How to pay for a salon

What should you be aware of?

When considering the payment solution for your salon, it is important to be aware of hidden costs and terms. A transparent payment solution can give you an overview and the flexibility to choose the furniture and products that best suit your salon.

Did you know?

Denmark is the world champion at shopping based on what we think we are saving. We tend to be impressed by high “before prices”, even if the item may never have actually cost the stated price. As a hairdresser, you deserve transparent sales and honest prices that live up to your expectations.

Different payment options for your salon

Invoice

Paying by invoice is like buying a new jacket and paying the full amount at once, completely avoiding commitment and extra fees. This method is perfect if you want to avoid interest and ongoing agreements. When you pay the full amount, you can also deduct the VAT for tax purposes, which is an added benefit for many salons and the reason many buy new furnishings in the month before they have to submit their accounts.

Who should choose an invoice?

This solution is ideal for those who have saved up and want a simple solution without being tied down.

Commitment agreements

Commitment agreements work by tying you to one supplier and paying for the furnishings through ongoing purchases of products such as shampoo and other consumables. It is like buying a new set of plates and being asked at the checkout which dishes you want to be allowed to serve on them. Of course, this is perfect if you can have all your favourite dishes every single day.

Although this solution is often presented with a “discount” on both shampoo and furniture, you should remember that the price is often adjusted upwards so that the supplier still covers its costs. With commitment agreements, you are tied to the supplier until the furnishings have been fully paid for.

Who should choose commitment agreements?

This solution suits you if you have a favourite product or supplier and would like to have the products in your salon without paying too much upfront. You just want to get started, whatever the cost.

Financing

Financing is like buying a house, where you make ongoing payments on furniture and equipment over a longer period, typically 12–36 months. The advantage is that you can start your salon without paying the full amount at once, and you are not tied to a specific supplier.

Who should choose financing?

Financing is an obvious choice if you want flexibility and would like to split the payment, without being tied to a specific shampoo brand.

Final thoughts

If you want to avoid fees and surcharges altogether, you should pay by cash/invoice. Splitting the payment will always involve an expense. However, it may be worth paying a small surcharge to finance your dream salon. Are you unsure which payment solution best suits your salon? Email me below for free advice and make sure you get the best solution for your salon.

Photo: Andeby.dk