Easy. No clientele... Commission. - Full clientele... Booth rent!!! No matter what a shop owner says.... There's no value or benefit for a barber to have a full clientele and paying $600+ weekly to the shop from commission.
My barbers guranteed make 1200-1500 their first week. We just increase their rent every two weeks till they’re at full rent. Commission would be good if it was only temporary I think
Everyone likes to talk about how a barber suppose to be or things to do, but never address ownership. Things the owner must do. The daily clean, mopping, bathroom, phones working, the presentation, look , smell , etc. The difference between commission barber and a contract barber ( paying rent) . Owners the do nothing but try to dictate and collect money. Not knowing the true ins and out. These are topics that need to be addressed. Facts!
I’ve seen booth rent barbershops where the barbers pay their rent daily, barbershops where they pay weekly and barbershops where they pay monthly. From what you have seen with your experience, what is best?
Taking it daily is a bit of work and if cash as owner I’m not at the shop everyday and taking it monthly there’s some irresponsible barbers with their money where once accumulated amount they think it’s a lot of money. So WEEKLY is winning
I’m in an area where the average booth rent is 125.00 per week. With rent that low, how do I make money without having to cut hair everyday? If the cost of the shop is 5,000 per month. You would have to have 10 barbers in house at all times just to break even. We haven’t started talking about making a profit yet. Let’s say I want to at least make 5,000 a month in profit so that I don’t have to cut hair all day, everyday, I would then need 10 barbers who are paying me 250.00 per week in booth rent. Now, I’m in a more rural area. I’m lucky to have a shop with 4 booth renters. Considering the same numbers above, I would need to charge those 4 barbers 625 a week in rent. Given the area I’m in, that isn’t doable. Also l, booth rent for me poses other problems. There is no guarantee any of the booth renters will show up for work. You can’t force them to be there. You can’t fire them because they aren’t employees. In many ways, you can’t require them to abide by your prices and your shop rules. They are their own boss, in their own business. You are nothing more than a landlord. What I am not seeing here. My main question I guess is, how do you consistently make money with booth rent without having to cut hair every day?
When it comes to marketing the shop. What is your take on a bothrent ? As an owner should i be investing into marketing i currently have 5 barbers. None of which are fully booked and have 2 more chairs i can fill up, which is hard to do since there arnt many, if any walks ins. So id have to find barbers which already have a healthy clientele. But they are generally already happy with where they are Just not sure if i should be the one dishing out money to make my barbers busier… or how id benefit by doing that.
Shouldn’t barbers who are booth renters do their own advertising and marketing? At the end of the day they are their own business just working out of your shop (Tenant/landlord situation). It’s their responsibility to pay their booth rent regardless. I feel like some booth renters expect the owners of the shop to advertise for them which is wrong in my opinion. Now if your a commission based shop owner then i believe it is your responsibility to provide your employees with all the necessities needed for them to excel for your business.
I manage a barbershop in Los Angeles California. It's mainly commission based but there are some booth renters. I have all the responsibilities of a manager (scheduling, inventory for hair products, handling meetings for the barbers , customer reviews etc) I also continue to cut hair but my booth rent is the same as the other barbers. My question is how much do you think a shop manager should get if I continue to run this commission based shop? I feel like it should be more but I can't find any good advice on this topic to present to the owner. Appreciate you fam!
How much would you get as a manager at a corporate store.. probably less than a 10% raise on your annual income. So if you went from commission to booth rent you’re probably doing better than that no? If I was in your shoes I’d be looking to gain the experience and wisdom so that at some point you can open your own or partner up with the current owner if you like his business model.
I’m thinking of leaving a Union construction job because it always was a dream of mine to become a barber but I had kids young. I make 900 a week after taxes and will have to work 30 years to even get my pension/annuity. I’m looking at schools and have been watching all of your videos. I’m motivated but not educated. Thank you for this. The only fear I have is that I will fail to make more money than that my first couple years. I already have people telling me they’d come to me I have a shop that would hire me once I finished too. Trying to have faith to take a leap on something that I truly want to do with my life.
