How to Calculate ROI for Your Waxing Business
Many esthies who transition into first-time business owners were never taught how to start a business. Heck, most esthetics courses don't directly focus on waxing throughout the course of their programs. The licensing process is composed of many types of skincare related courses. Those who want to venture into starting their own waxing business may have gone further in their studies and taken additional courses to specialize or have practiced it enough to where they got the hang of it. However, the whole part about starting your own business – yeah… that wasn't covered. At times it's hard to determine how to price your services. That's where your return on investment (ROI) comes in! This is where you start to look at how much product you are using per service. Let’s crunch some numbers and look at the earning potential of some of the most popular waxing services. At the end of the day, this is all dependent on the competitive pricing in your area, additional business expenses, and the number of employees on your payroll. However, it's a good place to start if you’re thinking about how to start your own business. A 10-pound bag of Blue Film Wax Beads costs about $150. There are approximately 4,535.92 grams in 10 pounds. Leg Service: Typically, a full leg wax service uses about 280 grams of hard wax. Let’s say you charge $65 for this service. If you decided to use that 10-pound bag of Blue Film strictly for leg wax services, you would earn $1,040. If you subtract the $150 you originally paid for the bag your ROI = $990 Bikini Line: Bikini line services use roughly about 50 grams of wax per service. You would be able to get about 90 bikini line waxes with a 10-pound bag of Blue Film. If you were to use the bag only for bikini line services and charged $25 per service, you would make $2,267.96. When you subtract the original $150 you paid for the bag your ROI = $2,117.96. Our two-pound bag of Starsoft Wax Tablets costs about $50. There are approximately 1000 grams of wax in the package. An underarm service uses roughly about 18 grams of wax. With 1,000 grams you could do around 55 underarm services using Starsoft. If you charge $15 for underarm services, you would make $825 off the box. When you subtract the price of the bag your ROI = $775. Our 10-pound bag of creamy Pink Film wax beads costs about $150. There are 4,535.92 grams of wax in the bag. An eyebrow service uses about 7 grams. You could get about 648 eyebrow services using the l0-pound bag of Pink Film. That’s around $12,960. When you subtract what you paid for the wax, you still made $12,810 on your investment of $150! Set Goals Setting goals for your business is crucial for acquiring more clients and sales. Obviously, not many estheticians will use an entire 10-pound bag of wax entirely on eyebrow services. One of the main reasons for this is because full-body waxes are rising in demand. When first starting out, only doing eyebrow services may potentially limit the number of customers you bring in. For example, if a potential client looking to get a leg or bikini wax walks in but you only offer eyebrow services, a potential sale, and new client opportunity pass by. Of course, if you aspire to be a celebrity eyebrow artist, with persistence and the right marketing strategy, anything is possible! The more experienced you are, the more you’ll build your portfolio and reputation. The beauty of starting your own business is that you become your own boss and set your own expectations. Make Even More Profit! Starpil offers wholesale pricing for customers that order over 30-pounds of product. Ordering wholesale is a smart way to make even more return on your investment. If you need help deciding how much wax to buy, contact your Personal Account Manager for a one on one business evaluation. They can help you determine what quantity or formula of wax is best to order for your business needs. The Bottom Line It’s very important to understand that these examples are rough estimates. The bottom line is that the cost per service varies greatly from one esthetician to another. Experience, reputation, and geographical factors all play a part in determining how much to charge for a service and what your earning potential is. What’s exciting is that there is a lot of potential in opening up a new waxing business. Waxing is becoming a way of life for many people that say NO to razor bumps and YES to smooth skin. Click Here to Watch the Calculations in Action!