Booth Rental: Is it Right for You?
Written by Jon on February 10, 2010 – 6:00 am -**Such an important topic – moving to the top of the posts!
Renting booths vs. hiring employees is one of the most controversial and divisive issues in salon management today. Many people are going into booth rental without a clear understanding of its consequences. As a result, the lives and standard of living of everyone working in the beauty profession is now affected. Division between salon owners who hire employees and salon owners who rent booths is making it difficult to address the many deep-rooted challenges facing all of us.
Having been a salon owner for over 41 years, I feel I am in a unique position to take a step back and examine the pros and cons of this hot topic. The information presented in this article is based both on my personal experiences and on the opinions of the thousands of hairdressers and salon owners throughout the U.S. and Canada that I have had the privilege of meeting as a popular speaker in our industry.
Which is the best salon management model for you? Only you can decide. Do your research, approach information – including this article – with an open mind, get advice from trusted and knowledgeable advisors, and then make your decision based on what will best fit your needs, goals, and vision.
Booth Rental: The Salon Owners’ Perspective
When you follow the booth rental business model you are in effect just a landlord. Of course, many salon owners perceive it as a positive that they do not need to:
- Pay workers compensation or federal and state employment taxes
- Offer training and education.
- Provide liability insurance.
- Advertise for new customers.
- Manage employees.
The negative side of this business model is that, well, you are in effect just a landlord. Which means that as the salon owner you must deal with:
- Minimal or non-existent business growth, as you are dependent on rental income and working long hours behind the chair yourself.
- High staff turnover caused by staff pirating from other owners that offer lower rents and other perks. Because no business can continue to grow with a constant merry-go- round of staff turnover, this in turn leads to business instability.
- The inability to manage and educate staff, and create and promote a well-managed business with a professional and positive atmosphere.
- A lack of quality control standards – and the damage that this can cause your salon’s reputation.
- In-fighting and a lack of teamwork as your salon’s stylists compete against each other for customers.
- Exposure to audits by state and federal taxing agencies, which are currently targeting our profession. Most owners unknowingly misclassify their workers and tips. This puts you at risk for audits, which can be triggered by anything from a labor law issue to a staff member filing for disability or unemployment. In fact, the EDD and IRS are targeting the beauty industry for misclassifying workers and tip compliance.
- The inability to sell other salon services or products.
- A temptation for not reporting income.
A recent government report showed that 95% of all business failures are due to a lack of management skills. By choosing to be a “landlord” rather than a “business manager” you are putting the success or failure of your salon in the hands of your tenants. However, because each of your independent contractor tenants views themselves as business owners, too, their decisions will be motivated by their own needs and goals, not yours.
The “Employee Model”: The Salon Owner’s Perspective
Okay, so what are the advantages and disadvantages of the “employee model” of salon ownership? Among the many benefits are:
- Control of your own destiny. You manage your business, its growth, and its profitability.
- Unlimited income and profit potential – provided you gain the necessary skills and knowledge to run a successful salon.
- The ability to create a staff development program, mentor new stylists, make staff changes when necessary, create and enforce quality standards, and provide leadership for your employees.
- The opportunity to market and promote your salon, set prices (including raising prices to combat rising costs), and create client retention programs.
- Dramatically reduced chances of losing an audit, losing your business, or running into problems with labor law.
In short, with this management model you manage your business rather than letting your business manage you. Plus, a well-run salon often has a competitive edge over other salons in the area.
Of course, no business model is all peaches and cream. Some of the drawbacks of running your salon on the “employee” model are:
- A high vulnerability to turnover, as competitive salon owners will try to pirate your top staff members by offering higher commissions or lucrative-looking booth rental arrangements.
- The risk of spending time and money on training and advertising, only to lose the stylist to a booth rental salon.
- The need to spend time training and managing people.
- An unequal playing field – you pay your taxes, workers comp, and liability insurance, while many booth rental salons do not.
