Income potential for salon suite professionals in the US

Making money as a salon suite renter can be your blueprint for monetizing your passion and working for yourself. The good news is that salon tenants are well-positioned to earn a comfortable living in the US. Sure, it takes effort to build your book and clientele, but ambitious pros can earn over $127,000 per year.

The figures look inspiring, don’t they?

Let’s break down how exactly your earnings can pan out.

Understanding salon suite rental income

Becoming a suite renter has super-low startup costs compared to opening your own salon. The all-inclusive rent covers the use of the space, utilities, and amenities. This allows new tenants to enter the business quickly and generate income faster without taking on much financial risk or debt.

To determine your anticipated returns, consider your business model first:

• Will you rent a single suite and work as an independent stylist?
• Or will you go for multiple suites and employ other professionals?

As a solo artist and manager, you keep 100% of your money but are limited to the number of customers you can service personally. As a business owner overseeing multiple specialists, you earn less per customer but can generate higher overall revenue through scaling. However, you must also plan for your team’s wages.

If you work independently, your income greatly depends on your effort and skill level. The more experience you have, the higher your rates can be raised.

In addition to your skills, your bottom line is shaped by:

• Customer pool. The number and type of customers you serve are the backbone of your salon suite rental earnings. Ideally, you’ll want to have a loyal clientele with the highest spending power.
• Services offered. Salon renters usually earn more if they can distinguish themselves from other studios in the area, apply sophisticated techniques, and provide specialized services.
• Flexible hours. Being always available to accommodate your customers brings you more income opportunities. Traditionally, evenings and weekends pay off with a bang.
• Location. Salon suites located in affluent areas are the most profitable. Research rental facilities with a good customer flow, like in California or New York.

There’s no ‘magic’ location that can bring a studio renter millions of dollars during their first year. You should choose it by how competitive the area is and whether you can provide beauty services that will set your business apart.

Estimating earnings for salon suite renters

It all starts with playing to your strengths by focusing on the services you’re most passionate about and skilled at. After all, doing the best work means fetching the best prices. But when you’re just starting out, it’s vital to set realistic expectations.

Keep your rates peaceful

Check what other specialists are charging. You want to price yourself competitively, so survey professionals with similar skills and credentials. For instance, the average stylist in the US can do a basic cut for $45 to $75. Use this as a reference point, but don’t be afraid to charge on the higher end of the range, especially if you have lots of experience.

Do more if you can

The more you offer, the more opportunities you have to generate revenue. Consider adding color, highlights, extensions, waxing, nails, and other salon treatments. With the estimated annual earnings of a manicurist and waxing esthetician of about $50,000 each, expanding into related areas is a smart way to boost your income potential over the long haul.

Treat customers like royalty

When people love your beauty facility, they are more likely to tip you and come back, maximizing your salon suite rental earnings. Focus on customer service and word-of-mouth marketing to keep your appointment book filled. Come up with promotions (like discounts for referrals or a free cut after several visits) and create social media profiles for your salon business.

Sell products

Selling care products with at least a 50% profit margin is a great way to make more dollars without raising service prices. By showcasing items created by luxury brands that complement your services, you can earn $2,000-$10,000 per month extra. Plus, you can negotiate lower wholesale prices from vendors as an independent business owner.

Bundle and boost

Consider offering complementary services together at a slight discount. Bundles encourage beauty seekers to go for more treatments, and the discounts make them feel as if they’re getting a deal. This can augment the average income for salon suite renters by up to 15% and enhance the experience of whoever pops into your studio.

Setting your financial goals

Before getting the keys to your studio, establish your financial goals for a certain period. They will keep you accountable while making money as a salon suite renter:

• Decide how much you want to make in your first year. A good starting point is to determine your monthly expenses and plan for reasonable first-period earnings (no less than the average income for an employed professional in your niche). If you meet or exceed this amount, give yourself a raise.
• Know where your money comes from and where it goes. Keep records of your daily revenue, expenses, profits, and losses. Review them once a month to see if you’re meeting your goals or need to make adjustments. If necessary, look for ways to cut costs or drive sales.
• Don’t be afraid to revise your goals. Have you exceeded your last-year revenue target and want to aim higher next year? Are the costs of tools and supplies skyrocketing, which requires a budget cut? Check-ins can help you pivot quickly.

Understanding salon suite rental income will let you evaluate the options for working in a studio and create a sound business plan. Stay focused on the money, and the money will come!