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Retailing Results are More Than Skin Deep

By: Jenny Hogan
Posted: September 24, 2010, from the October 2010 issue of Skin Inc. magazine.

How you retail professional products in your spa will not only have an enormous impact on your revenue, but it also may be the key profit-driver that keeps your front door open during tough economic times.

Most spa owners and skin care professionals are already aware of the value of retailing professional products. Clients must adhere to a home-care regimen to complement the esthetic services that are provided in the spa in order to enjoy optimum results. However, you may not be fully aware of just how great the potential is for retail to dramatically increase business profits and advance your career.

Focus on retail

“Many spa owners relay that retail is the main profit-driver of their businesses; the portion contributing most directly to profitability,” notes Lauren Gartland, founder and president of Inspiring Champions, a business training and coaching company. “Selling retail items will make your business more profitable immediately, and there is a direct correlation with retail increasing your client loyalty and retention. Plus, retail doesn’t get sick or have any problems; it just sits there and makes you money.”

Selling retail products will earn your spa six times more profit than esthetic services alone. “What this means to the spa professional is that it’s all about the bottom line. If you are currently producing $70,000 a year in retail volume, a 30% increase will provide sizeable profits. If you increase sales to $100,000 per year, you should see an additional $15,000 in profit. If you want to retain your profits and increase revenue, then your focus must become retail,” Gartland notes.

Increase client loyalty

According to the Professional Beauty Association (PBA), 83% of clients never buy products from spas, and just 8% purchase from them regularly. This indicates a large number of clients are not being converted to purchasing retail. They will probably buy retail skin care products at their drugstore, grocery store or online. Why not offer them the chance to buy those products from you?