Booth Rental: The Stylist’s Perspective
For a stylist, renting a booth can be very attractive. As an independent contractor you can:
- Set you own schedule.
- Manage you own business.
- Keep all of your earnings (less the booth rental fee).
- Choose your own product line.
- Possibly make more money.
On the negative side, though, renting a booth means you must:
- Cope with a lack of job security.
- Compete with other hairdressers in the same salon.
- Make less money during slow seasons.
- Advertise for new customers.
- Pay for your own education.
- Do your own bookwork, including filing and paying quarterly income taxes.
- Pay the “employer’s” half of your social security taxes.
- Sometimes work in a negative and unprofessional salon environment.
- Pay an ever-increasing booth rental fee.
- Purchase your own supplies and equipment.
Plus, as an independent contractor you will not qualify for disability or unemployment payments if times get tough.
The “Employee Model”: The Stylist’s Perspective
Being an employee in a well-managed salon can have many advantages vs. booth rental. These include:
- Mentoring, guidance, support, education, and training provided by an experienced salon owner.
- Job security.
- A nice flow of customers.
- The opportunity to benefit from the salon’s reputation and marketing efforts.
- A positive and professional salon environment.
- A team atmosphere where stylists learn from each other.
- Growth opportunities and incentives.
- Book work and taxes handled for you.
Conclusion
In my opinion, booth rental is creating a temptation for dishonesty and an underground economy in our profession, an unequal playing field, and division among salon owners. I am alarmed by the way that constant turnover is stunting the growth of our profession, and concerned by the business and career instability that I see.
Price wars, commission wars, staff turnover, and staff pirating are especially alarming in today’s difficult economy. Whether you want to rent stations or hire employees, I urge you to think clearly about the long-term ramifications of your decision. Be sure to get legal advice from an attorney who specializes in labor law and independent contractor issues (an excellent web site for independent contractors is www.workerstatus.com). It is not my intention to further divide us as salon owners. My goal is to make sure everyone understands the consequences of their decisions based on facts, not hearsay.
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Tags: booth rental
Posted in Business Tips for Hairstylists, Salon Management | 35 Comments »
By Georgieos Hair Design on Jul 6, 2009 | Reply
I purchased a salon that had both employees abd boot rental. It was a diseaster. You have no control over the booth renters, none whatsoever.
After several months the booth renters left to start their own salon within one half mile of our salon. They also talked one of the salons employee to follow them. The gal that followed spent weeks collecting client information when others were not watching. End result was that after their move they contacted our clients to lure them to their salon. It took us about six months to recover. Looking back, I would never purchase a salon with booth renters. In every shop i have ever been in, the booth renters were mostly un-professional and could care less about the professionalism of the salon they are leasing space from.
By Jon Gonzales on Jul 8, 2009 | Reply
I want to thank you for sharing this information , it is sad that so many salon owners are struggling with these obstacles in a tough economy . Only until we unify as professionals will we be able to address this and many more challenges salon owners face daily . I will be making an announcement soon about addressing your concerns .
Jon Gonzales
By George Savovic on Aug 10, 2009 | Reply
I’ve always thought that Booth renters have always had much bigger portion the revenue and leave the salon owner trying to make ends meet.
they pay only a small portion back in rent in relation to there weekly sales. I know they pay for there own supplies, and what ever else is needed but they still get the lions share.
plus you have no control. renters are self serving and could care less of the success of your salon it’s a very unlevel playing field if you ask me, to much down side for salon owners /managers my advise, what ever you do DON’T RENT!!
By Jon on Aug 10, 2009 | Reply
Thanks George for sharing your views , this is a very controversial topic everyone is afraid to address , please read my report on booth rental , all we are asking is an equal playing field . If there is anything I can do to help , let me know .
Jon Gonzales
By Chantelle on Aug 22, 2009 | Reply
Salon owners or anyone else in the industry who have a negative view on booth renters is ridiculous.
