Case Study: Making the Upgrade From Booth Rental to a Private Studio Salon
Thinking about making 2020 your year to become a business owner? If you’re currently renting a booth and sharing a shampoo bowl, making the transition to a Denver, Boulder, or Lone Tree studio salon provides an opportunity to create your own brand and experience for your clients (with your own shampoo bowl 😊), while being surrounded by a supportive community. It may also provide an opportunity to increase your earnings. Taking the leap into entrepreneurship is an exciting step. We’re here to help you determine if it’s the right time to make this business move, and you can start by taking a look at a case study conducted by our Market Manager, Kandice Martinez. Here’s how the numbers worked out for one of our newest Indies, who made the transition from booth rental to a private salon studio:
Evaluating the Current Numbers
In this case study, we’ll walk you through Christina’s booth rent situation and compare the numbers to her potential earnings as an Indie. We recommend collecting at least nine months of data, but a minimum of three months’ numbers will work, too.
Christina rents a chair at the time of this case study; here’s an overview of her current situation:
- Christina takes home 100% of her weekly service sales and 10% of product sales.
- She’s currently earning $2,000 per week in service sales.
- She receives 10% of product sales and takes home $20 per week from the sale of products.
- Her gross weekly take-home pay is $2,020.
- After deducting her rent payment of $285 and $50 in other expenses, her net weekly take-home pay is $1,685.
Studio Salons Earnings as an Indie
Now that we’ve assessed Christina’s current situation, here’s what she’ll take home as an Indie-preneur if her client base and sales stay the same:
- At Indie Salons Studios, Christina will take home 100% of her weekly service sales.
- She’ll keep 100% of the earnings she makes from product sales.
- As an extra perk, she’ll earn a 10% rent credit on the wholesale cost of professional products purchased through our wholesale beauty supply program.
- Christina selects a studio with weekly rent of $330 (Indie’s private studios start at $229). After deducting rent of $330 and $50 in other expenses, Christina’s net weekly take-home pay is $1,730. She just gave herself a raise while enjoying the benefits of being her own boss!
As you can see, becoming an Indie-preneur has the potential to significantly boost your earnings and independence. If you’re tired of sharing a shampoo bowl and renting a chair, contact us for a complimentary budget analysis. Kandice is happy to help you determine if this is the right time for you to venture out on your own and become an Indie. In addition to the freedom and flexibility that come with being your own boss, you’ll enjoy being part of our supportive community. We’re all in this together, and we love celebrating and inspiring our fellow business owners. Interested in touring one of our premium locations in Denver, Lone Tree and Boulder? Get in touch with us today to start the process.