Renting a chair has become so popular that it is estimated around 70% of salons are following this business model. What made the salon chair rental so popular and why it is rapidly expanding?
It use to be looked down on, but this negative profile has been changed as more and more salons are taking advantage of this opportunity.
Obviously, there are benefits to starting your own salon chair rental service over the traditional method of doing business.
Here are some of them listed.
1. When you rent a chair in your salon, you become the landlord of that chair rather than an employer consequently, all you’re concerned with is collecting your rent each month. Similarly, if you decide to sell your salon chair rental, the buyer only has to be consumed with the same task… collecting rent! They won't be worried about transferring all of your employees’ entitlements.
2. Your salon chair renters will govern their own business. No longer will you have to arrange lunch breaks for your stylists. Whatever the stylist decides, they have to pay you for renting that chair at the end of the month.
3. You do not have to worry about paying your stylists for working overtime. In this rent-a-chair model, the stylists can choose to work for as long as they want or as little as they want. They can even choose to come only when they have an appointment scheduled with their client. Nothing makes a difference as long as you receive the salon rent at the end of each month whether the stylist does business or not.
4. Your record keeping pertaining to your employees such as the wage records, time sheets, pay slips and other records will not have to be maintained. That itself will eliminate a lot of clutter from your office or wherever you keep them. A great weight is lifted from your shoulder because the salon chair renter is responsible for all her own records.
5. There can be a lot of red tape and procedures to be followed with employees and apprentices. With renting a chair to another stylist you do not have to worry about a variety of rules and regulations apart from insurance and your salon security.
Those traditionally operated salons use to look down upon the renting a chair model. But with benefits such as these, and the high turnover of staff and increased running costs (minimum waybills) and naturally making money, I don’t think we’re ever going to see a decline in the industry. In fact, this is turning out to be a blessing in disguise for many hairdressing businesses that have seen a decline in revenue streams due to the recession.
Equally, there are benefits to why you should consider renting a chair in a salon.
This can give you credibility if you are able to establish yourself in a reputable salon
You can tend to more customers in one day as appose to the travel time allocated to traffic problems.
Other staff in the salon could support you in other areas you are weak in.
Clients could feel much more confident in using your service because you have an established and reachable business address.
You could benefit from joint advertising and promotional campaigns.
If you're thinking of setting up in business or expanding your business during these economically challenging times, a couple of publications may be of benefit to your business.
However, there are certain things potential renters should also look out for in order to evaluate the financial commitment when renting a chair.
How long has the salon been established?
What type of customer base do they attract and are they similar to the client base you want?
What level of footfall do they have each day?
Does their opening time work with your client base?
What level of support would you be getting e.g appointment book, telephone answering, availability of working space and facilities?
How many rent-a-chair clients have they had in the past and how long have they stayed?
Do they do any advertising?
Are they in financial trouble hence why they are renting a chair?
Who would you be reporting to and could you get on?
How much money would you have to pay upfront and what are the guarantees?
It is estimated that the hairdressing sector is set to grow over the next 3 years by 15%, especially in specialist areas such as hair extensions, hair enhancement and specialist technicians and consultants.
Training is now available to assist anyone wanting to expand into this market and then take the opportunity to rent a chair in many of these salons today.
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