COMMISSION VS. SUITE & BOOTH RENTAL, WHICH IS RIGHT FOR YOU?
Tuesday, October 08, 2024
Kelsey Taylor
COMMISSION VS. SUITE & BOOTH RENTAL, WHICH IS RIGHT FOR YOU?
Tuesday, October 08, 2024
Kelsey Taylor
COMMISSION VS. SUITE OR BOOTH RENTAL
CONSIDERING MOVING FROM YOUR COMMISSION SALON TO INDEPENDENCE?LEARN KEY DIFFERENCES & WHICH IS THE RIGHT MOVE FOR YOU
There’s no universally “right” answer—it depends entirely on your personal and professional needs, the type of person you are, and where you are in your career.
While I'm pro-independence, it isn’t the right choice for everyone. It will boil down to your personal and professional needs, desires, and goals.
Running your own business can be both highly profitable and fulfilling, especially for established stylists. However, before transitioning from commission to independence, it's essential to understand all the responsibilities that come with managing your own business.
As a stylist who has managed one of the largest salons in Atlanta, I’ve navigated the complexities that take place behind the scenes in both arenas. I'll break down what commission salons provide on the backend so you can better understand the scope of responsibility required to manage a beauty business and offer key milestones you’ll want to reach so you can make an informed decision before taking the leap.
Commission Salon Pros & Cons
Commission Salon
A commission salon typically offers stylists a percentage of the income from each service they perform, while the salon provides everything you need—tools, products, and sometimes clientele.
Pros:
Lower Risk: Since the salon supplies products and handles overhead, you only need to focus on delivering quality services.
Mentorship & Team Environment: Often, commission salons offer an established system and team support. This is especially beneficial for newer stylists.
Flexibility: Many salons offer paid education and help in building a clientele base.
Cons:
Earnings are Capped: Your earning potential is limited by the commission structure.
Lack of Control: You have less (or no) say in pricing, branding, scheduling, management or policy enforcement. These are usually implemented as a means to keep the business running and on track to hit bottom-line numbers, although they can greatly restrict flexibility and creative freedom - depending upon the salon.
High Turnover: Many salons experience high staff turnover which can lead to poor management, inconsistent expectations, and shaky, unstable cultures.
Suite Rental Pros & Cons
Suite Rental
A suite rental gives you the independence to own your space, but without the full overhead of a traditional salon. It’s like having a mini salon inside a larger building of independent beauty professionals.
Pros:
Complete Control: You set your own prices, choose your products, and control your brand and marketing.
Privacy: You have a personal, intimate space for your clients.
Flexibility: This option provides maximum autonomy over your schedule and services.
Cons:
Higher Costs: Rent, supplies, utilities, and business operations fall solely on you. You’re also responsible for managing taxes, accounting, regulation requirements, creating a pricing strategy that covers cost, and creating systems to manage task.
Lack Of Community: Suite rentals often lack the camaraderie of working with a team, which can be isolating, particularly to stylists who thrive on social interaction or need occasional guidance from senior stylists.
Requires Business Savvy: Managing your appointments, payments, and marketing is time-consuming and requires solid business skills and the ability to manage your time effectively.
Booth Rental Pros & Cons
Booth Rental
With booth rental, you rent a chair or space within an existing salon. It’s a middle ground between commission and suite rental. You are responsible for managing your business, but the salon provides the physical space and sometimes amenities.
Pros:
Freedom & Flexibility: You set your own hours and prices while benefiting from the salon environment.
Shared Resources: Often, the salon will provide some basic products and amenities, reducing your overhead costs.
Established Clientele: The salon’s traffic can help you grow your own client base without the isolation of a suite.
Cons:
Variable Costs: Rent is usually fixed, but other expenses like supplies and taxes can add up FAST if you don't have a pricing strategy or systems to keep you on track.
Limited Control: While you have autonomy over your clients, you're still subject to the salon’s rules and culture.
No Safety Net: Like suite rental, you are responsible for building, maintaining your own clientele, and managing challenging clients head on.
How To Know Which Is Right For You
Before making a decision, evaluate your situation:
Why Are You Looking for Change? Is it financial? Do you need more flexibility? Or are you craving independence? Understanding your motivation will help clarify your choice.
Consider Your Skillset: Are you an established stylist with a full book of clientele? Do you feel fully confident in your ability to perform services? If you are somewhat new to hair, do you have any mentors you can lean on for guidance?
Consider Your Personality: Are you social and enjoy being part of a team? Do you thrive with structure, or do you prefer full autonomy? Some stylists need the interaction and collaboration of a salon, while others prefer a more private, controlled environment.
Evaluate Your Financial Discipline: Managing a suite or booth rental is more than just creative freedom—it’s running a small business. Be realistic about your ability to manage your time appropriately, handle accounting, taxes, and marketing.
With the right support and foundation these things are easy to handle if you create the structure to manage them, but do you have the discipline to follow through and the patience to seek guidance when stuck?
