Is 30% resonable

[keeleyp]

Hello - I have found a room to rent one day a week in a nice Gym, which is always busy. They said they will not charge me any rent just 30% on each treatment I do.

They said they will advertise me on there website and flyers and I can advertise in there main reception area also?

I was just wondering if this seems resonable or should I look around.

This is my first time in looking for somewhere to rent?

Any advice will be appreciated.

Thank you

 

[weezie]

Lets say you make £700 a week you would have to give them £210 and take home £490 or if you made £200 you would take home £140 and give them £60 So as you know it basically equates to just under a third of your income on rent, then you have to deduct product costs.

I would try to to get them to agree on a fixed rate as you are providing the products and will have less pressure put on you to do things their way also then when you get busy you will earn more but as far as % go it seems fair especially if it is slow to start up. Other people have quoted 60/40 splits so this does seem good unless you can negotiate a good rent. At least with a % split they will encourage people to use you.

 

[keeleyp]

Thats true, do you think I should say 25%. im off to see the room tomorrow and disscus things?

I have to sort out all my insurance to and make sure it covers me there?

 

[angel fingers]

30 percent is reasonable, this type of arrangement usually costs the therapist 40%.

of course, if you can bring them down to 25% then thats even better:wink2:

 

[keeleyp]

Thank you, I am off to finalise things tomorrow.

I am going to try to get it for 25%

 

[keeleyp]

Iv just been to see the room, and it is great. The Manger said there is a Beauty Therapist who does use the rooms the other days I dont.

She is faily busy but does more hair.

Do you think I will still get clients, if she is there also, or should I choose to look at places where there is no other therapists?

 

[Havering Beauty Academy]

i would personally like to be the only therapist but it is up to you. if she is mainly doing hair but offers beauty why is this?

 

[keeleyp]

Im not sure I think she just preferes this?

I am undecided what to do?
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[angel fingers]

you dont have a lot to loose by giving it a try as you dont pay any rent unless you have clients.

 

[keeleyp]

Thats true im going to say ill give it a trial go for a month.

Thanks for all your advice

 

[angel fingers]

good luck keeley, i hope you do really well.

 

[keeleyp]

Thank you thats very kind ill keep you updated how it goes.