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Rent/commission dilemma

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shellbert

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Hi Guys
Looking for a neutral opinion on this one!
I have been working in a Hotel Spa and pay a weekly rent of £50 which covers electric, water etc.
On top of that I pay 20% commission on each treatment I do which apparently covers the Hotel staff taking bookings and website advertising.
The problem being now is that I want to try and promote the services I offer to the local clients, but it puts me off guiding them to the website because the prices are too steep with the 20% included.
I'm going to have a chat with the Hotel owner this week to if he will agree to take off the percentage increase, so not to confuse locals and to increase the rent we pay instead?
Was just wondering if anyone would say what a fair weekly rent would be? This would include website advertising, room rental and staff booking appointments for me?
Tbh I think this wont go down to well but am thinking that if he objects to losing the percentage add, then I will say that we will provide a webs page link myself to put on their website, take our own bookings and just pay £50 a week!
I am hoping the cheaper prices I can offer will also get more business from the Hotel guests too that are just staying the one night during the week that are on more of a budget?
I have been thinking of suggesting reducing the percentage to 10% on treatments but it will still confuse locals. Or can I just say in leaflet advertising that "locals get 10% discount". That way I suppose the owner is still making money, our prices are more realistic and that will get us more bookings al round?
What do you think?
It's really doing my head in now as its stopping me from advertising locally so far and I really want to crack on with this as I go n maternity leave soon and need my replacement Therapist nice and busy!
Xx
 

crazybek

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Hi.
Sorry but im really confused!
So clients have to pay an extra 20% on top of what you advertise your prices at?
And the £50 a week you pay the boss,is that a set rate?
Do you supply all the materials for the job?
 

angelina221

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I'm confused-lol
I dont get what you mean that the prices are too steep with the 20% on.
You give 20% to the hotel so the price to the client is still the same isn't it?
So if you do a massage for say £40 then you still advertise it for £40 but you have to pay the hotel £8.
So you are self-employed? If you pay rent then you must be self employed.
If so then you decide the prices of the treatments.
It seems they are saying what the prices are.
If you want to advertise to clients then why do you not have a website.
Have I got this correct so far?
Sorry I'm a bit confuzzled!
 

angelina221

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Hi.
Sorry but im really confused!
So clients have to pay an extra 20% on top of what you advertise your prices at?
And the £50 a week you pay the boss,is that a set rate?
Do you supply all the materials for the job?
Haha we must have been replying at the same time. I'm glad it's not just me!
 

crazybek

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Haha we must have been replying at the same time. I'm glad it's not just me!
Lol!
We have asked almost exactly the same questions!!!
I am totally confused and dont mind admitting it either!!
I thought that if you are self employed and using your own equipment and stock,then you agree the price?

O dear o dear im losing it now!Been a very very very long day at work and my brains just gone to mush!:o
 

shellbert

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Apologies for not making myself clearer.
Yes I'm self employed, provide my own stock etc and the prices are advertised on the Hotel website.
I originally had my own prices which the owner wanted to add 20% on top to cover the receptionists taking the bookings for Hotel guests and website advertising.
So a massage is advertised at £35 so the Hotel take £7 and I come out with £28.
Does that help - lol!
 

Elaine143a

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So, if I've read this correctly, you are currently only paying £50 pw for the room rental, and then commission on top for each treatment? And they provide the website and take all your bookings for you?

You want to change this to a straight rental only agreement, whereby you do not want to pay commission, but still want to utilise their website and booking facilities?

Once this has been clarified, I am sure you will get a few more responses - hth xx
 

Jen889

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I would definitely try and work him down to 10% and you can advertise 10% to local clients but it might have an adverse affect just because if a hotel client gets wind of the "discount" they might get upset and demand the same therefore you would lose money. I personally wouldn't give that discount to locals, by reducing your commission by half your pricing would automatically become cheaper and more affordable for locals as well as most of the hotel clients.

I would keep the website advertisement and the hotel staff taking the bookings, this is easier for the guests. If you would like (and this is what I do at the gym I rent in) make your own website and have a number locals can ring you on. That way you keep your business a bit more personnel as you don't want the hotel owner/manager to see your making good money and raise your rent and/or commission because of it. If you choose this still don't put a "discount" as you have to remember your going to pay that commission wether their local clients or not.

Hope this helps!
 

shellbert

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Jen
Thanks for your reply.
We actually don't get charged commission for locals as we will have promoted ourselves to get their bookings via our advertising and supply our own numbers for them to book directly with us.
I have thought about getting a separate website to show our prices (with commission) so they can browse on there whenever and just get in touch with me or my colleague if they have any questions or want to to make an appointment.
Think I'm just going to press for the 10% regarding Hotel guest bookings and then crack on with a separate website and leaflets/brochures for locals.

Many thanks
Michelle
 

tobl55

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But if you're booking in "the locals" and the hotel are booking in guests how will you know that you are not double booking?xx
 

shellbert

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I have an online appointment diary which both the Hotel and myself use to prevent double booking.:)
 

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