Salon suites, sometimes called salon studios, are a growing trend in the beauty industry, gaining popularity among both salon owners and independent beauty professionals. Renting a salon suite offer many benefits, including greater autonomy than booth rental and the feeling of being your own boss. With that comes the freedom to set your own hours and your own prices, allowing for a more personalized experience for clients and, as a result, greater earning potential. However, setting up your own salon suite requires careful planning and consideration of the many costs involved, from rent to equipment and decor. Below, we’ll break down how much salon suites cost to open and rent by exploring many of the major expenses involved.
Salon Suite Rental Prices
There are myriad costs for building and running salon suites. However, compared to traditional salon setups, the overhead costs of working in a salon suite can be significantly lower.
As a salon suite renter, you don’t have to worry about utilities or similar business costs. You simply pay rent to the salon owner or franchisee and cover your own supplies and certain equipment.
Additionally, you will need a business license and liability insurance to operate as an independent contractor in a salon suite. Let's explore those first.
Acquiring A Business License
To provide services in a salon setting, it goes without saying that you will need a valid cosmetology or beauty license. Your business license comes next. The process for obtaining a business license for a salon suite typically involves these steps:
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Research: Start by researching the specific requirements in your city or county. You can usually find this information on the local government website or by contacting your city or county clerk's office.
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Identify License Type: The type of license you need may depend on the services you plan to offer. For example, some areas require separate licenses for hairstyling, cosmetology, or massage therapy.
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Complete Applications: You'll need to complete application forms provided by your local government. These might include information about your business structure, services offered, and contact details.
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Pay Fees: The cost of obtaining and renewing your license can vary greatly depending on location and the type of license required. Fees can typically range from $50 to $500 or more annually, depending on which state you're in.
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Additional Permits: Some municipalities might require additional permits depending on specific services or equipment used (e.g., electrical permit for certain styling tools).
Salon Suite Insurance Costs
Having professional salon insurance is as essential for salon suite rentals as any other situation. If you want to feel like you own your own business Consider the following coverages:
- Professional & general liability coverage
- Product liability coverage
- Property damage protection
- Protection on stolen or damaged goods
Once again, insurance cost varies state to state, though since salon suite rentals are solo operations, you don't need coverages like worker's comp, which a larger salon business would require. There are providers out there that bundle the above coverages for around $20/month. Do your research.
Average Salon Suite Rental Price
Some ballpark the average salon suite rental cost at $200–$500+/week. However, like everything we discuss in this article, finding an average salon suite rental price is difficult to pin down and varies heavily depending on location, economic conditions, the facilities & basic amenities provided by the owner, and the salon suite’s name recognition.
High foot traffic in prime commercial areas and bustling cities can also significantly impact lease prices.
Salon suite rental prices in big cities, like New York & Los Angeles, can be $2,500–$6,000/month. By contrast, salon suite rental in smaller cities can be $500–$1,000/month, or potentially $250–$300/week. Salon reputation can also influence rental prices, with luxury or high-end salon suites charging higher monthly rent fees due to the perceived value of operating within their premises.
Key factors such as location, foot traffic, amenities, and salon suite rental prices should be considered and factored into your business plan before signing a lease.
Other costs: Styling Tools & Supplies
Booking & Management Software
This varies but Vagaro’s begins at $30/month for a single user.
Payment processing: Once again, this varies, but Vagaro offers credit card processing at rates that are friendly to salon suite renters (and everyone else in the beauty industry). Vagaro offers contactless payment from any device, which is a pretty “suite” time saver, especially when clients prepay!
Monthly Expenses for Salon Suite Rentals
Salon suite rental may include something like a “common area fee.” This number is hard to pin down but will be in the renter’s agreement.
One key difference between booth rental and salon suite rentals is the freedom to furnish a suite and create the exact customer experience that you want. The cost of furniture and equipment for your suite depends on what the suite franchise already provides.
For example, the spaces from Salons by JC, the premiere salon suites in the industry, come equipped with:
- Mirrors
- Shampoo pots
- Beds
- Blankets
- Hairdryers
- Roller carts with other equipment & materials
- Free Wi-Fi.
You may be thinking, “What am I allowed to have in my salon suite?” The answer is that you have the freedom to equip, decorate & personalize your suite as you see fit—just make sure it squares with your budget. Do your own research and thoroughly check your renter’s agreement for details surrounding rent, fees & other costs.
Furniture, Décor & Equipment
Decorating your salon suite is an opportunity to put a signature stamp on your workspace. However, you’ll need to strike a balance between functional, welcoming and stylish. High-quality salon chairs that offer comfort and support for your clients are necessary. So are designated styling station(s) minimally outfitted with a mirror, enough storage space, and adequate lighting.