Each to their own!
yes some booth renters are only in it for the dollars and yes some may not have respect for the salon they rent at.
This is not the case for all. Why shouldnt stylists be able to advertise and get referrals and make their career the way they want it? they took a risk booth renting in the first place,it isnt exactly the easiest option to take! it is a big risk and so what if it isnt an even playing field? Isnt a little, or alot of competition healthy?
people become complacent when there is an even playing field.
No one is forcing you to be a salon owner!
nor are they forcing you to be an employee or a booth renter.
If you cant handle the competition from booth renters and only want an even playing field, then dont have a salon.
why dont people just mind their OWN business and worry about what THEY are doing not what everyone else is?
Stylists working for themselves is a way of the future and its not going to go away, only get bigger once employees realise that working for yourself and reaping the rewards is in some cases alot more rewarding than working for a salon .
By George Savovic on Aug 30, 2009 | Reply
I don’t get it let’s say you havs a high
level performing stylist ($2,500 – $3000 per week in service sales) and they rent for about $250 – 300 a week. all I’m asking who’s making the lions share of the money? make me understand how a salon owner can work on this type of deal and take all the nonsense that comes with it? if you want to call yourself a landlord that’s fine but leave the idea that your a salon / business owner out of it. I think renting is a complete cop out for salon owners that can’t manage staff so they let them do there own thing with no regard in branding the business as a whole.
By George Savovic on Oct 3, 2009 | Reply
Let’s see if any salon owners have this problem… You have a couple of high level performers on your staff that feel that they don’t need or should participate in salon promotions. I have (2) that feel that any promotion will cut into there commission base. question is how do you promote/ market your salon when you don’t have your complete staff behind present and future promotions this sucks!!
By Luv on Oct 4, 2009 | Reply
Being a stylist for six years and working for three different owners ill tell you why: Either you have staff that is not passionate about their industry, and could care less if they were cutting hair or working at a paper factory…it’s nine to five and that’s IT> or you are not emotionally or financially meeting the needs of your stylist…if i felt that i did not want to participate in a promotion, it would only be due to built up resentment toward my boss for taking advantage of me or not meeting my needs. Just another thought…maybe those stylist are booked out weeks ahead and haven’t gotten a raise, but you want them to offer promotions to build up someone who is new on board making the same commission as them?
By cheryl on Oct 19, 2009 | Reply
I have been on both sides of this issue… I was on commision for 4yrs.Its been a year since I started renting and I have never looked back… Just like with anything, there will always be positives and negatives to every situation. I can’t imagine if I was still on commission during our crumbling state of economy. I wouldn’t be able to feed myself or my family.. I still run the same promotions the commission stylists run, and have gotten quite a few new clients… This is only a band aid to the effect that our industry is cosidered a luxury,not a necessity to most clients. Therefore, regardless if you are a commission stylist or booth renter, times are still tough and will probably get worse before it gets better… As far as comments made about renters running free, dishonest etc… There are always bad apples that stand out… I have more pride and confidence in my work knowing that I do run my own business vs. only feeling you’re worth 1/2 as much. To each your own.. Whatever is right for you in your situation, don’t let negativity affect how you think your career should be. Only you can decide for yourself whether it be commission or booth renter!!! We are all here for the same reason..(hopefully!!) Which is: We love to make people beautiful!!!
By Jon on Oct 20, 2009 | Reply
Hello George, in regard to your comment about two of your staff members refusing to share your marketing efforts ,I suggest you carefully explain in an articulate manner the benefits they will also gain in your efforts to gain more clients for the salon and your staff. As owner of your business you must keep in mind you are the boss,you have to make the hard decisions to take your salon and your staff to higher levels of excellence, everyone should contribute to your team,which begins with teamwork. If your two reluctant team members are unwilling to adapt to your vision and goals for your salon you may either give them a raise by raising prices once they create a high demand for their services or sit down with them and try to find a solution that everyone can agree on. These are difficult times, we as salon owners and staff must unite and share the same vision or we will fail. We should all be thankful we have jobs and the opportunity to keep getting better . We must bridge the gap between staff and management if we are to grow as a team as as a profession. With better training and education we probably would not have these staff misunderstandings. please read my article Bridging the Gap between Staff and Management a found at my web site under articles of interest, share this information with your staff as well. good luck.
