Case Study: From Commission Stylist to Beauty Entrepreneur – How a Salon Studio Rental Can Significantly Boost Your Income
Ready to supercharge your beauty business in 2020? Are you a Boulder, Denver, or Lone Tree area commission stylist at a salon, and do your clients keep coming back to you, year after year? If so, then investing in a salon studio rental has the potential to boost your pre-tax earnings by $35,000 per year or more.
Here’s a real-life example of how Boulder commission stylist and Indie-preneur, Kelly*, gave herself a big raise and became her own boss, in charge of her own life and schedule, with a salon studio rental at Indie. (*Name changed for privacy purposes.)
First Step: Know or Learn Your Numbers as a Boulder Commission Stylist
Kelly arranged a tour of Indie’s luxury salon studios and fell in love with the studios and the Indie community. She sat down for a budget analysis with Market Manager, Kandice Martinez, to discuss making the transition from a commission-based position at a salon to a salon studio entrepreneur.
Kelly provided Kandice with 9 months of her numbers, and her desired studio, which we outline below:
- Clients – 25 per week, on average
- Service ticket per client – $80, on average
- Product sales – Kelly sells approximately $200 in products each week
- Her weekly service sales = 25 clients x $80/service ticket = $2,000, on average
- Kelly’s private Indie studio of interest costs $330/week. (Single studio prices are $229+. We also offer shared studio spaces if you have a fellow stylist to share with you!)
We recommend having at least 3 months of your data, and if you don’t currently have it, we’re happy to talk with you about how you can obtain it.
Second Step: Analysis of Kelly’s Situation
Based on Kelly’s information, here is a comparison of what she makes at the salon versus what she can make as an Indie studio entrepreneur:
Third Step: Understand the Numbers
Kandice helped Kelly compare her current numbers to what she’d make as her own boss at Indie if her client base and product sales stayed the same:
- As an Indie, Kelly would receive 100% of her earnings from services – $2,000 weekly average.
- Gone are the days of just a 10% commission on product sales! As part of the Indie community, Kelly would take home her full $200 each week from product sales.
- Product cost is 50% of retail sales ($200*.5=$100).
- Plus, she’d earn 10% of product costs in rent credit when products are purchased through our wholesale beauty supply program (or she could choose to sell other product lines on her own). In this case, 10% of $100 or $10 rent credit.
- Her weekly expenses would be her chosen studio weekly cost ($330) + $100 product cost + $50 in other expenses = $480
- Bottom line: Kelly has gone from $1,020 to $1,730 a week, so she is estimated to receive an additional $710 each week, adding up to an extra $35,000 or more annually.
Kelly decided to become her own boss and joined the Indie Community, and she is more successful than ever before! We love stories like Kelly’s; it’s why we created Indie.
As you can see from our real-life case study with Kelly, a salon studio rental may be the best option for boosting your profit. If you’d like to see how far YOU can go as your own boss, we’d love to talk with you. Our Market Manager, Kandice Martinez, has 17 years of experience in the beauty industry, and is happy to help you determine if this is the right path for you. You can call or text 303-792-8222 to reach Kandice for a tour and/or complimentary budget consultation.
Indie Salons Luxury Studios provides more than just a gorgeous space to make your own–we’re a tight-knit network of beauty professionals who celebrate each other’s strengths and successes. In addition to our supportive community, the Indie team offers ample opportunities for continuing education throughout the year. We believe that each of our Indies has unlimited potential, and we’re here to encourage you to keep investing in yourself in order to reach your goals.
Ready to take a tour of one of our locations? Contact us today. We’re excited to show you around our brand new studios in Boulder, Denver and Lone Tree and talk more about how becoming an Indie can help launch your career as an entrepreneur with all the benefits of a friendly, supportive community around you.