Percentage rate help

[tink15]

Hi, I run a salon (hair & beauty) and upto now I've done all the beauty myself. There's only one room but space for a 2nd nail desk in reception area. I've just offered a position to a girl on self employed basis at 40% commission. She would have all equipment, products & overheads provided for. However I'm feeling a little guilty, is this too steep? Do ppl paying out 40% actually make money? Not sure weather to lower it to 35% or not. We don't charge massive amounts for treatments. To give you an idea. Eyebrow tint & shape £14. Back massage £20. Top facial £40. Thanks

 

[redlottie13]

I'd say for your price brackets it's a little steep. Have you thought about having her pay a rent and provide the stock? I find it's much less complicated x

 

[tink15]

Yeah I think il go down to 35. I havnt really considered it, however really short on storage space for another lot of products. And I'm also quite fussy about what I like and offer, so happy that we can stick to what customers know and what I feel is right for the business. Thank you x

 

[tink15]

I think coz I charge my hairdressers 30% and that's excluding laundry products & equipment, that an extra 5% didn't seem brought to have those things too x

 

[AcidPerm]

Yeah I think il go down to 35. I havnt really considered it, however really short on storage space for another lot of products. And I'm also quite fussy about what I like and offer, so happy that we can stick to what customers know and what I feel is right for the business. Thank you x

STOP!
She is an independent business, operating under your roof. You are not in control when you have self employed therapists working in your salon. They are not your staff.

If she later decides to choose to use another product range or wants to offer her services at 50% discount to your salon prices, there's nothing you can do as you're just her landlady and not her boss. Read the sticky thread at the top of this forum to ensure you keep on the right side of HMRC.

If you want total control over your therapists, you have to employ them.

That's why it's easier for a beauty salon to have self employed hairdresser's (and vice-versa) as you're not competing for business.

 

[tink15]

I understand all this Haurcutz. This is the offer I'm offering before she starts, and it's totally down to me what percentage I offer her to be on. I'm fully aware she can use her own products and charge her own prices. However she had CHOSEN to use my products and stick with my pricelist. So it's not Control! It's deciding what is a reasonable rate to take from her!

 

[AcidPerm]

No worries. From your wording, I misunderstood and thought you were wanting her to work for your business but as self employed. It's a common problem on here, hence the HMRC sticky thread.

Good luck with your plans.

 

[tink15]

Thank you. I see all the comments but know where we both stand

 

[Orchardmakeup]

I charge my therapists 40% if I provide the products and 30% if they do. Seems fair as it does cost a lot to run a salon.