The spa industry is a passion for every spa owner. Most spa owners are also working inside the business. It’s one of the few industries where the people working in the industry have a very personal connection to the day in and day out activities of the business as well as a personal connection to every customer. This can sometimes make it hard to focus on the financial aspect of the business.

Profits are the still name of the game! Earning a profit is the goal of every business owner. The spa industry is no exception. Profit margins are slim in the spa industry. Trying to keep a healthy profit margin, while keeping expenses down and sales up is the ongoing struggle of every spa owner. But there is a saving grace when it comes to increasing profits – Retail Sales! Retail sales can add a significant amount of revenue to your business on a daily basis. If every customer buys at least one product, you can increase your sales by hundreds of dollars per day. $200 multiplied by 300 days, that’s $60,000 per year! Huge numbers!

Here at SpaTrends we can help you keep more of that $60,000 by suggesting reputable companies that offer private label cosmetics. If you don’t currently offer make up for your clients, it’s a huge business that can not only increase your sales – but increase your overall profitability if you opt to private label.

Top 6 Companies That Deliver

• Audrey Morris Cosmetics & Skin Care Int., Inc..
• Brushes by Karen, Inc. / ColorStrokes Cosmetics
• Crown Industries Inc.
• Demaur Cosmetics
• Pinnacle Cosmetics
• Spa de Soleil

Private label is optimal for small businesses. It allows a small business to apply their brand and logo to a product that a consumer will see every day. This daily brand reinforcement will keep your spa, top-of-mind with the customer. A daily reminder to re-book with your spa for their next massage or facial. Private label also offers a day spa a more competitive profit margin, which will allow you to keep more cash in your checking account from every sale.

Here’s how it works.

With national brands retailers are given a fixed wholesale and retail price $20 retail priced lipstick will cost $10. The spa owner keeps $10. With private label a lipsticks cost will vary based on your order quantities, however, the base prices are often times lower than that of a national brand. For this example, a private label lipstick may cost $7.50 per piece. Leaving you an additional $2.50 of profit per unit. If you sell just 2 lipsticks per day in a year, that can add up to nearly $1,500.00 in additional profit over the sale of a similar national brand. There will be initial set-up charges that will need to be paid, but these can be recovered over the course of time.

Your spa will also need to have someone to help with:

• Building your spa’s line of make up (selecting what products to carry)
• Designing labels
• Creating retail displays
• Creating a marketing plan for the make up

With all of the pieces in place, you can create a wonderful line of cosmetics that will enhance your brand, reinforce customer loyalty and help you increase sales and profits.