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Understanding Salon Suite Leasing

By March 10, 2023March 13th, 2024Salon Spa Blog
hair salon booth tips for better sales

It is understandable if you are a beautician who does not understand salon suite leasing.  The concept is reasonably new in the beauty industry, and there are quite a few hair stylists, nail specialist, microblading pro, etc., who are confused by the concept.  For all of you, we present this article, coming to you from Salon & Spa Galleria, leading the way in salon suite rentals, in the Greater Fort Worth area, with twenty-two salon suite locations. Call us at 972-691-7300 if you need more information or call us to arrange for a tour of our facilities.

But first, let’s talk about salon suite leasing and how it can benefit you.

What is salon suite leasing?

The best way to understand salon suite leasing is to think of the traditional hair salon, or nail salon, the one which has been on the American scene since the late 1800s.

The traditional hair salon was owned, obviously, by an individual, and that owner then “hired” hair stylists to work in “stations,” or “salon booths.” The stylists were not actually employees of the hair salon, but rather independent contractors working for commissions. Stylists typically earned 40% commission, and the owner of the salon kept 60%

The hair salon was typically a retail space leased by the owner of the salon. On rare occasions, the salon was purchased, but rarely did salon owners have that kind of investment capital to make a real estate purchase.

Now, take that traditional approach, and shrink it down to one owner, one room (salon suite). With salon suite leasing, talented beauticians own a hair salon, located in the leased suite, and that business is a one-person enterprise, with the owner keeping 100% of the profits.  In other words you, the owner, rent a suite rather than an entire retail location.

How can salon suite leasing benefit you?

Do the math and you can instantly see how this business model benefits you.  How many loyal customers would follow you if you opened your own beauty salon?  Let’s just do a practice scenario. Let’s say you have one-hundred customers who will gladly stay with you if you open your own salon, and on average each of those customers would be in your salon every other month, spending, on average, $100 per visit.

Fifty visits per month, at $100 per visit, will gross you $5000 per month. Subtract from that the cost of insurance and the cost of any product you sell, and you are probably looking at $4000 net, per month, and you keep all $4000 of that.  And that is just starting out, with a conservative number of customers.

But what about utilities, you ask?

We pay those.  They are included in your monthly lease payment to Salon & Spa Galleria.

The only thing holding you back

The only thing holding you back, then, and we say this in all seriousness, is you.  Not everyone is suited to be the owner of a business. Not everyone is comfortable making decisions which will directly affect their income daily. Some people are simply more comfortable being an employee, and only you can answer that question about yourself.

A final word from Salon & Spa Galleria

Salon & Spa Galleria offers a great opportunity to anyone dissatisfied with the status quo, and we have a salon suite waiting for you.  Call us today, come take a look at what we have to offer, gather all the information, and then make the decision that is best for you.