What Would You Do?

[shellbert]

Hi Guys
I need your opinion on the situation I have at the moment:
I'm currently renting 4 treatments rooms within a Hotel/Timeshare, Health & Fitness Club paying 35% of my takings to them each week.
I employ 4 Therapist full time who are a great bunch of girls.
Looking at various threads on here about room rental suggestions, I have noticed that Therapists are paying an average of £25 to £30 a day.
I supply the products used and pay for all the towels to be cleaned also.
The 35% I pay each week can vary between £650 - £800 pounds.
Paying a % compared to a fixed rental is fine when your quiet but I still have 4 Therapists to pay none the less.
I just dont know whether I should take the risk and ask if I can pay an agreed fixed rental or stay as I am.
My only worry now is that if business stays this quiet I'm going to have to reduce the girls hours or worse.....
I'm doing everything I can to advertise within the resort.

All comments welcome xx

 

[Zo Zo]

Unfortunately, your landlord is not going to want to suffer a drop in the rent they receive. But I think you should put together a proposition and approach them because, I assume, you have nothing to lose by asking?

Maybe suggest the rent is capped?

 

[champagne]

Yes I would definately try to get it capped.....

 

[Blue Rose]

Hi there,

I've just been re-reading your thread on another forum about the rent etc. You mention that their revenue from you has been capped. Is this not the case now? Or has it been capped at an even higher level than you're already paying?

Looking at your figures, & roughly working out your takings, on 1st impressions your turnover seems impressive. However, you mention your 4 full time staff are fully booked. I'd be inclined to think that the average takings for them is not that great. Unless your prices are incredibly cheap, each therapist should be generating about 50% more. Either that or just 3 therapists could do that level of turnover.

Hopefully you're taking more of a wage now than earlier in the year & can look at ways of cost cutting as well as improving turnover.

As for your question re the rent. If you would prefer a fixed amount, how about working out the average that you've paid since you've been there & use that (or less ) as your amount to pay.

Have another look at your agreement. Are they fulfilling everything they said they would. Are you still managing to do the Pamper Days? Can you get more corporate work? Now's a great time to start pitching to local companies.