Working out The best to buy an aesthetic machine has become the latest challenge for many salon and Clinic owners who are leading the transformation of the beauty and well-being industry.
This transformation is being driven by the rapid advancement of Aesthetic technologies which can provide a range of non-invasive and effective treatments for a variety of conditions and has led to an explosion of consumer demand fuelled by large marketing budgets channelled through social media.
These machines are enabling the skincare and beauty industry to reinvent themselves by offering new specialised, more personalised and profitable Aesthetic treatments, like laser hair removal, body contouring and RF treatments, alongside traditional skincare and beauty services. They have the added advantage of being easy to learn and unlike “injectables” do not need a formal medical qualification. The rapid expansion of Aesthetic Clinics offering these services forces more traditional beauty salons to consider how they can compete. These two facts have led to a rapid expansion in the demand for aesthetic machines.
While the potential benefits of these machines are undeniable they are expensive and represent a very large investment for most salons and clinics. For example, a Hydrafacial machine can cost between €30k-€40k and the ongoing consumables like serums add even more incremental cost. A new laser hair removal machine costs between £30k and £60k depending on the model, specification and the type of technology you choose.
One of the key reasons most salon or clinic owners find it hard to grow their businesses is their dependency on skilled and reliable staff. Retaining staff who can be relied upon to show up for work is a colossal management challenge that wastes time, and money and inhibits the potential of your business to grow. Employers' Social Contributions, set to rise further, with recently announced government changes regarding opt-in pensions make the financial commitment for each employee daunting. Taking a very rough example one machine working for 10 hours per week would generate around €250k* of revenue per year. Assuming an average billing rate of €60 per hour achieved for a typical clinician, one machine would generate the same revenue as 2 full-time staff members** but would only require 1/4*** of one person to operate, saving you all the payroll costs and scheduling headaches.
*€8 per min = €480 per hour times 10 hrs = €4,800 per week = €250k per year
**(€250,000/€60 = 4,166 hrs / 109 working weeks or 2 people
***10hrs/ 38 hr per working week = 26%
The numbers are attractive and indicate that if you market your aesthetic machine services correctly, to the right target market, then you can earn more than 6x per minute than you can achieve for the typical salon treatments. For example, with laser hair removal you can achieve prices of up to €5 / €6 per minute as opposed to less than €1 per minute for traditional waxing or nail services. However, with such a large investment you need to to be sure that you can generate the client traffic necessary to ensure the machine is being optimised and generating the returns you need to pay for the machine costs and the investment in marketing you will need to make, to return a profit.
Cosmeditech has an interesting tool on its website that will enable you to estimate the revenue you could generate from your investment. In the example below
It suggests a small clinic selling two laser hair removal treatments per day priced at €300 could generate €12,000 monthly. You can use the tool for yourself here. However, as already stated a top-of-the-range laser hair removal aesthetic machine will cost up to €60,000. In our ebook “Financing Aesthetic Machines and Equipment” we interview Anne Marie O’Sullivan of One Stop Finance about the best ways to pay for an aesthetic machine and she concludes that leasing is the best way to finance an aesthetic machine for most a typical salon or clinic. Using the website
You can use the free tool provided by calculato.net to calculate the cost of your lease. Our example is based upon an aesthetic machine costing €50,000 at 6% for 5 years.
In this example, the monthly cost would be approximately €966 per month.
As we can see from the examples above it is possible to generate €12,000 per month in revenue from an aesthetic machine that will cost you less than €1,000 to use. This of course does not include other costs such as overhead, consumables, maintenance etc but strongly indicates that that an aesthetic machine can generate a much higher profit for your salon or clinic. In our example by using a high-end laser treatment aesthetic machine, we have only used about 40 minutes of your working day. This means that there is plenty of time left to grow this service or to continue to provide more conventional treatments.
This is the key question. Many Salon and clinic owners need help understanding the investment required in marketing to generate the consistent flow of business needed to make your investment in an aesthetic machine pay. This may involve rebranding your business and utilising specialised marketing techniques involving advertising. We will deal with this in greater detail in future articles.
Are you ready to take your salon to the next level by offering high-value aesthetic treatments? We understand the challenges of staying competitive and the need for specialised services to attract more clients and boost revenue.
To assist, Salon Solutions has collaborated with industry experts to create e-books guiding salons through investing in aesthetic machines, including financing, selecting suppliers, understanding target markets, and effective marketing to ensure a return on investment.
In our first book “How to Finance Your Laser or Aesthetic Machine” we detail everything you need to know about how to finance a laser or Aesthetic Machine with advice from Anne Marie O'Sullivan of One Stop Finance. She has extensive experience in the Skincare and Aesthetic Industry having owned and managed her own clinic for over 20 years.
Due to the high cost many Clinic and Salon owners are trying to understand the best way to buy an aesthetic machine and what are the options available to them.
While it may seem that there are many options available to finance your aesthetic machine they can be categorised into one of 3 options as follows:
Each of these options has several pros and cons that need to be considered such as:
We have published an ebook How To Finance Your Aesthetic or Laser Machine that examines each of the options available to you and determines the best approach for most businesses.
Buying an aesthetic machine is a significant but potentially transformative decision for salon and clinic owners looking to elevate their offerings and boost profitability but understanding the correct way to finance your aesthetic machine can make the difference between success and failure. As the beauty industry evolves, demand for these advanced technologies will grow. Although the initial investment is considerable, the potential for high returns and operational efficiencies, make it a compelling choice. Success, however, depends on effective marketing and client acquisition strategies. Are you considering this step, if so, it's essential to understand what finance options are available to pay for your aesthetic machine. Download and read the first in our series of ebooks
The decision to lease, rent, or buy aesthetic equipment depends on various factors such as your clinic or salon's budget, long-term goals, and flexibility needs. Leasing offers lower upfront costs, tax benefits, and flexibility to upgrade equipment. Renting provides short-term access without ownership. Buying may offer long-term savings but requires a significant initial investment. Assess your clinic's financial situation and objectives to determine the best option.
Leasing aesthetic equipment offers several advantages, including lower upfront costs, tax benefits, and flexibility. With leasing, you can spread out payments over time, preserve capital for other business needs, and avoid the risk of equipment obsolescence. Leasing also provides access to high-quality equipment from reputable suppliers and may include maintenance and support services. Evaluate lease terms and conditions to ensure they align with your clinic's financial and operational goals.
When leasing aesthetic equipment, consider factors such as monthly lease payments, interest rates, lease duration and end-of-lease options. Assess the total cost of the lease, including any upfront fees or maintenance expenses. Compare lease terms from different providers to find the most cost-effective option that aligns with your clinic's budget and cash flow projections.
Calculate the potential ROI of buying aesthetic equipment by estimating the expected revenue generated from the equipment over its useful life compared to the initial purchase cost and ongoing expenses such as maintenance and operational costs. Consider factors such as client demand, pricing strategy, competition, and market trends to assess the investment's profitability and long-term viability. Cosmeditech has a useful tool on their website called the “Clinic Revenue Calculator” which you can use to estimate your monthly revenue after entering the key variables.
Consult with tax professionals or financial advisors to explore available tax deductions, credits, or depreciation allowances related to purchasing aesthetic equipment for your clinic. Understand the tax implications of different financing options, such as leasing versus buying outright, and how they may affect your clinic's tax liabilities and cash flow. Implement tax-efficient strategies to optimize your clinic's financial position and minimize tax burdens.
