Business Articles

Increasing Spa Profits With Private Label Skin Care Products

May 4, 2010

If you're an owner or executive of a spa - Med Spa, Day Spa or Dermatologist - increasing profits as well as you're product-line diversity are keys to increasing revenues and gross margin.

While there are numerous products to choose from, wholesale and private labeling direct from a manufacturer provides the freedom of improving branding and targeting your offerings to your clientele.

Benefits of Private Label:

Targeted Customer/Patient Care - Spas generally are focused on facial cleansing, renewal, and wrinkle removal - Lower costs can be achieved by working directly with a manufacturer by avoiding costly wholesaler and "middle man" charges, while identifying niche products that work equally as well as major brands - wrinkle treatments, body firming and moisturization, or the reduction of stretch marks.

Exclusivity - We have a colleague who owns a very successful 20-station salon. He has also become successful and profitable carrying a very wide selection of beauty supplies. While there is a diminishing return to carrying inventory, he states he has clients who come from "miles around" to buy supplies they can't get anywhere else. For a spa, this can mean repeat maintenance revenue even when treatments aren't necessary or desired.

Branding - Effective marketing displays combined with customer education on active ingredients and usage can build sales even for non-treatment prospects. Word of mouth is powerful. Firming lotions at low price points and that are well liked (and effective) will sell themselves providing ancillary sales to customers who might normally avoid the time or expense of treatments. A side benefit is with increased traffic, you have the opportunity to sell additional services or products.

Considerations

With increased competition, a diversity of available products, and a tight economy, private label skin care products can help increase sales, profits and improve customer and patient loyalty. We're always looking for an opportunity to increase in-store or online traffic; expanding your offerings at higher margins help increase profitability and demonstrates effective solutions and professionalism.

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