How to Calculate ROI for Your Waxing Services
It can be easy to have the dream of owning your own waxing business or salon and being your boss. Even if you put all of your time and money into a business, however, it does not guarantee its success. To make sure your business is running smoothly and making a profit, it’s important to keep track of what you’re putting in versus what you’re getting out of the business.
Table of Contents
Having the right strategy for your business will allow you to build your business, strengthen your ROI, and lower supply costs while raising profits.
What is ROI for Waxing?
When starting a waxing business or striking out on an independent venture, you need to prioritize the logistics that go into it all. It’s important that your business runs as efficiently as possible - and has a healthy profit margin. You need to keep your business going, after all! So what is an ROI for waxing? How does it affect your day-to-day as a small business owner?
When running a business, you need to ensure that you’re not spending more than you make and take steps to stop your business from losing money unnecessarily.
ROI, or “Return on Investment”, essentially refers to how you determine what aspects of your business are making or losing money, and how you should spend accordingly. Now that you know what an ROI is, you might wonder how to calculate ROI on your waxing services.
How Do I Calculate the ROI for My Waxing Business?
To calculate ROI, the benefit (return) on an investment is divided by the cost. Generally, the most common way to calculate ROI is by dividing your net profits by your total investment.
Increase Your Return & Save with Wholesale
To run a successful waxing business, keeping supply costs low while still retaining the use of high-quality supplies for your services will keep your business healthy and your clients coming back - all without breaking the bank.
So is waxing cost-effective? It can be with wholesale pricing! By joining Starpil’s Pro Portal, businesses can have access to discounts off of standard retail pricing, as well as access to bulk hard wax and larger quantities of waxes for use in their salons.
This Pro Portal also gives exclusive access to the best quality experience possible by allowing businesses to cultivate a personal relationship with Starpil.
How to Save Money By Buying Bulk Hard Wax
If you’re buying a 10lb bag of Pink or Blue hard wax beads every week, or frequently enough to effectively service your clients consistently, you’re probably spending more than you have to have to on supply. By buying retail, you’re probably hurting your business’ ROI.
Instead, when you buy in bulk, you’ll allow yourself to have a more consistent inventory of wax and save yourself the trouble or labor involved with ordering wax again and again, and most importantly - save you and your business money! It’s like giving yourself a raise without raising prices on clients.
If you’re wondering how buying a 30 lb box of wax versus the 10lb bag you’re used to can save you a large amount of money, let us break it down for you:
When purchasing a 10lb bag of wax, you spend on average about $174.90 or paying about $17.79 per pound. Whether you’re purchasing these bags weekly or just enough to keep up with your business needs, this can add up.
To stop overspending on wax and hurting your ROI, the easiest and most cost-effective solution is to buy the wax you’re already purchasing in bulk through the Starpil Pro Wholesale Portal.
By buying in bulk, you’ll be saving money per pound, and will have both a larger inventory of wax for your business and will save yourself time and effort by not having to order as often. In comparison to our 10lb bag, our 30 lb box of Pink or Blue Hard Wax Beads will cost about $439.90, or $14.66 per pound. That number may seem a lot larger than the cost of a 10lb bag, but by buying in bulk, you’re actually saving not only money but time and stress as well.
Buying 10lb bags and paying retail pricing may not seem like it will add up or make a real difference in your ROI, but you’re hurting your business’ profits. Save money, order less frequently, and boost your business’ profits by buying in bulk with our wholesale pricing.
How Improving Your ROI Can Help Your Business
By improving your ROI, your business can lower supply costs, retain the quality of products and services, and standardize wax usage. With all of these factors perfected, you’ll allow your business to become more profitable.
How to Improve Your Waxing Service ROI
The most straightforward way to improve your ROI is by cutting costs to increase profit without raising your salon’s prices.
An easy way to lower your costs of supplies and your investments without sacrificing the quality of your waxing services or the products used is by switching to a wholesale program instead of paying retail for high volumes of wax.
By acquiring wholesale wax pricing privileges and Starpil Pro Benefits on 30+lbs of wax, you’re saving your business a huge amount of money, while increasing your profits.
Buying in bulk also allows you to always have enough product on hand should you unexpectedly experience an uptick in clients or services that you hadn’t anticipated. By saving money and still providing your clients with the highest quality services, you’ll have to return customers and high-profit margins.