I’m trying to figure out how to make this booth rent stuff work. I have 7 chairs and 4 girls renting. I still pay $400 out of pocket. How do you get people in? Also, are you counting their money when you say your shop brings in $70k.
I work as a self-employer commission 50-50 , the wage is up to 1000 per week , i still dont know what is going to happen in the end of the year , any advice pls 😉 thanks
Commision shopsbare normally way better than both rent shops. Most barbers need guidance and the booth rent model makes the barber think that they can come and go as they please Bevause they paying a rent. Boothrent should be illegal in all states because to have booth rent you need to be a sub contractor and carry your own insurance but most don’t.
How do you price a booth rental I have an empty building 1100 square feet I was thinking it would be enough for hair cuts nails and pedicures how would one break down the booth rental prices the last person who rented from me used it as book store so it’s got plenty of room
I understand your perspective but disagree. I owned both booth rent and commission, and when you start to have systems and rules in your booth rent shop, they become employees. While from a Barber perspective yes booth rent is lucrative but becoming an owner you make no money and this is why the Barber Shop and industry as a whole isn't as lucrative as our counter part beauty salon. We are mostly consumers. How can one salon net 100k-300k yearly. Structure and systems and most salons are commission. Also, turn over in booth rent shops are high as well for weaker or new barbers. the time argument is really one for a commission shop simply because the structure and system have to be in place to work. You have more time because you have a system in place. Booth renters are only okay with some structure and you can't control the shop environment with that model. I would agree with the thought of suites being better but a booth rent shop only the Barber wins , not the owner nor the customers, not even other Barber in the shop. Booth rent is a business model intended for separate spaces, not one space, by definition. So the only way to even attempt to create an income as a booth rent owner is to increase the amount of Barbers in a space, which based on numbers an owner on average will retain 60 to 70 percent of your shop full and reliable, so depending on your investment you won't break even for a while and if you there only 1 hr a month you are setting your self up to fail. Jmo
Cool I respect that and I’ve owned both too, and currently still have a salon. My wife went to a summit school that teaches the redkin system. It’s rare a salon nets 100k-300k after all expenses and challenges but I’m assuming even if your salon does you understand percentage wise your ROI won’t be higher than my booth rent shop. My barbershops net 400k yearly with my business and maybe 98% passive with thousands of 5 star reviews. I can’t keep up with the amount of barbers wanting to work at my business 🙂. I don’t need to tell my barbers what to do, they’re independent contractors. If you are ok with being active in your business like a job and daily problems, open a commission salon. It’s ok to disagree with me but you won’t make more money brother. I’d be at 1m net much faster than you with much less stress.
@Chris Bossio I think one difference is that you are who you are which makes your spots more desirable for 1 and 2 your business is not just barbershops. I definitely agree with the passive income process but the way you describe it doesn't work without structure and telling barbers your expectation and you not being there or having the partners you had when you all started headlines. To get to a 400k net income with a booth rent barbershop is not a simple task and you will BE doing way more than 1hr monthly if your business only consists of barbershop. I'm sure Your business nets that but the average barbershop booth rent owner even with multiple locations is no where close to that number net. I respect and understand what you are saying but this passive income you describe is not really passive. It can be but so can commission. your ROI argument works but as u know it takes money to make money and small investments means small returns.
Of course investing 50k and 1 to a few hours a month to make 100-200% annual return COC is impressive what do you mean? Where else can you do that? No one in my business allocates more than an hour a month into managing the barbershops, why would we have to every barber is their own manager. We are just their to support if they need it and most of the time our systems are all the support they need. These systems aren’t meant to manage people they are meant to help our barbers manage their own business easier. If it wasn’t working we wouldn’t be the highest reviewed barbershop brand in Florida (we’ve won awards for this). You may not know this but I owned 7 locations before my RUclips channel even reached 50k subs and two locations before I reached 10k subs… youtube has international reach not really local unless you target that. I also teach this system all over the country it’s been duplicated pretty conservatively. There is no passivity with a commission brother, the ROI isn’t there and the opportunity cost is too high. We do not tell our barbers what to do and we do not control their pricing. We just ask for teamwork, and for the last 10 years it’s been great. Redkin along with every other salon system requires too much human management and control, the systems are designed to make that easier but it just doesn’t work consistently, and to scale is a full time job.. we don’t event have to do buildouts any more. Good luck to you tho.
