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This week we explore commission-based salons and rental situations' features, pros, and cons.
Commission-Based Salons
- Definition and explanation of commission-based salons.
Advantages for employees working in a well run commission-based salon
- Predictable income and stability.
- Access to salon-provided tools, products, and resources.
- No need to worry about product
- Marketing should be done for you
- Educational opportunities should be provided for you
- Teamwork and support from fellow stylists.
Challenges faced by employees in most commission-based salons:
- Lower earning potential due to dated pricing structures and practices
- Limited control over pricing and services offered.
- Pressure to meet sales targets and quotas.
- Limited schedule, no flexibility
- "Pecking" order
- Dress codes
- Likely a non-compete
Rental Salons
- Definition and explanation of rental salons.
Advantages for renters in a rental salon should be:
- Freedom and flexibility in setting prices and services.
- Potential for higher earning potential *if done correctly
- Choice of product line
- Ability to personalize the salon space and create their own brand.
- No risk or long-term commitment
Challenges faced by renters in most rental salons:
- You're doing everything on your own
- You're still working with percentages - unless you want to screw yourself over
- If, for example, you're not good at being on time as an employee, you won't suddenly become good when you're in charge
- Responsibility for business expenses (rent, utilities, supplies, etc.).
- Need for self-promotion and understanding of marketing to attract clients.
- Potential isolation and lack of a team environment.
- You own nothing
Perspectives from Jen as an employee
- Personal experiences and insights into working in this type of salon with Jen.
- Success stories and challenges faced.
- Advice for others considering employment in a commission-based salon.
Perspectives from Jen as a renter
- Personal experiences being a hairstylist renting a station in a rental salon with Jen
- Personal experiences and insights into running their own business within a rental salon.
Need in both:
- Exceptional customer service and skills.
- Marketing
- Relationships and communication
- Business management and professionalism are required in both models.
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