The Aspiring Stylist with Tracey Franklin

Welcome to the Aspiring Stylists Podcast with Tracey Franklin. Where to begin, grow and aspire to become the best stylist you can be. Whether you're thinking about becoming a stylist opening a salon, or developing your skills as an experienced stylist the next step of your beauty career starts here. Each week we'll discuss strategic ways to design, plan and execute on becoming a stylist that excels behind the chair and above the bottom line. Here's your host, Tracey Franklin.

Commission versus booth rent.. which one's better? Well, I don't know if one is better than the other.

But what I do know is that you need to figure out what's best for you. So I get this question a lot in the salon during interviews from friends, which one is better? Well, I've done both. I am a salon owner. And I have owned both a full commission salon and a commission booth rent combination salon. And this is just my opinion, but this is my podcast. So clearly you're here for that. And for me, it's commission that just is the business model that works better for me and my salon. You know, my reputation is on the line.

When I allow someone to come in, I'm hoping that yes, they bring their own individual gifts and talents, but that they are able to honor the reputation that I have built in this community, the integrity of the work that comes out of the salon matters.

We are all represented by this reputation. So if someone was to receive a service that maybe they weren't happy with, they would name my salon, they wouldn't name the stylist or maybe they would name a combination of both. And we would both have to take that hit. But at the end of the day, it's usually the salon they're talking about. And so I'm very, very protective of the reputation that I've built and that all the people that have worked so hard in my salon have worked to build. The products that we use really matter to me too. You know, we're in Aveda salon. And I feel like the Aveda brand definitely most accurately represents the kind of business that I want to run with sustainable beauty. So that really matters to me. So if I let people rent a booth in my salon, then they are at liberty to bring in whatever kind of products and whatever kind of tools and things like that that they want to use. And I really wouldn't have a say they would be completely at liberty to do that. So let's just dive a little bit deeper into both business models and break them down. Let me explain what a commission salon is. So the typical salon Service Commission will start somewhere in the 40s and cap somewhere in the 50s. So that means out of every $100 that you make behind the chair, you're going to keep 40 and the salon will keep the remaining 60. As far as the products that you sell, you're going to come in somewhere around 10% and cap out at 20%. So again, that means for every $100 worth of retail that you sell, you will keep $10 in the salon will keep 90 Here are some of the advantages of working in a commission salon.

So in my opinion, when you are fresh out of school and you are looking for a salon to go to I believe a commission salon is the best business model and there are a lot of reasons why some of the advantages are that that salon will be marketing on your behalf, you're gonna have a receptionist there to answer the phone and book all the appointments, you get to show up every day and know that the bills are paid and the color bar is stocked and you just arrived you know you're the talent you get to be the artists behind the chair and fully know that everything is taken care of for you. Some of the perceived disadvantages to working in a commission salon would be that you have not as much control over your hours or the products that you use or how you show up such as your dress code and things like that. So the salon will definitely have policies and procedures in place that you will have to follow in a commission salon. Okay, now let's talk about booth rent or renting a Salon Suite. You know, it's all on you, at the end of the day making sure that all of the product is ordered and making sure that there are butts in the seats for lack of better words, making sure that you have everything you need to accommodate your guest in the service. Not to mention making sure that the phone gets answered and the appointments get booked and things like that it's all up to you. Now if you're a very social person, this might feel a little bit lonely for you. You know, it may feel like something's missing like you don't have the stylus to lean on and get a second opinion on a formulation. There are just a lot of things about working independently that definitely make you feel like you're flying solo. And let's not forget about Uncle Sam you definitely have to stay up to date on your taxes. You are a small business owner and you are fully responsible for making sure that your sales tax and your city tax and everything like that gets paid as well.

