Profit from product sales should always be equal or more than your total rent and utility costs. For example, if your rent and utilities are $1000 per month, then the sales from product alone should be $2000 ($1000 profit). Very successful Spas will aim to more than double their rent/utility in profit from product sales!
Customers visit Spas for service, but along with the service the Spa should also have product available for purchase. Owners and employees should not be passive about this second stream of revenue. Knowing your clients purchasing habits can help you develop a product strategy. Log every clients visit and record the kind of service and products they has purchased. When the client returns, ask them about their experience with the product and suggest alternatives or additional products.
Estheticians often do not feel comfortable selling products however, they are the best product demonstrators and best at choosing which product is right for each client. Instead of asking your esthetician to sell your retail line, ask her to use the products during her service and then tell the client what she is using. Discussing the benefits of a products long term use should be enough to convince the customer to leave with at least one or 2 suggested products.
When the client goes to pay for her service the Esthetician should have available ALL the products that were discussed during the service for the client to purchase. Most clients rely on the expertise of the esthetician and will purchase some or all of the products suggested.
Remember, these clients are buying products from somewhere, it should be from YOU as the professional.
Now that you have your utilities and rent covered it will be easy to work out your labor costs which is the key to a successful profitable business.
If you are interested in more information on these or past topics please contact me directly.
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