This thread is really beginning to make me laugh.

I resent the fact that
all studio owners are lumped into a know nothing no planning heap!
Renting floor space for me is not an option. I'll be darned if someone ,no matter how good they are is going to come and reap all of the rewards and give me what is unacceptable to them while I keep the walls up around them. If they're good...then they can go do it for themselves! Now if someone wanted to come in and pay their fair share of all of the bills, well that's a different story, but I don't know of any teachers who want to take that risk.
In my area, there just aren't enough competitive dancers who would go way out to the boonies to support a less expensive studio. For that matter, most competitive students come or originate from the social part of dancing. They don't just appear. They are grown and developed...whether it be on their own or a teacher's help. And yes you can have social and competitive in the same school. Where else do the advanced students come from? There isn't a magic screen that goes off separating the social from the competitive students in the beginning stages.
FTR BT your payscale seems reasonable, but that's not necessarily what is going to keep your instructors. I had a graduating payscale, but the teachers wanted something more consistent, so we came up with a solution. Just remember, it's not just money that motivates people. Feeling respected, growth, recognition, freedom, and having a say in the goings on are just a few of the things that go along way too
I just let a guy go last week. He was way too pushy...kind of the old salesmanship dance industry of yesterday. I couldn't trust him, and most of my teachers didn't like him. I gave him a chance to change, but in the end what was best for my teachers and the well-being of the studio was what led me to my decision.