Negotiating Rent

[Lisa N]

There is a new salon opening interested in having a massgae therapist.  The room available is a GREAT size.  More than enough room for table and supplies, also it has it's own bathroom with shower.  It's in a great location on a mainly business but historic residential part of town.  There will be three stylists starting, two seasoned with solidly booked regulars and one who is new and will be drawing mostly from the college...students and faculty?I am seriously considering making the move.  I don't have regulars built up at the salon I am at now.  The room I have now is TINY and no water available.  The business arrangement will be pretty much the same - basically I take care of all my business related matters and pay them for use of the room.  BUT...I am wondering how to negotiate rent because the gal I spoke to (no one has ever dealt with MT before) said they are charging a "booth rental"  of $150 week.  They would be willing to be paid 30% of my sales (which is still what I am doing at the salon I am currently at) for 6 months then go to rent.  I am afraid that I won't be able to come up with $600 a month.  Well actually that's not true, I make more than $600 a month but not much more.  I have been at my current place for almost one year (I did take two months maternity leave in the middle of that) but the best I've done is 10-12 a week.This area is still being introduced to massage therapy and so many people have never even had one.  I find that alot of gift certificates get sold for massage but not that many come back (BTW I don't get GC money right now, but would be handling it myself at the new location).  So I feel I am struggling to get regulars and I don't want to trap myself into $600 a month.  On average I've been paying between $250-$300.I am working on getting more business - I'm taking a spa class in Oct.  I've implemented a maint. plan.  I could look into being an apprentice for facials (in this state stylists are allowed to do facials and I could be an apprentice under one of them) so I feel optimistic that I will be able to make more money with more services.Agh, I am rambling.  I really want this space and I'm very unsure that I can make a living in this town so $600 sounds like alot!Thoughts...Experiences?I really appreciate it!

 

[Danni A]

Anita, whether you think you can or think you can't, you are absolutly correct.I'm sorry, I can't remember the size of your town, but it sounds like the salon is in a good part of town.  I wouldn't be too optomistic to snare too many college students as regulars.  It'd be a wonderful place to do chair work, esp at finals time.  Your success will be better if you have a great relationship with the stylists...if they believe in massage and will refer their clients to you.  It is essential for the salon that everyone work together as a team, referring business to each other.  I know this because I spent a year at noisy salon and got about 3 refs from the stylists.  Made it pretty hard to stay cheerful...most of the stylists knew what I could do, experienced it themselves from time to time.  Rent?  Do you think they would accept a per occasion payment?  At my location, "the Nutrition Shop"  I pay each time I use the room, $10/hour, well, I pay once each month, the manager keeps track of it.  Would you get a set of keys to be able to be flexible with scheduling?  Will they provide a receptionist that will schedule for you?  This can be good AND bad.  Good luck!  mick

 

[Lil Mz Qu33nz 24/7]

Mick, I know, I know the whole like attracts like universal law....I'm still trying to trust that.  This week I cancelled a massage appointment I made for myself because we are short on rent (for our home) then all three appointments I had on my books cancelled.  Spending money to make money is a very difficult thing for me to do.The stylists where I am now always talk about me to their customers.  The stylists have had massages by me and they enjoyed them, but none of them are regulars.  So I'm not sure how long I should give it to see if the clients there are going to give it a try.  At the new salon I would have a key and I can set my own hours/prices.  Right now my prices are on par for this area.  (small town mentality, with a good college)  I am not counting on college students at all.  My hope would be the faculty.  Another stylist isn't even taking new clients.  She said her clients range from 30s-60s with quite a few stay at home moms. :-/I do my own advertising so I kind of feel like whether I stay or go I am building my business from my advertising and marketing and I'm not counting so much on stylist's clients to become my regulars.The main selling point is the room and my ability to build a regular client base.Thank you for reminding me about pay by use.  I knew a gal who operated this way and it would have worked well for me then.  I'll keep it in mind and play with scenerios to see if it would work for both ends fairly.Edit:  They don't have a receptionist just now, but I have just taken back doing my own schedule for the simple fact that my schedule is so crazy sometimes with three different businesses between my husband and myself and also having a new baby.  Mostly I work Wed-Sat, but sometimes I can take same day appointments and sometimes I can't.  It's easier if I just handle them anyway.

