Is this a fair deal?

[ownerest]

Hi, I was just wondering what you guys think about this deal?I just interviewed at a massage establishment and was offered a position as an independent contractor. It would be 2 6-hour evening shifts, and 1 6-hour day shift per week. The establishment is very nice, with spacious, nicely furnished massage rooms. Here's the deal- Rent would be $450 a month, that's $150 per month for each day you have the room (for a 6hour shift). Linens are provided, but you pay $1 each set for laundering. Must provide you own oil. Water and hot tea is availible for you and clients. The MT's take turns buying different supplies. One month you might have to buy paper towels, one month you might buy stamps, etc. Marketing and promotion is all taken care of. Any discounts etc, are voted on by the MT's. You are provided a 1099 for your taxes. Appointments are scheduled for you. This establishment just opened a year ago, and has grown more than expected, and expects to continue growing. They are extending their hours during the week to be open 9-9 5days a week, they are current M,T,W 9-6, T,F 9-9, S 9-1. I was told no one has ever not made their rent. That most of them average 3 clients per shift, sometimes less, sometimes more.I'm thinking I will take the position, at least for a while. I'm currently renting out of a salon near my home (in a much smaller town than the other place), and I've been making rent (for the most part), but it's just not picking up after several months... I will be listed in the yellow pages coming out next month I'm hoping that helps- but I know I could do both jobs for a while and see what happens??So, does the offer sound fair?

 

[colourtheskywithyou]

Something about it doesn't jive with me, but if the other MTs are happy with the situation then I guess it works.  If you don't have to sign a lease then I suppose you could give it a whirl, no harm done.

 

[stromhappyak]

Is this a fair deal?

Depends.What will your average rate be for 1 hour, or do they set that for you?Think of your rent as a % of your gross income. If it is higher than 12%, that spells trouble.I don't like the taking turns bit - no incentive for anyone to conserve or think twice about certain supplies.who covers advertising? How are they growing?

 

[SUPER_TOOTH_FAIRY]

Is this a fair deal?

I'm a little confused about the rent... Is rent $450 a month? That would work to about $112 a week or $33 a shift. It would depend on how much is being charged for each session. I think I need more information to really say if it is fair.

That most of them average 3 clients per shift, sometimes less, sometimes more

This concerns me... how often is sometimes less? Once a week, twice a week? How many days do the other therapists work a week. What happens if you end up with a whole week (or more) of only 1 client per shift? How do they split the massage appointments? The fact that they are making the rent is good, but are they making ends meet beyond that? Are the other therapists happy with the arrangement?Like I said it sounds like it has potential, but I would need more info.Jenn

 

[Radu]

Is this a fair deal?

Thanks for your responses.A 1hour session is $60.I was looking at the booking, and most of the MT's had at least 2 clients when they were on the schedule, the 3 more established MT's had 3+ most days, the 2 newer ones have only been on the books for a couple weeks, they both looked to have at least 1 client a shift so far. The owner is an MT, and is going to stop massaging, she was doing 4-6 massages 3 days a week and picking up up the slack for the other MT's.The owner takes care of the advertising, but some of the cost of supplies is split amongst the MT's- like I mentioned above with the rotation.As far as appointment scheduling, the owner and MT's are the one's now answering the phone and scheduling in clients. Apparently she is now seeking someone to just answer the phones, greet clients and do light cleaning.I'm not crazy about the rent and the rotation on purchasing supplies, but....

 

[guy_with_plan]

I've always thought if you were an IC then you don't have to pay rent on top of that?  Renting space is renting space, and being an IC is being an IC. I can see chipping in a bit, perhaps, as an IC, but they're getting a perceneforum.xxxe, so why do they need you to help out further?And if you're paying that much shouldn't you have 24 hour access? I think I just need a little more massageplanetfeine to figure this out?! Jill

 

[Door Knob.]

Jill I don't think they are getting a %.  I think it's just straight rent.But I am confused too trying to figure this one out.  They provide the space, furnishing, linens, advertising, pricing, and your tax info?Please help me understand this type of business arrangement.  It just seems like you should be an employee.  I am definitely missing something.  Please someone have pity on me and help me understand! :-[

 

[cheyenne]

Okay, I think I am confusing IC with being self employed.  They are not interchangeable.

 

[tott1]

Is this a fair deal?

If you think the place is going to be successful, go for it, but you cannot pay rent and receive a 1099. You pay the owner of the establishment rent. The client pays you for massages. It must be that clear or there is a different relationship going on. Rent = self employed. If they want to have Independent contractors on a perceneforum.xxxe or per shift or per treatment split, that's different.All the facts don't work out here.hmm.Jill/sagetherapist

 

[TOOT]

Is this a fair deal?

I think this is a semantic problem.The word "rent" is something people can understand.The term IC implies a % or standard fee per service, but it is not necessarily so.What they are doing is taking a fixed monthly fee/shift from the MTs instead of a % of each service. Sort of like a gym membership. This is perfectly legal within labor laws and creates an incentive for the MT to bring in as much work as possible. After you make your fixed obligation, it is all yours minus the linen fee.This sounds more like a cooperative than anything.

 

[i love makeup<3]

Is this a fair deal?

Yes, this thing confused me as well. The client actually pays at the front desk. It's all tracked on the computer with the schedule and client booking. The owner writes out checks 2 times per month, mid and end of the month. Rent is due on the first of the month. She did say she prints everyone a 1099 for their taxes. And I do have to sign an 'Independent Contractor' contract...

 

[Right Round]

Here's my opinion...DON'T DO IT!There are soooo many other opportunities out there.  This whole set-up seems shady and quite confusing.  If you are paying the woman rent, she can't give you a 1099.  I wouldn't get involved in this at all.  Anyway, rent is way too much for the time that you're allowed to use the space.  Here's a question to ask her.... "Why do you give me a paycheck but I've got to pay you rent?" I'd like to know what her answer is.  If you truly want to work there, tell her that you'd like to be paid a perceneforum.xxxe and not pay her rent.  If she really has that much business, she'll make more in the long run anyway.  

 

[Dadeo]

Is this a fair deal?

If anyone is interested, I sat down with a calculator and threw some numbers around. According to the figures I came up with: as long as I'm averaging more than 1 client per shift, the rent along with the linen laundering fee, and figuring $20 on supplies- it would still work out to be more in my pocket than if she took say 40% from each session fee. From the looks of things, I should be able to average more than 1 client per shift starting out. But, still is a bit scarey going into...

 

[spartanburgreat]

Is this a fair deal?

Definitely have the boss write up a contract, even as an employee it's good to have something in writing so you know what are your responsibilities. That situation sounds a bit confusing because as an employee you shouldn't have to pay rent, for laundering or trade off buying supplies with the other mt's. An employer should take care of those things.Not to mention, the whole thing about therapists taking turns making purchases sounds like a setup for being taken advaneforum.xxxe of. I agree, I wouldn't take it either, hold out for a better and less confusing offer. But if you are eager to get your start and feel okay with it, go ahead, the worst (best) thing would be learning from the experience.