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Old 03-13-2009, 02:20 PM   #1 (permalink)
 
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Monthly Rent OR Percentage?

Hi all! I'm new to the forum - been lurking for a while and learning A LOT from all of you! I plan on approaching a hair salon (been going there for years) to inquire about doing airbrush tanning there. They have a "spare room" that they occassionally use for massages that would be perfect for spray tanning in. My question is do people typically pay to rent the space or give the salon a percentage of your business? I would think in the beginning you would take a huge hit if you pay rent and are not doing enough business to cover it. If you pay the salon owner a percentage of your business, what is a fair amount to offer? I just want to be prepared before we meet. Thanks for any insight you guys can offer me, I've got like a million other questions, so bear with me :)
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Old 03-13-2009, 02:30 PM   #2 (permalink)
 
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Re: Monthly Rent OR Percentage?

I am a Salon Owner and with hairstylist just starting out I give them a reduced rate if they don't have a clientele. I have done comission but that always gets to be a pain because now the Salon is your boss. I would try to ask for a reduced rent for the first 3 months-that would give you some time and determination to get your business going. Good luck to you!! =)
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Old 03-13-2009, 02:43 PM   #3 (permalink)
 
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Re: Monthly Rent OR Percentage?

Thanks Salon Girl - I hadn't thought of that angle. I actually would rather pay rent that a percentage of my income, but would be worried about not making enough each month to make a profit during slow season. SO much to think about - my head's spinning !!!
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Old 03-13-2009, 03:02 PM   #4 (permalink)
 
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Re: Monthly Rent OR Percentage?

When it is slow try to do one client free a week- and tell them if they send 3 referals that their next visit is half off or a percentage off- let them do your advertising for you!! =)
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Old 03-13-2009, 03:41 PM   #5 (permalink)
 
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Re: Monthly Rent OR Percentage?

Most salons should give you like four "vacation" weeks per year, as even the hair stylists take time off. Take them up front, definitely.

At first you may get some spill over traffic from the stylists, but don't really count on the walk-in traffic longterm. I'd start looking for good advertising angles immediately.

If you're successful, and you're raking in the dough eventually, you'll be glad you didn't do a percentage deal.


Mike
www.smartbronze.com
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Old 03-13-2009, 04:43 PM   #6 (permalink)
 
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Re: Monthly Rent OR Percentage?

Thanks so much for the advise! So far my only competition will be a tanning salon down the road that has a spray booth. I plan on doing a lot of advertising and offering some great deals till the word gets around. Location is within walking distance of the high school - I'm thinking maybe prom, cheerleaders, etc.

Just thought of something else - should I have my own insurance or would the salon's insurance cover me, not sure since I will not be an employee??????? TIA :)
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Old 03-13-2009, 07:21 PM   #7 (permalink)
 
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Re: Monthly Rent OR Percentage?

To me, it all depends on what you want from your business. If you're just spraying out of a closet, or doing mobile stuff with a suitcase, it's up to you.

We fixed up a nice little studio. We filed papers with our state and are an LLC, which means we have our own insurance. We have employees, we pay taxes, etc. We expect to succeed.

It's all up to you.


Mike
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Old 03-17-2009, 09:54 AM   #8 (permalink)
 
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Re: Monthly Rent OR Percentage?

HI!!! Im starting my own business in a hair salon basically out of a closet to. We have alot in common and I need some good advice
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Old 03-29-2009, 07:30 PM   #9 (permalink)
 
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Re: Monthly Rent OR Percentage?

Salon's insurance should cover the service unless your state has restrictions. If you are providing the labor, equipment and product then you shold just work out a deal to pay the salon a percentage. Make sure your costs are well covered and you put money aside for taxes since you will probably be considered a independent contractor and will receive a 1099. 60/40 split is fair. Spray a few salon employee's for free to get the word out....they will be your best advertising. Good luck:)
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Old 03-30-2009, 12:24 PM   #10 (permalink)
 
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Re: Monthly Rent OR Percentage?

A a salon owner i wouldnt mess with the commmision thing at all. Its a IRS magnet, rental at a reduced rate of say $5o a week to start with would be acceptable, with monthly increases of $10 till you hit the $100 mark.
You pay your own insurance as you are a self employed subcontractor, you pay for your product expenses, and you do your own advertising.
If you deciede to do it, go big or go home, theres to many half-assers out there to add another one. If your good you'll do well!!!
Good luck, its a great business to be in!!!
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