Percentage split when offering a discount & other questions

[Severnrose]

Hi all, I was just wondering what happens with a percentage split when you offer a discount (to clients) on a treatment? Does the salon owner get the percentage based on the full price of the treatment or of the discounted treatment?

Also, am I right in thinking that the salon owner cannot rely on you being in the salon at certain times? i.e if I didn't have an appointment booked in then I don't have to go in...?

How do you pay the salon owner their percentage? Do they have to invoice you so that you have a record for hmrc self assessment? Or do you just hand it over and they give you a receipt?

Does the salon owner take a percentage split on retail products that you have bought?

I'm due to possibly start working in a salon on a percentage split and would like to get my facts straight before I do, so that we don't cause any unnecessary problems down the line!

Thank you x

 

[CFBS]

My personal thoughts are to avoid percentage agreements if possible because of all the issues you have identified.
A fixed rent you pay monthly for agreed hours of room use is much more straightforward. You keep total control of your takings, retail and advertising.

You then just have to agree what you get for your money before you start - there are some other threads on this worth reading.

I'm sure some geeks will be able to offer advice on the percentage thing

 

[redlottie13]

Totally agree with CFBS don't do it!

It gets confusing there will be numerous discrepancies and after you take out stock you won't have much left over for you. You already have named a few issues I'm sure there will be many more. I've read a few posts on here where the salon owners have blurred lines between employed and self employed. You need to minimise the stress as much as possible.....

Where as with a set rent it's easy straight forward and if you don't have an appointment in...You don't have to go in but you will have to still pay your daily rent.
If this were my salon I wouldn't mind the latter but if you said you weren't coming in that day I wouldn't be best pleased as I would be thinking "well what if you get a walk in"... As a % of that would be mine xx

 

[Severnrose]

Thank you. Completely understand what you are saying. I think the reason she wants us to be there during certain hours is so that the salon is covered at all times. So if she isn't in, at least someone else is.

I understand the rent thing being a better idea that a percentage but until I get busier I really can't commit to paying a daily / weekly rate without knowing how busy I will be. It's so tricky?!!

 

[FlawlessBeauty]

I was on a percentage split and it worked fine because the owner was very relaxed and easy to discuss things with.

I would pay a percentage of my treatment price. So if i had an offer on, they would get the percentage of the offer price.

They did not take a percentage of retail.

I paid them through online banking at the end of the month and had them sign a receipt too.

Being self employed, you are able to come and go as you like, but i know they wanted me there even if they didn't say it. I tended to stay in case of walk ins anyway.

If you get everything straight with them before you start you should be ok x