|The Highs and Lows of Booth Rent|
Owners have three options when it comes to managing their available space: charge a percentage, a flat rate per week, or pay employees a salary.
1) Percentage- Using this method can be more tedious because every cut has to be accounted for. This method works best for hands on owners who work all day, or has a secretary that handles all transactions. This method allows owners who can successfully implemet it more control over the coming and going of their employees.
2) Booth Rent- This method is good for owners who do not wish to micro-manage every cut & knows exactly what they can count on week in & week out from each chair. The downside is you lose some control over when the barber can come & go & who they can or should cut.
3) Salary- This method is good for high volume barbershops, e.g, chains & those that are in malls, airports or business buildings. This way the owner controls all income & pays according to hours logged in. The best part for the barber is they know exactly what they will get paid & the worry of having a bad day or week will not affect their end result in pay. This also allows for a corporate system of health care & a possible 401k plan.
Owners or future owner should understand the strengths and weaknesses of each system and how it’ll effect his or her shop. After understanding this one must surround themselves with people who strengthen your shortcomings for the betterment of the business.