A hair salon can be a profitable business. Little blond long hair girl has haircare by stylist. The cost to start up a hair salon business varies depending on the type of business. A small booth salon, where you rent a section of an existing salon as your own business, costs infinitely less than purchasing a large well-known franchise. Both may share similar start-up costs, but the amounts will be different. Equipment In a booth rental situation, the salon supplies the chair, sink and hair dryers as part of the monthly rent. If you are purchasing an existing salon, you can negotiate the price of the equipment as part of the sale and some equipment will be part of the price as a fixture, such as the sinks, receptionist desks, booths and supply area. An existing franchise comes with the necessary equipment while a new franchise will involve an outlay of funds to purchase the equipment. Costs for equipment range from zero dollars for booth rental up to $32,000 at a franchise. The cost depends on the type of salon, amount of chairs and services offered.
Supplies Supplies for a salon can become costly. Not only are there the products for use on the client for services, but there is also the cost of the products you sell. These prices depend on the brands, such as Matrix, Abba, Nexus or OPI, and can go up to $23,000 as an initial cost. Other supplies include sanitizers, perm rods, hair capes, towels, cleaning supplies and a washer and dryer. Most salons require the hair stylist to provide their own scissors, blow dryers, brushes, razors and combs. Some salons provide clippers although many stylists have their own. Business Start-Up Costs A booth rental can require a monthly rent up to $1,000, but it includes insurance, utilities and the business license for the establishment. As a sole business or a franchise, you are required to pay rent, insurance, deposits and utilities. These fees can range up to $10,000. An attorney can be required to negotiate or review the contract for the rent or franchise agreement at an additional hourly cost from $250 an hour or more, Promotion One area you do not want to neglect is the promotion of your new business.
The expenditure of this money can lead to the infusion of cash you will require over the next several months as you build up the business. Promotions can include radio advertising, television advertising, flyers in the mail or left on cars. Promotions prices can vary and range from a couple of dollars for the flyers to hand out up to $15,000 for the television spots. References Entrepreneur: How to Open a Salon or Day Spa; August 2005Fantastic Sam's: Investing In A Hair Salon FranchiseSport Clips: Franchise Opportunities Photo Credits Little blond long hair girl has haircare by stylist. Suggest an Article CorrectionTipping in a booth rental situation July 10, 2015 Subscribe My hair stylist is moving from a commission job to a booth rental situation. I have always heard you are not expected to tip the owner of a salon -- because he/she is not working on commission. Does this apply to booth rentals as well? What about in this special snowflake situation? 1 - 25 of 243 ads for "hairdresser rent chair"
Hair stylists often earn commission based on their services and product sales. Medioimages/Photodisc/Photodisc/Getty Images Many salons have a commission-building system in place to encourage stylists to bring in business and compensate them for their work. While commission is common among salons, the type, amount and structure of the commission varies significantly from salon to salon. Some salons establish set rates for every stylist, while others increase rates for stylists with seniority or stylists who exceed certain monetary amounts. The exact percentage of commission that a stylist earns can vary based on seniority, with junior stylists typically earning the lower end of the commission scale. Some salons use a graduated commission scale in which stylists who meet certain monetary goals receive an increased commission rate for the additional business they bring in above that amount. In 2012, hairdressers, hairstylists and cosmetologists earned an average of $12.88 per hour, including commission, according to the Bureau of Labor Statistics.
This comes to about $26,790 per year. Commission Structure Some salons pay stylists on a commission-only basis, meaning they receive no salary or hourly pay. However, this structure can be difficult for newer stylists who may not have a large customer base. Some salons offer a salary or hourly wages for the first few months before switching to commission-only pay. Other salons implement a hybrid salary-commission system in which employees receive a minimum salary or hourly pay, along with commission. Stylists working within a hybrid system often receive lower commission rates than those working in commission-only salons. Commission-Earning Services Salons often give stylists commission for both styling services and hair-care product sales. Stylists are expected not only to attract clients for shampoos, cuts, colorings and stylings, but also to promote certain products and encourage their clients to purchase them from the salon. Some salons have different commission rates for salon services and product sales.
As with styling services, commission from product sales may work on a set rate or a graduated scale. Booth-Rental Salons Rather than hiring employees, some salons simply rent out chairs in their salon to independent stylists for a flat monthly fee. In this model, the salon owner is effectively just a landlord, collecting monthly rent from each stylist. Booth-rental stylists do not receive a commission, but they are typically able to pocket 100 percent of the earnings from their services. This model provides very little incentive for stylists to sell the salon’s products, as they are typically unable to earn commission from the sales. : How to run a beauty salon: costsHairdresser Career Development Systems: Booth Rental: Is it Right for You?Bureau of Labor Statistics: Hairdressers, hairstylists and cosmetologists Photo Credits Medioimages/Photodisc/Photodisc/Getty Images Suggest an Article Correction compensation: Commission plus tip or rent a chair. employment type: employee's choice