Money Matters

Tip of the Month: Buying in Bulk

The savings to the clients are good and the profits to the salon are great.

Diamond Cuts’ refill bar distils bulk products in individual quantities. The savings to the clients are good and the profits to the salon are great,” says Julie Copprue, a nail technician at the Novi, Mich., salon. You can stock the bar with just about any retail product you can buy in bulk – top coat body lotion, or massage oil, for example.

Diamond Cuts offers clients refills of SolarOil if you do the math you can see who Copprue explains. A ¼-oz, bottle of SolarOil wholesales for $2.50 and retails for $5. The refill size is 8 oz (which equals 32 refills) and costs the salon $30. They  sell the refills for $3 (versus $5 for the original purchase) so the client is happy. The salon makes $96 (32 refills ´ $3) or more than 200% profit, a sizable increase over the 100% markup on prepackaged bottles.

Copprue simply lets her clients know the refills are available when she sells them their first bottle of SolarOil. “It’s such a simple idea that works out wonderfully. It’s even environmentally friendly since you reuse the containers.” She says.

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