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How much should prices be shared self employed? Please help!

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Hjosullivan

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Hello everyone,

I have a slight quandry at the minute! I'm mid way through my nail course and have had the chance to go into a salon a day or two a week alongside my spa job. It probably won't be till the New Year as I will have learnt everything then (gel & acrylic, am already confident in gel polish) and will give me time to build my kit too. My college kit I've just bought was close to 400 and i also need to buy a gel polish set with a decent amount of colours so my initial cost is quite a bit.

The lady who's salon I am going into is in a small town but nowhere else does nails, and she is confident that she can supply plenty of clients, but she wants 50/50 with me buying all my own kit etc. I understand she has rent to pay and I'll be using her card machine, but I can't help but feel this is a lot? I've asked around my teacher, lady who does my nails, my cousin who owns a salon and they all say the same. My cousin will happily have me in her salon at 70/30 but I wouldn't have a ready made client base there.

Any advice would be hugely appreciated as I really don't know what to do, and I need to contact this lady soon and let her know either way or see if she is up to negotiation. Forgot to add this will be self employed alongside my employed job in a spa.

Thanks so much! Hannah
 

Baggybear

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I think what you are asking is: what is the normal rate when doing a pecent split?

In the hair & beauty industry a 60/40 split is normal with 60% going to the person who buys the products.

It is also not a good idea to use the salon card machine for your clients as you need to take your own payments when self employed (keeps your's & the salon's books correct if you each take your own money) then you pay the landlord (salon owner) your agreed amount every week/month.
 

surf girl

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Start building yourself a client base now & go with your cousin at 70/30 build your client base from scratch, 2 years down the line you'll have s good client base and you'll be glad you did, the salon owner who's going to put your payments through there card machine clearly doesn't understand how things work she will end up paying fees for you, you should get your own if you want to take card payments and have the money go into your bank! There are so many cheap ways of taking card payments now that you really don't need to do that, 60\40 is regular split with 60 going to the person who provides the products, so IMO long term I'd rather go wth your cousin :)
 

Grace_Hair

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Start building yourself a client base now & go with your cousin at 70/30 build your client base from scratch, 2 years down the line you'll have s good client base and you'll be glad you did, the salon owner who's going to put your payments through there card machine clearly doesn't understand how things work she will end up paying fees for you, you should get your own if you want to take card payments and have the money go into your bank! There are so many cheap ways of taking card payments now that you really don't need to do that, 60\40 is regular split with 60 going to the person who provides the products, so IMO long term I'd rather go wth your cousin :)
Kahuna, if I got a self employed stylist I would find life easier for them to use my card machine. Is there anyway you could 'rent' your card machine to a self employed stylists. X
 

BannerPenguin

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Kahuna, if I got a self employed stylist I would find life easier for them to use my card machine. Is there anyway you could 'rent' your card machine to a self employed stylists. X
Nope. HMRC wouldn't believe you if investigated and your card company would probably close your account if they found out as the terms around card terminals is extremely strict.
 

squidgernetball

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She shouldn't want you using her card machine as not only will she be paying fees for your transactions but she will be showing artificially increased takings which could lead to her going vat registered before she would need to. None of my self employed use my machine, they are completely self sufficient. I have nothing to do with their business except to encourage my clients to use them.

Vic x
 

surf girl

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The last 2 comments was what I was going to say, I was far too tired to type it out tho lol, I don't think hmrc will understand why salon owners turnover would be x amount but only a certain amount actually belongs to them, fees paid out is an issue too it's just not straightforward at all hmrc like it clean cut or not at all, we mustn't forget hmrc are cracking down on salons with self employed staff so it's in our best interests to play by the rules, you can get a hand held card machine for less than £50 these days with no monthly fees, there's really no reason to be sharing, I don't share mine ever, my girls take cash or a bank transfer until they get a card machine
 

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