Do you want to start a waxing salon and you want to know the cost breakdown? If YES, here are 10 factors that determine the cost of opening a waxing salon.
With the massive growth that has outpaced other sectors in the American economy; the personal care industry can be very attractive and lucrative for entrepreneurs seeking new ventures. One sector in particular — the body waxing industry — is expanding at a remarkable pace.
According to reports, body waxing is a high margin treatment with low overhead — making it one of the most profitable services in the personal care arena, yet the number of waxing-only salons in the United States is relatively small, offering a wonderful opportunity for people who want to get in on the ground floor and capture the market.
According to a recent global industry analysis, the global waxing hair-removal industry is expected to grow at a compound annual growth rate of 9.4 percent and reach $18.8 billion by 2026. Businesses in this industry are now considered a personal care maintenance necessity that outperforms massage, tanning and facials in the list of personal care services.
After hair and nail care, body waxing ranks third in the list of most sought-after services; and is even seen as a recession-resistant business. Reports also show revenue is rising to a high of $11 billion. The audience for body waxing is also expanding.
Male grooming and personal care have skyrocketed to a $4 billion industry, with body waxing taking a $1 billion chunk of those sales. In general, teenagers and those in their twenties or thirties are most interested in body hair removal. Most customers will need periodic waxing, so you will likely have many return customers.
How Much Do Waxing Salons Make in Profit Yearly?
A waxing business makes money by charging customers for sessions in which body hair is removed. A full body wax typically costs between $50 and $100. The waxing of eyebrows usually runs between $10 and $20. Waxing the upper lip can cost around $5 and $10. A Brazilian wax of the lower body runs $30 to $45.
According to recent reports, this type of business can generate a yearly profit of $50,000 or more. If you set up shop in an area with plenty of young people, market the business in a strategic manner, then you can make six figures per year or more.
Body waxing customers experience immediate results and quickly realize the long-term benefits of the service they receive, thus making it a part of their beauty routine after just one or two visits. Note that the average body waxing customer returns for services every four to six weeks.
In fact, it is estimated 93 to 99 percent of waxing customers remove their body hair regularly. On average, women who wax are estimated to spend more than $23,000, over their lifetime to rid their bodies of unwanted hair. Also note that the inventory for a body waxing business is considerably lower than other types of businesses.
Businesses in this industry do not need expensive equipment to perform services. The initial supplies needed to begin a body waxing business cost around $8,000.
Factors That Determine the Cost of Opening a Waxing Salon Business
One of the most important keys to managing your waxing salon’s finances is to understand how much it costs to start the business. Here is a breakdown of the costs you should think about when starting a waxing salon.
1. The building costs ($2,000 – $11,000)
Have it in mind that the size, location, and overall ambiance of your waxing salon can dictate the success of your business. They also influence the cost of your salon too. Note that your first major decision is whether to lease or buy a space for a salon. Howbeit, leasing a space is more cost effective for a first-time owner, but it depends on your location.
But if you decide to lease, always ensure you analyze the terms of the lease, paying close attention to its length. You want to sign a lease that gives you enough time to establish your salon and build a great reputation. A waxing salon building costs are determined by the type of space you select and the square footage.
However, to avoid overspending, you need to maximize space. Think about how big your waiting area needs to be and how many chairs you need. Your salon’s ambiance is another key factor to your success, so look for a salon space that speaks to the type of clientele you want to attract.
2. Initial Salon Supplies and Inventory ($2,000-$15,000)
When you start out, your retail shelves might be empty and you will have to fill up your back-bar with products and other supplies needed to perform your waxing services. Note that the cost for initial supply and inventory will vary greatly depending on the size and concept of your waxing salon.
However, try to write down everything you think you’ll need and put a cost behind each item and round up your number so that you can fit all you need in your budget. To bring costs down, consider negotiating a good deal with your product supplier and register for a free Amazon Business account to save money on the inventory and supplies you need to purchase there.
3. Salon Equipment ($5,000-$25,000)
The equipment you will need to start and run your salon can be one of your biggest expenses in the beginning. To further get an accurate budget for this, write down a comprehensive list of this equipment and seek out their prices online.
As you start you’ll most likely have to check or purchase a lot of things from Amazon. Howbeit, it is advisable that you register for a free Amazon Business account before you start placing orders. This gives you access to better prices and professional products that regular consumers cannot access.
It may take a little while to get your account created so it’s a good idea to register for an account now so that you have it ready when you need to start buying.
4. Legal & Consulting Fees ($50-$5,000)
Do not forget to set aside some budget for legal support and business formation fees. Since you’re starting a waxing salon, do not expect this to be very high though. To get help with forming your business in a correct and cost-effective way, you can leverage document service firms. They are experts on what you need and can take care of all the paperwork for you for a very low fee.
5. Salon Licenses ($500 – $12,000)
There are a number of licenses you need in order to run a waxing salon or other beauty business. The total license cost for a salon is approximately $12,000 where the biggest cost is the Cosmetology License. If you already have a Cosmetology License, the additional license costs should be less than $500.
6. Salon Branding & Design (From Free to $2,000)
Note that starting a waxing salon also means starting a premium business. Not everyone can afford to go to a salon. So have it in mind that you’re offering is a premium (and sometimes luxury) service. Your brand and image should reflect this.
Howbeit, to increase chances of success with your business, you will have to invest some money (or time) on the look and feel of your brand.
This includes things like logo design, brand colours, and other visual assets that you will leverage in all touch points with your salon. You can hire a local marketing agency for this. But like with creating a website, this can get quite expensive.
7. Marketing Expenses ($500-$5,000)
Since you are opening a new salon, you will have to make it a priority to attract new clients. In the beginning, very few people will know that you even exist unless you invest in your marketing. Note that how much you budget for marketing will really be up to you.
There are many ways that you can market your salon and the most cost-effective ways are typically using digital marketing strategies.
8. Salon Website (from free to $10,000)
It is very unrealistic to start a business in this age without an attractive website. Your salon’s website helps you get visible when people search for waxing salons in your area and is at the heart of all your other marketing activities. However, having a regular local agency create your website for you can be really expensive. Luckily there are other ways.
If you don’t have any budget for a website, you can create one yourself using Wix. Wix is super easy to use and you can even get something up for free. It will not be as good as if you go with a professionally built website but if you’re on a slim budget, this is a good option.
9. Salon Software and Point of Sale System (From Free to $300/month)
Note that to effectively run your salon; you have to get a good salon management software. These are systems with features that range from appointment booking and point of sale support to inventory and payroll management. There are hundreds of solutions on the market – some are free and others really not cheap.
10. Salon Insurance ($50-$1000 per Month)
Note that full salon insurance costs about $2,900 per year (approx. $240/month) for a beauty salon, hair salon, barbershop, or spa with two employees. Nonetheless, the exact salon insurance cost can vary greatly.
It can range from $50/month to $1,000/month depending on the number of employees, business turnover, which state you’re based in, as well as the type of services provided. There are also ways you can combine insurances to bring the cost down.
Conclusion
There are many things that can and will impact the cost of starting your waxing salon and you will have to take several decisions over the coming weeks and months that ultimately determine the cost. However, to make your business more profitable, offer a wide variety of services.
Waxing services should extend to the eyebrows, lips, underarms, chest, and back and beyond. You can also provide beauty salon services, spa services, massages, pedicures and manicures.