Re: 50/50 split with salon....a survey


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Posted by Maureen on September 20, 2001 at 20:30:43:

In reply to: 50/50 split with salon....a survey posted by Kenzi on September 20, 2001 at 17:42:16:

Hi Kenzie,

I have not worked with a salon, but still think that a 50/50 is a bit
much given what they are offering you and given your current
arrangement. Seems they know something about you and your work.
They must think highly of your work or they would not have contacted
you. They made you an offer. Make them a counter offer informing
them that 70/30 is the split you will consider. They will go for it
or not. They may come back with a 60/40 for you to consider. But I
would tell them that 50/50 is not a consideration.

The other consideration, however, is how much business they can
generate. 50/50 of $300 a day is more than 70/30 of $100 a day. Are
their clientele more likely to want more elaborate and expensive
designs? Are you free to set you own prices? Can you make
arrangements with them that you would only do 50/50 if they guarantee
a certain amount of people/appointments on the day you are
there...like 10 appointments. I would give them the dollar amount I
would expect to make in order to make it worth my while to do all of
the preparation and block off a consistent period of time each month
or week in my schedule exclusively for their customers. For whatever
period of time you dedicate to them you are not available to schedule
clients anywhere else. That could cost you money if they can't
deliver. If they can not offer you something more than your current
place then you should get your current rate.

If you find it difficult to do the financial thing when negotiating,
have that information in written form. When someone contacts you for
your services you can tell them that you will send them a brochure
concerning your services and prices. Include in that the 70/30 split
and send it to them. If they want you they will recontact you. If
they think it is beyond their ability to accept the 30% they won't.
Remember they are in business and want deals that are to their
advantage...so do you! I find this works better for me than entering
into these money conversations verbally. Two out of ten can afford
my price. The rest can not and that is ok. Anytime I worked for
less than I thought I was worth, I resented having done it. When I
want to volunteer at no cost or just the cost of my supplies I do
that. But I have learned not to contract for less than my normal
price. Now that time has passed, when I am contacted people know my
price prior to calling because I have a small number of agencies I
now work with exclusively. When I first started private contracting
to facilitate my workshops, I put myself through a lot of unnecessary
problems...including doing a weekly workshop for one agency for and
entire year at a financial loss...because I lowered my cost for
them. I was quite happy when that contract year was over. I still
do workshops for them. But I do them twice a month for the same
price I charged to provide the workshops weekly. When my costs go up
they also supplement the cost of my supplies. When people like what
you do, they find the way financially to have you provide the service
for them...when your service is beneficial to them.

Maureen

 


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