When providing nail care and beauty services, running a successful business goes beyond just artistic talent and creative flair. For nail professionals, understanding the financial side of your services is crucial for building a sustainable and profitable business!
One key aspect of financial management is calculating your various costs per service. In this blog, we're sharing our top tips for why it's important to accurately determine your cost per service and how it can contribute to your salon's success!
1. Establishing PricingCalculating your cost per service provides nail professionals with a clear understanding of the expenses associated with each treatment. By factoring in the cost of products, tools, overhead expenses, and time, professionals can determine a fair and competitive price for their services. Without this knowledge, setting prices may lead to undercharging, undervaluing their skills, or worse, operating at a loss.
Check out the Cost Per Service for our Lexy Line Gels here (full set):
|
Size: 30ml
|
Services per Container: 20
|
Price |
Cost Per Service: |
| Size: 50ml |
Services per Container: 33
|
Price CAN $89.95 |
Cost Per Service:
US $2.27 CAN $2.73
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| Size:120ml | Services per Container: 80 |
Price CAN $139.95 |
Cost Per Service: CAN $1.75 |
Check out the Cost Per Service for JimmyGel here (full set):
| JimmyGel Soak Off Builder Gel |
Size: 15 ml |
Services per Container: 17 |
Price CAN $24.95 |
Cost Per Service: US $1.17 CAN $1.47 |
*Cost per services based on average nail width ⅜” x length ¾”
2. Profitability Assessment
Knowing the cost per service is essential for assessing the profitability of individual treatments. By comparing the cost per service to the price charged, nail professionals can identify the margin they are making on each service. This information helps you make informed decisions about which services are most financially rewarding and which may require adjustments to increase profitability.
*Pro Tip: Filling your builder gel each service can save you not only time, but money per service! Instead of soaking off each JimmyGel set, try filling your JimmyGel clients to save product and time which means more money in your pocket! Remember to use Tack as your bonding agent when filling JimmyGel for longer wear.
| Lexy Line 30 | Size: 30 ml | Services per Container: 60 |
Price CAN $59.95 |
Cost Per Service:
US $0.83 CAN $0.999
|
| Lexy Line 50 | Size: 50 ml | Services per Container: 100 |
Price CAN $89.95 |
Cost Per Service: CAN $0.899 |
3. Budgeting and Financial Planning
Understanding the cost per service enables nail professionals to create accurate budgets and develop effective financial plans for their businesses. By knowing how much each treatment costs, professionals can estimate their monthly expenses, plan for any upcoming investments, and set realistic revenue targets. This information empowers you to make sound financial decisions and ensure long-term sustainability!
4. Resource Allocation
Accurate cost calculations aid in effective resource allocation. Nail professionals can evaluate the usage of supplies, tools, and equipment per service and identify any areas where wastage occurs. With this knowledge, they can optimize their resource allocation, minimize unnecessary expenses, and ensure the efficient use of their inventory. This practice contributes to reducing costs and improving overall profitability!
Remember that buying in bulk or purchasing refills can also save you money per service!
| Lexy Line Refill (Fill or Rebalance Service) | 120 ml | Services per Container: 240 |
Price CAN $139.95 |
Cost Per Service: US $0.46 CAN $0.58 |
5. Competing in the Market
In a competitive market, knowing your cost per service is crucial for staying competitive and profitable. By understanding the financial aspects of your business, you can evaluate the market rates, compare your pricing with competitors, and make adjustments accordingly. You can also identify opportunities to differentiate your services based on quality, customer experience, or additional value-added offerings.
This is when product consistency and performance can make all of the difference. Choosing to work with a product that is high-quality, helps you work efficiently and provides lasting results can set you apart from the competition!
While artistic talent and skill are vital for nail professionals, understanding the financial aspects of your business is equally important!
Calculating the cost per service provides a comprehensive view of the expenses associated with each treatment and allows professionals to make informed decisions about pricing, profitability, resource allocation, and budgeting. By mastering this aspect of your business, nail professionals can achieve financial success, build a sustainable business, and thrive!
Why is Light Elegance HEMA Free? While many brands use it for adhesion and lowering costs, we avoid it along with HEA and IBOA to drastically lower the risk of allergies. Small molecular sized monomers like HEMA are known to penetrate the skin more easily than our state-of-the-art formulations high in premium oligomers, cause irritation and often lead to nail allergies.
At Light Elegance, we prioritize quality and safety. We manufacture products from scratch here in Redmond, Oregon with high-quality ingredients to minimize allergic responses for industry safety. We believe, What's Inside Matters!
Shop our HEMA Free Gel Nail Products today!