The decisions you make in creating and managing your spa business are myriad. Some are practical: location, size, services, hours, pricing, suppliers—the list never seems to end. Many of the most important and creative decisions you make are about your brand. Everything from your business name to your logo, colors and décor speaks to the experience you offer to your clients, and the vital first impression that you want them to have.
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The decisions you make in creating and managing your spa business are myriad. Some are practical: location, size, services, hours, pricing, suppliers—the list never seems to end. Many of the most important and creative decisions you make are about your brand. Everything from your business name to your logo, colors and décor speaks to the experience you offer to your clients, and the vital first impression that you want them to have.
Selecting products for retail is another major set of decisions, impacting both your bottom line and your brand image. A well-accepted rule of thumb is that retail sales should account for at least 20% of your revenue. Whether you are retailing your own brand, a selection of outside options or a combination of the two, your curated retail offerings are a reflection of your professional expertise. They extend the spa experience for your clients and help maintain results between visits.
One natural intersection of branding and retail is marketing your own brand. It’s a perfect opportunity in some situations, but not necessarily right for every business or every product. You have to decide if it’s right for your brand and, if so, how you go about making that decision and getting started.
Private Label Basics
Private label encompasses a wide range of retail practices, from simple and turnkey to large and relatively complex. One approach isn’t necessarily better than another; it’s all about finding what’s right for your business! What private label products all have in common is that they are developed and made by one company and sold by a different company under that second company’s brand. Hence the term “private label.”
In its simplest form, a private label product may be a pre-developed formulation in packaging that has your branded label applied to it. The label design can generally be whatever you choose within certain size and regulatory specifications. This type of private label (also called a white label) is the quickest and easiest option, with very small minimum required orders.
At the other end of the spectrum are custom-developed and manufactured products in packaging that is sourced and decorated specifically for you. Because of their level of customization, these private label products typically have much longer lead times and much higher minimum order quantities, requiring greater resources.
You can combine approaches, although that could mean working with more than one manufacturer to get exactly the right combination. You might need one or two “off the shelf” products to fill in gaps in your specialty line, or use primarily pre-developed products for easy management, then invest in a custom-development project for a product idea that you’ve always wanted.
Related: Private Label 101: Boosting Your Bottom Line
Benefits of Private Labeling
Most spas with private label products also carry items from well-known brands to offer their clients more choices. Even with so many wonderful lines available for retail, a private label can play an important role in your marketing and business strategy.
Create and build your brand: Your products are where you bring together your brand experience with your professional eye for products and ingredients. Your branding speaks to the message, image and experience you offer your guests, and your product selection reinforces the trust they have in you.
Exclusivity: Your products are available only from your spa. You can price them to meet the needs of your business and clients without worrying about online competition or corporate price policies.
Continuity: Products available only from you give guests an extra reason to return between treatments.
Build your credibility: Your clients come to you because they trust you and value your expertise. Pay it off with great products that are yours alone.
Fill in retail gaps: Even extensive branded lines may be missing one or two products that your guests need. Private label is a great way to fill those gaps and elevate your line without taking on more products than you need.
Supplier Questions
Private label options involve a bit more planning and work than purchasing from a branded line. Ensure you go into the process with your eyes open. Ask the following questions and be sure you have the time and resources to dedicate to making your products a success!
- What is your average lead time? For initial orders? For reorders? This can vary widely based on the supplier and the level of customization in your line.
- What is your minimum order quantity? For initial orders? For reorders? This is another factor that will vary widely based on the supplier and the level of customization.
- Can you design my label? If so, is design included in the purchase price?
- Are there samples available? What is the cost?
- Do you provide regulatory help? For over-the-counter products such as sunscreens and acne remedies, you must follow label regulations and register your products. Be sure that your supplier can help you accomplish that.
- Are there fees beyond the purchase price? There may be setup costs to get started or ongoing costs for each production run. Check to see if regulatory filing fees are included in the price.
- Are there limitations on where the products can be sold, geographically or by channel? If you intend to sell the products outside of the U.S., be sure to determine whether all ingredients are acceptable where you intend to sell.
- What is your return policy? All good suppliers will stand behind their products when there is a defect or shipping damage, but you may be responsible for some customer returns.
Once you’re ready to start creating your line, start with a plan! Set a budget, determine what products you’d like to include, gather creative assets like your logo, and start reaching out to potential suppliers. Keep it manageable within your time and financial resources. Remember, you can always start with one or two products and build from there.
Launch Time!
Once you’ve chosen your products, designed your labels and are ready to launch, it’s time to market your products to clients and beyond. Marketing doesn’t need to be expensive, but it does require some thought and planning. One key place to invest is in high quality product photography. You’ll want your products photographed in similar fashion and lighting to reflect the beauty you’ve built into them. This beautiful imagery will be used on your website and in everything else you do.
Whether you have a single product or a collection, show them off by creating a lovely retail display. Use complementary colors, risers for different heights and a prominent space. Make sure your clients know what you have to offer! Use your website to announce your line or any new product offerings. Website sales, if you have the capability to offer them, will increase revenue because clients can order when the need strikes—especially between visits.
Chances are good that you are already promoting your business via social media, as well. Promoting your own products on social does double duty, reinforcing your spa brand while encouraging sales. It’s a great idea to pair products with treatments. Create special packages that include services and appropriate products. It’ll remind your clients that good skin and body care encompasses both!
Finally, your staff is your best advertising when it comes to retail sales, especially for your private label. Make sure they are as knowledgeable and as excited as you are to get your brand into the hands of as many people as possible. Have fun! This is your brand and your vision to bring to life!
Patricia Salvas, private label account manager of TiZO, has 15 years of health care experience. Her goal is to make the private label journey seamless and enjoyable. With a passion for makeup and creativity, Salvas loves helping her clients bring their brand vision to life.
Amanda Barretta, LE, esthetician with TiZO Sunscreen and Skincare, has a true passion for all things skin care. She ran her own esthetic business for several years, where she specialized in chemical peels and teenage acne control. Since 2018, Barretta has developed TiZO’s education and training program, growing the way it communicates with its community.
