Industry News

8 Booth-Renting Realities: Why Choose a Salon (Company) Rather than Independent Contracting

Lauren Salapatek | March 26, 2015 | 11:34 AM
Would you choose booth rental? Or would you choose working in a salon? (photo credit: Getty Images)
Photo By Getty Images

Thinking of booth-renting? Some would say it has its advantages…or does it?  

Ask any booth renter why they chose the path of independent contracting. One of the most common answers you will hear is that they were seeking freedom. But is the freedom worth it?

According to StrategiesNeil Ducoff, there are a number of reasons why a beauty professional should choose working in a salon/company atmosphere rather than one that offers booth renting.  

“The rental reality is that it will take you longer to produce the same revenue and income,” he says. “Not all clients will follow you, you have to prep your own clients, schedule your own appointments, purchase your own products, ring up your own sales, manage your own finances, report your own taxes at a self-employed rate and…you have to do your own laundry.”

Does booth renting still seem like a good idea to you? According to Ducoff, there are some harsh realities in booth renting that are kept "hush-hush."

In a recent class at America’s Beauty Show called, How to Compete With Rental Salons, he offered these reasons why choosing a salon/company is more advantageous than going at it alone.

A salon company has…

  1. STRUCTURE: You can move up the ladder in your career.
  2. A TEAM: “The advantages of being part of a team are numerous,” he says. “A team understands the goal of the company and understands that together everyone contributes to the numbers. A salon can bring in new clients/traffic through its branding and this gives more work to the employees. Clients may recognize the brand and want to go to a salon like that.”
  3. A BRAND: It’s a salon’s identification. As an independent contractor, do you have your own brand?
  4. STANDARDS OF PERFORMANCE: The salon provides consistency and high-levels of execution and consistency. Having standards of performance is a huge motivator for employees.
    Versus….going at it alone: Ducoff says, if you opt into independent contracting, you may be part of a salon with other stylists around you, but everyone has their own mini-business to run. You may miss out on what it’s like to work in a team environment which can provide encouragement, feedback and motivation. “Choosing an employee-based company provides more motivation, and people go farther faster when they are part of something. If you choose independent contracting, you have to be on top of your game constantly and find motivation within yourself.”
  5. COMMITMENT TO EMPLOYEE GROWTH: Salons provide training, skill development and advanced education opportunities (many of times paid by the salon). Salons provide mentoring in order to push their employees to their highest potential.
    Versus…going at it alone: “If you decide to do independent contracting, you have to: mentor yourself, be responsible for your own skill development and you have to push yourself to reach you own full potential,” says Ducoff.
  6. SECURITY: A salon offers security, education, vacation/holidays, health insurance.
  7. THE ENERGY OF TEAM CULTURE: “People are locked into the objective of the company. It’s about doing great work and providing excellent customer service. You can’t do that as an independent contractor,” says Ducoff.
  8. SALON LIABILITY INSURANCE:  “When you go at it alone, you need to be in charge of your own phone, you have to purchase your own insurance, you have to be the Front Desk and Guest Services, you have to be you own assistant (for prep), you have to purchase your own products, you have to do your own housekeeping, you won’t get worker’s compensation benefits,” says Ducoff. “Working as part of a company, you don’t have to worry about all of these things at once because you’re part of a team and everybody is a piece of the entire puzzle."

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