The average small-scale teeth whitening business in the United States makes a whopping $2,250 per week for 15 hours of work, and that can translate to over $100,000 per year assuming they have steady clients.
Of course, you know that a standard, well-structured, and strategically located teeth whitening business will definitely make over $500,000 per year.
Even though the average teeth whitening business charges between $150 to $300 for a 1-hour treatment in the United States, it is important to note that some luxury teeth whitening businesses usually charge more.
In this article, we will look at some of the key factors that can determine how much a teeth whitening business can earn yearly.
7 Factors That Determine How Much a Teeth Whitening Business Makes Yearly
The Location of the Business
The geographical location of a business plays a significant role in the sales and income of the business. For example, if you have your teeth whitening business in a high-traffic area, and a place with minimal competition, you are likely going to attract more customers.
This is why you will usually find more teeth-whitening businesses in cities such as San Francisco, California, New York City, New York, Los Angeles, California, Washington, D.C., and Boston, Massachusetts.
Your Target Market
Understanding and targeting the right market demography will go a long way to increase your earnings even if you don’t have many clients.
For example, a teeth whitening business that caters to a demographic with a higher disposable income or a strong interest in cosmetic enhancements will likely have greater earning potential when compared to a teeth whitening business that caters to a demographic with an average or lower disposable income.
Your Quality of Service
The quality of teeth whitening services you offer to your customers can impact customer satisfaction and this will definitely lead to repeat business. Of course, repeat business means more revenue for the teeth whitening business.
In essence, a teeth whitening business that is known to always offer effective and safe teeth whitening procedures will attract positive reviews from customers and, also word-of-mouth referrals which can serve as a sales booster.
Marketing and Advertising
Effective marketing and advertising strategies will cost you money, but in the long run, it will benefit your business because you will be been able to attract and retain a steady clientele base.
To achieve this, you must be ready to invest in online and offline advertising, social media presence, and partnerships with other businesses that can help attract customers.
The Level of Competition
The competition in the teeth whitening business is growing, despite the fact that it is usually location-based. If you are strategic enough to have your teeth whitening business in an area where there is no competition, you will make more money annually, and if your teeth whitening business is located in an area where you have to compete with other teeth whitening businesses, then you may likely not make much money.
This is so because the level of competition in an area can affect pricing and market share. Understanding competitors’ offerings, pricing, and unique selling points can help a business position itself effectively and of course, make more sales.
Technology and Equipment
You know that there is no restriction to the level of technology you can use to scale up sales in your teeth whitening business.
You can work with software developers to help you develop customized software (CRM software, SOP software, and Sales Software et al) that will help you effectively manage your customer base.
In essence, having up-to-date and efficient teeth whitening technology and equipment can enhance the quality of service you offer, and can potentially help you attract more customers, and retain them.
The fact that your earnings as a business are dependent on the customers you serve means that customers who have pleasant and unforgettable experiences from your teeth whitening business will likely return back, and also refer your teeth whitening service to their friends and family members.
In essence, providing a positive customer experience is an important aspect of a service-oriented business. So, if you want to make more sales from your teeth whitening business, you must be ready to invest in friendly staff, and a clean and comfortable environment.
Profit Margin of a Teeth Whitening Business
The profit margin of a teeth whitening business can vary based on several factors, including location, pricing strategy, operational costs, and competition.
But based on available data, the average teeth whitening business targets between 15% to 35% profit margin. Of course, it can be lower or higher.
To calculate the profit margin of a teeth whitening business, subtract total costs (including rent, utilities, staff wages, supplies, and marketing) from total revenue.
Divide the result by total revenue and multiply by 100 to express the margin as a percentage. Carefully consider pricing strategy, equipment utilization, marketing effectiveness, and regulatory compliance. The formula is Profit Margin = ((Total Revenue – Total Costs) / Total Revenue) * 100.
Note that you can increase the profit margin of your teeth whitening business by regularly analyzing and adjusting the factors listed above. It will help you ensure sustainable business growth in the competitive cosmetic cum teeth whitening industry.