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Hi everyone!

I need your opinion on fair pay. Is 60-65% fair pay for an independent contractor? I will be paying for all my own supplies, insurance, etc. This is a mobile position, not a salon job. The manicures are $75 and mani-pedis are $175.

Are there any other costs I need to consider?
Boothrenters do not get paid any %. You pay a flat rental fee and supply everything for yourself. You would gave to be an employee to receive a %, they supply every thing for you plus benefits.
This isn't a booth rental position, it's mobile. I would go to clients homes/office to perform the service.
Are you using your own vehicle? You'd have to consider gas and vehicle upkeep costs.
(04-14-2013, 03:47 PM)scotchtapeandrhinestones Wrote: [ -> ]This isn't a booth rental position, it's mobile. I would go to clients homes/office to perform the service.



% or commission equals employee! Check with IRS

http://www.irs.gov/businesses/small/arti...21,00.html
http://www.irs.gov/pub/irs-pdf/p1779.pdf
Thanks, Anna! I'm still a little confused. What's an example of an independent contractor?
Have you checked with Albany?? I'm not 100% sure you can be mobile in NY. My standard rule is: call, ask the questions, get a name, ID# etc.. then call back later and repeat..
As everyone mentions - there is some question as to the legality of you being an independent contractor. However, since you will not be working at the same place, and I assume you would be free to turn down particular jobs or determine the times, maybe this job WOULD qualify as an independent... something to look into anyway.

However, to answer your actual question... It sounds like the charges for the services have already been raised to account for the additional time for travel to and from appointments, so maybe you'd be okay money wise. IMO 60-65% is very fair for a physical salon (as an employee), to the point of verging on unprofitable for the salon owner if they were paying all the taxes and insurance. To know if it's a fair rate for a mobile tech, you need to do the math. How long would a typical appointment take you, including travel time? The process of determining profitability is really the same whether you're mobile or not.

1) Determine your hourly cost to conduct business. Calculate all your fixed monthly/yearly expenses, and I mean every little thing - then divide those down to the cost per hour. For fixed costs you would count insurance - both professional and pro-rated auto, cell phone, marketing costs, licensing, etc. etc. So let's say you determine your fixed expenses are an average of $300/mo. How many hours a week will you be working - counting travel time? Let's say 40 hours a week = 166 hours/month. That would mean your hourly cost to do business is $1.81

2) Figure our your service cost - all supplies, product used, credit card fees, etc - including some wear & tear on tools. You might want to include an average of vehicle costs here as well - gas & wear & tear.

3) Use these numbers to determine your cost, and therefor your wage for doing a service. If you do a manicure for $75, and you get 65%, that's $48.75 to you. You would need to know how much time that would take you - say 30 minutes driving round trip, 15 minutes set-up, 30 minutes clean up, and 45 minutes for the manicure. So, 2 hours of time =3.62 hourly cost, $8 supplies, etc, 2.5% + transaction fee ($1.43) cc fees = 48.75-3.62-8-1.43= $35.70 divided by 2 hours = $17.85/hour

Of course, I made up all these numbers Smile but you get the idea. The only true way to know is to run different scenarios using real numbers!

If you would like detailed help with figuring out your exact costs & profitability - including putting together your cost sheet for you, you can email me - I do charge a nominal fee for this service, but you would know exactly where you stand.

Best wishes to you - I hope the job works out for you!

% or commission equals employee! Check with IRS

http://www.irs.gov/businesses/small/arti...21,00.html
http://www.irs.gov/pub/irs-pdf/p1779.pdf

[/quote]

Anna - you can earn commission as an independent contractor, actually. Several factors are considered in determining whether someone is an employee or contractor, it's not exactly black and white in most cases, which is why contracts are so important for 1099 contractors.
(04-15-2013, 02:45 PM)plumgirl Wrote: [ -> ]% or commission equals employee! Check with IRS

http://www.irs.gov/businesses/small/arti...21,00.html
http://www.irs.gov/pub/irs-pdf/p1779.pdf

Anna - you can earn commission as an independent contractor, actually. Several factors are considered in determining whether someone is an employee or contractor, it's not exactly black and white in most cases, which is why contracts are so important for 1099 contractors.
[/quote]



1099 Contractors are for those not at a fixed location, much like a IT contractor or piece work. Requirement of hours and that services be performed on site etc are reasons that a tech are considered an employee. A freelancer for an agent would be a great example of a 1099 recipient. This so called gray area has been abused for years in this industry.
(04-14-2013, 10:31 PM)BeautyTech.com Wrote: [ -> ]Have you checked with Albany?? I'm not 100% sure you can be mobile in NY...

Last I knew ( which was a few years ago ...haven't read the rule book lately LOL!) - you CAN be mobile in NYS - BUT you have a have a 'home' base ...be it a van, or an 'office' in your home. You have to have a location where you can be inspected should the state choose to inspect you.