There are a lot of advantages to working in a booth though you know or renting a chair and Upsilon in a salon you still definitely have that camaraderie that you will have with other stylists you know so that might be better than being in a suite by yourself. If you are a more social person Listen, you also will still have that team there to lean on, should you run behind and need a little help or need some help folding your towels or anything like that. So renting a booth in a salon definitely is a different feel than being in a suite on your own, where you are essentially your own little salon and responsible for everything. A huge advantage of being a small business owner or an independent stylist. And either a booth or a Salon Suite is the freedom I mean, you are in full control of your schedule, you're in full control of your dress code, your pricing, what type of services you want to provide, and what kind of products that you want to use. So there is a lot of freedom in that. And if that is something that you are looking for, then perhaps this is a really good business model for you. Finding the right salon home is probably one of the most important decisions that you'll make in your career, especially starting out when you're determining which structure is right for you some questions that you might want to ask yourself are, am I just starting out? Or am I starting over? Have I just moved to a new community and I had a really lucrative career back home. But now I'm starting over, in my opinion, if this is you, then you definitely want to plug into a commission salon. First, there are far too many advantages to working in a commission salon when you are just starting out or starting over, that you're not going to be able to find and an independent situation. Another determining factor would be do you really love big salon energy? Like do you just love the hustle and bustle of a busy salon, the interaction with other people's guests and the interaction with all the other team members like for me, that is huge. I am a very outgoing person. And I can never work in an independent situation because I just like being around people too much. So I know that's not for me at any stage in my career, I knew that that was not for me. Maybe you're not very business savvy or good with money. Like that's important to know, right? Being an independent stylist will require you again to be a small business owner and know exactly what your budget every month is your expenses, how much you can spend on color, is there anything left for marketing? And what is marketing look like? If you're in an independent salon, going independent is definitely going to require you to have a marketing strategy, you are going to need to know what that looks like. Like how am I going to get someone to come visit me in this suite. It's kind of off the beaten path. You know, you gotta go down the hallway, four doors and make a left. And these are all things that people are not going to know. So you're not going to have that walk in business like you might a busy salon. So you're going to have to be very intentional about the marketing that you do so that people can find you. Do you have a mentorship program? Are you part of something where someone else is holding you accountable, I don't care if it's your best friend, I don't care if it's your mom, I don't care if it's another stylist in the building, you need to have somebody holding you accountable for the goals that you set for yourself.

And when you go off into an independent situation, you may not have that. And that's going to require you to find that externally. Some of the questions that you may want to ask a salon owner before accepting a position in your salon home. Can I really grow here? What is the opportunity?

Like if I plant myself here and I plant my seeds here? Will I blossom? What does that look like? What is my growth potential? Another really important question would be What is your stylists turnover rate?

Like I want to know how many people are coming and going every year. If someone's only staying a couple months and then heading out? I want to know that and I want to know why. Now, you may not always get a super upfront answer, but at least lets the salon owner know that you've got your eye on things. I would definitely also be asking about the commission structure is this a sliding scale? So what that means is at my salon, we work on a sliding scale. So the more services that you provide, the higher the percentage of your take home. So that is something that I would want clarity on, is it a flat 40 No matter how hard I work, or is there room for growth there. If you do decide to go independent, you need to know if you're prepared to lose up to 30% of your clientele. That is the average amount of clientele that you're going to lose when you make a huge shift in your business. So whether that means you're going to another commission salon or you're going independent 30% Is the industry average for the clients that will stay where they are or try someone new altogether. If you are comfortable losing that 30% What are you willing to do to replace those people? Because 30% of your clientele is a huge part of your income and you need to be prepared to do the marketing that it will require to get new people in the door.

Also, have you done the math?

Like if you're not spending the time to sit down and act really create a budget based on your potential income minus the 30% that I just mentioned, is that going to be enough to cover all of your expenses, and I mean, all of your expenses, everything from product, to taxes, to marketing, to insurance, everything is on you. So you need to make sure that you've sat down and put pen to paper, and that you're actually prepared and actually ready for this step. There is no wrong way. It's just about finding the best way for you. And that best way may change be open to that.

If you are just starting out or starting over, I definitely recommend a successful commission salon. If you're feeling pulled into independence, and you've worked really hard and built a solid business and a solid clientele, maybe it is time to branch out.

As a salon owner. I know that these people are a part of my tribe for a season. They have entrusted me to help them become successful in this career. But I know at the end of the day, it's only for a season, and I am going to make the most of it and I'm going to continue to cheer them on and their new ventures whatever those are.

Thank you for joining us on this episode of The Aspiring Stylist Podcast with Tracey Franklin. If you enjoyed listening and you want to hear more, make sure you subscribe on Apple Podcast, Spotify or wherever you find your podcasts. The Aspiring Stylist Podcast with Tracey Franklin is a Morgan Franklin Production. Today's episode was written and produced by Morgan Franklin editing and post production by Mike Franklin.

Want to find out more about Tracey and the Aspiring Barber and Beauty Academy go to aspirebarberandbeauty.com