Renting a chair has become so popular that it is estimated around 70% of the salons are following this business model. What made the booth rental salon so popular and why it is rapidly proliferating even though it is looked down upon by many in the industry? Obviously, there are benefits to starting your own booth rental salon over the traditional method of doing business. Here are some of them listed.
1. When you rent a chair in your salon, you become the landlord rather than an employer consequently, all you’re concerned with is collecting your rent each month as per the booth rental contract you have with your renters. Similarly, if you decide to sell your booth rental salon, the buyer only has to be consumed with the same task… collecting rent! They wont be worried about transferring all of your employees’ entitlements and all that guff!
2. Your booth renters will govern their own game. No longer will you have to schedule meal breaks for your stylists. No longer will you feel guilty or even face the resentment of your stylists who were not able to have their lunch because they were too busy with clients. Whatever the stylist decide, they have to pay you the salon booth rent as per their booth rental contract at the end of the month.
3. You do not have to worry about paying your stylists for working over time or pay them late night meal allowances. In this rent a chair model, the stylists can choose to work for as long as they want or as little as they want. They can even choose to come only when they have an appointment scheduled with their client. A cell phone would help them to be available to the client at all times. For you, nothing makes a difference as long as you receive the salon booth rent at the end of each month whether the stylist does business or not.
4. Your record keeping pertaining to your employees such as the wage records, time sheets, pay slips and other records will not have to be maintained. That itself will eliminate a lot of clutter from your office or wherever you keep them. Much more than eliminating clutter, it will reduce a burden off your shoulders as the solo stylists manage their records themselves.
5. There can be a lot of cumbersome procedures to be followed with employees and apprentices. With renting a chair to other stylist you do not have to worry about the unions threatening of strike or the employees or apprentices taking you to court over a trivial matters.
Those traditionally operated salons look down upon the renting a chair model as something that is undermining the industry. But with benefits such as these, and as long as you have tight booth rental contracts in place, and naturally making money, I don’t think we’re ever going see a decline in the industry. In fact, this is turning out to be a blessing in disguise for many who have got a newfound freedom and flexibility when they make the change from employer to landlord.