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Old 01-25-2005, 05:02 AM   #1 (permalink)
 
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Started managing my friends salon in May 2003, I basically trained myself as she was never around to help. She had a reputation of being unfriendly and therefore lost clients. I turned the salon around---- cleanliness, outstanding customer service, motivated employees, etc. She only paid me min wage to start claiming she could not afford to pay me more (yeah right). I was in the process of a nasty divorce, losing my home and car due to this divorce. Half the time she could not pay my salary because she claimed not to have the money, I stayed there because I loved the work and was gaining experience of management for my resume as I had not worked outside the home for 23 years. I lost my home and ended up living with her. She then stopped paying anything, again claiming not being able to pay me because I was living with her and she was paying all the bills. I spent approx 40 to 70 hours a week at the salon working my shift, filling in, painting, decorating, etc because I was bored and took great pride in the salon. I would take small draws here and there of around $200 a month because I was always broke, she tramped at me for that too. I was basically stuck, having no place to live, no car, no money to get my life back on track. The crap finally hit the fan, she kicked me out and fired me the same day. Now, I have been hired to manage her closest competitors salon a few miles away. The property owner evicted the former tenant for non payment on the salon lease. The property owner knows nothing of the tanning industry, we still have to come to some agreement on salary....he knows I am a hard worker but told me he cannot just set a salary for me and have nothing happen, in a nut shell, wants to see me prove myself. He has several other businesses on the property, is thinking of selling but wants to give me a shot at taking over and possibly purchasing down the road. Currently this salon is being run by a few 19 year olds that are inexperienced, time is of the essence here to build the business back up. Any suggestions? I am 48 years old, starting over in life, innovative, talented, creative and artistic with over 30 years of customer service. Any suggestions? Salary, commission, advertising, specials, marketing? I have no clue what a managers salary should be set at, the other salon had 6 beds, this one has 10. Any input would be appreciated. Thanks.
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Old 01-25-2005, 07:36 AM   #2 (permalink)
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First I must say It's to bad that you've been put through so much because you sound like the type of employee most of us would like to have.

I think if I was in the your situation I would try to get a salary & bonus program in place that you can both live with. The property owner needs to see what you can do for him before he is going to pay big money. Starting out I would propose to him a minimal salary that you can live on and prove to him what you can do and then set a 2 part bonus plan. Part 1 of the bonus is a percentage of the increased sales as compared to last year and the 2nd part is a percentage of the increased profit as compared to last year.

Example: 2004 gross sales = 100k
2005 gross sales = 120k
increased sales = 20k

bonus (10%)on increase= 2k

2004 profit = 10k
2005 profit = 20k
increased profit = 10k

Bonus (25%) of increased profit = 2.5k

SO if the 2 of you agreed on a 20k salary plus this bonus you would make $24,500

These numbers are only examples but it shows a bonus structure that would be beneficial to both of you.

I would also try to set a sale price and time when you could purchase the business before you get in there and really turn the salon around. Once he sees what you can do he may see that the business is worth much more than before you took over management.


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Old 01-25-2005, 10:44 AM   #3 (permalink)
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$7.00 an hour and 8% commission on all lotions (for you as a manager perk). That is probably as high as he can go at the moment..this is not the best time of year to be adding payroll expense. Movieking is right as well...get a sale price or you are going to be disappointed when the store does well and you are left out in the cold. Good Luck.
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Old 01-25-2005, 11:20 AM   #4 (permalink)
 
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I get my hourly, plus my hair, nails, rent, and food. Works out pretty good.
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Old 01-25-2005, 12:10 PM   #5 (permalink)
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How many hours per week will you be expected to work? If you put in 50 hours at $7.00 per hour that is $20,000 per year plus commissions or bonuses. If the owner is not working the salon he would be crazy to not offer some type of formal bonus or commission structure for the you as the manager and the part time employees. He needs to offer something that encourages you to have a stake in how the salon performs!
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Old 01-25-2005, 12:22 PM   #6 (permalink)
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I pay my manager $9.00 per hour. Commission on lotion ONLY if the store hits monthly goal.
$0-$500 gets 4%
$500-$1000 gets 6%
$1000 and up gets 10%

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Old 01-25-2005, 04:36 PM   #7 (permalink)
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Switch am i reading this right - he owns the salon by defualt? If so I would assume he would like to make a profit but is not feeding his family on this. You need to be able to live and I dont beleive 7 - $9 an hour is going to do it. You need a salary and a piece of everything that walks in the door. Then a bonus for going over a certain amount. Dont outprice yourself though. You need to see the profit/loss so you know what is doable.
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Old 01-25-2005, 10:41 PM   #8 (permalink)
 
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HHHHmmmmmmm........I couldn't afford to work for any of you
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Old 01-25-2005, 10:45 PM   #9 (permalink)
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I am not sure about the numbers everyone is throwing out there? How much does someone pay their manager who has more than 2 salons? What is their base pay and what are their goals? Does anyone have DM's and what is their slaries and bonus potential?
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Old 01-25-2005, 10:50 PM   #10 (permalink)
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That's why you own this joint Teresa. Work Hard, Play Hard.
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