Renting -v- being employed

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Reide

IG: RokkitCristy (Now Qualified)
Joined
Mar 25, 2013
Messages
154
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Location
Australia
Hello all.

I've noticed in Australia that a lot of salons have a "Rent a chair" set up instead of your usual employee. Now since I am in training I figured I should investigate the different types of employment. I was wondering what the perks and cons of renting a chair is? Am I better off going for an employment starting out to build my clientelle? If I am renting a chair is there an option for a percentage of what you make verses a rental fee? Do you get control over the products you use in a rental?

I probably will start looking for employments rather then rentals but I feel I should know because with rentals I feel as thoughI should be prepared as the industry looks like it's heading that way.
 
Hi Reide
This forum is very U.K. heavy I’m afraid so there are fewer people who can respond.

A chair rental set up respects the fact that most clients choose to stick with a stylist they like and may follow him or her from salon to salon. In the U.K. a chair rental can be on a rental or a commission basis.

If you pay rent, per day, whether you are sick, have no clients or are on holiday, you need to feel confident that you can draw enough clients to make the deal pay. Your landlord has no interest in helping you build up your business except that if you fail, they’ll need to find a new chair renter. For this reason they may not want to take on someone who is inexperienced.

A commission based arrangement is often where a successful salon has more work than they can handle and they are turning enquiries away. They’ll be looking for someone to take on this work - but bear in mind that it will be the least profitable work: kiddie cuts, simple trims, older ladies who always have the same thing and never upgrade or buy products. Because the salon owner makes money if you make money this arrangement can work very well - although you may earn very little in the beginning and you’ll find yourself having to work “for free” as you try and promote yourself to clients.

Whichever option you are offered you should do exactly the same research as if you are setting up any business. You should look at the area, check out the competition, monitor the footfall and basically decide if this is the right opportunity for the business that you can create.

Without an established client base there is a risk that you may earn very little and get yourself into debt. The risks are higher with chair rent, you have to look at your break even point and ask yourself if this is a risk worth taking.

You won’t have a say in the salon decor (but you can suggest). You usually supply your own products and you often get the option of buying products off your landlord, which is useful if they have a premium brand account. You need to be very clear about what is included with your arrangement. Will they book appointments for you in your absence, is there a salon apprentice whose services you can use in return for training? Is there a receptionist who will greet your clients, make them coffee and take their payments? - you may have the option of splitting advertising and you can work out deals that benefit you both, for example your landlord pays for a flyer advertising the salon and introducing you and you hand deliver it all over town.

Personality, confidence and drive are key to being self-employed. I set up as a self employed beauty therapist whilst I was still in college. I know other very experienced therapists that cling to employment because they appreciate the support from their boss, they like where they work and they don’t think they could earn much more, working for themselves, for the same effort and time.

The industry thrives on partnerships. If you don’t get on great with your boss, keep looking. Sometimes you’re the best boss you’ll ever have, but not always.There are many self employed people contemplating their future at the moment and looking back with rose tinted memories of the good old days of being an employee. Meanwhile I’m reading sit vac with green eyes, looking at Spa Director set ups that I’ll never have the funds to build myself.

It depends what suits you, and that changes over time. Sometimes it’s all about the money and the chance of earning more. Sometimes it’s about the hours and the flexibility, sometimes it’s about the people and the support.
 

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