 

[Lil T]

Negotiating Rent

Okay Anita,For the first 6 months, you'll be paying a perceneforum.xxxe. Agree beforehand to take a look at the numbers at 1 month, 3 months, & just before the 6 month mark with the person making the decisions there. If this is a good thing for you, you will probably see that going rental might even be easier than paying percent. But have a few options out on the table for both of you to discuss: rent, perceneforum.xxxe, a sliding perceneforum.xxxe scale, a per use fee, paying weekly versus paying monthly, etc.You're so right to feel that the success you build is on your shoulders. Its great to have the referrals from the hair dressers. My first salon job, I paid weekly rent ($187 a week!!!). Walked in with no clients, but alot of nerve. My first week I made rent plus about $30. By week three (I am not kidding here) I was doing 12-20 massages a week. The owner (also one of the hair dressers) and about 3 of the other gals working there loved talking about massage to their clients. My only other option at that place was to be an employee with a 50/50 split or do rent. I figured I had to do 3 massages a week to make my rent. From the very get-go I intended on doing at least 3 a day, so I was fine with that risk. I opted for rent so I could set up my business on my own, sell product if I wished, sell my own gift certs, etc.Good luck.This sounds like a nice place. In a year at the other place, you haven't built up enough roots to keep you there, so maybe this is your fork in the road!Jill/Sagetherapist

 

[Porcupine]

Jill,Your experience gives me a boost of confidence although admitedly, I think you have a better "seforum.xxxe" presence (ha ha) than I have.  Okay, my marketing in the past year has really gone to the way side as I was preparing for my first child.  I wanted nothing more than to focus on what kind of parent I'd be as I let the salon fill my books.  And before Lindsey's arrival the books actually weren't so bad.But I want that room at the new salon, and I am feeling motivated to get my marketing arse in gear.The truth is that in the next six months I can either stay in my small room and get the ball rolling or I can move to the bigger room w/ shower and get the ball rolling.  Everything else will be the same.I am really wanting to move and so I probably will.However, I am still wondering if anyone has specific experiences negotiating rent.I'd like to give it a try even though I will probably move anyway.  I'd like to negotiate it down to $400 after the six months is up.I really don't think she'd find a massage therapist in this town to pay $600/ month.  Especially when she is basing that price on a stylist's potential.  I am providing all my own equipment, but she is buying all the equipment for the stylists.  Is that the kind of thing to point out when negotiating?I really appreciate everyone's experience and wisdom on this board and look forward to hearing how you've negotiated, what negotiating tools you've used, and the outcome....my personal situation aside.Thanks!

 

[Tracy]

Jill is great, I'm always glad to see her post.  At the noisy salon where I worked, stylists paid $135, I paid $90/week.  I paid per month, not realizing that at the time that it shorted her a week or so of rent.  Should you bring up the fact that you are providing all your equipment?  Yes.  Good point, making the differentiation between stylist and MT...haha, if we could have 3 clients going at the same time, we'd make more money too.  "let's have you sit here and marinate for 30 minutes while I take care of Ms. Smith..."  "Mr. Jones, I'd like for you to sit in the steamer for 45 minutes while I finish with this client." I would not want to work that way, even if it'd double my income.College staff and stay-at-home moms are great clients.  They need the work and usually have some discretionary income...or else they'd be going to great clips or cost cutters.  It sounds like a great place, some great people there already and you'll be great when you move there too.  Pack your stuff!  