Why Buy Bulk Hard Wax?
The biggest reason to buy bulk hard wax is to enable you to have higher quantities of supply for your salon for lower prices. By buying in bulk, you’ll save yourself from running out of your professional waxes, no matter how many clients you have.
Additionally, by buying all at once or in larger quantities at a time, you can save your business a huge amount of money and have access to wholesale pricing.
How Much Should I Charge for Waxing?
How much to charge for waxing depends on your region or area, as well as how much you’re spending on wax and waxing supplies or what services you offer. There’s no one right price to charge, but that’s where knowing your ROI comes in.
To have a healthy business, you must balance making your prices attractive to clients, with making a profit after taking into account all of your supply and business expenses. For a general pricing guide for individual services, read below.
Pricing Waxing Services
When starting your own waxing business, pricing your waxing services comes down to factors like competitive pricing in your area, business expenses, and the number of employees on your payroll. It’s also determined by how in demand you are as you gain experience. As you give quality services and build a client base, your time will become more valuable and your prices will rise.
When looking at your expenses to determine your wax service prices, the first thing you need to find out is how much does it cost to wax? Take the wax price and how much wax to use for the most popular services and break it down.
Start by asking yourself: How much does a pound of wax cost? What is the size of the tub or bag you buy? How much wax do you need for services? Then determine how many waxes you would need to do to make up for your initial cost of waxing. We’ll show you more below.
How Much Wax to Use for Waxing?
When you’re in charge of your own business, you never want to waste valuable product due to not measuring your wax properly (or at all!) during a service.
For the most popular of the facial waxing services, pricing varies, but usually is around $20, and around 7-10 grams of wax is the standard amount used.
When trying to calculate how much wax to use for legs, there are a lot of factors to take into account.
However, for the average leg waxing service, estheticians usually use around 280 grams of wax. Typical pricing for a full leg waxing service is usually from $60-$70, but depends on your business expenses and individual variables.
Calculating the cost for bikini waxing goes along the same lines as that of leg waxing - it all depends on your expenses and the unique variables that go into your business or waxing service inclusions.
Generally, bikini waxes require around 50 grams of wax per service and usually are priced around $20-$30 per service.
As said prior, there are a lot of elements that go into choosing the right price point for your salon’s unique services, and you should always take into account whatever extras you throw into your service offerings or any external factors that might affect pricing.
However, underarm waxing services are usually priced anywhere from $15-$20 per service.
Full body waxes usually have a variety of services or inclusions depending on the esthetician or salon involved in the process. As a result, full-body waxes can be difficult to price, since they can include bikini and intimate area waxing, leg waxing, back waxing, arm waxing, and underarm waxing.
Additionally, some salons include packages for facial waxing with full body wax services. Overall, full-body waxes usually start around $150 and go up in price from there depending on what services are included in the overall package.
Since services included in the package vary, so does wax usage. If trying to calculate wax product usage for full body wax services, go off of the individual services provided and come about the full package’s final usage number that way.
In addition to looking at the initial investment and money spent on products for waxing services, plus your area and standardized pricing for your salon, standardize your measurements to maximize product usage and minimize waste.
If you have other employees, ensuring that your salon is using the same amount of wax for each service will make their lives easier and will save those from using excessive amounts or just not measuring at all. This way, your clients get consistent service and results, and you can keep your costs in check.
At the end of the day, you have to make the right decisions for your business individually. Only you know your business's unique needs, services, and expenses.
Keeping track of initial investments, spending on products, product usage, service offerings, and how much you charge for said service will keep your business healthy and profits balanced. Knowing how much labor you’re devoting to tasks other than serving clients, like doing payroll or administrative duties that could be streamlined or otherwise done more efficiently will also keep your costs down.
A lot goes into letting your business run smoothly, efficiently, and with good profitability. Make sure to set goals, offer a wide variety of services to draw clients in, and lower your supply costs through wholesale pricing to keep your ROI healthy.
By lowering your costs, offering services attractive to customers, and standardizing your business to run more efficiently, you’ll set yourself and your salon up for success and a healthy financial future. To access wholesale pricing through Starpil, get in on our Starpil Pro Benefits here.