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Booth Renting In A Salon Vs A Salon Suite Rental

By May 3, 2023Salon Spa Blog
The cost of owning a beauty salon

What is the difference between booth renting in a salon and a salon suite rental?

We are going to explain it all to you in this article. We are Salon & Spa Galleria, leaders in the Fort Worth area with twenty-two salon suite rental locations so, you see, we have some game when it comes to this question/topic. Call us at 817-917-1416 for more information about our luxury salon suites for rent.

Now, though, let’s clear up the confusion that exists about booth renting in a salon vs a salon suite rental.

What is booth renting in a salon?

Generally speaking, and traditionally speaking, booth renting in a beauty salon involves a beautician working as an independent contractor within a salon owned by someone else.  The pay they receive is usually based on a commission basis, and that commission is usually in the 40%-50% range, with the owner of the salon keeping the rest of the money earned.  There are also situations where not only is a commission-basis agreed upon, but the beautician also has to pay for any products used and/or a share of the receptionist expense.

In a business sense, in this scenario, the beautician does own a business, but it is not a place of business. They will still declare income as an independent contractor, and there will be limited tax deductions they can declare.  It is, in our opinion, the safest form of business ownership since the expenses and liabilities and risks are so small.

How does booth renting in a salon differ from a salon suite rental?

With a salon suite rental, the beautician rents a retail space, the salon suite, and operates their own business from that suite. There is no property ownership to be concerned about, and usually no long term rental agreement.  There are also the incidental expenses any business will face i.e. utilities, WiFi, insurance, and such.  This is true business ownership, keeping 100% of the profits, and the tax deductions are more. There is limited liability in this business model, and if the business for some reason fails to earn as much as was anticipated, it is always possible to fall back on the traditional work in a beauty salon owned by someone else.

A salon suite rental is not for everyone, but . . .

Owning a business, and keeping 100% of the profits, sounds wonderful, and it is as long as the profits are at the level you want . . . but . . . there is also the pressure to keep sales thriving, to meet responsibilities, to make all the decisions necessary for your financial survival.

It is not for everyone, and that is the harsh reality we believe is important to realize before making a decision on your future in this industry.

A final word about Salon & Spa Galleria.

Luxury salon suites at Salon & Spa Galleria begin at $75 per week, and that low, low price includes utilities, WiFi, a free HDTV, a web page, security monitoring, laundry facilities, and the full weight of the Salon & Spa Galleria name behind you, supporting you, there for you 24/7.