Jon
By Jason Miles on Nov 9, 2009 | Reply
Hello Jon and all,
First of all, thank you for sharing your valuable experience and information with us. That is something hard to come by in this industry.
My wife and I are opening our first salon in the next few weeks and this decision really has our minds going.
From the information that we’ve gathered, it seems that for the vision that we have, which is to operate multiple salons, set the atmosphere, draw in a particular clientele, etc., commission is the way to go.
Our dilemma is, in our area, most salons offer booth rent. We want to attract stylists and retain them.But how do we do this when all the prospective stylists has in front of them is $$$ v. commission, and not growth, atmosphere, premier location, etc.?
If you have any advice or suggestions on how we could make commission attractive and benefitting to our team, we would greatly appreciate it.
By Jon on Nov 15, 2009 | Reply
Hello Jason, commission salary is the right way to go, it will be difficult, but long term it is the right way to go.If you need any support just call me.you represent the new professional salon owner who will lead the way
Jon
By Debbie DeHoyos on Nov 22, 2009 | Reply
I have owned my salon for 10 years and have just had a 2 year stylist approach me about booth rental.. She has been offered a chair at a competitors salon. She is a talented stylist and an asset to the salon. I am unsure how renting a chair will effect the team atmosphere of the salon. I also have a seperate room for waxing and wonder if additional charges should be made for use of this space. Any advice or suggestions?
By Jon Gonzales on Dec 8, 2009 | Reply
Hello Debbie,if you go the booth rental option, you lose control of your business. Your other staff will also want to rent stations,in effect you will be a landlord with tenants with no say on how to run your business. There are plenty of talented hairdressers available,don,t allow yourself to be held hostage , refer to my web site and download the pros and cons of booth rental before you decide what model is right for you. As for your extra space, why not add acouple of more stations or develop a small retail and boutique section. Hope this helps,please follow me on my facebook business fan page for business tips etc.good luck.
Jon
By Rhonda on Jan 6, 2010 | Reply
I have a salon with 13 chairs. We do booth rental ! I have made a contract up that tells the rules of my shop If they sign the contract that means they agree with those rules ! They however can come and go BUT when they aren’t there they don’t make any money And the others there doesn’t have to make them appt ! We take turns as far as walk-ins go ! And Whoever is up next gets the next walk-in You never know if it will be a chemical ! We have had as much as 1500 walk-ins in a months time not counting appt. I feel that If the Stylist wants to make money They will be there and PUT an effort to get along with everyone and Work the hours that the shop needs them to work !If we don’t have people coming in then they can’t make money and if they aren’t here they can’t make money So they agree to be here the hours that are needed . I have been at the same shop for 14 yrs and have owned it with My Daughter for 4 . So far everything has gone good We have had a few that didn’t like the rules But they are not here anymore ! I won’t allow them to drag my Business and the other stylist business down ! Over half the ladies working in My shop have been here at least 6 yrs !
Thanks Rhonda
By Stephanie James on Jan 7, 2010 | Reply
I have worked in my town for almost 8 years, and at a few different salons and I have always worked for someone else. So standing long hours on my feet and only getting half of that, because of commission.
I really like the current salon I am working in, but there is major lack there of leadership. We don’t have staff meetings, we don’t do education, we are constantly running out of color, perms, foils, developer, and the list goes on. The salon has not been up graded for 15 years either, not to mention I have had (and fellow co-workers as well)bounced checks, we are also running out of retail to sell to clients.
4 of us have decided on renting our chairs. It is very over whelming at first,but we are all very excited with this new adventure.
