Table rental

[hannajadem]

I know this has been asked various times before, but I'm needing to know how flat rate table rental is calculated, i.e. not on a commision basis.
My salon owner wants to increase my rent now that I am 'established' from £50 per week to £90. I know this is low based on other areas of the country but it's not a very 'upmarket' location if that makes sense.
I've also worked out based on the salon's outgoings (rates, electric, rent, phone etc) that I will be paying for approximately half of the overall salon's outgoings, which I believe is unfair as I am only renting the desk which comprises much less than half the space (she only does beauty treatments, not nails, and has one large treatment room plus another room for spray tanning)-is it normal for owners to make a 'profit' on rentals?
There is no receptionist, only me and the owner (and she does not do enhancements so I'm not paying for a client base either) and we take each other's bookings, I have to do my own advertising, laundry etc although I get use of the phone and tea/coffee facilities.
I am thinking about phoning a local nail bar and asking how much they chrage for table rental to make a comparison-does this seem really cheeky? I know for a fact I can rent a small beauty room in the back of a hairdresser's on the same street for £80 per week, so was surprised when she suggested £90.
If I were on a commission split basis of 20% as I supply all my own products, I would have to take £450 per week to give her the £90 she wants, which to me is ridiculous as she only takes roughly £250 per week herself offering many more treatments than I do.

Don't know what sort of figure to suggest back to her-I can't really afford more than £60 a week at the moment as I've only been there 4 months and my book is only half full.:Scared:

 

[hannajadem]

Bump

 

[jes]

I've also worked out based on the salon's outgoings (rates, electric, rent, phone etc) that I will be paying for approximately half of the overall salon's outgoings, which I believe is unfair as I am only renting the desk which comprises much less than half the space

I might sound abrupt, but please don't take offence but trust me, there's far more expenses to running a salon than you've just thought of. Even if your calculations were correct, why do you think you should have the space at cost price?

In all honesty, I think £15 per day is really cheap

 

[Exquisite Touch]

I think thats mega cheap before i open my doors I need at least 2k a month that includes gas,electric, telephone bill, water, rates, card machine payment, before i even think about towels, bedroll, there is the cost of tables and chairs.... she will have had to kit out the salon which when you add up the cost it mounts to thousands.

I charge £100 A week and they buy there own stock. I include refreshments towels, bedroll, laundry and use of telephone. Its the cost of set up that is the most costly and the day to day costs that all mount up. For instance my electric is £149 a month and gas is £90 a month. Thats a very huge chunk out of my money. A wage is a no no until i am fully established everything goes back into the business. you have to think outside the box chick

 

[persianista]

Salon owners have salons to make a profit. £90 per week is cheap. As for a salon overheads being £180 a week, dream on. My cheapest salon costs £700 per week to open the doors.

I would suggest that you sort out your own business and get that up to speed (450 a week is low takings) than worry about what someone else is doing.

So yes, expect a salon to make a profit from you. If they are not, you would be out on your ear.

 

[BABSann]

Could you not explain to her that you cant really afford such a big increase?,ask her to increase it more gradually.I dont think what you are being asked to pay is expensive I just think what's worrying you is the fact that it's such a massive increase.Was this mentioned when you took on the lease?

Different locations will want/need different rents depending on their own rents and overheads.

I think it's important that you talk things through with the owner,there is usually room for compromise.Just think about how much money you will be making when you have a full book compared to the rent,the owner has a lot of outgoings whereas you only have to find the rent,ask her for a slower increase based on your takings,Im not saying she will agree but maybe she will reduce it slightly until you have a few more clients. Good luck.x

 

[kimi1101]

could you not ask if it could go up in stages? Ie next month pay 60 a week, following month pay 70 a week etc...? explain to her you cant afford 90 a week just now and you may need to look for somewhere else if it has to go up. be honest with her. but i would be loving it if i only paid £15 a day!!!

 

[hannajadem]

Thank you for your comments, I will be asking for it to go up in stages.
Now I have thought about it some more, I suppose it is a good price, but honestly it it such a small salon, and she has definitely told me that I will be paying half of the overall outgoings, so I wasn't sure if this was the usual thing to do as I've never rented before.
I've also read many threads on here where table rental is cheaper than £90 and some where it's more expensive, but as we are in a very modest location and as I say, the salon is tiny, I was expecting it to be at the cheaper end as I could rent a whole room in the salon 5 doors up for £10 less per week.
Hope I don't come across as really naive and ungrateful, as I am happy to be there so far and don't want to leave, but was just a bit shocked when she suggested that amount tbh.

Many thanks for your input everyone-x

 

[hannajadem]

I think thats mega cheap before i open my doors I need at least 2k a month that includes gas,electric, telephone bill, water, rates, card machine payment, before i even think about towels, bedroll, there is the cost of tables and chairs.... she will have had to kit out the salon which when you add up the cost it mounts to thousands.

I charge £100 A week and they buy there own stock. I include refreshments towels, bedroll, laundry and use of telephone. Its the cost of set up that is the most costly and the day to day costs that all mount up. For instance my electric is £149 a month and gas is £90 a month. Thats a very huge chunk out of my money. A wage is a no no until i am fully established everything goes back into the business. you have to think outside the box chick

Hi Deb,

I have just re-read your post and would like to ask a question: (btw I have also re-read my original post and realise that I come across as slightly ignorant, so I do apologise to all you salon owners out there with large outgoings).