I’ve never been to hairshow where tomb45 didn’t exist brother. Not gonna try to convince you on anything. Regis works in the salon world, where has that ever existed at scale in the barber world? If it does we can look at the numbers and see the ROI isn’t there. You tell me how long it takes to manage booth rent shops and what are the responsibilities that take up that time?
What about if i'm working the chair myself as well on my own shop. Do I include the money i'm making as part of the earnings for the month to calculate expenses after?
No your income as a barber is seperate but I would pay your business atleast a discounted rent as “manager” so when you replace yourself nothing changes
Booth rent is in the best interest for a barber and commission would be best interest for a shop owner just my opinion you cant make it far as a barber doing commission
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My math was wrong about the 2% but the logic is still the same.. business should return much better.
Easy. No clientele... Commission. - Full clientele... Booth rent!!! No matter what a shop owner says.... There's no value or benefit for a barber to have a full clientele and paying $600+ weekly to the shop from commission.
My barbers guranteed make 1200-1500 their first week. We just increase their rent every two weeks till they’re at full rent. Commission would be good if it was only temporary I think
@@Bossiocuts I need to come work at headlines immediately bruh! Frfr
@@Bossiocuts I’ll leave California today lol
@@Bossiocuts temporary until your books are filled to a certain point. That's the best and fair way.
I’m addicted to your videos that are full of knowledge n game thank you bro
Means a lot
Can you break down the Pros and cons of commission vs booth rent from just a barbers perspective if possible
Will do
Can a owner charge u both rent and commission?
Everyone likes to talk about how a barber suppose to be or things to do, but never address ownership. Things the owner must do. The daily clean, mopping, bathroom, phones working, the presentation, look , smell , etc. The difference between commission barber and a contract barber ( paying rent) . Owners the do nothing but try to dictate and collect money. Not knowing the true ins and out. These are topics that need to be addressed. Facts!
My commission is 60/40 but the foot traffic is really good. Clients tip really good. I can also do appointments,
Booth Rent all the way!
I’ve seen booth rent barbershops where the barbers pay their rent daily, barbershops where they pay weekly and barbershops where they pay monthly. From what you have seen with your experience, what is best?
Taking it daily is a bit of work and if cash as owner I’m not at the shop everyday and taking it monthly there’s some irresponsible barbers with their money where once accumulated amount they think it’s a lot of money. So WEEKLY is winning
I don’t like either model personally but I thought this was a very well done video.
Thank you
Thx you! What model do you prefer? Ive don hybrid too
I’m in an area where the average booth rent is 125.00 per week. With rent that low, how do I make money without having to cut hair everyday? If the cost of the shop is 5,000 per month. You would have to have 10 barbers in house at all times just to break even. We haven’t started talking about making a profit yet. Let’s say I want to at least make 5,000 a month in profit so that I don’t have to cut hair all day, everyday, I would then need 10 barbers who are paying me 250.00 per week in booth rent.
Now, I’m in a more rural area. I’m lucky to have a shop with 4 booth renters. Considering the same numbers above, I would need to charge those 4 barbers 625 a week in rent. Given the area I’m in, that isn’t doable. Also l, booth rent for me poses other problems. There is no guarantee any of the booth renters will show up for work. You can’t force them to be there. You can’t fire them because they aren’t employees. In many ways, you can’t require them to abide by your prices and your shop rules. They are their own boss, in their own business. You are nothing more than a landlord. What I am not seeing here.
My main question I guess is, how do you consistently make money with booth rent without having to cut hair every day?
