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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Beauty supply Shop Business Profitable?

The profitability of your Beauty supply shop business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Beauty supply shop business. 

Beauty supply Shop Industry Prospects

The beauty market was expected to grow annually by a significant compound annual growth rate (CAGR) from 2023 to 2030. In the United States, the prestige beauty industry dollar sales grew by 14% year over year, reaching $31.7 billion in 2023 (circana). The US beauty and personal care market is projected to grow by 2.40% from 2024 to 2028, resulting in a market volume of $110.30 billion in 2028 (statista). While the specific global and US beauty supply store market sizes in 2023 were not directly available, the data provided indicates substantial growth and a positive outlook for the beauty industry during that period.


  • Inventory Purchase: Initial stock of beauty products, including hair care, skincare, makeup, nail products and professional salon supplies. This is a significant upfront investment and is crucial for attracting a wide customer base.
  • Store Fit-Out or Renovation Costs: Expenses associated with preparing the retail space to suit your beauty supply shop, including shelving, display units, checkout counters, lighting, flooring and any necessary construction work to modify the space according to your needs.
  • Signage: Both exterior and interior signage that reflects your brand and guides customers within the store. This includes front signage, promotional displays and informational signs inside the shop.
  • Point of Sale (POS) System: Investment in a POS system for processing sales, managing inventory and tracking customer purchases. This may also include barcode scanners, receipt printers and cash drawers.
  • Security System: Installation of security cameras, anti-theft devices (such as product tags and detectors at the entrance) and a safe for storing daily cash earnings.
  • Computer and Software: Computers and necessary software for managing business operations, accounting, inventory management and customer relationship management (CRM).
  • Furniture and Fixtures: Seating for customers, desks for administrative work and any additional furniture needed for product demonstration areas.
  • Professional Equipment: If offering services or demonstrations, professional-grade beauty equipment (e.g., hair styling tools, facial equipment) may be required.
  • Initial Marketing and Branding Materials: Costs for creating a brand identity, including logo design, marketing materials (brochures, flyers, business cards) and initial promotional activities to generate buzz around the opening.
  • Website and E-commerce Platform: Development of a professional website and e-commerce platform, if planning to sell products online. This includes web hosting fees, domain registration and web design costs.
  • Transportation Vehicle: If offering delivery services or needing a vehicle for business errands, such as picking up inventory or attending trade shows.
  • Licenses, Permits and Insurance Premiums: Upfront costs for obtaining necessary business licenses and permits specific to selling beauty products, as well as initial premiums for liability insurance, property insurance and any other relevant insurance coverage.

By carefully budgeting for these CapEx items, you can ensure that your beauty supply shop in Omaha is well-prepared to serve your target market with a wide range of products and possibly services. It’s advisable to conduct thorough market research and consult with financial advisors or other business owners in the beauty industry to accurately estimate these costs and develop a comprehensive business plan.


  • Product Sales: The primary source of revenue will come from the sale of beauty products. This includes hair care products, skincare items, makeup, nail products and professional salon supplies. Offering a wide range of products to cater to different customer needs and preferences can maximize sales.
  • Professional Beauty Services: If your shop includes a space for beauty services, you can generate additional income by offering hair styling, makeup application, nail services, or skincare treatments. This not only attracts more customers but also increases the average transaction value.
  • Private Label Products: Developing and selling your own brand of beauty products can yield higher profit margins than reselling products from other brands. This could include specialty items like organic skincare products, custom makeup palettes, or unique hair care formulations.
  • Online Sales: Expanding your business to include an e-commerce platform allows you to reach a wider audience beyond Omaha. Selling your products online can significantly increase your revenue potential and offer convenience to customers who prefer shopping from home.
  • Beauty Workshops and Classes: Hosting workshops or classes on makeup application, skincare routines, hair styling techniques, or other beauty-related topics can attract participants interested in learning new skills. Charging a fee for these sessions can generate additional revenue.
  • Membership or Subscription Services: Offering a membership program or subscription boxes where customers receive a selection of products at a discounted rate on a regular basis (e.g., monthly or quarterly) can ensure steady revenue and customer loyalty.
  • Seasonal Promotions and Holiday Sales: Capitalizing on holiday seasons and special occasions with themed promotions, gift sets and discounts can boost sales during peak times.
  • Cross-Selling and Upselling: Training your staff to effectively cross-sell and upsell products by recommending complementary items or higher-end alternatives can increase the average sale per customer.
  • Event Sales: Participating in local events, beauty expos, or pop-up markets can introduce your products to new customers and generate on-the-spot sales.
  • Rental Space: If you have extra space in your shop, consider renting it out to beauty professionals like makeup artists, hairstylists, or estheticians who may not have their own salon space.
  • Affiliate Marketing: Collaborating with beauty influencers or bloggers by offering affiliate programs where they earn a commission for referring customers to your shop or website can expand your reach and increase sales.

