Thinking of setting up a booth to reach out to more customers and advertise your brand as a salon booth renter?
Salon booth rental is one of the most common salon set-ups today. More often than not, stylists work on commissions before becoming independent contractors.
Once they decide salon booth rental is for them, their working conditions vastly change. Whether that’s for the better or not depends on how they prepared for the transition and how well they can cope with it.
What is Salon Booth Rental?
Salon booth rental means that the owner of a salon rents its space to stylists. In this scenario, the stylists are not employed but independent contractors. The salon owner profits from the rent or a percentage of the stylists’ commission.
Pros of Salon Booth Rental
Consider the below advantage of renting a booth in a salon:
There’s a refreshing feeling in taking care of your own business, finding your own clients, doing your own inventory, and building your own brand. As a salon booth renter, you are not employed and can enjoy all the joy of being truly independent (while having a safety net, which brings us to our next point).
When you’re renting a booth, you don’t have the responsibility for a whole salon. You don’t need to worry about paying rent for the entire space or other related finances, such as utilities (although, the costs are likely built into the rent you’re paying to the salon owner, in some form).
Scheduling Your Own Time
Being independent also means that you manage and schedule your own clientele. While it has its challenges as well, from a broader perspective it’s a great factor: you decide when and what you want to do. Nobody creates a schedule that you must adapt to — you get to do it the way you want to do it.
Cons of Salon Booth Rental
Before you go into the salon booth rental business, make sure to get familiar with its disadvantages, too:
Every coin has two sides — while being an independent salon booth renter, you enjoy the protection of a salon without carrying a lot of its responsibilities, but the rent must be paid. Besides spending on your own inventory and tools, you have to pay for that booth. If you were an employee, you wouldn’t need to worry about any of that.
Spending on Supplies
As mentioned above, renting a booth will only get you the chair and sinks usually. You must budget for any other tools and products you use to provide the services you want for your clients.
Building Your Brand Might Be Harder
As a booth renter, the salon’s brand stands above you, in general. However, since you’re the one getting and keeping your own clients, you and your personal brand are a strong force on their own. It might not be your name above the door but your clients will come back for your scissors — if you’re doing it right.
For that purpose, let us share the following tips to help you get started and established as a salon booth renter:
1. Know the Salon’s Rules for Booth Rental
Each salon has its own rules, and it’s up to you to review them to see if they will work with your business plans. Will the salon give you a key, or will it only grant you access during certain hours? For booth rentals, will they allow you to sell from their own inventory?
2. Get a Rental Contract
Before you sign a lease, know the laws regarding leasing in your area first. Then, ask for a written booth rental salon agreement and/or a rental contract that will outline your responsibilities and the landlord’s as well. Make sure it defines the start and end dates, as well as a termination clause.
3. Build a Following of Loyal Customers
You may want to do this before you become an independent contractor, so you can already expect some clients coming your way as you start your own business. Make sure to give them notice that you’re moving.
If you don’t already have a list, you may want to get a high-profile location that will draw in customers. Then, it’s up to you to convert that customer into a loyalist.
4. Set up Your Prices
If you already have clients that are following you to your new location, don’t hike up the price immediately. Charge them what they usually pay you to keep them happy. After analyzing your income and expenses, hike up the prices as you see fit.
If you’re starting from scratch, you can set your own price according to the demographic you’re targeting. Note also the tips you’ll get. Some renters found that their clients tipped less when they became an independent contractor, while some noticed an uptick in tips.
5. Get on Social Media
Social media is the best platform to show off your skills. Every time you finish work for a client, take some pictures and post them on your social media account or your business’ account, and promote it. Facebook and Instagram are the best platforms to use, no matter which business you’re in. We have compiled a list of top hair hashtags to boost your Instagram likes, we regularly update this list so be sure to bookmark the page.
Aside from posting pictures, they’re also a great way to hold contests and to inform your followers of your latest promotions and new services. Don’t forget to promote your page to your friends and clients to gain more followers.
6. Choose Your Products
One of the advantages of building your own business with salon booth rental is that you get to choose your own products. The downside is that you have to supply yourself with these products, and you may have to pick a few. Different clients require different products, so you have to be sure you have one for every client.
7. Know Your Products and Services
Get to know the products you choose well. Clients love it when you are able to explain why you chose a particular product to use on them. It also paints you as someone knowledgeable, someone they can trust to work on them. Get familiarized with and know how to price your products.
You also have to be able to explain your services well, especially when clients have a hard time choosing which should they get.
8. Set up Your Schedule
Perhaps, the best thing about being a salon booth rental is that you’ll choose your own schedule. You can have walk-in hours, or you can only come in when you have an appointment. Either way, let your clients know.
9. Be Flexible with Your Schedule
In the beginning stages, you’ll have to be flexible with the schedule you set up. A client may only have the early morning available, or someone may need your service late at night. In such cases, you may have to accommodate such requests, even if it’s inconvenient for you.
You won’t have to cancel night outs with your friends in the future, but prepare to ditch some get-togethers as you build your business and client list.
10. Follow up with Your Customers
A few days after a client’s visit, take the time to follow up with them. Send a thank-you note or ask if they liked your work. Maybe offer some discount on their next visit as well. Finding a software that can help you automatically send emails and texts to customers, will save you time.
11. Be Patient
Building a loyal client base isn’t going to take overnight. A month may not even be enough. You’ll have to be extra patient as you learn the ins and outs of managing a business and getting clients.
The profits may be low as you start out solo, but it will eventually get to where you want it to be as you get a steady flow of appointments and walk-ins.
12. Get Some Help
Of course, you don’t have to do all this alone. You can hire experts, like CPAs and lawyers, to help you with taxes, laws, and all that complicated stuff. There are also online resources and software to help you run your business smoothly.
We are a top-rated leader in salon software, keeping thousands of salons running and tens of thousands of users happy. We are here to help you avoid pitfalls, bypass limitations and experience the software you deserve.
You started renting a salon booth because you wanted to take control of your destiny. Our salon software for booth renters was created especially for you and won’t break the bank!