Managing A Beauty Business: Full Scope of Responsibilities
Many stylists have an idea of what commission salons manage behind the scenes, but it’s often more than you might think. Here’s what your commission salon is likely handling for you:
Branding & Marketing: Attracting clients with strategic branding and digital marketing.
Customer Service: Booking appointments, rescheduling clients, processing payments, managing difficult client situations, and quality control for services.
Growth & Development: Helping you track your numbers, set goals, and often offer professional training to help you grow.
Inventory Management: Ordering and stocking necessary products, counting and managing inventory.
Business Management: Handling payroll, hiring, scheduling staff, and paying bills.
Community Support: Providing a support system of peers and mentors.
Regulation: Managing state board requirements, business licenses, and compliance.
Once you understand these areas, they’re manageable. If you can handle wild-card clients regularly, I promise you can handle these tasks. However, your long-term success will depend on your ability to create systems and execute these responsibilities consistently.
Key Questions To Ask Yourself
Realistically assess your work ethic and natural drive. Do you have the discipline to tend to a business regularly? Are you willing to seek guidance, ask for help and business support when needed? Reflecting on your tendencies and personal goals will help you determine which path—independent or commission—is best for you.
Also consider your motivation for wanting to go independent - are you seeking financial and creative freedom, feel your current salons culture is not healthy, or feel trapped by the structure?
In some cases you can find the freedom you're looking for without sacrificing your stability by seeking out another salon that's more in-tune with your value system. Other times, you’re ready to move on and level up. Either way, really take the time to assess your why and evaluate the emotions happening for you, and assess the risk before taking a jump.
Also read: Milestones To Reach Before Going Independent
Final Thoughts
There is no one-size-fits-all answer when it comes to commission salons, suite rentals, or booth rentals. Your decision should always be informed and align with your financial goals, lifestyle preferences, and professional vision.
Whether you prefer the structure and security of a commission salon, the autonomy of a suite rental, or the balance of a booth rental, it’s important to honestly assess your strengths and what environment will allow you to thrive.
If you want support navigating this decision, our team offers guidance for independent stylists and beauty professionals, helping you create systems, drive clients, and understand your business. Not to mention there are several other beauty coaches available to help you navigate the terrain, but at the end of the day, make an informed choice that works best for you and your family.
If you'd like to talk it through, feel free to reach out—I’m just an email away. Contact me anytime at: kelsey@thesilkstone.com
Helpful Resources
Service Pricing Calculator: Understanding how much you actually make on each service can be extremely enlightening but can be overwhelming due to all the detailed math required. I created the Service Pricing Calculator specifically for stylists and service providers. It does all the math for you automatically and offers visual results so it's easy to see and understand how much you actually make from each service after cost. Download the Service Pricing Calculator here
Additionally, if you have questions, you can always reach out to me and I'm happy to offer you guidance or point you in the right direction, email me at kelsey@thesilkstone.com
ABOUT THIS ARTICLE
AUTHOR | Kelsey Taylor
Silkstone LLC Founder
Kelsey Taylor is a licensed cosmetologist who transitioned to the beauty industry after managing strategic marketing efforts for companies in corporate America. With experience as a stylist and overseeing operations for corporate salons, Kelsey now focuses on providing a valuable content bridge to help independent stylists and small beauty business owners keep up with big business and make their mark.
SILKSTONE LLC
We make working independently easy.
Silkstone was created to serve independent stylists & small salon teams and help them create, advertise, and manage their small beauty businesses so they can build a successful independent career without relying on a corporate salon.
© 2024 Silkstone LLC. All rights reserved.
Disclaimer: The opinions expressed in this article are the author's own and do not necessarily reflect the views of associated salons or partners.
ABOUT THIS ARTICLE
AUTHOR | Kelsey Taylor
Silkstone LLC Founder
Kelsey Taylor is a licensed cosmetologist who transitioned to the beauty industry after managing strategic marketing efforts for companies in corporate America. With experience as a stylist and overseeing operations for corporate salons, Kelsey now focuses on providing a valuable content bridge to help independent stylists and small beauty business owners keep up with big business and make their mark.
SILKSTONE LLC
We make working independently easy.
Silkstone was created to serve independent stylists & small salon teams and help them create, advertise, and manage their small beauty businesses so they can build a successful independent career without relying on a corporate salon.
© 2024 Silkstone LLC. All rights reserved.
Disclaimer: The opinions expressed in this article are the author's own and do not necessarily reflect the views of associated salons or partners.
CHECKOUT OUR DIGITAL RESOURCES
MANAGE YOUR SMALL BEAUTY BUSINESS LIKE A PRO
Download easy-to-use digital tools & calculators designed to help stylists and small beauty business owners get big salon results.
CHECKOUT OUR DIGITAL RESOURCES
MANAGE YOUR SMALL BEAUTY BUSINESS LIKE A PRO
Download easy-to-use digital tools & calculators designed to help stylists and small beauty business owners get big salon results.
© 2024 Silkstone LLC, All Rights Reserved.