Not only is the answer yes, but you will make more than you thought! It can be confusing to think about the numbers behind salon suite ownership. Here is a comprehensive guide to all of the numbers.
"Previously, I was stuck in a cycle of financial instability, but since moving my lash business to J Suites, I don't even think about money anymore and I’m busier than ever!” ~ Jocelyn, owner of Eylash Pro
Will I make more money if I move into salon suite?
The fact is, at J Suites, our suites cost a little more than our competition because you get more and because we're just higher end. That said, in a standard single suite, if your annual book is more than $60,000 a year, or average $1,150 a week, the answer is YES (assuming you are a stylist in a 50% commission salon). And if you make anything more than that, all of that goes directly into your pocket because 100% of what you make is yours. This math takes into account the cost of the suite, retail sales of about 15% of your book, and other suite expenses like purchasing your color and foils. See the chart below:
And here are the numbers if you make about $100,000 per year and lease a slightly larger suite. What would you do with $2,350 more every single month? That's life changing money!
Buying my own color is new to me, how much will that cost?
It generally costs about $1,000 to initially stock your color bar. That said, at J Suites we have the full L'Oreal Professional color line (INOA, Dia, Majirel, Blond Studio) and Shades EQ at your disposal, so you can simply pay for what you use. You pay by the ounce and at the same price it would be if you purchased the full tube at SalonCentric. Our busiest colorists spend between $60 - $100 per week on color using our color bar. If you don't use our color bar and are stocking your own color in your suite, a busy colorist will spend about $5,000 a year on color.
Can I sell my own retail?
Absolutely! And unlike at a traditional salon, where you usually get about 10% commission on your sales, in a suite your markup is usually about 50 - 60%, so you'll make more there, too! We have some suite owners who pay their rent in just what they make in retail!
How do I pay taxes?
Once you move to a suite, everything you spend on your suite and your business becomes a tax write off! so that means, whatever is left in your bank account at the end of the month is what you'll pay taxes on, after rent, after whatever you spent on tools, or decor, etc. Most people take 25% of that and put it away into a savings account to pay taxes. We always recommend you consult an accountant, and make sure to ask them about all of the perks of owning a business instead of being an employee! Taxes are what most people worry about, but it is not nearly as daunting as you think, and its how to really create wealth for you and your family.
How much does it cost to get the business up and running?
Getting your LLC and shop license from the NJ Board of Cosmetology, etc. should all cost a little less than $500. There is also a security deposit to pay, which at J Suites is $1,000. Outside of that, the rest of the money you spend would be up to you. You'll probably want to buy towels, foils, decor, etc, which can be as inexpensive or as expensive as you make it!
So there you have it! All the numbers about suite ownership. If you want to go over your actual numbers with Sue, call or text her at 609-301-0125.
Do you do services other than hair? Click here to learn how salon suites are the best way to grow your business.
Have questions about opening a suite in NJ? Click here to learn how.
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