipe for starting YOUR new business. Surely the clients will be yours not hers.:irked:
I would tell her to take a run & jump.:lol: You need to start fresh, she could start telling you how to run your business, plus it would be a bit confusing for the clients to know who is really the boss.
Also what about the already existing staff if you have any.
I really think you be better off telling her no.
Best wishes
x x x :hug: :hug: x x x

 

[-sophisticutz-]

I have heard of this situation many times.

It very rarely works, keeping the previous owner on when purchasing a salon and I would avoid this at all costs. If she is selling the business to you, with clientle, then I would strongly suggest you have a covenant included in the contract preventing her from taking any business. If she cannot guarantee this won't happen, then of course, the sale price should reflect this.

I have heard horror stories galore where previous owners have been kept on, only for the new owner to find themselves with a defunct business.:irked:

Regarding the % dilemma, I only have one self-employed member of staff. We work it on a 50-50 split. When it's chemical work, 10% of the total price goes to me, then a 50-50 split of the remainder. That seems to be pretty standard.
Don't be ripped off. That stylist will be trading under your good name and you have overheads to pay for.

Good luck!

 

[Roxi]

That's a very high percentage going to her!!! I'm afraid I would have to say no, if she wants to stay there why on earth is she selling it?? I don't think it would work well in any case, especially for the clients. It would be very confusing for them. Good luck!

 

[Nikkif]

Thanks everyone. I sort of knew these answers but was begining to wonder if I was the mad one! The owner would like to stay on as she'd like to retire in 2 years. I've one more year training so this would suit me. However I have to look after myself and what would be my business. Gives me advice to work with. thanks folks.

 

[kimi1101]

Also would be difficult for staff...
In my old job my boss (half jokingly) said she would sell the business to me and still work there, and i imediately said no way...it would be like paying all the bills and not being the boss!!

xxx

 

[jotommo]

pfft cheeky cow!!
that is not right one bit! i don't rent a chair myself but my friends do on a 50/50 basis and the same 10% to the owner on colours/perms, BUT i am a previous salon owner and when i sold the salon i was selling the custom as well as fixtures and fittings, but mainly the custom,..... sounds like she is in money trouble and just wants to stay doing the same but not having the hassle of books to keep and bills to pay!
after all if you buy the stock as well you'll end up making like 3% profit a week???? she is trying to take you for a serious ride,
IF you still decide to buy this business you need the contract to say she MUST Leave the custom, it is with the shop!!!!
i sold mine for 20k and 13k was custom and 7k fixtures and fittings,

if she is retiring let her retire! she may sell to you then take all the custom and run to do mobile!! don't be caught out, and as for your training get that done while you work, and get other staff in or do the chair rent thing with other staff,, on your terms, after all it will be your business
hope this helps xx