When it comes to marketing the shop. What is your take on a bothrent ? As an owner should i be investing into marketing i currently have 5 barbers. None of which are fully booked and have 2 more chairs i can fill up, which is hard to do since there arnt many, if any walks ins. So id have to find barbers which already have a healthy clientele. But they are generally already happy with where they are Just not sure if i should be the one dishing out money to make my barbers busier… or how id benefit by doing that.
Shouldn’t barbers who are booth renters do their own advertising and marketing? At the end of the day they are their own business just working out of your shop (Tenant/landlord situation). It’s their responsibility to pay their booth rent regardless. I feel like some booth renters expect the owners of the shop to advertise for them which is wrong in my opinion. Now if your a commission based shop owner then i believe it is your responsibility to provide your employees with all the necessities needed for them to excel for your business.
I manage a barbershop in Los Angeles California. It's mainly commission based but there are some booth renters. I have all the responsibilities of a manager (scheduling, inventory for hair products, handling meetings for the barbers , customer reviews etc) I also continue to cut hair but my booth rent is the same as the other barbers. My question is how much do you think a shop manager should get if I continue to run this commission based shop? I feel like it should be more but I can't find any good advice on this topic to present to the owner.
Appreciate you fam!
How much would you get as a manager at a corporate store.. probably less than a 10% raise on your annual income. So if you went from commission to booth rent you’re probably doing better than that no?
If I was in your shoes I’d be looking to gain the experience and wisdom so that at some point you can open your own or partner up with the current owner if you like his business model.
Do you have a video about renting a suite!?
I’m thinking of leaving a Union construction job because it always was a dream of mine to become a barber but I had kids young. I make 900 a week after taxes and will have to work 30 years to even get my pension/annuity. I’m looking at schools and have been watching all of your videos. I’m motivated but not educated. Thank you for this. The only fear I have is that I will fail to make more money than that my first couple years. I already have people telling me they’d come to me I have a shop that would hire me once I finished too. Trying to have faith to take a leap on something that I truly want to do with my life.
Do it
I’m leaving the oilfields in west Texas for the same dream I started march of 2023 Do ot
Thanks for making another video on this.
-taneecuts
I’m trying to figure out how to make this booth rent stuff work. I have 7 chairs and 4 girls renting. I still pay $400 out of pocket. How do you get people in? Also, are you counting their money when you say your shop brings in $70k.
I’m in Oregon. I Booth Rent my barber chair. Six figure barber
I work as a self-employer commission 50-50 , the wage is up to 1000 per week , i still dont know what is going to happen in the end of the year , any advice pls 😉 thanks
Remember it depends if you’re an employee/w2 or self employed.
Respect bro!!!
Commision shopsbare normally way better than both rent shops. Most barbers need guidance and the booth rent model makes the barber think that they can come and go as they please Bevause they paying a rent. Boothrent should be illegal in all states because to have booth rent you need to be a sub contractor and carry your own insurance but most don’t.
This is extreme bro. Independent contractors can get insurance and do well in my system
how do you find booth renters? I'm struggling right now.
How do you price a booth rental I have an empty building 1100 square feet I was thinking it would be enough for hair cuts nails and pedicures how would one break down the booth rental prices the last person who rented from me used it as book store so it’s got plenty of room
Go around barbershops and ask and take an average off your area.
