Private-Labeling For Spa Success

by Melinda Minton

Just how unique can a menu be if the treatments are centered around a product line that can be found on every block in the country? While all brands have their raison d’être, there is only so much one can do with perfumes, skin mapping and prefabricated kits as spa treatments.

Most spa-goers grow tired of the same routine after a while. Moreover, clients begin to wonder why an expert is using a pre-made kit for their unique skin type. After all, couldn’t they simply take the regimen home and do it themselves? In this day of “niche equals rich” and “be different or die,” spas can’t afford to keep relying on brands alone to pull them through the competitive crunch.

That little thing known as a profit margin should be what a spa manager/owner ponders and considers during every waking hour. However, some spa professionals become brainwashed by the brand-marketing machine and forget about the bill at the end of the show. Imagine a cleanser that can be purchased for $1.50 and sold for $15. Even more valuable is the eye cream that is purchased for $4 and sold for $48. That is a big difference. Those dollars can fund a variety of expenditures within a facility that make an immediate difference to the customer.

When I owned spas, one of my ad campaigns used the slogan, “We don’t have to read what’s on the back of the box; we wrote what’s on the back of the box.” When a spa has its own line, it tends to make a knowledgeable staff shine. The facility has an added aura of celebrity and product knowledge. Moreover, where else can the client go to get the signature line but your facility? Plus, the price-points won’t be challenged by the spa down the street because it doesn’t have the identical products to your spa.

Spa directors often ask of private label, “But is it any good?” The perception is that this is all too good to be true. I chalk up the entire fog of confusion to brand brainwashing. Any cosmetic chemist could sit down with a skeptic of what a spa claims and set the individual straight based on formulation alone.

Many brands have schools or seminars that are available to those outlets selling their product lines. Not only do these educational opportunities help expand the scope of the staff’s sales, they are product-specific, allowing for immediate sales of specific products.

Most products come from the same large manufacturing plants. Many ingredients come from the same suppliers. Ingredient technology does change fairly rapidly, but private-label lines typically are on to that as soon as brand lines. Most of all, if a spa private-labels with fairly simple packaging, a spa manager/owner can pick and choose products from different sources and carry only the best of each type of product. For instance, a facial scrub, body lotion and facial moisturizer can be chosen from one source while masks, toners and cleansers can be selected from another. Choose quality products and put them to work for the spa.

The spa’s brand name, tag line, logo and image should be everywhere—why not on a product line? I recommend taking that so far as to put the logo on ribbon, tissue, gift wrap, gift sets, sundries, robes, slippers, water bottles and more.

Any introductory marketing book will explain that consumers have a hard time distinguishing one brand from another. New clients in particular have difficulty remembering spas, brands or estheticians. Consumers are in sensory overload most of the time and require ongoing tutoring to log on to the brand.

There is a place for a few strong brands within a spa. Depending on the size and focus of the spa, several brands can effortlessly complete a retail mix. The common denominator is finding the brand that can fill specific needs and offer a few standard benefits.

Brands are easy to buy, sell and promote. Most brands, in fact, will offer in-house materials to sell the line such as promotional brochures, shelf talkers and displays. Tester boards, sample sizes, gifts with purchase and seasonal campaigns should all be prearranged within each brand’s line. Brands to consider are those that actively help the spa sell its products.

Co-op advertising, where the spa is paid a portion of its total advertising costs in future purchase credits, is another bonus. Brands either offer a percentage in brand-specific advertising costs reimbursed in products or promote spas carrying their line.

Carrying at least one line that is very well known and nationally promoted can bring in clients that otherwise may not have frequented the spa. New clients often look for the familiar when shopping for a new spa, and a strong brand name will help capture those potential clients.

Some items within the spa are necessary additions to the retail mix but don’t sell enough to commit to a private-label strategy. A great example is makeup because hues change seasonally and require elaborate tester boards. Once a brand is chosen, the marketing comes completely finished with the product.

Another situation where a brand may overshadow the option for private label is technical backbar. For instance, a professional-grade chemical peel has the potential for revitalized skin but also carries the threat of legal issues and intense technical training. That type of endeavor is better left with a brand that focuses primarily on peels. Equipment-intensive protocols such as Endermologie®, ultrasound facial lifting and skill-specific offerings like permanent makeup also are better brand candidates.

Private-labeling isn’t the single miracle that will save a spa in decline or turn around a spa team that simply won’t sell retail. However, it is a relatively inexpensive way to generate treatment flair, invigorate a sampling program and give staff the ability to show off their expert talents. With runs as low as six per item, what is there to lose?

Get going with private label and unleash the spa’s potential.

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