Replies to This Discussion

Permalink Reply by Gina Williamson on February 28, 2012 at 7:59pm

You need to educate your clients on the value of the products. I mark-up 100%, but offer a 15% discount for 4+ products. I have found that although some clients may initially balk at the price- which I explain is comparable to department store brand prices and then educate them on the difference of OTC vs pharmaceutical grade- once they get the product on their skin, they are willing to pay the price!! People need to understand the value- and Image, even at full retail- is a BARGAIN for what they are getting!!!

Sampling helps a lot to drive the sale.

Permalink Reply by Juliette Zweig on February 28, 2012 at 8:38pm

Thank you Gina.  

I’m sure demographics also play a key role in retail pricing.

I guess because I do a lot of work with cancer patients, all pro-bono, I hear a lot of sad stories.  My husband is a radiologist, director of breast imaging, he’s diagnosing more and more cancers with each passing year.  When a person has no insurance and cancer therapies have ravished their skin, how do you then try to educate them on the value of products?  If they must make a choice between paying for medicine or buying skin care products, it’s an obvious decision.   

This is a very difficult decision.  I feel strongly about making products affordable.  I’m not trying to make a living by selling skin care products.  I want to be known as the place to go because my client feels 100% confident they are receiving the safest, highest quality services and products.  And, they know I place more value on their wellbeing than money.

Permalink Reply by Danielle George on February 29, 2012 at 9:58am

If you are not trying to make a living by selling skin care then just look at what your expenses of doing business are and then mark your prices to break even. It is standard practice to mark items up 100%. Buy it for $10, sell it for $20. Not only do you have to tie up your cash flow to purchase and stock products, you also pay shipping. I have about $3,000 sitting on my shelves in product, this is my money that I do not have access to in order to provide my clients the convienience of being able to walk in and walk out with what they need. Esthetics, compared to other trades, has a high cost of providing service. We have to stock more backbar to be able to provide treatments to all skin types. A hairstylist can use a $5 tube of color, we use a $50-$90 bottle of enzyme. Retail is one of the tools we have to do more than just break even. If you have profit in your business, you are able to purchase equipment, etc. to improve your treatments which is a benefit to clients. Just consider all aspects of what it costs for you to be able to provide the experience you want to give.

 

 

Permalink Reply by Juliette Zweig on February 29, 2012 at 4:01pm

Hello Danielle,

Believe me, I know about business and selling.  I had a manufacturing company.  I made and distributed gourmet tortilla chips. You may have purchased them, Donkey Chips.  In the world of manufacturing, 80% of your money will never by in your account.  Plus, in order to be competitive in stores, there is no such thing as 100% mark-up, NO-ONE will buy.  Then once you get a green light for your product, after sending $100’s of dollars in FREE samples, you hope and pray that enough chains will take your product, give you decent shelf space, and not hit you with damage.  In the food industry, a company makes $2 - $10 per case of product they sell.  You must do volume!

My rent is near nothing, especially for the area in which I am located.  My overhead is minimal as well.  I believe in the philosophy of paying forward. I must be a minority here.  I’m just trying to get a sound understanding of what others are doing,  how they are doing it, and the nature of their ultimate goal.  Quality products and services should not be something that most can’t afford.   There are so many “Wellness” facilities, that could greatly benefit so many, but they can’t afford the price of wellness.  So, they have no choice but to do without.  I’m not trying to be condescending here,  but shouldn’t more emphasis be placed on making sure a persons wellbeing takes precedence over money?  

When an aesthetician spends $50 for a bottle of enzymes, there are many treatments in that one bottle.  We are always trying to negotiate better prices with suppliers, and we get better prices quite often based on volume.  Does it not make sense to pass that on to our clients so we know they are using the highest quality products available?  I also think this builds a strong and loyal bond of trust between aesthetician and clients.  

Permalink Reply by Sheila Gordon on September 14, 2012 at 9:22pm

I beleive most of the skin care lines "require" you to have the same markup as everyone else selling the product...but what about offering a free facial when they purchase x amount of product.  I feel the same way that you do and if I didn't have to pay rent and buy products, I would love to do this for free....but with that said, I usually offer discounted services and if someone says, well I can't come in because I can't afford it, guess what, FREE facial.  I am this business to make people feel better whether on the inside or out and I don't want people to be without bc they can't afford so I would check what the policy is.  (I know I am responding really late and you probably came up with a solution already :) ).  The markup on treatments is INSANE to me, but I also get it too because if you are working in a salon or spa where you have tons of overhead, etc it makes sense, but for someone that is a sole esty, I think we can be more lenient on the prices. 

Permalink Reply by Celina Porter on May 11, 2012 at 9:17am

I believe Image has a policy on how high or how low you should sell the products for. I mark up 100% and add tax and that is the price I have on my products. I give some discounts, but mostly I will just give out the trial/travel kits before. Most people (the ones that have used the products) come back in a week to buy the full sized products. 

Permalink Reply by kristina on February 19, 2013 at 3:54pm

I always emphasise that client will save money when buying a system (3 or 4) products. I discount 10% on 3 products and 15% on 4 or more. After they get started they come in wanting to buy everything on the shelf. You can also offer a discount if they purchase a product the day of service.