Percentage or Rent?

[FOUNDATIONS]

Hi All, i am already rent a room in a salon but am thinking of moving to another one. The problem is they are want it comission based oppesed to paying rent. Can anyone tell if this is a good idea, and what questions i need to be asking, as i dont want to jump before i have all the imformation i need.x

 

[BeautySuite]

They can lump their commission based if you ask me!! So the want a % of what you make in a week...So every week you will have to disclose your accounts to the landlord. No thanks!
Sounds great if you only earn a few bob but If you had a spectacular week you would have to pay more for the same room, same electricity, rates etc
I would be cautious here Foundations.

It does depend on what they are going to do for you. and what % rate they want.
Will you be included in their advertising? Will you have access to their database of clients

Insurance, will you need your own public liability or will you be included in theirs? What happens if someone falls on their premises on the way to your room?

Security, Will you have your own key to the room? making sure it is not accessible to all the staff.

Bins, Lights, Heat, will you have to pay for your own?

Opening hours? If their hours are 10am-6pm and you wish to open early or late evenings is this permittable?

Maintenance: Will you be responsible for the upkeep of paint, flooring etc

Best of luck with it! Remember you are adding to their business not taking form it!!

 

[FOUNDATIONS]

Wow Beauty Suite. Thanks Sooo much for that. I go on sat to have a look at the room, and then ill have to weigh up the pros & conns and go from there. But you have definatly gave me food for thought!
Cheers.x

 

[FOUNDATIONS]

Hi again, Does anyone else have any more views on this please, cos i am having a meeting with the NEW salon owner this sat, and i realy need to gather as much imfo as possible.

 

[Chickafish]

I think Beauty Suite has pretty much covered it all The only other thing I can add is with the commission base, will you be completely supplying and stocking yourself, who gets to set the pricelist, and if usage of the credit card machine included.

 

[pampered471888]

The others have pretty much said it all but couple of other thoughts popped into my head - land linephone. Do you have a separate one? Who pays the bill? Or will you be keeping your mobile? And is your appointment diary run by you rather than the front desk? Just things that have cropped up for me in the past. Also laundry do they have a washing machine do you have access to it and who pays bills and supplies powder etc? Tea and coffee making - do you have to contribute costs? Best to know exactly where you stand before you go in, some landlords can spring all sorts of hidden costs upon you down to the nitty gritty like toilet rolls. Have a clear idea of where your responsibilities end before you start. Xx

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[geeg]

Straight forward rent every time and make sure there are no increases for at least 2 years. As soon as they see you doing well, they always want to increase the rent after a year ,,, no no no !

 

[Kate1982]

All my girls are self employed on a % basis and this was their choice. I provide everything for them, they use my card machine etc. All they have to do is turn up. I do all the advertising.
As I said it was their decision as they didn't want the hassle of it all. We discuss all special offers before they go out to make sure everyone is happy with it.
It really depends how you want to work. If you think you will get busy then definately a rent base is best. However if you think you may struggle then you need to factor in how much it will cost you to advertise and are you taking your own appointments. Ie. If you do your own advertising but the salon takes your appointments then you could end up advertising for another therapist.
I could go on forever on this topic but if you want to pick my brains feel free.
Good luck on Saturday.

 

[classixuk]

You know something, it really depends on what they are offering you and what opportunities you will gain from them.

Is this salon a really busy salon with a high demand for beauty services? Are there 4+ hair staff busy working on clients all day = if just 25% of each stylist's clients came to you for beauty services, you would be 100% booked full time immediately. It would take you years to achieve that on your own.

Or is the salon owner struggling to make business work for themselves and thinks that having a "beauty girl" will add to the takings or generate an extra £100 per week revenue? This wouldn't be a good move on your part as you would have very few beauty clients available from their existing clientele, and the salon owner might be relying on you to increase their takings magically for them.

Rather than think about rent vs. commission, why not think about potential earnings in each scenario? All that matters is you coming away with a sustainable income after X hours of work and an income that can continue to grow.

For example, I would never dream of "renting a station" for £100 a week in my salon to a beauty girl. I could put a mirror there instead and take £1,300.

The arrangement has to work for both of you mutally otherwise you'll end up 3 months down the line with the owner trying to provide as little as possible to you in return for your "flat fee rent". What other incentive do they have? See what I mean?

Alternatively, you could agree a flat rate weekly rent as suggested by some of the others, and then do a Groupon (who make you discount your prices by 70% and then take 50% of whatever you make) to get yourself some new clients.

 

[pampered471888]

How did it go saturday? X

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[xsammi82x]

All my girls are on % 55 to me and 45 to them. They are responsible for their own tax and NI

This works great for us as they don't have a massive rent bill if they didn't have a great week. I do think it's down to personal preference. They have access to the clients but all sign a confidentiality agreement and it is understood that the clients information stays in the salon because I pay for all the ads to get them there

I do all the advertising, supply a receptionist, tea coffee etc as well as all the products and I do extensive advertising for EVERYONE.

 

[FOUNDATIONS]

Hi Everyone, Thank you all sooo much for all your input. The man changed last saturday to this saturday coz somthing came up!. So ill be more armed and dangerous when i get there this weekend. Thanks again and anyone else who has any sugestions keep them comming, and ill keep you posted... Oh Its a sunbed shop what he is just doing up and will be opening in a few weeks time, so he wont have a client base.. he'll probably be relying on mine!!Mmmm thats what i thought...