Business

I was thinking about converting from booth rental to commission. What do I need to know?

August 21, 2012 | Bookmark +

I have owned a booth rental salon for four years. I need to increase how much money I’m bringing in and was thinking about converting to a commission situation. Is this really going to be more profitable? What else do I need to consider?

Answer

Before considering if you should switch to commission you need to weigh a few important things: 1) Have you exercised every available option you have to increase income as a rental business? This includes raising your rent, increasing retail sales, and also double shifting. If you have four stations, you could have eight renters instead of four renters by setting two shifts per day. This could make a great impact. 2) If all of these options are exercised and you still are not profitable, before switching to commission, you have to ask yourself what impact it will have on your culture and your daily operations. If you then feel that you want to move forward with the switch you will need to look at the impact being a commission business will have financially. Work out financial projections that include an increase in sales, but also an increase of the corresponding expenses that come with it, like service and retail commission, payroll taxes, an increase in back bar costs, workers compensation, and increased marketing and training expenses.  

— Steve Gomez is professional development manager for Milady (www.milady.cengage.com).

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How can I cut costs and finally make a profit?

I’ve been doing nails for almost two years and have built a decent clientele. The only problem is, I did the math and over 50% of my income is going back into nail products. I’m using top-of-the-line brands and disposable files. How can I cut costs and finally make a profit? I know our prices are too low as well, but we are trying to stay competitive. Any advice?

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As a mobile tech, how do I ensure I get paid?

I have a question about working as a mobile tech. When clients book group events or nail parties, how do you go about getting deposits and payments? Have you ever traveled to a client’s house and they were unable to pay? What did you do?

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What should I do differently with male clients?

I’m starting to get more and more male clients. I am wondering how long a manicure for a man should last and how to price it? Also do you have any recommendations on what else I can do to give them an extra masculine sense of comfort?

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Should I Use Punch Cards?

I recently started working at a high-end salon and I’m looking for marketing ideas. Should I do punch cards? I can’t do “refer-a-friend” because I don’t have consistent clients yet. We are already doing social media.

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Should I start requiring a nonrefundable deposit for special-time appointments?

I want to start requiring a nonrefundable deposit for special-time appointments. My posted hours are 9 a.m. to 8:30 p.m. by appointment only. I am ridiculously flexible with my schedule, and let people book earlier and later if they can’t get in during normal hours. Recently, I had a 7:30 a.m. no-show! She was supposed to get services totaling over $100, and I forfeited holiday plans to accommodate her. She comes every two weeks, so I can’t lose her, but this is the second time she’s no-showed. What should I do? And how would I go about informing current clients of the new policy on off-hour deposits?

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