Cheaper product to them = lower costs for a service.
At least on the outside....
But actually it's often not true. And often the more expensive products actually cost you less per service in the long run. Even though you paid more for a bottle.
Lets break it down.
Costs of your service are set in three parts.
- Cost of products used.
- Cost of time.
- Cost of business.
So for arguments sake, lets say you are renting a table for $150.00 per week. Which is an easy example. And you have roughly 30-40 clients each week. This makes your cost of business approx $4.00 per client.
Then there is your hourly rate. Lets say you pay yourself just $20.00 per hour.
That's $24.00 you need to charge already, for a one hour service. Or $44.00 for a two hour service.
Next up is your product costs.
Which is where it gets trickier, and here I will do a comparision for you.
Now, I allow approx $4.00 per client for a Gel Polish Service, to cover consumables;
Brush Wipes, Table Covers, Gloves, Lint Free Wipes, Prep Wipes, Dehydrator, Primer, UV Cleanser, Sanitiser, Disinfectant, Tissues & Cuticle Oil
I also allow approx $1.50 for top coat and base coat.
So $5.50 all in.
But now for Gel Polish..... Which is our variable.
X brand is $19.00 per bottle.
Y brand is $25.00 per bottle.
At face value, you would think that X brand will save you money yes?
Because lets say I bought product X. It was cheap hey? Cool. But when I'm using product X, it's not as good a quality. So I'm going to need to use 3-4 coats. Instead of the two I should be able to use.
Which adds on approx 12 minutes to my service. Which often rounds out to 15 by the time you're done.
And I'm using twice as much product out of the bottle on one client.
I'm going to get approx 15-20 clients out of this bottle at that rate.... so it's a cost of about 95c per client.
If I bought product Y, it's a better brand. I can use two coats.
That product will get me approx 30-40 clients out of it, at a cost of closer to 62c per client.
That client will take me 12-15 minutes less time to do before I'm finished working on them.
Consider that next to the fact that the single most important cost in your service, is your time...
For a 60 minute service using product Y;
Cost of products used. $6.12
Cost of time. $20.00
Cost of business. $4.00
For a 75 minute service using product X;
Cost of products used. $6.45
Cost of time. $25.00
Cost of business. $4.00
Over a week, and 30 clients?
It's cost you
$903.60 and you have worked 30 hours.
$1063.50 and you have worked 45 hours.
If you have charged $60 for the service, you have made
$896.70 profit for working just 30 hours.
$736.50 profit for working 45 hours.
Back up there, you probably looked at the two prices and wondered why bother about the difference of 30 odd cents in a bottle of gel polish right?
Even factoring in the extra labour, it's only $5.00 right? That's nothing.
However, when you get to the end of your week, and have an extra $130.00 in your pocket and you got to take a lunch break every day as you had a whole extra 15 hours in the week... or you squeezed in 10 more clients....
Who is laughing now?
I think I'd rather work less hours and make more money... wouldn't you?
So when you are looking at a product, you don't want to just consider the 'product costs'... you want to consider the single most important cost element in your service which is your 'time'.
Quality products will save you time, and with more time you make more money. With an added bonus of adding to your reputation and lessening the physical labour you output to complete a set of nails.
Don't get trapped into looking at just product costs, look at the overall picture.
Does this product save me time and help me produce quality work?
Something to think about isn't it!