Friday, September 21, 2007

ADVANTAGES AND DISADVANTAGES OF BOOTH RENTAL

In many states Booth Rental is not permitted by law. The concept of Booth Rental is easy, a Salon / Spa Owner provides a room or a chair that can be rented on a weekly or monthly basis. The Stylist / Technician works as hard as he/she wants to and keeps all they make less the rent.

ADVANTAGES FROM THE SALON OWNER'S POINT OF VIEW
Similar to a Landlord-Tenant Arrangement
Same income every month
Little Risk
Very Easy to Manage

DISADVANTAGES
Multiple Businesses inside your own
Little opportunity to increase business
Little Reward
No Team Work

ADVANTAGES FROM THE PROVIDER'S POINT OF VIEW
Own Boss
Keep all you make
Build your own Clientele

DISADVANTAGES
No Control of Facility hours or rules
High Risk
Competition inside same Facility
Income Fluctuation
Little organized growth opportunity
Doing Your Own Sales and Marketing
Little Recognition

COMMISSIONS:
Commission based pay is probably the most popular form of remuneration in the Salon / Spa Industry. Commission rates are usually set by skill level, length of service, or size of client base. In Resort / Destination Spas and Salons there is much competition for the prime spots in the reservations book.

ADVANTAGES FROM THE OWNER'S POINT OF VIEW
Providers Eager to work
Easy to Manage
Little Risk

DISADVANTAGES
Difficult to match pay to service level
Difficult to make profit
Multiple Agendas under same Roof
Little Team Work
Pulling Teeth for "In Service"
Performance Evaluations almost Meaningless
High Provider Turnover

ADVANTAGES FROM THE PROVIDER'S POINT OF VIEW
High Rate of Pay
Little Supervision
Build your own Clientele

DISADVANTAGES
Few Raises
Little opportunity for Growth
Competition for work
Seasonal Income Fluctuation
No Benefits
Taking time to help others may cut into income

By
Skip Williams

As a Booth Renter, you have certain responsibilities. Our Sample Booth Rental Agreement addresses these responsibilities and much more. It is available to purchase and download here.

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