None of us have done this, but with out the 4 of us the salon would probably have to close doors seeing that there are 7 employees all together and out of the four of us renting three are full time. What do we need to get ourselves ready?
By Wendy on Jan 8, 2010 | Reply
I have done both. Why would I work my rear off for a fat salon owner to become wealthy off MY talnet? The more I work..the more they make. I can not stand for a owner to dictate my prices or my products. Booth rent is by far better than commission. I highly recommend trying it. I’m opening my own booth rent salon on March 1st. Myself and several of my talented friends wanted a nice salon to work together in without all of the backstabbing that goes hand in hand with commission salons.
By Natisha on Jan 18, 2010 | Reply
I have worked at booth rental salons since I started doing hair. In 2004 I moved to another city and the salon was commissioned. I love them both. I like the atmosphere of a commission salon, the pay checks, the security. Once I factored in that I didn’t have to buy products and struggle to pay taxes at the end of the year I thought it was great. I do however feel that the management makes a difference in your happiness there. On the other hand I love the freedom of booth rental. Being my own woman and just paying you your money and at the end of the day I bounce. Like Jon said there are pros and cons to them both. We shouldn’t put down either, to each its own. Find what works for you and don’t try to put one or the other on anyone else.
By Clifton Shaw on Jan 19, 2010 | Reply
Both sides can be great. The key is for Salon ownwers to unite through a joint optimal process in the cities and towns across America. Salon owners from both sides can harmonize by ensuring Salon Owners Associations are created locally. There should always be a choice. Let’s work together.
By kelly on Jan 22, 2010 | Reply
Hi Jon,i have been a hairdresser for about 40 yrs.i have had 3 hair salons.I know only rent a station for 3 days. I have a lot of experience and knowledge in colors,perms,etc.I also worked as a educator tech for a large hair product company.I also am a Realtor. My question is,im working at this salon for 5 years, but i will be relocating to another salon soon. I would like to offer my help of expertise to the owners of the salon i’ll be moving to.They use to own the salon that i am moving from. I would like to help them by mentoring their commision hairstylist,and teaching them what i have learned. And also be able to helped the owners as well to manage their staff. I would just like to know what percentage or salary i should ask for? I dont think they have thought of this idea,but i would like to suggest it to them. Because i feel that it would be a great oppotunity for them and also for their staff,and their business. I would relly appreciate your advice. thank you.
By Karen on Jan 24, 2010 | Reply
I have been a salon owner for 20 years and for most of the time had rentals. After reading the reply’s I realized I have undercut myself. No wonder my renters have stuck with me so long. They knew what a great deal they were getting. I am ready to sell my business, how do you figure the price. I have heard different ideas. Can you sell people? Do you go by the income you receive from your renters for 1 year, 2years, etc? Can anyone help me please?
By Joy on Jan 25, 2010 | Reply
I’m currently contemplating starting a salon business but unsure if I should go to booth rental or commission route. I am not a stylist but my business partner is a stylist. As an owner I want some level of control but know that I would not be able to be at the salon on a day-to-day basis. Additionally, I’m uncertain if the booth rental option would generate enough income. The salon would offer hair care services, eyebrow waxing/threading, and eyelash extension services.
I would greatly appreciate your advice.
