Is Eyelash Extension Business Profitable

Find Out- Is Eyelash Extension Business Profitable?

The profitability of your Eyelash Extension 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 Eyelash Extension business. 

Eyelash Extension Industry Prospects

The global Eyelash Extension Business market size in 2023 was estimated at $1.1 billion in 2023 and is projected to reach $1.4 billion by 2028, exhibiting a compound annual growth rate (CAGR) of 6.5% between 2022 and 2032 (businessresearchinsights). The market is anticipated to rise at a considerable rate during the forecast period, between 2023 and 2031. Additionally, the false lashes extension market size was valued at $1.4 billion in 2022 and is poised to grow at a CAGR of 7.0% from 2023 to 2029 (sheeranalyticsandinsights). The global eyelash extensions market is dominated by key players such as L’Oreal, Estee Lauder and Shiseido, which account for a significant market share. The market for eyelash extensions is driven by the growing demand for luxury eye-makeup and the rising use of personal care products, particularly among millennials. 

Investments

Salon or Studio Space Fit-Out: This includes the initial setup costs for your business location. It involves structural modifications, interior design and furnishing to create a professional and comfortable environment for your clients. This can include things like lighting, cabinetry and specialized furniture.

Professional Eyelash Extension Application Chairs: These are specially designed chairs that ensure comfort for your clients during the eyelash extension application process. They are adjustable and provide proper support and access.

Workstations: This includes professional-grade tables or desks where the eyelash application takes place. They should be ergonomically designed for the comfort of both the client and the technician.

High-Quality Lighting: Proper lighting is essential for eyelash extension applications. Investing in high-quality, adjustable lighting will ensure that technicians can see their work clearly and apply lashes with precision.

Sterilization and Cleaning Equipment: To maintain hygiene standards, equipment for sterilizing tools and cleaning the workspace is essential. This might include autoclaves, UV sterilizers and other cleaning devices.

Eyelash Extension Supplies and Kits: This includes the initial bulk purchase of lashes, adhesives, tweezers and other application tools. While these are consumables, the initial investment in a substantial stock can be considered a CapEx.

Security System: Installation of security cameras and alarm systems for the safety and security of your business premises.

Point of Sale (POS) System and Software: Investment in a modern POS system that can handle bookings, payments and customer management.

Signage and Exterior Branding: Professional signage for your business front that promotes your brand and attracts clients.

Marketing and Advertising Initial Setup: Costs associated with developing a website, initial branding and promotional materials. This can include the design and initial print of business cards, brochures and other marketing materials.

Insurance Premiums for the First Year: While typically an operational expense, the initial insurance premium can sometimes be considered a start-up cost or CapEx.

Training and Certification Costs: If initial training or certification is required for you or your staff, the cost of these can be considered as part of your initial investment.

Remember, the exact nature of these expenditures can vary based on your specific business plan and the scale at which you plan to operate. It’s also important to consult with a financial advisor or accountant to categorize these expenses appropriately for tax and accounting purposes.

Revenue

• Eyelash Extension Applications:
  • Classic Eyelash Extensions: This is a basic service where one extension is applied to each natural lash. It’s popular for a natural look.
  • Volume Eyelash Extensions: Involves applying multiple thin lashes to each natural lash. It’s more time-consuming but provides a fuller look and can be priced higher.
  • Hybrid Eyelash Extensions: A combination of classic and volume techniques for a balanced look, often priced between the two.

• Maintenance Services:

• Refills/Touch-Ups: Regular maintenance appointments where lashes that have fallen out are replaced. Clients typically need refills every 2-4 weeks.
• Lash Removal: Safely removing extensions, either to take a break from extensions or before applying a new set.

• Additional Eye Beauty Services:

• Lash Tinting: Dying lashes to make them darker, often popular with clients who have lighter-colored lashes.
• Lash Lifting: A semi-permanent treatment that curls lashes upwards, creating the appearance of longer lashes.
• Brow Tinting and Shaping: As an additional service, shaping and tinting eyebrows can complement eyelash services.

• Retail Sales:

• Eyelash Care Products: Such as lash-friendly cleansers, conditioners and mascaras.
• Home Application Kits: For clients who want a DIY option for minor touch-ups or temporary extensions.
• Related Beauty Products: You could also sell a range of beauty products that complement your services, like eye creams, makeup removers, or specialty cosmetics.

• Membership or Package Deals:

• Monthly Memberships: Clients pay a monthly fee for a set number of refills or other services.
• Prepaid Packages: Offering a discount for clients who pre-purchase a set number of appointments.
• Special Occasions and Group Bookings: Bridal and Wedding Packages: Offering special packages for brides and bridal parties.
• Events and Parties: Providing services for special events, like proms, photoshoots, or group beauty parties.

