Pay per use vs. lease agreement?

[Kaio j]

I'm in a situation where I need some advice.  :-/Currently I'm in a month to month lease agreement. My lease says "to be reneewed monthly at the first of the month". As it turns out - after several months and a lot of financial struggle - the rent payment is too much for the amount of business coming to this location. Background info: Established business that added massage as an additional service. Rented 2 rms to 2 MT's. We were told prior to renting that its a high traffic location with hundreds of people weekly. Data base of 3,000 clients and 1,000 current clients. All advertising and scheduling would be done for us.With out getting in to too much detail,  a  lot of what lead me to this location was hype that convinced me to try it out. I did and am not making enough financially to survive.I'd like to end the lease agreement and continue at this locationan with a pay per use agreement.My question is does anyone here have experience with pay per use and what amount should I suggest? $10.00 per hour $5.00 per half?  :-/any advice would be most appreciated :-*

 

[babydoll]

Pay per use vs. lease agreement?

I would find a new location altogether.Assuming they would allow the transition, they would probably find a 2nd therapist to do the same as you.The location has already proven incapable of generating the business you desire (if you had a lot of clients, but the rent was too high to make it worthwhile, you would be trying to renegotiate your monthly)So you will have to find another way to get clients, probably another location or working from home.Too many therapists have their fingers in too many pies to focus on building a practice and being successful (I think the schools do a great disservice to therapists telling them to diversify so much).The less you are available at your current location, the less work you will get, which will make it not worth your time and the landlord will want to find someone to be there.Find a new location and start on a per use lease, but committ to being there and building your business.How much to pay depends on rates in the area and the landlord's alternative income for a fixed monthly. You have to get them to want to share your gain and your pain, so you have to show them some upside, probably 20 - 25% over fixed rent if you have a good month.

 

[jimmy_mankoo_86]

Pay per use vs. lease agreement?

Average price for a 60 minute massage here is $65. Average per-use fee is $15/hr.

 

[thatlaurengirl]

Have you talked to the manager at all about your situation? Maybe they could do more advertising or run some specials to get you more business, or allow you to do some of your own to get enough clients to pay the rent as it is. Just something to consider. It does take a while to build up a new practice, but if the number of clients you're seeing insn't increasing at all, you may be right that the location just can't support you. I agree with R&R that it might be better to just go somewhere else rather than negotiate a pay-per-use at the same place.  If you do decide to go that route, I'll give you my situation for reference: I pay 25% of whatever rates I set for my own clients, and 50% for referrals from the owner for clients she's too busy to see. I can do trades for free, as long as my paying clients are bringing in a reasonable amount. I do most of my own advertising, which I love, although I also get the majority of new business coming from her yellow pages ad since she's pretty much full now. I use her table, linens & laundry service, cd player (I brought my own music only b/c I don't like many of hers) and hydrocollator packs. We've talked about adding an extra mail box to her voice message system for me, but at this point I'm just using my home phone. Good luck with whatever you decide!

 

[Tita]

The average rate for massage around here is $65 and per use fee is $15-$20.  These are for rooms where the table, music, etc. is provided and the therapist only needs to bring their linens and lotions.  People who are renting on a per use basis usually do so under 2 different circumstances:  one is just a once-in-a-while thing.  Perhaps they do house calls and have a few clients who they do not want to go to their homes or the home is under construction or something and they need an office.  The other type of per use therapist is the one who is just starting out and intends to go to a monthly rate at some time, but cannot afford or is a little afraid to commit to the monthly rent at the beginning.  Along with this, there are usually 2 types of landlords.  The first type is a therapist with space that they don't use on certain days or certain hours and the extra income would be "nice", but maybe isn't absolutely necessary.  These are a good match for the "occasional use" therapist.  The other type of landlord is usually the one with a totally empty room and the want/need to make a regular income from this room. These are the types that are best suited to the therapist who is eventually looking to go month to month, but who just needs a boost in the beginning.  

 

[Jackie C]

Pay per use vs. lease agreement?

When I left the noisy salon and moved into a place with nutrition, he said initially rent would be $15/hour, but since we're in the same BNI group, he made it $10/hour, $5/half hour.  He supplied the table but nothing else.  It is working great for me.  I can schedule when I want, it is quiet.  Quiet is soooooooooooooooooooooooooooooooooooooooooooooo nice.  Did I mention that the salon was noisy?  

 

[liamjlewis]

Pay per use vs. lease agreement?

LOL Mick ... so tell us, is your new office quiet?  ;D

 

[Janina]

You know, it is, unless the belly dancing class or martial arts class gets wound up.  And they don't come close to equaling the salon.  I kinda like the belly dancing music, I just turn my music off so they don't try to compete.  I suppose I could lessen the gap on the bottom of the door to quiet them down a bit, but in my mind and with the client that I see most often, it is not an issue.  How do I get those dancers onto the table?? must think about this.  mk

 

[marcellinus_max]

Pay per use vs. lease agreement?

Oh, that's easy! Belly dancers need to be able to move their hips well and extend their backs. Massage increases mobility and ease of movement, no? If a dancer's pelvis is rotated, she will not be able to figure 8, etc. her hips as well as she could. Do you know Deep Tissue work for internal and external rotators?