Booth Rental Salon vs. Commission Salon: Which Is Better?

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There are two types of salon business models. The booth rental salon is when the owner rents out space to stylists. For commission-based salons, the salon staff are a part of the business and are receiving commissions instead of a salary. In this episode, we'll talk about the difference between the two!

Renting out a seat in your salon is more like renting out a condo or an apartment. You don't have that much control over your environment or the tools that the stylists use. In this business model, you're more of a landlord rather than a salon owner.

But commission-based salons are completely different. Here, you're encouraging your stylists to work together, and you make them feel included in what you're doing because it's no longer just about their individual success- it's about the success of the entire salon!

For commission-based salons, you can set up standards so that you cultivate an environment where your team is comfortable. And when the environment is pleasant, clients are more likely to come back.

At the end of the day, you need to do your research and really ask yourself what kind of salon you want to own. Do you want to be a landlord or do you want to be a salon owner?

TIMESTAMPS:
00:00 - Should you switch from a booth rental salon to a commissioned salon?
02:22 - Why did Ashley and Mandy transition from a booth rental salon to a commission-based one?
05:55 - How has the transition affected their revenue?
07:37 - What advantages did the owners and the salon staff get after they switched?
10:58 - How does their current staff compare to their booth renters at the beginning?
13:55 - How did they talk to the renters about the transition?
16:00 - How long did the transition take?
19:21 - What are some tips for salon owners who are interested in transitioning from a rental salon to commissioned salon?

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