How Profitable a Tattoo Shop is?
With tattooing gaining popularity worldwide, more and more tattoo artists are entering the market. And every artist comes with the sole dream, that’s – opening his/her own tattoo parlor. Some successfully achieve their dream of opening their shop, and some continue to work under others’ ownership. How so ever an artist works, he/she plays a significant role in defining a tattoo shop’s overall profitability. Here in this post, I am discussing how profitable a tattoo shop is. If you are planning to start your own shop, then this post is for you; read it until the end.
Here we go……
A tattoo shop’s profitability depends on several factors, such as the locality, the clientele, the popularity of the shop, the marketing, the pricing, and above all, the expertise of the tattoo artist. Any tattoo shop, be it in a small town or a big city, runs when they have good tattoo artists. Without good tattoo artists, it is nearly impossible to get enough money.
A good tattoo artist is a MUST HAVE for any tattoo shop. It makes it easier to get referrals. Apart from this, a shop in a good location will make more profit than the one in a remote location. However, it will add to the rentals because posh location rentals are often high compared to dowdy locations.
Apart from this, the country you are in will also play a crucial role in determining how much you will make from your tattoo shop. For instance, if you have a tattoo shop in a country where tattoos are not so welcomed, like Sri Lanka, you will have too few clients compared to the artist running a tattoo shop in Australia or any other country.
Then, you will have marketing expenses. Of course, initially, you will have to market your brand in the market to make people aware of your existence. However, there are many ways you can market yourself free, like social media marketing or digital marketing. These are great tools to stay ahead of the competition.
Your pricing will also play a major role. If you are charging high prices for artwork and have a very good clientele, your profits will be higher than those charging lower prices. Some tattoo studios attract specific or high-end customers only that also impacts their profits. These customers are ready to pay any amount for body art.
Finally, your brand’s popularity will also impact your profitability. The more popular you are, the better would be your profits. Of course, people choose to go to popular tattooists, rather than trying somebody randomly. If your tattoo artists are extraordinary or if your shop is famous for a specific body artwork, like traditional, Japanese, Asian, Linework, Tiny Tattoos, etc., then the possibility of making more money increases to a great extent.
How do most tattoo shops and tattoo artists split the money?
Mostly the owner of the tattoo studio will also be a tattoo artist. Hardly has it happened that somebody from a non-tattooing background will start a tattoo shop. However, even when you are an artist yourself, you need a team of two more people to assist you. It’s always good to have expert artists so that they can handle clients solely.
More often than not, tattoo artists have a 60/40 deal with the shop. Most shops take 60% of what their artists bring in. However, with time deals do change, depending upon the tattoo artist’s performance. For instance, some tattoo artists start to have a 50/50 split as the shop’s business grows. And in some cases, the split may be 40/60, where 40% will be kept by the shop, and 60% will be obtained by the artist. However, it happens when the artist is really valuable to the shop.
Also See: 20 Biggest Tattoo Shops In The World
Besides, tattoo artists’ fee, there will be other expenses, like electricity, shop rent, tattoo supplies, etc. All these together are deducted from the monthly revenue and whatever remains is the shop’s profit.
So this is how profitable a tattoo shop is. I hope you got a fair idea about the profitability of a tattoo shop and the factors that impact its profitability in all.