Help needed from all you Geekettes out there!

[RBrown]

Good evening all,

I have been an avid follower on Salongeek for some time now and have leant so many things from you all for that I am thankful.

I am now in need of all your advice. I will set the scene…….

In July I rented two rooms with my friend within a hairdressers, we were both new to the industry but as we were/still not youngsters and knew what we wanted from the business and naively or not how to run and start up the business.

We made contact with the owner of the hair salon by pure chance. He had two rooms to rent so we explained our situation i.e just starting up, not got a business loan or grants or client base etc. He seemed very understanding and was eager to get us started as the rooms had been vacant for over a year. We agreed we would pay him 30% per week of what we earned and review it when we have a client base.

So things have slowly picked up and we are gradually building a client base. We use one room for treatments i.e. beauty and holistic and the other room for nails and spray tanning, it’s been working well. Until now……

He has sprung it on us now that he wants us to pay £150 a week. On average we have only been paying him £50, some weeks are good others are not so good.

He himself has admitted to being in financial difficulties and his salon is getting more and more empty by the day. He has lost drive and barely comes in any more, and has made numerous comments about “what are we doing to get the clients?” Well we have done all we can at this point in time, i.e., Facebook, website, leaflet drops, local business discounts, radio ads and a competition, special offers, packages, local networking meetings etc etc

When asked what else he suggested we do, he said it wasn’t for him to say….. cop out or what? :smack:

He isn’t doing anything to promote his business and expects things to come to him. The worst thing is, I found out his rent is only £400 a month and rates is £200! So we’d be covering that! He is not putting us through the books, that I know for sure so the money is just going wherever he wants, ie his pocket.

So I ask myself is this a reasonable amount he is asking? Am I just being too naive in the world of business? Should we stick it out until our client base grows? Should we look elsewhere? How long does it take to build a client base?

I’m at a loss, my business partner and I are both so tired by everything, we don’t know what to do, we feel like giving up………..

If anyone can offer advice or opinions it would be appreciated, good or bad I want to hear it.

Sorry for the length of the post! I thank everyone in advance for reading and replying! J

XXX

 

[J.Victoria]

I'd consider moving somewhere else, not so much for the rent increase, but what he expects you to put into the running of his buisness. If he is showing little enthusiasm for his own livelyhood and he is loosing clients, then it can only mean that the salons reputation is going down with it.(No reflection on you by the way). I would think of walking away with a good reputation now, then get dragged down with him. hth x

 

[persianista]

I agree. Look elsewhere if you are unhappy. If you feel that you are not happy to pay a salon owner rent, maybe it is time for your own salon?

 

[RBrown]

Thanks ladies. I think you're both right. I just wish I knew if I was just expecting too much or if this is the way business really is?

R
X

 

[persianista]

I think you are being a little naive, yes. His rent is not really your business. You are just another income stream. I have chair and room renters, and regard what I pay out as none of their business. I also don't treat them as employees. With my employed staff, their welfare is my concern. With renters, I treat them as equals.
You don't care about his happiness and wellbeing, yet you expect him to care about yours.

Nobody will care about your business as much as you. Once you learn and accept that, it will help you work out the next step.
Some renters really resent paying rent at all. They often resent the salon owner for being in that position. If you feel like that, then it is time for your own salon.

 

[RBrown]

Thanks for your honest reply. You've given me lots to think about.

R
X

 

[Kate1982]

I have to agree with Persianista.
But I would add that £150 pw is not bad at all. It's basically 30% of £100 per day assuming a 5 day week. Whiching isn't an unreasonabe amount at all.
I know how you feel though about paying rent but at the end of the day we all have to look after our own businesses.
Good luck.

 

[jes]

Hi,

Personally, I think £150 PW for the two of you is incredibly cheap and a better deal than 30%.

As mentioned above £150 PW is only 30% of £500 and between you, you should be aiming to take a lot more than that.

HTH
jes

 

[Jack1102]

30% is industry standard these days when renting somewhere like you do, but some places however can/do ask for upto 40, or even 50%

What is your average weekly intake before rent, expenses etc?

How much difference is there in the 30% per week you currently pay, and £150 per week which is what he is asking? (obviously £600 a month)

As previously said, i think, to give him £150 a week, you need to make £500.00 a week in total. Do you open full days Mon - Fri and a some hours on a Sat, or could you extend your opening hours (late Mon, Thurs or even Saturday Afternoons?) to make that little bit extra each week?

Im not sure how you run you business, how much you take each week, or how you pay your rent (weekly, monthly etc) but could you not meet in the middle at say around 35% per week to keep both sides of the coin happy (ie: you and him)

 

[RBrown]

Hi there,

Sorry for the delay, thanks so much for your replies. Maybe the £150 isnt so bad after all. I'm gonna see how things are in the new year, then re-evaluate the situation.

I hope everyone has a busy and profitable December!!

R