Is £100 per week for a nail table or a beauty room? In this instance, my £90 would seem on a par with what you charge £100 for as I don't get laundry facilities/card machine/bed roll. I also supply all my own furniture, lamp, bin, towels etc.

Sorry if I sound like I'm repeating myself or trying to justify my ignorance, but I know for certain her outgoings are not as expensive as many others, including yourself have quoted. (it really is a tiny salon, and the rates and rent are VERY cheap in our area) We are fairly good friends, and she has been very open and told me I will be paying half, and I am just checking that this is the usual way of calculating how much to charge someone to rent.
Thanks:hug:

 

[jes]

Hi Hannah,

There's no point in a salon owner renting out a space if they don't make a profit on it and it's right for the owner to charge as much as she can get for that space.

You need to decide how much money you can make from your £90 pw space and then decide to take it or leave it, you can't expect to pay low rent just because your not taking much money.

IMHO you should be aiming to take at least £75 to £100 per day. At these figures £15 a day rent seems very insignificant.

HTH
jes

 

[EMMA AT ELITE]

Thank you for your comments, I will be asking for it to go up in stages.
Now I have thought about it some more, I suppose it is a good price, but honestly it it such a small salon, and she has definitely told me that I will be paying half of the overall outgoings, so I wasn't sure if this was the usual thing to do as I've never rented before.
I've also read many threads on here where table rental is cheaper than £90 and some where it's more expensive, but as we are in a very modest location and as I say, the salon is tiny, I was expecting it to be at the cheaper end as I could rent a whole room in the salon 5 doors up for £10 less per week.
Hope I don't come across as really naive and ungrateful, as I am happy to be there so far and don't want to leave, but was just a bit shocked when she suggested that amount tbh.

Many thanks for your input everyone-x

Hi,
Out of interest why dont you go to the salon 5 doors along & rent a WHOLE room? What is stopping you?
You could have some shelfs/ cabinets which nail retail items etc, or even jewellery, bags, homemade cards etc
You could even get your own phone line put into your room so you can take your own booking!
At least your current clients wont have much of a distance to travel!
Before you talk about rent increase is it worth talking to the salon down the road?
Good luck, keep us posted xx

 

[hannajadem]

Hi Emma, yes I had thought about it in the beginning but as. I'm only a nail tech and not in a position to do further beauty training it seemed a bit of a waste, the room had a shower etc and the only extra service I could think of to add was a sunbed in a little adjoining room (which was included in the rent)
But I am anti sunbeds, especially with all the negativity in the media atm. I could have used the extra space to retail as you suggested, but do you have any suggestion as to what I could sell apart from the obvious nail care items? I wouldn,t be allowed jewellery or fascinators as the salon owner sells her own in reception.
I can think of gifts, handbags etc-do you think this is viable?
Also, this particular salon is directly opposite a well established nail bar with approx. 3 techs.
Would this put you off? I know I'm only a bit further down the road and I don't think it's affected my ability to gain new clients so far as every business is different but I don't want to look cheeky. What do you think?

 

[EMMA AT ELITE]

Hi Emma, yes I had thought about it in the beginning but as. I'm only a nail tech and not in a position to do further beauty training it seemed a bit of a waste, the room had a shower etc and the only extra service I could think of to add was a sunbed in a little adjoining room (which was included in the rent)
But I am anti sunbeds, especially with all the negativity in the media atm. I could have used the extra space to retail as you suggested, but do you have any suggestion as to what I could sell apart from the obvious nail care items? I wouldn,t be allowed jewellery or fascinators as the salon owner sells her own in reception.
I can think of gifts, handbags etc-do you think this is viable?
Also, this particular salon is directly opposite a well established nail bar with approx. 3 techs.
Would this put you off? I know I'm only a bit further down the road and I don't think it's affected my ability to gain new clients so far as every business is different but I don't want to look cheeky. What do you think?

I wouldnt look of it as a waste of space, if they are charging £10 per week less than where you are wants to charge, I would see that as a bonus!
Could you do a spray tan? Its only a half day course, (if they dont already do that in the salon) that way you have the option for the clients to "scrub & shower" before their spray?
To be honest I think the sunbed would be the best bet. It takes care of itself, clients could have one if they are early for their nail appointment etc. You maybe anti-sunbeds but if people want one they will go elsewhere for one (you dont have to use it). There is bad press with them every now & then it doesnt really seem to affect our clients going on them, I rent a beauty room in a sunbed shop, and the sunbeds are so busy at the moment, I bet you could probably cover your weeks rent with just one sunbed?
I think if you are doing well where you are, down the road a bit opposite the nail bar shouldnt matter at all. Just have an a-board outside to let everyone know you are they and away you go! I wouldnt be put off a bit!
Could you offer other nail treatments as well that the other nail bar doesnt, so you are a bit ahead ie Bio Sculpture, or the new "Shellac".
Hmm what else to retail...... mobile phone charms, hair clips/bands, definatly bags would be good, purses, makeup bags, jewellery boxs, mirrors, hair brushes, toe rings, make up, false lashes, foot files, eyelash heaters, perfume, then if you did have a sunbed then you can sell bottles & sachets of sunbed creams & oils, googles, nail savers, moisturisers.

Love Emma xx