 

[Alvie]

Mick, thanks for giving me an idea of the difference in rent prices.  I will talk with her tomorrow and throw out some ideas and different rental pricing. I have only one college staff who comes to me when she gets her hair done, so I might lose her if/when I  move.Stay at home moms have not turned in to regulars for me...yet.  I really don't know why.  Maybe they don't really have the income.  I live in a very conservative christian town and women seem to stay at home to raise the kids whether the husband is bringing in enough to pay the mortgage or not....but then again, those same women seem to always be wearing great clothes with handbags to match and spending money while out with the other moms.So maybe it's my marketing efforts.  Thanks for your encouragement and first hand experience.

 

[Mindy]

Sounds like you should offer to pay less per month.  Although, do not offer to pay $600 the first few months and then expect to pay $400 later on.  It won't happen.  Rent increases as time goes on.  Offer to pay $400 but know that they may say no.  If you really want the room, then maybe offer $500 but in the end you may have to agree on 6.   Sounds like you really need to brush up on your marketing.  It is the most important thing you'll need to build your business right now.  You may also want to think about raising your rates just a bit to help cover the costs.  If you don't have a lot of clients follow you to the new place, that will make easier.   One other thing to be careful of ~ if you do go to the new place and sell your own gift cards, put the money away and do not spend it until they are redeemed.  I think it's one of the biggest mistakes you can make as a therapist.  You haven't earned the money yet, so don't spend it till you do.  Sure it's tempting but you shouldn't get in the habit of using that money to pay the bills.  

 

[Gwillam]

terab, thanks for the tip about the gift certificate sales.  It's good advice.Well I put together a proposal first listing out my ideal business arrangement setup...basically I handle all aspects of my business including GCs and also hanging my sign next to theirs.  Next I put down a rental agreement proposal 30% for three months w/ option to renew for 3 more months then a rent of $90/week with a side note of "or another negotiated and agreed upon amount"  and also stated that the room would not be split, divided, or otherwise shared. (Had I mentioned that they wanted to at some point make the room into two rooms to add a facialist...I hadn't measured the room, but I felt that would make it really small for massage)They said that they thought everything was great including hanging my sign out front, but they wouldn't be able to rent the room for $90/wk...they could do it for $150/wk.  :-/Also they could promise not to split the room for one year but then they'd want the option to divide the room.I said I'd think about it and get back with her.I will probably take it.  It still is a better business arrangement than what I have now, and I'll have six of the busiest months to build a regular clientel and a full year in a big room w/ shower.  And then I can search for a little spot to call my own.I am disappointed though that there was no negotiating.  Maybe I started too low.  I was hoping to negotiate it and end up in a happy middle of say $100/wk or $105.I get the feeling that they really could take it or leave it with a massage therapist.  They could just as easily make that into more room for more stylists and so I don't really have any negotiating power if someone could do without my services.I still am interested to hear negotiating stories though so I will probably start another thread on it without my personal saga to get in the way.Thanks so much for all responses!!  I REALLY appreciate having a cyber peer support group!

 

[macho man]

$150/week was the original offer, for them to counter with their original offer told me they were not willing to negotiate.  If they had said "We're willing to negotiate a little but $90/wk is too low" then I would've felt an invitation to come up with another agreement.  I think that they know they would get more being paid weekly which is why they want it that way. I spoke with her today and was told that the 30% would cap at $150/week and that if after six months I didn't feel I had the business to cover rent I could bail.  Seems like a pretty low risk move.  I accepted those terms and told my current salon today, which was taken quite well.Thanks for your encouragement!

 

[Strokin meh Pen0rz]

akb, i think your correct on the whole neg. thing.  seems like they weren't interested in negotiating.  sounds like you got a nice deal anyway.  i think you'll find making the rent not too big of a deal.  sounds like you should be able to draw from the people in the salon which should work out really well for you!   good luck!

 

[Question Everything]

Negotiating Rent

Yes, Anita!Now that the bargaining part is over with (even if it was less eventful than you would have liked), the best part begins now! Cool!Wishing you success!Jill/Sagetherapist

 

[gotcuddles1]

Thanks Jill!I am very excited and will go into it with a lot of nerve too.  I really see some of the current events in my world shaping up to be the next chapter toward my definition of success!