Certain items, such as a color bar, are optional depending on the salon services you offer. Similarly, an esthetician may want to invest in a reclining facial bed, and a massage therapist may opt for a comfortable table. Choose wisely, as these can eat up a lot of budget and space.
Let’s explore some of the main items in detail. The prices below reflect prices of a range of different retailers:
Salon Furniture
Depending on your own salon’s aesthetic and budget, you can choose from a variety of salon furniture options on the market.
Approximate cost:
- Salon chairs: $150–$800 per chair
- Manicure chair: $300–$400 per chair
- Styling stations: $300–$1,500 per station
- Color bars: $1,000–$2,000 per unit
- Facial beds: $260–$3,000
Washbasins & Shampoo Units
Washbasins or shampoo units should be durable, comfortable, and easy to clean. Consider factors such as plumbing requirements and compatibility with your salon's overall design.
Approximate cost:
- Washbasins: $500–$1,500 per unit
- Shampoo chairs & units: $300–$1,200 per unit
Lighting & Mirrors
Quality lighting fixtures ensure ample illumination for accurate styling and color treatments. Well-placed mirrors are crucial for clients to visualize their haircuts and treatments.
Approximate cost:
- Lighting fixtures: $50–$200 per fixture
- Mirrors: $100–$400 per mirror
Storage
Each suite should have adequate space to store your tools, supplies, and products. Cabinets, drawers, or shelving units can help maintain an organized and clutter-free salon suite.
Approximate cost:
- Cabinets: $200–$800 per cabinet
- Drawers or shelving units: $50–$300 per unit
- Retail or backbar shelving: $300–$1,000
Reception & Waiting Areas
If you have enough room for a small reception, or waiting area, budget for comfortable seating, possibly a small reception desk, and any added decorative elements that align with your salon's brand.
Approximate cost:
- Reception desk: $200–$1,000
- Waiting area seating (chairs or sofas): $100–$500 per seat
- Retail shelving: $300–$1,000
The rest (rugs, lighting, wall hangings) depend on the aesthetic you're going for.
Consider the quantity of each item needed. That added up fast, didn't it? Striking a balance between functionality, aesthetics & cost can be difficult, but not impossible.
Look for reputable suppliers or manufacturers, read reviews, get recommendations from other salon owners, and compare prices to get the best possible deal for your budget.
Remember, also, that there are several avenues out there for getting funding for furniture and equipment, from traditional small business loans to small business funding.
Marketing & Advertising
Marketing and advertising are crucial to attract clients to your newly established salon suite. Developing a comprehensive marketing strategy, creating a professional website, setting up a strong online presence through social media platforms, and investing in promotional materials can incur significant costs. Sponsoring local events and implementing targeted advertising campaigns may also require a chunk of your budget.
Choosing to rent a salon suite can provide additional marketing benefits, such as a professional environment that enhances your brand image and attracts high-end clientele.
Some sources say you should spend a minimum of 3–7% of your total sales on marketing efforts, a budget that increases year by year. Larger brands may spend upwards of 15%.
Digital Marketing For Your Salon Suite
Vagaro’s software offers many of the salon marketing tools you’ll use almost every day. These include automated email marketing & text marketing features, a branded webpage builder, Daily Deals and a free listing on the Vagaro Marketplace, where millions of users search for services like yours. That provides a lot of opportunities to bring in new clientele!
Then, there’s your brand presence. Small-business brand packages—logo, colors, fonts, etc.— from design & ad agencies can potentially cost over $1,000. Vagaro’s Design Services Team offers professional marketing material at a fraction of the cost, including a brand package that covers your salon’s digital presence, as well as marketing collateral.
Equally as important is your salon suite's website, which adds an important layer of professionalism and visibility. Your website's design should be an extension of your brand and be consistent with the visual branding you use everywhere else.
Renting a salon suite can be a lucrative venture for an aspiring salon owner an/or independent beauty professional. However, salon suites requires more than a bit of thought. from securing a suitable location, acquiring a business license and covering real estate expenses to managing construction, furnishing, equipment, utilities, insurance & marketing costs, you need to carefully plan your budget and make informed decisions.
By understanding these expenses, you can start your journey toward leasing a thriving salon suite business while minimizing financial risks. And suite franchises, like Salons by JC, are in the business of helping you achieve just that.
For the best prices in salon furniture & equipment, research a few online retailers. For the best area in which to start your business, speak to a real estate specialist. For feature-rich booking & management software with payment processing included, talk to Vagaro. Better yet, start your 30-day trial now and experience it for yourself!
Sources:
https://www.smallbiztrends.com
https://www.cityapplications.com/business-licenses.html
https://pos.toasttab.com/blog/
https://fitsmallbusiness.com/beauty-salon-insurance-companies