• Gift Cards and Vouchers: Selling gift cards or vouchers can be a significant revenue source, especially during holiday seasons or special occasions.
• Training and Workshops: If you have significant expertise, you might offer training sessions or workshops for aspiring lash technicians.
• Online Sales: If feasible, setting up an online shop to sell products and gift cards can widen your customer base beyond Omaha.
• Collaborations and Sponsorships: Partnering with local businesses, influencers, or beauty bloggers for mutual promotion or sponsored services.

Remember, the success of these revenue streams will depend on factors like the quality of your services, your marketing strategies, pricing, customer service and the competitive landscape in Omaha. Regularly reviewing and adjusting your business strategy based on customer feedback and market trends will help maximize your revenue.

Cost of Services Sold

• Eyelash Extension Supplies:

• Eyelash Extensions: The cost of the lashes themselves, which varies depending on the type (classic, volume, hybrid) and quality.
• Adhesives and Removers: High-quality lash glues and removers. These are essential for both application and removal services.
• Application Tools: This includes disposable items like micro brushes, tweezers, eye pads and tape. While some tools are reusable, they need regular replacement due to wear and tear or hygiene standards.
• Maintenance and Sterilization Supplies:

• Disinfectants and Cleaners: For sterilizing tools and cleaning workstations between clients.
• Single-Use Items: Such as mascara wands, applicators and other items that need to be discarded after each use for hygiene purposes.
• Client Comfort and Safety Supplies:

• Protective Equipment: Items like gloves and masks for the technician, especially important for maintaining hygiene and safety standards.
• Comfort Supplies: Such as cushions, blankets, or neck pillows to enhance client comfort during the application process.
• Product Wastage and Overhead:

• Wastage: Some products might be wasted during the application process, which should be factored into the cost.
• Storage and Handling: Costs associated with storing and managing inventory of supplies.
• Aftercare Products for Clients:

• Retail Aftercare Kits: These might include lash cleansers, conditioning serums and information leaflets. Some salons include these in the service price or sell them separately.

• Utilities Directly Related to Service Delivery:

• Water and Electricity: Costs associated with utilities used directly in providing services, like lighting and cleaning.
• Laundry and Cleaning Services:

• Laundry: For cleaning towels, blankets and other reusable items used during services.
• Professional Cleaning: If you employ professional cleaning services specifically for your service areas.
• Wear and Tear of Equipment:
• Depreciation: This refers to the wear and tear of chairs, lighting and other equipment used directly in providing services.

Remember, the actual costs can vary based on local prices, the scale of your operations and the quality of products you choose to use. Keeping a detailed record of these expenses will help you better understand your business’s cost structure and aid in pricing your services appropriately. It’s also advisable to periodically review and negotiate with suppliers to optimize these costs.

Operating Expenses

• Rent or Lease Payments: Cost of leasing or renting your salon space. This is a fixed cost that you’ll incur monthly regardless of business volume.

• Utilities: Regular monthly expenses such as electricity, water, heating and air conditioning that aren’t directly tied to service provision.

• Salaries and Wages: Payments to your staff, including lash technicians, receptionists and any other employees. This includes both fixed salaries and hourly wages.

• Insurance Premiums: Business insurance, including liability insurance, property insurance and possibly professional indemnity insurance, depending on your coverage.

• Marketing and Advertising: Ongoing costs for promoting your business, such as social media advertising, website maintenance, search engine optimization (SEO), print advertising and promotional events.

• Administrative Expenses: Office supplies, postage, printing and other general administrative costs.

• Professional Services: Fees for services such as accountants, lawyers, or business consultants.

• Software Subscriptions: Costs associated with software for booking appointments, processing payments, accounting and customer relationship management (CRM).
• Training and Development: Ongoing training for yourself and your staff to stay updated with the latest techniques and industry standards.

• Maintenance and Repairs: Regular upkeep of your salon space and equipment to ensure everything is in working order.

• Depreciation: Non-cash expense that represents the wear and tear on capital assets like furniture and computers over time.

• Taxes and Licenses: Annual business license fees and other relevant taxes not directly tied to sales.

• Miscellaneous Expenses: Unforeseen expenses that don’t fit into the other categories but are necessary for the operation of your business.

It’s important to closely manage these operating expenses, as they can significantly impact your business’s profitability. Regularly reviewing and optimizing these costs can help in maintaining a healthy cash flow. Additionally, accurately tracking these expenses is crucial for tax purposes and overall financial management.