3 simple ways to increase profit in your beauty business
The hottest question on every business owners lips after 'where can we find more staff?' is generally 'how do I increase my profit? As a business director and development manager of multiple beauty spaces in prior leadership roles, here are three simples things successful business owners focused on to increase their profit.
One. Increase your retail sales.
You've heard this before, but we will say it again, product equals profit.
Treatments performed on their own are not enough. We know the life cycle of a treatment alone can only last between 3 to 10 days post service and as such, will not create a dramatic effect on the skin long term, without assistance from home care. The client must leave your beauty space with at least a product recommendation in their hand for best results and for therapist due diligence.
You cannot go to the gym once a month and eat McDonalds every other day - we say it all the time, so why don't we act on it?
When we look at most beauty spaces, the average unit of sale per therapist is 0.7 of a product - that's not even an entire product per client - can you believe that?! Likewise, the average retail to service percentage generally sits around ~30% for a beauty therapist - that's 70% of clients enjoying services leaving uneducated about their skin concerns - the exact reason they came into your beauty space to find the solution to!
Two. Increase your rebooking percentage.
Again, another gym analogy, because we are all so familiar with it - you cannot go to one gym session and have a skinny bum - it's dedication and commitment to gaining results which is where your clients are going to see transformation in their muscles, skin or hair reduction.
The current average rebooking rate in a day spa is 20% which should be aimed at 40% at least. A skin centre on the other hand should be sitting at 60% due to the nature of a results oriented service.
Take a look at two things for us;
a) your current rebooking rate per therapist and
b) the number of treatment packages sold through last month per therapist.
These results may shock you.
Being spring, this is the perfect time to reevaluate your treatment packages and sell them in, just in time for pre-Christmas party season, or to use them as a gift voucher purchase. Ensure your treatment packages aren't heavily discounted, yet value add with promo products from your brand partners or add in low cost, minimal treatment time services, such as LED light therapy during a manicure or a lash tint during a facial.
Three. Increase your average client spend per hour
Nothing surprises us more than beauty businesses who purchase machinery and let it sit in the corner and let it collect dust! Each hour your business services clients, it should be bringing in at least $130, (dependant on your average service), or $1 profit per minute, per service.
You can increase your average client spend in similar ways to the value add we mentioned in rebooking treatment packages, by adding on services to current services your client is having.
Some of our favourites include;
- LED with manicure, pedicure, facials, body treatments and massages
- Foot treatment with massage (cleanse, exfoliation, mask and massage)
- Lash tint/lift or brow tint with every facial
- Exfoliation with spray tans
- Microdermabrasion prior to vascular or pigmentation laser/IPL
- Scalp treatment during facial or massage
There are so many options and they all provide your client with an additional service to boost their current treatment results and decrease client time during the busy season!
For some of you reading this will be old information which you perhaps let fall to the waist side and may have needed a timely refreshment on, while others this might be brand new information. No matter which category you fall in, there is always room for reflection on current services, menus and client experiences.
Remember to keep in mind the all encompassing question when creating services and treatment packages - what would the client want?
Education, value for time, results and exceptional experience are generally the resounding answers.