My father and I decided to invest in a salon and make it a per-chair rental salon in Pennsylvania. We are experienced in other businesses; however, we are unsure of the average cost to charge each stylist. Each stylist is very talented and well-established, bringing their client lists with them. Also, can anyone suggest how payment should be for the manager and employees? For example, does an owner get 30% and the employee receives 70%? PLEASE HELP! ANY AND ALL INFORMATION WILL BE GREATLY APPRECIATED!!What's the average cost to rent a chair in a HAIR SALON, per stylist?
it depends on the market in your city.
in Houston, TX, rent varies from 400-1000/mo.
As an owner, you are the one with all the liability and most of the expenses. Can you make a profit on 30%? seems to me that might need to be reversed if you are paying commission.
Also, I am not sure what you refer to by employees and the split you are talking about. Any salon I worked in, stylist commission was never higher than 40% base, and you had to make a retail sales quota of about 15% of your service sales to make 50% commission.What's the average cost to rent a chair in a HAIR SALON, per stylist?
It will depend on if you're hiring your stylist as independent contractors or not. If they are then you will have to have each one fill out a 1099 form. This is from the IRS. It states that they are responsible for keeping track of and paying all of their own taxes. Independent Contractors are also responsible for all of their own insurances, as they are basically subcontractors. These people will be renting space from you. You will also be responsible for all of the overhead ( Mortgage, Utilities, Sales Taxes and so on) A very good stylist with proof of a good clientele will receive in the neighborhood of 35% Commission. You really need to educate yourself on what the laws are in your own state and community as well. Good Luck