New salon advice please .....Gross sales Thanks!

Ashley123 · 03-10-2005, 03:11 PM

Hello, Im trying to open my first salon, and I'm in the process of negotiating my lease. The landlord wants me to show him my gross sales monthly. Does anyone else have to do that? Also,do most people pay for there own build out?

Thanks so much for all your advice!

MATT A · 03-10-2005, 03:13 PM

Does he want your projected gross sales? Or your sales each month when you operate? If he wants the first that would be ok. The second I would not do. How many other people are in the strip mall?

tanrep04 · 03-29-2005, 12:17 AM

I can help you project lotion sales i'm a lcal distributor and would love to help you debbie. my email is tanrep2004@yahoo.com

ALOHATANCA · 03-29-2005, 02:40 PM

You should be doing a buisness plan, any Bank &/or leasing company will want to see those numbers. Personaly I would never use the ##'s a manufacturer gives you, because of the market differences, they will say something like 1k to 1,500k per unit .Gross sales should include the sale of product & services , for this you must have a business plan unless you plan to pull the ### out of you know where. I am a small salon (750 sq. ft ) 30% of my total sales comes from the sale of product (retail) I have 4 lay down , 2 stand up, 1 legs tanner & as of last year now offer Sunless Tanning services, I am the exception to the rule only beacuse all the staff is certified & we are a SmartTan Salon.

DWhite6872 · 03-30-2005, 05:46 PM

we always have our upgrades provided by the landlord and tenant improvement money

clubtan1 · 03-30-2005, 06:13 PM

If your landlord wants to see your gross sales every month, have him put up half your investment and become a partner. Trust me on this one, he can use it against you in the future. Why not ask him to see his gross revenues for your strip mall. If you have the landlord paying for your improvements, he will most likely add that cost to your monthly lease plus a fee for doing it. Ask him how much with and without improvements added. You might find it's cheaper to do it on your own.

Neon Beach · 03-30-2005, 06:19 PM

They ask for these projections in order to see if you are worthy!! Will you be able to pay the rent. Or they may be looking at tapping into your revenue as part of your lease. Large malls do this all the time........

Moses · 05-16-2005, 08:27 AM

Sometimes they will pick a number and ask for "overides", a percentage of the amount you do over a certain number. You may be able to trade buildout money for free rent.

sunburnot · 05-17-2005, 12:17 AM

Wow unless there is something in the lease about "landlord having privleges of seeing grosses" I would say no way, Does it say anything like , change in the rent based on GS? What if you do really well, he can then skyrocket the rent I would seriously talk to a lawyer and let him look over the lease before you sign anything. I do know inside malls that is how it is generally set up but that is different than most smaller retail locations. Be very careful

Mike B · 05-17-2005, 12:57 AM

The request for reporting Gross Sales depends greatly on the market you are in. In the larger strip centers it is actually common for them to request numbers especially if they are giving T/I dollars.

While some landlords may not budge on this I certainly would NOT let this be a deal breaker.

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03-10-2005, 03:11 PM	#1 (permalink)
Ashley123 Waiting Confirmation Join Date: Feb 2 2005 Posts: 10 Rep Power: 0	Hello, Im trying to open my first salon, and I'm in the process of negotiating my lease. The landlord wants me to show him my gross sales monthly. Does anyone else have to do that? Also,do most people pay for there own build out? Thanks so much for all your advice!

03-10-2005, 03:13 PM	#2 (permalink)
MATT A Police Department Join Date: Sep 6 2004 Location: Awaiting Posts: 15,744 Rep Power: 31	Does he want your projected gross sales? Or your sales each month when you operate? If he wants the first that would be ok. The second I would not do. How many other people are in the strip mall?

03-29-2005, 12:17 AM	#3 (permalink)
tanrep04 Join Date: Jun 10 2004 Posts: 57 Rep Power: 0	I can help you project lotion sales i'm a lcal distributor and would love to help you debbie. my email is tanrep2004@yahoo.com

03-29-2005, 02:40 PM	#4 (permalink)
ALOHATANCA Police Department Join Date: Nov 14 2003 Location: CALIFORNIA Age: 49 Posts: 4,436 Rep Power: 9	You should be doing a buisness plan, any Bank &/or leasing company will want to see those numbers. Personaly I would never use the ##'s a manufacturer gives you, because of the market differences, they will say something like 1k to 1,500k per unit .Gross sales should include the sale of product & services , for this you must have a business plan unless you plan to pull the ### out of you know where. I am a small salon (750 sq. ft ) 30% of my total sales comes from the sale of product (retail) I have 4 lay down , 2 stand up, 1 legs tanner & as of last year now offer Sunless Tanning services, I am the exception to the rule only beacuse all the staff is certified & we are a SmartTan Salon.

03-30-2005, 05:46 PM	#5 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	we always have our upgrades provided by the landlord and tenant improvement money

03-30-2005, 06:13 PM	#6 (permalink)
clubtan1 Join Date: Jan 31 2005 Posts: 3,317 Rep Power: 42	If your landlord wants to see your gross sales every month, have him put up half your investment and become a partner. Trust me on this one, he can use it against you in the future. Why not ask him to see his gross revenues for your strip mall. If you have the landlord paying for your improvements, he will most likely add that cost to your monthly lease plus a fee for doing it. Ask him how much with and without improvements added. You might find it's cheaper to do it on your own.

03-30-2005, 06:19 PM	#7 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 46 Posts: 52,065 Rep Power: 0	They ask for these projections in order to see if you are worthy!! Will you be able to pay the rent. Or they may be looking at tapping into your revenue as part of your lease. Large malls do this all the time........

05-16-2005, 08:27 AM	#8 (permalink)
Moses Join Date: May 11 2005 Posts: 43 Rep Power: 0	Sometimes they will pick a number and ask for "overides", a percentage of the amount you do over a certain number. You may be able to trade buildout money for free rent.

05-17-2005, 12:17 AM	#9 (permalink)
sunburnot Join Date: May 4 2005 Posts: 78 Rep Power: 0	Wow unless there is something in the lease about "landlord having privleges of seeing grosses" I would say no way, Does it say anything like , change in the rent based on GS? What if you do really well, he can then skyrocket the rent I would seriously talk to a lawyer and let him look over the lease before you sign anything. I do know inside malls that is how it is generally set up but that is different than most smaller retail locations. Be very careful

05-17-2005, 12:57 AM	#10 (permalink)
Mike B Join Date: Jun 5 2001 Location: California Posts: 85 Rep Power: 0	The request for reporting Gross Sales depends greatly on the market you are in. In the larger strip centers it is actually common for them to request numbers especially if they are giving T/I dollars. While some landlords may not budge on this I certainly would NOT let this be a deal breaker.

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