By Karen on Jan 26, 2010 | Reply
Joy, My experience with booth rental has been somewhat successful. The income generated from rentals has paid all my over head, so what I do behind the chair is extra. Figuring out whats fair to your renters and still seeing a decent profit is the trick. At time my renter profit more than I do. But I am afraid if I raise the rent too much they may leave and go elsewhere. A contract is important. If you make the rent desirable make sure they know they have to take care of all their own expenses, washing towels, making their own appointments, help with providing paper good for bathroom,etc. Is your salon big enough to generate enough income from rentals to make a profit? 2 or 3 booths may not be profitable. Good luck
By usolovely on Feb 7, 2010 | Reply
I don’t know what to do, i am wondering if commission with a two year contract or booth rental is the way to go. I am so confused, can someone please help
By Jon on Feb 8, 2010 | Reply
This is a very controversial topic,I will offer an opinion. When you rent stations you are then merely a landlord and they are your tenants.You have no say in how to run your business. Read my article about the pros and cons of booth rental found at my web site http://www.hcds4you. Also visit http://www.workerstatus.com for legal ramifications. I commend you for evaluating the pros and cons of booth rental,I personally favor salary commission,at least I control my own destiny. Good luck
Jon
By OMG on Feb 17, 2010 | Reply
Booth rental salons as a business can’t possibly survive without idoitic salons who are willing to put the work into training and building a staff’s clientel in the first place. It’s hard to imagine someone coming right out of school and booth renting, having much success. If the formula to individual success is first to take advantage of these dumb salons who’ll guide and train then cut them out then move to a booth rental when there’s a clientel then who loses. Oh right, the dumb salon who’s actually put in the effort to help the individual succeed. Boy these booth rentals are smart, something for nothing.
By S. Ferrari on Feb 27, 2010 | Reply
I believe that any salon owner who is going to run a commission salon should have a very well thought out schedule of mentoring and review process. I started out in a commission salon where the owner had some really good concepts and I became a very busy stylist within 3 years time. I was hard working and loved my job. I left the salon to rent a booth due to a lack of communication, the owner had promised to change my schedule as soon as it was possible and he did not deliver, the schedule change was very important to me and lack of knowledge there cost him a lot in the end. I felt as though his agenda was more important to him and he undervalued my years of hard work and hours of dedication.
I now have owned two salons of my own. I am in CA and I have a family so booth rental design works best for me. I do set forth rules and I have standards that stylists must meet or they would not be working within my establishment. I do believe the booth rental era has taken much away from the salon industry, but it has firmly become a strong threat to any commission salon in CA. So, if you are a salon owner of either format you should clearly understand the differences. A commission salon requires an extreme dedication to education, motivation, team building and most of all a good understanding of each and every employees goals and dreams in order to keep them satisfied with an employee relationship. If you do not want to CLOSELY manage your staff and put in countless hours to earn your cut of the commission then the booth format may be for you. I encourage all salon owners to uphold professionalism, clean well dressed appearance of staff, excellent customer service and by all means set some standards for booth renters. If you are positive and provide an environment they and their customers will enjoy than why not be confident that they need you too. Far too many salon owners just want warm bodies to pay the bills. Shame on you if that is the case. It is the booth rental salons like those that really bring down our industry.
I do wish that booth rent prices would have been set much high back when the first person began the switch. Without a doubt the rent prices should be greater so the salon owners could do more to keep the industry stronger. With that said, salon owner’s should unite on demanding a certain level of quality to our industry from ANY stylist. My salon is completely full and the energy within it is GREAT! I interviewed each and every stylist and found ones that wanted the salon environment I have created. I screened for those who were a fit and who would be a compliment to our team. With that attitude and mindset I have created a very health salon where clients often comment how much they love it.
Salon owners be stronger and figure out what your ideal hairdresser is and then bring in those, don’t deal with the one’s who don’t fit your model. Trust me it really pays off when you have a team going in the same direction. If commission is for you be sure to educate yourself and stay plugged in to good information and leadership, you will be sure to need it.
Thank you Jon for all I learned from you in my early years.
By Scott on Mar 17, 2010 | Reply
This is silly. The problem is NOT commission vs. rental. Either one can work as a business model. I run 3 profitable booth rental salons in a major market and we are consistently voted best salon by the readers of almost every major local publication.
The problem is the people.
Most hair stylists are high school dropouts and/or have received NO formal business training. Just read some of these comments. Spelling, grammar, and punctuation are atrocious.