By leveraging these diverse revenue sources, your Beauty Supply Shop in Omaha can cater to a wide range of customer interests, maximize income potential and build a robust business model that withstands market fluctuations and competitive pressures. Continuous market research and customer feedback will be key to identifying new opportunities and areas for expansion.

Cost of Goods Sold

  • Product Acquisition Costs:

The purchase price of beauty products you stock, including hair care products, skincare items, makeup, nail products and professional salon supplies. This is the bulk of your COGS and varies directly with the quantity of inventory purchased.

  • Freight and Shipping Charges:

Costs associated with getting inventory from suppliers to your store, including freight charges, customs duties (for imported goods) and shipping fees. These costs can vary based on the volume of products ordered, the distance from suppliers and the shipping methods used.

  • Wholesale Discounts and Rebates:

While wholesale discounts obtained from suppliers reduce your COGS, any rebates received post-purchase for hitting certain purchase volumes can also be accounted for here, effectively lowering the overall cost of goods.

  • Packaging for Products:

If you repackage bulk products into smaller quantities for sale, the cost of additional packaging materials needed (bottles, jars, labels, etc.) contributes to your COGS.

  • Damaged or Stolen Inventory:

Costs associated with inventory loss, whether through damage, theft, or spoilage, can impact COGS. While some level of shrinkage is expected in retail, significant losses need to be carefully managed and minimized.

  • Direct Labor Costs for Product Handling:

If you employ staff specifically for inventory management tasks (such as receiving stock, pricing and stocking shelves), their wages can be considered part of COGS, as these activities are directly related to the sale of goods. However, this classification can vary based on accounting practices and the structure of your business.

Managing COGS effectively involves negotiating the best possible prices with suppliers, optimizing inventory levels to reduce holding costs and minimize losses from unsold or damaged goods and managing shipping costs efficiently. Additionally, regularly reviewing your product mix and pricing strategy can help ensure that you’re achieving desirable profit margins while remaining competitive in the market.

Operating Expenses

  • Rent or Lease Payments: Costs associated with leasing the retail space for your beauty supply store. This is a fixed expense that doesn’t fluctuate with sales volume.
  • Utilities: Monthly expenses for electricity (significant if you have extensive lighting or refrigeration for certain products), water, gas, internet and telephone services necessary to maintain the operational efficiency of your store.
  • Salaries and Wages: Payments to permanent staff, including store managers, sales associates and any other employees involved in the operation of the business. This also includes payroll taxes, health insurance, retirement benefits and other employee-related benefits.
  • Marketing and Advertising: Expenses related to promoting your beauty supply store to attract new customers and retain existing ones. This can include online advertising, social media campaigns, website maintenance, SEO and traditional marketing materials like flyers and banners.
  • Insurance: Premiums for various insurance policies, including general liability insurance, property insurance for the store and its contents and workers’ compensation insurance. These policies protect the business against potential liabilities and property damage.
  • Professional Services: Fees for services provided by external professionals, such as accountants, lawyers and consultants, who assist with various aspects of running the business, including financial management, legal advice and regulatory compliance.
  • Software Subscriptions: Ongoing costs for business management software, including point of sale (POS) systems, inventory management software, accounting software and any other software tools that facilitate business operations.
  • Office Supplies and Equipment: Expenses for office supplies (stationery, printer ink, etc.) and minor equipment (computers, printers, phones) necessary for the administration of your business.
  • Maintenance and Repairs: Regular maintenance and necessary repairs for the store’s infrastructure, including lighting, shelving, signage and any equipment not directly used for selling products but essential for store operations.
  • Training and Development: Costs associated with ongoing professional development and training for you and your staff to stay updated on product knowledge, customer service skills and any relevant industry trends or technologies.
  • Travel and Entertainment: Expenses related to business travel for trade shows, vendor meetings, or purchasing trips, as well as any entertainment expenses for hosting business meetings with suppliers or partners.
  • Depreciation: Non-cash expenses that account for the depreciation of long-term assets over their useful life, such as fixtures, furniture and computer equipment used in your store.

Efficient management of these operating expenses is essential for ensuring the profitability and long-term sustainability of your beauty supply store. Implementing cost-effective strategies, such as leveraging digital marketing, optimizing inventory management and carefully managing staff levels in relation to business needs, can help control these costs and enhance your business’s financial health.

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