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All About Private Label
By: Pamela Jo Busiek
Posted: July 23, 2008, from the August 2008 issue of Skin Inc. magazine.
page 2 of 4
Here is an example of a facial treatment based on a private label cost:
Calculate the cost per treatment using the products you currently use in your facial regimens. If you don’t want to calculate the complete facial, try it with one item. Generally, spa owners are shocked when they see the calculation results.
Start with your branded moisturizer and determine the wholesale cost. Divide that cost by the number of ounces in the product. This will determine the cost per ounce. Multiply the cost per ounce by one-eighth, the amount you need per treatment. (12.5% or .125). This will determine the cost per treatment for your moisturizer.
The cost differential between a private label and a branded product is significant and has a major impact on the ending balance in your cash box. Consider how private label back bar products can contribute to the profitability of your service business.
A unique experience
With the explosion of the spa industry, consumers now have a multitude of choices when it comes to selecting a spa. In order to be successful in this increasingly competitive market, you must ensure your location provides clients with a unique experience that distinguishes your business from the rest.