Allure Salon Suites, LLC
Allure Salon Suites offers private luxury suites for rent to salon professionals. These suites are fully furnished and equipped within a salon setting. In addition to the suite, we also provide marketing support, business consultation and training.
There are two options for a hair stylists, nail technicians or massage therapists to begin their career. One is to work as a “commissioned” employee. The other is to rent space (known as booth rent) within a salon.
An employee salon is responsible for all of the marketing, scheduling, pricing, payroll, product line and for running the day-to-day operations of the business. The employee is typically paid 40% of the services they perform and a 10% commission on the products they sell. If the employee has a slow week, they are usually guaranteed minimum wage.
A booth rental salon simply provides space for the salon professional. The salon itself is basically a landlord. The booth renter chooses their own schedule, pricing and types of products to sell. The booth renter pays a fixed weekly amount and keeps all profit for themselves.
Both of these business models have existed for decades with employee salons consisting of about 85% of the market and booth rental salons making up the remaining 15%. That trend is shifting fast. In 2010, booth rental salons in Ohio grew to 30% and is projected to reach 50% by the end of 2015. Booth rental salons make sense for two main reasons. From a hair stylist’s perspective, they will make substantially more money by going to booth rent. An established stylist will generate around $1,500 or more per week in the sale of services and another $200 per week profit from product sales. The weekly rent for the average booth rental space is $250 a week. By booth renting, a stylist can have a weekly net profit $1,450 after paying their rent. By only receiving 40% commission from services and only 10% commission from products, the same stylist only grosses $620 at employee salons. From a salon owners perspective, booth rental salons offer minimal risk, no employees, no marketing expenses and substantial income. We have two locations and are expanding one of them, adding 8 large private suites that will rent for $300 per week.