Salaries - are they getting paid too much?

[fusar]

Hello,

This is my first post and I was wondering if I could get some friendly advice please?

Basically, I am purchasing a salon in the near future. All very exciting, but scary, as I am not a stylist and no not very much about beauty and nails, so I hope to manage the salon. I am from a marketing background, so hope to concentrate on that part of the business.....

Anyway....enough of my waffling! My question is.... The salon I am about to purchase already has 6 part-time stylists. whom I hope will continue working for me when I take over. However, they currently get a basic of the £5.60 and then 50% commission on every client they have. This to me seems very high, as they are probably making mor money than me! I was wondering what a fair salary system would be? I definitely will have to change the current one because the salon is making a loss and the biggest cost is the commission. However, I don't want to demotivate them, as I am told they are very good. The salon is not a big, funky, high street salon, but is in a residnetial area, so there is potential to increase the number of clients - so more work would come in for them.

Also the owner doesn't want to tell his staff that he is selling up until the contracts are signed - should I be wary of this? I was wondering why they weren't being informed?

Any advice would be wonderful!
Many thanks
Fusar

 

[Susie H]

to answer the last part first, I would say he doesn't want them told because if they think their money is going to be cut they will walk and take their clients with them. Its what I would do. Sorry but true. Clients don't go to a salon, they go to a tech, if the tech moves, goes mobile etc the client goes to and you have no buisness.
First bit, if I were you I would talk to the techs and tell them the place isn't pulling a profit and find out if they would be willing to become self employed.
They supply all of their own products and pay you 25% of what they take, and for that you supply light, heat, furniture, receptionist, take bookings for them etc.
But sorry hun, a place that is working at a lose, with the current owner trying to get you to sign before you talk to the techs who are the buissness. me, I'd walk away from this one.:hug:

 

[joe90]

But sorry hun, a place that is working at a lose, with the current owner trying to get you to sign before you talk to the techs who are the buissness. me, I'd walk away from this one.:hug:

To beh honest I am with Susie on this one. Why would you want to take on a salon that is:

a) making a loss
b) you will more than likely lose the staff there if they are going to lose their incentives and it sounds like they are on a winner at the moment
c) the present owner not wanting you to talk to the stylists

It all sounds a little fishy to me. Are you sure that the stylists are on 50% commission or is this just what the owner is telling you. You won't know the truth of the matter until you talk to the techs. The owner could be telling you that the commission part is the reason the business is running at a loss when this could indeed be a red herring.

Think very carefully about this one.

If you haven't already done so, I would speak to a professional about this.

 

[oey]

Think you are in a catch 22 situation here - the salon wont make a profit unless you cut the commission and the staff probably wont stay if you cut their income.

I think holding a meeting with the staff once you take over would be a good starting point. Before making any decisions about what to do I would get to know the staff first and get to know how the business runs on a day to day basis. Give it say a month before making any major changes.

You may then find that some things could easily be changed and could work different than they do at the minute without making such drastic changes. You may find that some of the staff may want things to change too, so see how it goes first.

 

[spoiler]

Hi, its just over a year that i bought my salon. my situation is a bit similar to yours. I trained with creative and have a bit of beauty background. I bought my hair salon with six employees and 12 months later I have all new staff, through no fault of my own. The previous owner told me that she had two stylist, but suprise suprise 5 minutes of the sale going through one member of staff told me she wasnt qualified in hair (omg) the prev:green: ious owner didnt want me to meet the girls till the last minute but i insisted. I also wanted to be in salon for a month to see how the salon was run and to see what sort of money she was taking, she really didnt like this so we had to comprimise. I paid over the odds for my salon looking back because as i found out to my expense it didnt have a very good reputation.I decided to change the name early on much to my hubbys dismay and it was the best thing i could of done. But after all that ive been through i wouldnt change a thing, i have a great team of girls who respect me and I them, its taken a year but ive turned the reputation around and i now have the best hair and beauty salon in the area. my advise is stick to your gut instinct and insist on meeting the staff, but be ready for changes

 

[Rosey]

You really need to meet the staff and spend some time in the salon and get a feel for its potential. It would worry me, that the present owner doesnt want you meeting staff and is keeping them in the dark. If your staff walk you will have a huge problem. The rate of pay is too high and is contributing to the loss.

If you want to PM me then I can give you details of how I pay staff and work the commission.

Be wary - everything must feel right or walk away from the deal.

 

[pazzy]

To beh honest I am with Susie on this one. Why would you want to take on a salon that is:

a) making a loss
b) you will more than likely lose the staff there if they are going to lose their incentives and it sounds like they are on a winner at the moment
c) the present owner not wanting you to talk to the stylists

It all sounds a little fishy to me. Are you sure that the stylists are on 50% commission or is this just what the owner is telling you. You won't know the truth of the matter until you talk to the techs. The owner could be telling you that the commission part is the reason the business is running at a loss when this could indeed be a red herring.

Think very carefully about this one.

If you haven't already done so, I would speak to a professional about this.

Here, here it sounds fishy to mme too.

There may be no staff staying once you take over. They might be planning to go on their own - rent a chair with the previous owner. (you just never know)

Good luck.

Its dodgy taking over a business - so dont jump into it too quick.

 

[blossom]

To beh honest I am with Susie on this one. Why would you want to take on a salon that is:

a) making a loss
b) you will more than likely lose the staff there if they are going to lose their incentives and it sounds like they are on a winner at the moment
c) the present owner not wanting you to talk to the stylists

It all sounds a little fishy to me. Are you sure that the stylists are on 50% commission or is this just what the owner is telling you. You won't know the truth of the matter until you talk to the techs. The owner could be telling you that the commission part is the reason the business is running at a loss when this could indeed be a red herring.

Think very carefully about this one.

If you haven't already done so, I would speak to a professional about this.

I couldn't agree more. If it were me I think alarm bells would be ringing big time.

Good luck hun xx

 

[eager beaver]

Definately sounds alittle worrying to me. i would insist on meeting the staff before hand, after all, they will be working in your salon, and you would always interview first in any other circumstance.