Hair schools are like factory farms. They generally offer nothing to prepare a stylist to manage their career. The result is that most stylists often make business decisions on pure emotion rather than reason and logic. They end up with mediocre clienteles and low income (which only encourages more poor decisions). Salon owners, most of whom have scant more business sense than the stylists, are then held hostage to this irrational behavior. Then, ill prepared to get to the root cause of the problem, owners often make the situation worse with an inadequate reaction.
My point is simple. If you don’t understand the reality of your situation, you can never make the most of it. It does not matter which business model you choose if you don’t know what it takes to run a business. Booth rental is my preference for simplicity but I could make either model work.
Think this is all a bunch of nonsense?
Read some of the comments again:
After several months the booth renters left to start their own salon within one half mile of our salon. They also talked one of the salons employee to follow them. The gal that followed spent weeks collecting client information when others were not watching. End result was that after their move they contacted our clients to lure them to their salon.
WHERE WAS YOUR CONTRACT??
all we are asking is an equal playing field
NO – YOU CAN’T HAVE THAT – THIS IS NOT PRE-SCHOOL. CAPITALISM IS NOT FAIR.
I have (2) that feel that any promotion will cut into there commission base. question is how do you promote/ market your salon when you don’t have your complete staff behind present and future promotions this sucks!!
YET YOU RUN A COMMISSION SALON AND YOU SAY BOOTH RENTAL OWNERS HAVE NO CONTROL. AS I SAID – THESE ARE PEOPLE WITH NO BUSINESS SENSE. TAKE CONTROL OF THE SITUATION MAN.
My wife and I are opening our first salon in the next few weeks and this decision really has our minds going.
OH MY, WHERE IS YOUR BUSINESS PLAN AND WHY DID YOU START WITHOUT ONE?!?!?!?!
Your other staff will also want to rent stations,in effect you will be a landlord with tenants with no say on how to run your business
SIMPLY NOT TRUE. THE RIGHT PERSON CAN TAKE CONTROL OF ANY SITUATION (AND EASILY STAY LEGALLY COMPLIANT).
I really like the current salon I am working in, but there is major lack there of leadership. We don’t have staff meetings, we don’t do education, we are constantly running out of color, perms, foils, developer, and the list goes on. The salon has not been up graded for 15 years either, not to mention I have had (and fellow co-workers as well)bounced checks, we are also running out of retail to sell to clients. 4 of us have decided on renting our chairs
GOOD DECISION – GO TO THE BUSINESS THAT IS RUN PROPERLY. BEST OF LUCK TO YOU.
I don’t know what to do, i am wondering if commission with a two year contract or booth rental is the way to go.
YET ANOTHER HAIR SCHOOL THAT OFFERED NO SOLID EDUCATION ON HOW TO BUILD A CAREER AS A STYLIST.
By DAN THE MAN on Mar 22, 2010 | Reply
Scott what you wrote speaks volumes sir. I’m a Barber and I have been a barber for 20yrs. I could not have said it better. The barbershop I worked in for about 12 years the owner often said similar things and constantly asked us to elevate our thinking and not think like a person standing behind a chair just making money. Business first should always be your first thought. He allowed us to tell others that this was our shop because, if we acted like it was our we would treat it like it was our. I do agree with you it’s the people including the owner. Success of any organization always depends on it’s leadership. To all the owners take charge or let someone else take over!!!!!
By Kym on Apr 8, 2010 | Reply
I have been running a booth rental salon for three years now. After two years I moved the salon to a larger building and heavier traffic area. I now have seven stylist and myself. I hold monthly meetings and we show excellent teamwork on community projects. Even though we are independents, we are a whole. I respect each stylist in their entirety. And I believe this is what helps it to work so well. I look forward to the years to come with my team.
