Salon Owner wanting 50%. . . . .

[Natalie'83]

Hey Ladies (and Gents)
Have been offered a self-employed position in a new salon about 30mins from where I live and the owner has said she will take 50% of my earnings. Is this a normal rate to pay a salon owner or is she charging too much?
She doesnt have a client base at all so Im starting from scratch.
Any advice...?
Thanks, Natalie xx

 

[Angelaznailz]

Hi,
I can't speak for the rest, but I have 2 girls that I get to help me out in my salon from time to time. I pay them 50% of what they bring in, but I supply everything else (clients, phone, laundry, products etc etc) all they have to do is turn up and start working. It suits us all as they have small children and don't want full time work, and I don't need them on a regular basis either. My insurance covers them too.
Hope this helps.

 

[Natalie'83]

that sounds reasonable but in this situation I have to use my products, get my own insurance and re-fill my own stock.
Im worried that I could be sitting there and have one client in, use all my products etc and the only come away with half the money.
I dont know if Im being picky...
any thoughts?
x

 

[Elegance Nail Tech]

I personally think this sounds a little expensive. I would try and negotiate something a little less for first couple of months. Maybe when you have worked up a client base you could review it or pay a set amount each day/week...H x

 

[Gigit]

No, 50% is not reasonable if you have to supply all products and insurance. I know nail techs that work in a salon that make 50% commission. Either negotiate your rate or walk away.

 

[deanosnana]

that sounds reasonable but in this situation I have to use my products, get my own insurance and re-fill my own stock.
Im worried that I could be sitting there and have one client in, use all my products etc and the only come away with half the money.
I dont know if Im being picky...
any thoughts?
x

IMHO, if you are supplying all the above, 30-35% is fair. And no, you are NOT being picky. HTH and best of luck!

 

[magsham]

IMHO, if you are supplying all the above, 30-35% is fair. And no, you are NOT being picky. HTH and best of luck!

here, here!

 

[Yurionfire]

Well honestly speaking, I had that situation too, have been offered a self-employed position in a new salon about 30mins from where I live and finally I quit. It seems to be a good rate but if you don't have any clientele. You would be totally suffer...

Here's what I faced before:

- I have to my own products but first she said she's gonna pay for the product I'm comfortable with. Yes, she bought only the cheap one and she didn't to provide enough equipment even the UV Lamp, never replace bulb at all.
- Convinced me to mix one brand of monomer with other brand of polymer and she said she had done so many nail enhancement course before.
- Tell me that acetone can be used to dehydrate nail plate instead of nail P.R.E.P. (Scrubfresh)
- If there's any problem occur, kept asking me why, why, why don't you know that, you're a nail technician.
- She didn't even supply 'kitchen towel' for or even soaking bowl for remover.
- I was sitting there all day without paying at National Minimum Wage and the appointment she booked was unreliable, client always cancel. Some day I wasn't paid and some day I got only £10. Of course.
-Depends on the price that salon owner set, if salon Owner set the price herself low and sometime give discount for her friend, of course it's not her product how can she now the price I paid for.
- Not allow me to do any advertising because she said she needs to build up her salon reputation and not allow me o offer any promotion.

She only want me to go on a busy day because yes, she doesn't want to pay for the quiet day. Using children as apprentice is cheaper because sometime they need their apprentice for their study. Is that professional? Service you client with newbie (it's not right or wrong to be a newbie) BUT will you charge your client full price rather than newbie's price??

My suggestion is go and find a nice salon you 'll be happy to work with or earn more money by being a McDonald girl.

If you're in the same situation, you'd better go away, she may ruin what you have learn and if she wants 50% by answer the telephone, booking, laundry bla bla, I wonder why she won't do the nail enhancement by her own, this job need a high skill.

 

[Natalie'83]

Thanks ladies
The thing that keeps running through my mind is that I only qualified at the beginning of the year and have gone mobile but found it very difficult to get clients.
When this opportunity came up, I have seen it as a way to gain the necessary experience needed and earn some money.
I guess I have to decide whether I give it my all on my own and going mobile (1000 leaflet drop, lots of advertising, promotions etc)
or do I gain the experience for a few months in a salon and understand that I will be out of pocket, but what price do you put on experience....
im so confused
x

 

[persianista]

Well would you prefer 100% of nothing or 50% of something? The ladies on here who neg better percentages may have lots of experience or their own clienteles. If you feel unsure that you wish to earn money for a salon, you can continue to work mobile.
I'm gonna get shouted at for this, but salons exist to make salon owners money. Without them taking a risk with premesis and fit out, people wouldnt have a workplace. Salon owners generally do not rent space for the good of the therapist, but as an income stream for the salon.
50% or 50/50 is pretty normal. percentage plits are getting rarer now that the vat rules are getting tougher, so set rents will eventually become the norm.
It is far easier to get clients in a salon, as long as you are confident that you can retain them.

 

[claireamy]

I have a couple of girls rent a table on a part time basis at my salon and they take home 50%. I have the other 50% which covers my overheads. I supply everything they use except they have their own brush. I pay insursance, rent, business rates, gas, water, electric, bin collection, tea, coffee, milk, cleaning products, the list can go on and on. They come in, work and go home. I think they get a fair deal to be honest.

