Commission in exchange for Renting a space

I am negotiating my commission at a salon in a few days. I have to supply all the products,supplies and equipment. I will not receive a hrly rate-this will be in exchange for a space within the salon. What commission is acceptable for this type of situation? She does a 60-40% split now & is willing to give me an even better split for the clients I currently have. I can resale my products free & clear....This is within a high end area near a fancy resort. This is the first time I've done this-Any advice or information would be greatly appreciated ")

Replies to This Discussion

Permalink Reply by Christine Byer Esthetics on December 7, 2011 at 2:54pm

Sounds about right. I did the exact same commish split with the same constraints (I supplied back bar, equipment and supplies) when I worked at a salon downtown Austin. I sold products that I bought but they took a 10% commish back from those. (20% of the profit! Hated that since I was usually the only person to sell the products). So your deal with selling products as you like is a great situation.

What ended up happening is the salon was sold and the new owners really resented the higher commission I received over the other esthies. I guess they didn't realize that once I left that treatment room would have no equipment (and therefore make no money.) Sometimes owners can be a little short sighted. I ended up leaving but I did make pretty good money there.

Permalink Reply by Heather Capitanich on December 7, 2011 at 3:27pm

Awesome, thanks for the advice Christine! If I have to give a % of money back for all the product that I sold, I don't not think that split is worth doing...

Any ideas of what a fair split would be with the clients I already have that I bring into the salon with me?

Permalink Reply by Christine Byer Esthetics on December 7, 2011 at 4:42pm

Well, don't know about that. I had zero clients to bring because I had just moved here from Miami. I'd ask for at least 75%. Maybe they will go for it. Remember it's always easier to aim high and come down if you have to than start low and work your way up! ;)

Permalink Reply by Heather Capitanich on December 8, 2011 at 9:05am

True, true, true!

That is what I was thinking also 75%!

Thanks Christine ")

Permalink Reply by Susan Ferguson on December 8, 2011 at 4:44pm

What would the rent be if you could rent the room outright? If you are going to do a 60 - 40 split and you are supplying everything I would cap her share at what the room would be worth. She has absolutely no invested interest in the retail so if it were me I would nix her getting any share of that, ex. If you only do $1000 per month and she gets 40 % that is $400 per month, but if you do $2000 per month her share would then be $800 and so on. What is the room worth? Just my opinion...

Permalink Reply by Heather Capitanich on December 8, 2011 at 7:39pm

Great thought Susan! Thank you for your words of wisdom. The room is definitely not worth $800 per month.....And if she even thinks about wanting any money out of my retail it's just not worth it.

I will run the cap idea by her on what she feels the room is worth & see how that goes .....