By Tammy on Apr 10, 2010 | Reply
Im really shocked at how disrespectfull some of the obvious “Booth Renter’s” comments. This is exactly why salon owner’s should not choose Booth Renters…they have no respect for salon owners! They think they are getting ripped off by the owner when in reality the owners are getting screwed! Most owners who chose to have booth rental had no idea what they were getting into…it sounds like a good idea but in the end most booth renters lose their work ethic!!! Salon owners have to “clean-up” the mess that booth renters leave behind and by this I mean several things…they lose their customer service skills, they leave early, come in late, they dont clean, they dont follow rules because as a salon owner you cant make them? there are no consequences for the booth renters! but yet they expect everything from the salon owner which is wrong! They blame the salon owners for their failure! Take a good look at the owner…you have no idea how much goes into running a business! The long hours all week long, working weekends after hours & on holidays! Just because you dont always see the “behind” the scenes doesnt mean they are “Fat” “Manison-owning” jerks!!! ya know what if they are making sooooo much money then why dont you grow some “balls” and open a salon and be in their “millionaire” shoes for a day!! I bet you last less than a week! Its so much more than you think! Most salon owners are not “rolling” in the money….they have taxes, medicare, disability, property tax, school taxes, advertisement, heating/elec, water bill, laundry…making sure the landscaping looks good, plowing is done, sidewalks shoveled and so much more including stress!!! & not to mention time lost with family because of there “wonderful” career,ect. if you saw the bills you would not be saying the things you have said! Booth renting is wrong and eventually it will bite you in the ass! Your right there is nothing wrong with making more money….fairly!! Why do you think the economy is soooo bad!!!! Booth renting has increase in the last several years..duh all you “so called smart people” are screwing the government!!! and us dumb salon owners are getting are taxes raised because your not paying yours!!?? All the salon owners in local areas are supporting their local & state governments look what your doing? You need to step back and look at the big picture cause honestly you have NO idea what your talking about! It frustates me to no end that this world revolves around greed! Money is the route to all evil….
By Zee Mathews on Apr 28, 2010 | Reply
I would choose booth rentals because I prefer to work on my own and love the challenge it offers.
Regards,
Zee Mathews
The Salon Mangers Academy
By Sandy on May 19, 2010 | Reply
Tammy you took the words right out of my mouth. You couldn’t have explain it better. Thank you Tammy. People just don’t get it!
By Amy on Jun 13, 2010 | Reply
I’ve worked at commission salons for 5 years now and am soon switching to booth rental. In the 5 years I’ve worked at 3 different commission salons. The 1st salon had a crack head (seriously) owner that would fly back and forth from Jamaica; who if it weren’t for his addiction would have a fantastic salon and would be a great inspirational owner. The 2nd salon was brand new and run by a non-hairdresser owner and was initially partnered with her sister-in-law that backed out right before the salon opened (I should have seen the red flag right there- her own family didn’t even want to work with her. Including her son that worked and quit at another store she owned). And then the 3rd salon where I’ve worked for 3 1/2 years with one owner who lives in St. John for 8 months out of the year (for the past 2 yrs- she’s the accountant) who bought another salon without telling our other owner (who is too worried about being her employees enemy and doesn’t like confrontation).
By Amy on Jun 13, 2010 | Reply
(oops, hit wrong key) Adding onto last post:
I’m very eager to be an independent contractor. I’m extremely tired of paying someone else to work. All the “benefits” of working at a commission salon can quickly be taken away. Where is my money going?! I’m tired of being treated like $ signs. One guy can take 20 days off work for a freelance offer yet I can’t go to my husband’s grandma’s funeral for 1 days because the numbers are down and I affect the numbers? WHAT?! I already take care of ordering, cleaning, booking my appointments (since the front desk can’t handle it and is too busy primping themselves), and not to mention paying for my own education (because they can’t afford to). All the cons to booth rental really doesn’t seem that bad. There are many inspired professional booth renters out there. Just like there are commission. We all just need to use our pretty little heads and lay off the juice. Lets get back to what we do best and stop fighting like 5 year olds on which one is better than the other. It’s your decision, do what works best for you!