Only 20 per cent of the cost of a beauty project
According to the latest annual performance report released by skin station, the company recorded revenues of hk$470 million as at 31 march 2014, an increase of 6. 1 per cent over the same year. Of this amount, the cost of inventory and consumables is hk$1. 057 million, employee welfare and human resources services expenditure is hk$130 million, market promotion expenditure, depreciation costs, and operating lease rents are hk$82. 49 million, hk$28. 13 million and hk$6. 04 million respectively, resulting in a profit of hk$107 million with a turnover rate of 22. 7 per cent and a net interest rate of 18 per cent。
Journalists have purchased a 88-dollar fibre experience package for the company, which, according to the website, consists of health indices and fat analysis (10 minutes), tnt hyper-fatic or v8-deep fat-tight plastics (one or 60 minutes) and wire fermenter blankets (30 minutes)。
After the experience, however, journalists found that the so-called health index and fat analysis actually allowed journalists to stand on a so-called japanese import test machine, which entered age and height, and then calculated human fat content, metabolic index, and then the salesman launched an intense “kop” bombing, which allowed journalists to buy additional items. And the so-called fermenter blanket is just a two-sided, hot plastic blanket, mainly sweating the user. Crudely calculated, the entire process of the experience, which included the consumption of one-time items and water, electricity, labour costs, together with machine depreciation, was also well below $3888。
“we are listed companies, and we only make direct camps, and the instruments and products used are safe, so they are more expensive than normal beauty salons.” before the experience was over, a salesman on the ground strongly recommended to the press a 5,200-dollar fibre-fibre package, but when the journalist indicated that the price was too high and unacceptable, the salesman immediately changed his term to “price is negotiable”, and the offer fell by almost a thousand. In the end, journalists purchased eight blast fibers at a price of $2868, at an average cost of $358. 5 per trip。
It is understood that there are two main sources of revenue for the current beauty agency: the provision of cosmetic fibre-optic services and the sale of fibre-dressing products. For the medium-high-end beauty salons, the main source of profit is the service line itself。
“as a union store does a light beauty project, the sale price is $5888, of which the cost of the product is $2-3 and the cost of partial use of the box is around $100. And the equipment is all we have to deliver, and it's a small cost." ms. Hu, manager of the pritissa beauty chain, told the press。
Economic reporters for the twenty-first century have learned that in recent years, a series of purely hand-made projects such as lymph-led massages and pilates hand-made body-forming sessions have been included in the hot-hospital beauty sessions of the chapel. These projects do not need to be supplemented by any product or instrument in the course of their operation, at a small labour cost. Projects that partially support the operation of the equipment do not cost more than 20 per cent of the sale price. Such low-cost projects tend to be sold at beauty salons for hundreds or even thousands。
“the operation of a beauty salon, excluding the costs of rentals, salaries, utilities, etc., generally has a net profit space of 50 to 55 per cent.” ms. Liu told the press that the cost of a beauty salon was currently divided into three main components: first, operating costs, including shop rents, salaries and others. Owing to the fact that staff salaries are linked to performance, the costs are small and the rental of shops is the main expense; the second is the cost of association, or the cost of prior purchase of equipment and products, which is usually recovered from three to six months; and the third is the cost of advertising and the liquidity set aside at the beauty salon. As consumption escalates, the wind of plastic beauty has become more intense in recent years, with large numbers of women in love pouring into the market. On the other hand, the beauty salon has become a “high-consumption” aliases, and since you stepped in, the credit card “never stop” model has largely been activated。
However, do you know that these expensive beauty projects cost less than a thousand dollars and that most of the treatments have little effect
Over the past few days, economic reporters in the twenty-first century have visited a number of beauty agencies and suppliers, including in guangzhou and shanghai, and have been visiting a number of senior practitioners in an attempt to shed light on the benefits of those institutions from multiple perspectives。
According to a study published by pluhua, as of the end of 2013, there were 1. 8 million hairdressers and 16 million workers in single shops nationwide, with a turnover of up to 1 trillion yuan. With the exception of hairdressing operations, which account for about $37. 57 billion, the beauty industry produces more than $62 billion annually, compared to $168 billion in 2002。
In just over a decade, china's beauty industry has tripled in value, but at the same time, “silent profits” have become a proxy for the industry. “the revenues of the beauty salon are derived mainly from beauty projects and the sale of our products, which cost less than 20 per cent of the sale price, while the product costs of some of the purely manual projects are almost zero.” ms. Liu, director of the south china association of the commonwealth department of the league (8200. Hk) said to economic reporters for the twenty-first century。
Make-up profit multiplier
In fact, in addition to the sharp profits of the beauty projects described above, the beauty products sold to customers by the beauty agencies are equally profitable。
Cosmetics are generally divided into public channels, the former being products that are directly targeted at consumers, when brand manufacturers usually promote sales through marketing, such as advertising, which is a discretionary sale; while the main source of expertise is a beauty salon, where cosmetics are sold to customers either directly or through proxy access to a beauty salon at a higher price, which is largely dependent on the introduction of front-line hairdressers, as well as how customers feel when doing a beauty project, which is more profitable because of the high cost of advertising。
“for manufacturers, it is likely that the proportion of maori using public channels can be 10 to 30 per cent, depending on the manufacturer, but up to 70 per cent of maori using professional channels.” a head of the guangzhou cosmetics business disclosed to the press that, for a beauty salon, the purchase price was $50 for a product that could be sold up to $200 or $300, with profits more than three times higher than the labour costs of the sales staff。
In order to diversify the business, in 2005 the home office acquired distribution from the proctering personal care industry in shanghai and distributed beauty and skin protection items such as sk-ii and olay in east and west china. According to the company's previously disclosed performance report for the 2013 fiscal year, chc and its subsidiaries had a turnover of hk$1. 36 billion during 31 march 2014, an increase of 19. 4 per cent over the same period last year. The main source of income is distribution of cosmetics and skin-care products, which account for 91 per cent。
According to ms. Liu, manager of the south china association of the ministry of hong kong for the cause, the college divided the union's stores into four levels, with each level operating different beauty projects, the higher the level means that more can be run. At the same time, it also provides free distribution of products, instruments and accessories of varying value and free skills training for its employees. Following the opening of the shop, unionists were able to buy the required beauty products at about 70 per cent lower wholesale prices。
It is this unique business model that has made the society more active in the development of association operations. To date, more than 150 association cooperation agreements have been concluded, with 6 per cent of total income in the previous fiscal year。
“according to the fact that it is also a means of marketing the products of a beauty agency, as long as you join the brand of an institution, you must continuously consume the products they produce and become their regular source of income.” eve's sales manager's department told the economic report for the 21st century。
It was described that the main cost of operating a beauty salon was rent and salaries of employees. In general, the remuneration of the staff of the beauty salon consists of a minimum salary, a technical increase and a performance increase, which refers to the number of clients served in one day, while members ' cards and project cards, if any, are a performance increase, which is typically 5 to 10 per cent of the net profit of the project。
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