There are many good and bad reasons to do this, advantages vs disadvantages and at the end of the day only you can really decide what is best for you.
Your salon is unique in every way and you need to do your research before deciding either way.
Commission on a percentage basis
There are numerous methods of renting out a salon chair and the first is the obvious commission percentage only.
This is where the Salon owner will take an agreed commission from the renter of the chair and this will cover all salon services, this does not include any retail.
If you have a really keen and productive worker then this could be a ‘win win’ for both.
Example if the renter took in say $2,500 and you had agreed at 30% commission would be paid to the Salon owner then that would put you in credit for $750. The renter would get $1750.
Out of that will be no deductions for wages it would all be your own.
The bad weeks could mean a complete different kettle of fish.
Example if the renter took in only $1000 and you had agreed at 30% commission would be paid to the Salon owner then that would put you in credit for $300.
Percentage plus a variable moving percentage based on income after an agreed amount been made
This is slightly different from the above example and can work in your Salons favor depending on how much in earnings the renter is actually bringing in. For you to consider this you would need to ‘know’ what the stylist is capable of doing so that you could feel comfortable in taking this type of agreement with the renter.
Different types of Rental chairs
Percentage plus a target incentive combined scheme
Percentage only + say 10% of Retail sold in salon
Percentage plus target incentive combined scheme + say 10% of Retail sold in salon
Below is a table setting out what can be done.
Example if the renter took in say the first $1000 at 20%, then up to the $2000 this would be 25% and the $3000 would be 30%, the commission would be paid to the Salon owner then that would put you in credit for $950. The renter would get $2050.
Stock used including Professional stock and also retail
There are also a few systems that you can operate and the most obvious one is the Rental Chair will bring his/her own stock in but that is a little ‘grey’ as what f they simply forget, you would need to be comfortable with your staff and have complete confidence in them to execute this.
If it worked it would be fantastic for you as you would have very limited bills, invoices, gst to deal with.
Other way of implementing a good system is for you to be in sole charge of this and you order the professional stock like you would normally and charge the Rental chair by the gram.
You would see immediately a drop in wastage, I can see clearly in the bowl in my salon over use of color which is your money down the drain. You can guarantee if they have to pay per gram then they would be more careful with yours and their money.
They would also have to pay for peroxide and you would decide how much per gram.
This system like all is not infallible and they can still use more than they are declaring but nothing is foolproof.
Below are just 10 Good reasons to consider changing to a Rental Chair Salon
You would have to consider providing them with a rental free period. This could be advantageous at the beginning as if the renter was working for you previously you may need to ‘hold her hand’ and assist her by doing this.
Some kind of bond would also be advisable and what is to simply stop them walking out and not coming back and will take you some time to provide a replacement.
They have to give you notice and part of the agreement is if they fail to honor this then they forfeit the bond.
Make the bond a reasonable amount to deter the renter from just leaving you in the lurch which is the issues we all have with casual staff walking out on a Saturday evening and not returning.
What system are you using in your salon and do you have more than one renting a chair?
Download Table Here: chair table.doc