Space renting guidelines?

#1
Can anyone offer advice for me?

Reading through, the deal I’ve been offered is fab!
  • 30% on every service.
  • Manicure and Pedicure space.
  • Scope for me to use the beauty room for tanning if I need it. And if they haven’t found someone else to rent it.
  • I supply all my own products.
  • Use of tea and coffee facilities.
  • Storage space.
All my profits will be put through the salon till. Which is fine - but can I ask when do you all get that money (minus commission) back from the salon? Weekly? Monthly?

Thanks all.
 

NailsbyHayley

Active Member
#2
Ask for weekly. Monthly would be harder to keep a note of. x
 

Trinity

Brush Slayer Geek
#3
So if I understand correctly you earn 30% of each treatment?

A manicure at £20.00 earns you £6. If it takes an hour you will earn £6 per hour before tax and costs (as you supply products)
A full set of nail extensions at £40 earns you £12 for 1.5 hours = £8 per hour before tax and costs

Have you worked out your 'cost per service'? for each treatment you will offer? If you are providing products I would want more from the split.
 

#4
So if I understand correctly you earn 30% of each treatment?

A manicure at £20.00 earns you £6. If it takes an hour you will earn £6 per hour before tax and costs (as you supply products)
A full set of nail extensions at £40 earns you £12 for 1.5 hours = £8 per hour before tax and costs

Have you worked out your 'cost per service'? for each treatment you will offer? If you are providing products I would want more from the split.
No I earn 70%. Sorry I should have been clearer. My rent is 30% per service.
 

Trinity

Brush Slayer Geek
#5
No I earn 70%. Sorry I should have been clearer. My rent is 30% per service.
Ah! that's better :eek:

Can you ask takings be done by yourself and you pay him his 30% each day?

Are you self employed? There is a whole post about self employed rules and arrangements you might want to read through for some guidance. I'll see if I can find it for you.
 

Trinity

Brush Slayer Geek
#6

#7

NailsbyHayley

Active Member
#8
Work out your cost per service like Trinity said above. It may be worth your while to pay per day rather than a percentage. Especially as you are providing your own products. See how it works out best.
 

#9
Work out your cost per service like Trinity said above. It may be worth your while to pay per day rather than a percentage. Especially as you are providing your own products. See how it works out best.
I’ve asked for a contract that says we’ll renegotiate after 3 months. It all depends on how busy I am I suppose.
 

Haircutz

Super Moderator
Staff member
#10
Your clients really shouldn’t be paying into the salon till. You’re better off taking their money directly then paying the salon owner her percentage. Otherwise, the salon owner is risking reaching the VAT threshold and you’d then have to charge your clients VAT on top of your prices but you won’t be able to claim the VAT back, but the salon owner could.
Always work on the premise that you’re an independent business owner working in her salon and you decide how you want to operate your business.
Best of luck with your new venture.
 

Haircutz

Super Moderator
Staff member
#11
Also, is it a hairdressing salon or beauty salon?
The review in 3 months could lead to a reduction in your profit margin as she seeks to increase it to a 50% or 60% split in her favour, which is the industry standard if she’s providing additional services, laundry etc.

Be wary of salon owners that use you to increase their footfall for beauty services then decide to employ someone to nab your clients.

Make sure you keep your client records separate to the salon as you’re legally obliged to keep them secure. The salon owner must not have access to them as this breaches the Data Protection law.
 
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