Dayspa

AUG 2019

DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.

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© GETTY IMAGES The Benefi ts of Proprietary Potions The ability to control your brand by using and selling an exclusive product line formulated with your signature scents and fl ourishes can be an indisputable asset, but it's also a major responsibility. That initial launch typically runs about $3,000 to $5,000 (for products, design and marketing). But what makes it invaluable is that you're getting something the customer can't compare to anything else—because it doesn't exist anywhere else, points out Aleks Vranicic, VP of sales for Vitelle Dermatology Labs. "Plus, private label pricing models allow for lower wholesale costs, which lets owners offer staff higher sales commissions and get creative with promotions," he says. Ultimately, though, spas will notice an increase in revenue, notes Lauri Smetona, CEO of RevealU Skincare. "They can now offer products at a price point lower than competitive brands, making for healthier profi t margins," she explains. Using and selling proprietary skin care will help cultivate your spa's overall identity, as well. "With private label, you can provide unique experiences that customers can only fi nd at your spa, which improves the company brand," says Smetona. Adds Karen Short, CEO of Universal Companies: "You can target specifi c demographics, and capitalize on trends like clean and vegan skin care." In fact, private labeling can even boost your credibility and reputation as a skincare expert. "It allows the business to have its name associated with exceptional products," says Laurie Nicoll Nord, president and CEO of Luxury Wellness International, parent company to Stemulation. Nord adds that private label lines give spas the potential to make online purchasing easier for guests than shopping on Amazon. "Simply link your social media platforms to 'buy now' options for your products, and you've added a revenue stream that you likely wouldn't have with most brands," she says. A Special Order You do want to be selective when choosing a private label partner, not only to be certain that their offerings are in line with your treatment protocols and clientele, but also to ensure that their minimum order quantities suit your business. Once you've landed on a partner, you have to decide whether to go with a full regimen or a few signature items. That "magic number" depends greatly on your budget, but Rachel Hutson, sales coordinator for NF Skin, points out that people may prefer fewer options— ideally a bundle of items that work well together and that your team can be passionate about. "The more specifi c the SKUs you have, the more likely it is that a client will purchase that package deal, rather than one or two items," she says. Additionally, Short notes that certain impulse buys are usually popular. "Products like lip balms and body/hand lotions have always been private label staples," she says. When choosing between offering a few specifi c products/protocols versus an entire line or regimen, it's also important to consider the level of activity and foot traffi c in your spa, according to Nord. "If you're a smaller operation, you'll get the biggest bang for your buck with a handful of key treatment serums," she says. "This gives you the advantage of offering exclusive and effective products without the fi nancial weight of excessive inventory." At the same time, client needs are a major factor. Vranicic reveals that full private label collections often thrive at smaller day spas and medspas, particularly those that are well versed in addressing very specifi c skin types/conditions. © GETTY IMAGES August 2019 • dayspamagazine.com 69

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