They have no hassles, I book clients in for them but they can book people in too. I advertise on their behalf and thry have a lovely salon to come and do their work in.

They're also free to work mobile as well, but with no hassle, who can blame them for choosing to more work in salon?

Everyone's situation is different and if you still have to do your own advertising and booking of clients you could negotiate on the %.

 

[vikkicnd]

I rent a nail bar and pay £50 a week. Theres no way I would give up 50% and buy all my own stock. RIP OFF XX

 

[nailsbyamy]

I used to be in that situation and between paying for all my supplies, my gas, my daycare, I was losing money. Now I work in a salon very close to home and I only pay 10% commission and I supply every and make my own appointments and I am doing much better. 50% is waaaay too much. I think you will find you are barely breaking even let along making money.

 

[nicolesx]

50% is sooo unreasonable its unreal, esp if you need to buy your own products. if she had a clientel already built up for you to walk straight in then yes i would maybe say thats ok then but not if your starting from scratch.. she is then getting the same money as you for doing nothing while your sit and work your bum off with your own bought products for the same money. i would say maybe try talk to her and try to work something out for the first few months while your build up a clientel then she gets 40% and you get 60%

xxx

 

[Gelly]

percentage plits are getting rarer now that the vat rules are getting tougher, so set rents will eventually become the norm.

Hi
I currently rent space on a commission/percentage basis - have done for 6 months now.

Last night I got a text from the salon owner saying that she has been doing her books and as of next week she wants to go to a day rate... It was a bit of a surprise to me as she had seemed very happy.

Can you tell me a bit more about what you have said in the above post, as it might help me to understand her desire for a change...

Thanks :hug:

 

[persianista]

Vat is paid on the salon TURNOVER at a rate of 17.5%. So if you do a percentage split the vat should be paid first , then the percentage to the nail tech calculated. However, most people dont like the first 17.5% of their takings going to the vat man! Even if the salon owner agrees to 20% the nail tech still loses 37.5%. If the salon owner pays the vat out of her percentage, then the tech has to expect a lower share. A 10% commission to a salon owner would be a net loss of 7.5%.
On the upside, a vat registered salon is gonna be bigger and busier, so there is far more scope to make money.
With a set rent, the nail tech deals with all her own payments directly from the client. As this doesn'y go in the salon till, it is not salon turnover so not subject to vat. The rent payment for the space is non vatable too.
So if for example you were on a 50/50 deal but with the salon owner paying the vat, you would on 100 turnover get;
50 to the nail tech
14.89 to the vat man
35.11 to the salon.

On a day rate of 50 per day on a turnover of 100
50 to the nail tech
50 to the salon.
zilch to those bandits at the vat office

Hope I have explained this ok

 

[Gelly]

Vat is paid on the salon TURNOVER at a rate of 17.5%. So if you do a percentage split the vat should be paid first , then the percentage to the nail tech calculated. However, most people dont like the first 17.5% of their takings going to the vat man! Even if the salon owner agrees to 20% the nail tech still loses 37.5%. If the salon owner pays the vat out of her percentage, then the tech has to expect a lower share. A 10% commission to a salon owner would be a net loss of 7.5%.
On the upside, a vat registered salon is gonna be bigger and busier, so there is far more scope to make money.

With a set rent, the nail tech deals with all her own payments directly from the client. As this doesn'y go in the salon till, it is not salon turnover so not subject to vat. The rent payment for the space is non vatable too.
So if for example you were on a 50/50 deal but with the salon owner paying the vat, you would on 100 turnover get;
50 to the nail tech
14.89 to the vat man
35.11 to the salon.

On a day rate of 50 per day on a turnover of 100
50 to the nail tech
50 to the salon.
zilch to those bandits at the vat office

Hope I have explained this ok

OK - I am self employed (a separate registered business) and have been paying her 25% of my takings per week for use of a room and nail desk on her premises.

I pay for all of my products etc, take my own bookings and handle all monies from my clients. (Making it my turnover, not the salons turnover)

So should I have been deducting 17.5% before paying her 25%?

I am sorry if I am asking stupid questions!... Man this is so confusing!

The reason that I am cautious about going to a set day rate is that her business is a bit of a funny set-up....

Sun - Mon CLOSED
Tues - 9.30 - 1pm
Wed - 9.30 - 1pm
Thurs - 10 - 8pm (every other week she has a Reiki lady using the room from 4-8pm - meaning I can only offer beauty treatments 2 late nights per month)
Fri - 9.30 - 5pm
Sat - 9 - 2pm (every other week the Reiki lady uses the room from 10 - 2pm - meaning I can only offer beauty treatments 2 Saturdays per month) and her sister uses the desk every Sat until 10.15am for a long standing manicure client.

Working there is hard work but my only option at the moment. Paying 25% made it bearable.
Having a fixed day rate doesn't make sense to me with the way the hours and availability of the room fluctuates.

Would it still work better VAT wise if we had varying day rates to mirror the availability of the room and desk? ie I pay full day rate on a Thurs when I have full use of room and desk and half when I don't?

I am VERY grateful for your advice!! :hug:
I'm sorry if I've given you a headache!

 

[persianista]

On those limited hours I would be surprised if she was vat registered at all. I would have thought you would be better off on a day rate which varies to reflect the limited hours and availability.

 

[Gelly]

Thank you so much x