I understand your perspective but disagree. I owned both booth rent and commission, and when you start to have systems and rules in your booth rent shop, they become employees. While from a Barber perspective yes booth rent is lucrative but becoming an owner you make no money and this is why the Barber Shop and industry as a whole isn't as lucrative as our counter part beauty salon. We are mostly consumers. How can one salon net 100k-300k yearly. Structure and systems and most salons are commission. Also, turn over in booth rent shops are high as well for weaker or new barbers. the time argument is really one for a commission shop simply because the structure and system have to be in place to work. You have more time because you have a system in place. Booth renters are only okay with some structure and you can't control the shop environment with that model. I would agree with the thought of suites being better but a booth rent shop only the Barber wins , not the owner nor the customers, not even other Barber in the shop. Booth rent is a business model intended for separate spaces, not one space, by definition. So the only way to even attempt to create an income as a booth rent owner is to increase the amount of Barbers in a space, which based on numbers an owner on average will retain 60 to 70 percent of your shop full and reliable, so depending on your investment you won't break even for a while and if you there only 1 hr a month you are setting your self up to fail. Jmo
Cool I respect that and I’ve owned both too, and currently still have a salon. My wife went to a summit school that teaches the redkin system. It’s rare a salon nets 100k-300k after all expenses and challenges but I’m assuming even if your salon does you understand percentage wise your ROI won’t be higher than my booth rent shop. My barbershops net 400k yearly with my business and maybe 98% passive with thousands of 5 star reviews. I can’t keep up with the amount of barbers wanting to work at my business 🙂. I don’t need to tell my barbers what to do, they’re independent contractors. If you are ok with being active in your business like a job and daily problems, open a commission salon. It’s ok to disagree with me but you won’t make more money brother. I’d be at 1m net much faster than you with much less stress.
@Chris Bossio I think one difference is that you are who you are which makes your spots more desirable for 1 and 2 your business is not just barbershops. I definitely agree with the passive income process but the way you describe it doesn't work without structure and telling barbers your expectation and you not being there or having the partners you had when you all started headlines. To get to a 400k net income with a booth rent barbershop is not a simple task and you will BE doing way more than 1hr monthly if your business only consists of barbershop. I'm sure Your business nets that but the average barbershop booth rent owner even with multiple locations is no where close to that number net. I respect and understand what you are saying but this passive income you describe is not really passive. It can be but so can commission. your ROI argument works but as u know it takes money to make money and small investments means small returns.
Of course investing 50k and 1 to a few hours a month to make 100-200% annual return COC is impressive what do you mean? Where else can you do that? No one in my business allocates more than an hour a month into managing the barbershops, why would we have to every barber is their own manager. We are just their to support if they need it and most of the time our systems are all the support they need. These systems aren’t meant to manage people they are meant to help our barbers manage their own business easier. If it wasn’t working we wouldn’t be the highest reviewed barbershop brand in Florida (we’ve won awards for this). You may not know this but I owned 7 locations before my RUclips channel even reached 50k subs and two locations before I reached 10k subs… youtube has international reach not really local unless you target that. I also teach this system all over the country it’s been duplicated pretty conservatively. There is no passivity with a commission brother, the ROI isn’t there and the opportunity cost is too high. We do not tell our barbers what to do and we do not control their pricing. We just ask for teamwork, and for the last 10 years it’s been great.
Redkin along with every other salon system requires too much human management and control, the systems are designed to make that easier but it just doesn’t work consistently, and to scale is a full time job.. we don’t event have to do buildouts any more. Good luck to you tho.
I’ve never been to hairshow where tomb45 didn’t exist brother. Not gonna try to convince you on anything. Regis works in the salon world, where has that ever existed at scale in the barber world? If it does we can look at the numbers and see the ROI isn’t there. You tell me how long it takes to manage booth rent shops and what are the responsibilities that take up that time?
Good advice 💯💈💯
what systems should i have to make a great shop?
Start out on commission until your commissions would be as much as the booth rent would cost.
you could go that route but Then what? I would see if there is a way to grow there not just start there.
@@Bossiocuts yes. I did that because I had 0 clients. It was only 2 weeks until I was paying the full amount of rent because I was busy.
commission on top of a 1099 is so draining. make good money 60/40 but end of year sucks
You need an accounting firm… you’ll also keep more money!
Gems 💯🐐
What about if i'm working the chair myself as well on my own shop. Do I include the money i'm making as part of the earnings for the month to calculate expenses after?
I am using my time, but that's part of the game until the shop can run itself i'm assuming.
No your income as a barber is seperate but I would pay your business atleast a discounted rent as “manager” so when you replace yourself nothing changes
Booth rent is in the best interest for a barber and commission would be best interest for a shop owner just my opinion you cant make it far as a barber doing commission
🔥🔥🔥