1 “What are the benefits of renting a suite at SALONZ?”
We set you up to be in business for yourself. Our simple strategy: offer established beauty professionals the opportunity to own and operate their own business without the usual costs and hassles of salon ownership. The SALONZ facility is conveniently located in a busy shopping center with easy access and ample parking for you and your clients. Your suite will be among many others in an elegant, professional environment, so your clients will be able to take advantage of other services during the same visit. Referral business is a big plus. With a minimal investment, an established client base and your own tools, you can move into your own business overnight and begin taking advantage of many benefits, including:
- Tenants are in business for themselves.
- Immediate increased earnings between 35% and 70% (see note below).
- None of the usual investments or hassles of salon ownership.
- Politics and jealousies are replaced with camaraderie and referrals.
Commissioned or salaried professionals often complain about someone else determining when they work, what products are used and what is charged. Owners can be temperamental, sometimes firing stylists for unclear reasons. Creative personalities are often dissatisfied, and being an employee often feels like there’s no room to grow and take on new challenges. What most renters love about suite rental is the freedom and flexibility it provides: the ability to visit with clients in a peaceful atmosphere, no demanding salon owner, and no salon politics. You decide when you work, what products you use and what you charge.
2“Is salon suite rental for everyone?”
For a beauty professional to qualify for salon suite rental, they must have an established and loyal clientele, which is necessary for a smooth transition. The typical question “Will my clients follow me?” has a simple answer: if they don’t, then they’re not your clients. Your clientele are loyal to you. Experience reveals that over 75% will follow, but here’s the key: even if less than that amount follow, your increased profits make up for it! Thousands of suite-renters and their clients can attest to that. Remember, clients usually won’t take beauty risks once they’ve found the right formula. Aside from this, the candidate must:
- be actively licensed and in good standing,
- be responsible and self-starting, and
- have a good credit history.
3 “Who should not rent a salon suite?”
Recently licensed professionals should not rent a suite until they’re better established. It’s not a good idea to rent your own salon if you have not yet developed a following. By the same token, even if someone has a large clientele, they might not have the self-discipline or initiative to run their own business. “The main benefit of being a booth renter is the freedom it offers. The main downfall of being a booth renter is the freedom it offers,” says Robert Costa, an industry consultant and president of SALON SUITES an Ohio chain. In other words, your attitude means everything.
4“I currently work on commission, so how will my income change?”
Dramatically! The financial benefits create a whole new world. Right now you’re aware of the following sad truth: the more you make, the more you give away! Suite rental allows you to keep 100% of everything you produce. Even after expenses, suite-renters show an immediate increase of between 35% and 70% (see note below). Check out this real scenario:
Libby is commission-based, giving up 50% of the revenue that she produces from her clients. If she produces $1500 per week, then she’s giving up $750 per week and keeps $39,000 a year, before taxes. So what would her gross income be if she kept all she produced?
$1500 per week = $6500 per month = $78,000 per year!
Libby could be doubling her gross income. And that’s not all: this is without the additional income she would make by selling retail products, bringing in additional clients, or working longer hours. And let’s not forget the substantial tax deductions that would be available to her since this is her own business.
Note: The actual increase will vary by individual, depending on factors such as rental area, number of clients, gross income, expenses, management habits, etc.
5“I’m already renting a chair, how will my situation change?”
If you’re currently chair renting, then you already know the financial benefits of this scenario. However, being a suite-renter has priceless non-financial benefits as well. The environment is a complete upgrade. You get a private, professional, furnished and equipped suite: your own mini-salon in which to service your clients. This provides the ultimate form of privacy, freedom and independence. As a suite-renter, you end the hassle of demanding salon owners, answer to no one, have individual access to come and go as you please, sell and use the products you like, dress to your style, and say goodbye to salon politics.
There is another important benefit. As far as the IRS is concerned, there is a clear and definite distinction between an independent contractor and an employee when you’re renting a suite versus a chair. Many salon owners and stylists have gotten into trouble with the IRS for not doing things according to regulations. Suite renting at SALONZ beauty suites eliminates any possible confusion or doubt, because a written contract makes it very clear that the suite renter owns their own business and works for no one. The relationship is no longer one of employer/employee, but landlord/tenant.
6 “Is there some type of written agreement between me and SALONZ?”
Yes, for more reasons than you think. When you rent a suite, the agreement is actually a lease between you (the ‘Tenant’) and SALONZ (the ‘Landlord’) which spells out each party’s rights and responsibilities. As mentioned in #5 above, the agreement also certifies to the IRS that you are, in fact, an independent contractor running your own business.
7“What about walk-ins?”
Walk-ins are certainly welcome at SALONZ. A directory and description of services will help walk-ins decide which professional to use.
8“What’s the downside to suite rental?”
We must admit we haven’t found any issue outweighed by the enormous benefits of suite renting. Bottom line: it’s all relative to mindset. If you’re ready to move toward independence, there’s no better scenario.
We’ll take this opportunity to shed light on an important subject. Sadly, many salon owners will “badmouth” the suite rental idea due to their concern over losing top performers. This is a testament to the strength of the concept. We think this is selfish and inhibiting. They own a salon today because they went out and grabbed a piece of the American dream. We believe everyone deserves the same opportunity.