In The News

Private-Label Products Are a Guaranteed Success Potion

By Cheryl Whitman

You've just had a facial and a massage and you've got that noodle-y feeling that you'd love to have every day. Or maybe your dermatologist has just treated your sun-damaged skin.

When you remarked to your aesthetician on how great your skin felt, she told you what products she used, right? And that dermatologist made you swear to always wear sunscreen.

The second thing they probably told you was that all of those products were available on your way out-point-of-purchase pampering.

If you are a spa owner-be it medi-spa, day spa, destination spa or wellness spa-or a cosmetic physician, you should be giving your clients an extension of their visits by providing them with your products to use at home. And not just any products-private-label products bearing your name or your company's name.

Private labeling is one of the hottest and most obvious revenue sources in the business. It's a win-win situation for all concerned: your clients, your staff and your bottom line. It's a logical extension of all the other investments you've made in your company or practice. Here's why.

Your clients. First, there is name recognition every time a client or patient picks up a bottle of one of your products. It's like a feel-good business card that reminds them of a nice experience. It makes them want to return to the scene of the pamper. Patients who've spent a good deal of money on beauty procedures will want to keep their investment looking its best by buying products that their physicians have helped develop and recommend.

It's convenient. Your customers need go no farther than the front counter to make sure their beauty needs are met. You can also provide them with an 800-number or website where they can re-order. They can wade through the confusion that a cosmetic counter sometimes generates and get individualized attention from your staff in how to use the products. That also means they won't be wasting money on products not suitable for them or their skin type. Private labeling also promotes a feeling of security that their service or treatment and the products are connected.

Your staff. Your staff will be motivated to sell your products if they have an incentive. That incentive is commissions. Offer them a small percentage based on their weekly sales figures. Giving staffers the chance to train in sales technique and learn product line is also a powerful motivating tool to offer anyone who wants to add more responsibilities to their job description. It also shows them that you have faith in their talents, which promotes a happier and more loyal staff.

Your bottom line. A signature product line and a well-trained, well-informed staff proficient in selling it can add 30 to 40% to your total revenues. Most clients are loyal enough to want to spend their money where they get the rest of their services. The mark-up is entirely up to you, based on the wholesale, development and marketing costs.

Where do you start? The best thing to do is hire a consultant who is an expert in the field of beauty products or spa retail operations. She will tell you how to develop a brand line starting with assessing your needs for which types of products and how much inventory you should have. She will tell you where to have formulations produced. You may want to hire a chemist, skin-care expert or specialty lab or investigate any number of brand-name lines available for private labeling. Perhaps you have a hidden talent for formulations yourself, which would open a whole new area to explore.

There are legalities involved, too. Trademarks and even patents are suggested when necessary.

Once you have the formulations, there's packaging and learning how to retail. Products need to be properly displayed to enhance their sale-ability. Depending on your budget and taste, that display space can be quite elaborate or quite simple. Again, don't be afraid to turn to an expert to give you the goods on how to display your product in an eye-catching way. Sometimes half the "sell" is in the "seeing."

Private labeling and product development are an addition to your business that will pay for itself in revenues delivered, as well as customer and staff satisfaction. It's a sure potion for success.