● Class IV are devices that may not be used without medical supervision : If the manufacturer’s LOI states a higher class, the service cannot be performed in the salon, even if the state board has not addressed its use. Salons that cross the line can lose their insurance coverage, their salon license, and their assets in a lawsuit; damages may be awarded to a client. How do customers know the legal limits for treatments and machines sold at shows? It is ideal for owners to conduct research prior to going to the show. But if they have not done this, they should request the LOI that was submitted to the Paying the tab Every purchase has a return on investment—an ROI— which is the amount of money returned to the salon for its investment in products, equipment, and/or services. Buyers should request the worksheet showing the ROI for a purchase they are considering at a particular price, then calculate how many treatments it will take to pay for the equipment, the net profit, the cost of inventory, and so on. This information helps to define the ROI before the owner makes the decision to purchase. Other considerations Is this service going to become an established service that will still be a customer favorite in two years? Is it a fad? Service tastes change, and new services are introduced. Support from the manufacturer Investing in a new service, then finding that repairs and support are additional costs or that the company has no interest in supporting salon success after being paid can cause complete failure of the new investment. How maintenance is supported and the amount of training included in the price are important pieces of information the purchaser must have before signing on the dotted line. Consider, for example, a foreign-made pedicure chair. Where will it be repaired and by whom? Testing equipment New equipment should be evaluated and thoroughly tested by a knowledgeable professional; either the owner or manager can learn what questions to ask during the Inventory Some services require more inventory than others, and they need to be on a ready shelf when they are being marketed and sold. One of the biggest complaints of professionals (and one of the reasons for poor sales of services and home care) is that no one is monitoring and maintaining the inventory. No product means no sales, which also means no profit. For that reason, if a salon does not have tight inventory control and products always in stock, it should not take on a new service that is product dependent and needs home care support for perpetuation of its success. Essential training Training for a new piece of equipment/service is best if the cost is included in the purchase price. If this is not possible, training should be economical and time efficient, especially Ease of marketing If a salon brings in a service that is new to the public, marketing is very important and must be intense and thorough. Without marketing, the new service may not meet its profit potential. The budget should reflect this cost and be calculated into the ROI. If a service is added that is already well known by the general public, marketing is still
FDA. Companies are not required to have the LOI for purchasers at shows. If the LOI is not available, the salon representative should delay the purchase or ask for a written commitment from the company that if the service is found to not be allowed as a service performed by beauty professionals in their state, the company will take back the equipment and return the money. The bottom line? To keep their salons’ licenses and assets safe, owners must know that a service is legal in their salon before they invest. Sellers are not required to provide the information, and the purchase can be a disaster for a salon. The ROI can be determined by subtracting the salon’s costs from the service price to consumers, then dividing the remaining amount into the cost of the equipment. For example, a $5,000 piece of equipment with a $66 cost per service on a $100 price to clients leaves $34 gross profit per service. Divide that $34 into the $5,000, and you will find it will take 147 “no-profit services” to pay for that particular piece of equipment. Estimating an average of five services a week, for example, it will take nearly 30 weeks to pay off the equipment.
Some equipment can become obsolete too quickly. Do your clients know about this service? If not, marketing will need to be more intense and expensive to result in a good ROI.
As purchasers of a product or piece of equipment, salon owners and managers must adhere to the axiom of “buyer beware.” If they make spontaneous purchases without investigation, they may be adding to their cabinets of junk products and unusable equipment. Rather than acting on impulse, salon owners need to conduct thorough research before making purchases.
purchase of the new item, or the salon can hire an expert to assess the equipment.
With any new service it is important to know (1) the inventory that needs to be kept on hand for both professional services and home care, (2) how much each service costs to provide, and (3) how much the support and home care products are going to cost the salon and its clients. Blindly jumping into an exciting new service can be catastrophic if the costs are not calculated beforehand. If the service/products are prohibitive in price, clients may avoid them, resulting in a loss to the salon.
if the team must travel to be trained. Ideally the trainer would come to the salon to train the staff.
important but does not have to be as detailed. Many salons first develop the new service internally, marketing to their current clients. These clients are offered special prices, and the professionals have the opportunity to practice the new service with a smaller demographic.
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