Do you want to know how much money beauty supply stores make in profit yearly? If YES, here is an analysis of the income potential of beauty store owners.
Whenever any entrepreneur wants to start a new business, one of the first questions that they usually ask or rather one of the first info that try to get is to know how profitable the business is or how much they are likely to make on the average yearly from the business.
This narrative also applies to entrepreneurs who are looking towards starting a beauty supply store. They would want to know how much they are likely going to make annually from their store.
The truth is that there is no one mold-fits-all when it comes to how much a beauty supply store is expected to make. There are some factors that we are going to look into before giving an estimate of how much beauty supply stores make yearly, and these factors are;
How Much Do Beauty Supply Stores Make in Profit Yearly
In conclusion, the amount a beauty supply store will make yearly is strictly dependent on all of the factors listed below. Usually, a small – scale but standard beauty supply store that is located in a high human and vehicular traffic location in a cosmopolitan city in the united states of America will make on the average, between $100,000 to $300,000 annually all things being equal.
- The Size of the Beauty Store
One cannot conveniently state the amount a beauty supply store is expected to make yearly if you do not know the size of the beauty store. The amount a mom and pop beauty supply store is expected to make annually will be far different from the amount a standard beauty supply store franchise with several outlets will make annually even if they operate in same location.
Of course, the amount invested in a small beauty supply store is different from the amount invested in a large and well – organized beauty store hence the amount they will both make will be different. One the average, the approximate cost of starting a beauty supply store would be anywhere between $5,000 and $500,000 depending on what you want to achieve.
- The Location of the Beauty Store
When it comes to setting up a new business, location plays a major role which is why feasibility studies and market survey are essential. For example, the amount a beauty supply store that is located in a low traffic area will make yearly will be far low compared to the amount a beauty supply store that is located in a high – traffic area in a cosmopolitan city will make.
So, if you want to make it big with your beauty supply store business, then you must be ready to rent a store in a high traffic area, a location with the right demography and people with the purchasing power. Please note that you are going to be paying more to rent a store in a high – traffic area as against the rent you are expected to pay in a low-traffic area.
- The Type of Beauty Products Retailed in the Store
Another important factor that will determine how much a beauty supply store is expected to make yearly is the type or better still brands of beauty products retailed in the store. You will agree that there are low – cost beauty products and there are high – end and expensive beauty care products.
The profits you are expected to make selling these different types of beauty care products will sure be different. Stocking your store with high -end expensive beauty care products will cost you more when compared to stocking your store with low-cost beauty care products.
- Other Related Products and Services Offered by the Store
Aside from retailing a wide range of beauty products such as cosmetics, perfumes, toiletries and personal grooming products, some beauty supply stores go ahead to offer other additional services that will help them make more money than their competitors.
Some of the related services and products that a beauty supply store can add to make more money yearly are selling herbal related beauty supply products, offering home delivery services and offering makeup, manicure and pedicure services amongst others including operating a luxury spa within your beauty supply store.
- The Management Style of the Store
Another key factor that will determine the amount a beauty supply store is expected to make yearly is the management style of the store. Trust me, the results you will get when you have a good manager and an average or bad manager managing a beauty supply store will definitely be different. Even if you give the managers same conditions to work and same products to retail.
- The Business model of the Store
There are different business models that a beauty supply store can adopt and these business model offers different results. For example, the amount a beauty supply store that also runs an online store makes yearly will be different from the amount a strictly brick and mortal beauty store will make yearly.
The amount a beauty supply store that also leverages on multi – level based or commissioned based model for freelance sales will make yearly will be far different from the amount a strictly walk – in beauty supply store will make. This goes to show that the amount a beauty supply store will make yearly is dependent on the business model of the store.
- The Advertising and marketing strategies Adopted by the Store
Another key factor that will determine the amount a beauty supply store can make yearly is the advertising and marketing strategies adopted by the store. Trust me, there are several advertising and marketing strategies that can help a business scale-up and increase their earnings, but you may be expected to spend more.
The results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a beauty supply store that is engaging in aggressive advertising and marketing to make same amount yearly with a beauty supply store that is passive with its advertising and marketing.
- The Number of Years the Business is in Existence
Lastly, another key factor that will determine the amount a beauty supply store is expected to make on a yearly basis is the number of years the business is in existence. In business, the number of years you are in existence will go a long way to determine the amount you will make.
For example in your first fiscal year (FY1) you might make a hundred thousand dollars ($100,000), in your second fiscal year (FY2) you might make two hundred and twenty thousand dollars ($220,000) and in your third fiscal year (FY3) you might make four hundred and fifty thousand dollars ($450,000). Interestingly, most businesses including beauty supply stores usually breakeven from the third year of operation.