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Investment And Revenue - Training & Education

The Business

There have been many words used to describe this industry from exciting, to gratifying, to self fulfilling but one word that surfaces above all others is Profitable.

In any business enterprise there is an investment of time and/or money, generally both, in order to get to an area of profitable earnings.

Before investing this time or money, corporations and individuals want to know their ROI or return on investment. If we purchase this laser what is our payback? What will we make for investing this money? The rate of return is the reason for most investments but the speed at which the investment is recouped is the most influential in the decision making process. If we spend this money, is there a five year payback, a three year, or can we make our money back in one year? The faster the ROI the easier it is to make the decision because your money is not tied up for a long time.

Unfortunately most businesses take a long time to reclaim the initial investment of time and money before being profitable but there are always exceptions to any rule and the cosmetic tattooing business is one of them. Return on investment can be exceptionally fast.

If you look at the outline below under the heading “The ROI of Permanent Makeup” you will see the investment is minimal but even more noteworthy is that the ROI has an extremely swift payback window and the profits generated afterwards are significantly higher than other services offered in esthetics using the same procedural time measurement. If there is an existing business in place, a spa, a salon or a medical clinic and this service is being added, then the payback is even faster and can literally be immediate by using the existing client base and organizing in-house promotions of the new service. In concept, ten clients booked over a 2 or 3 day period could recoup the total investment.

Generally In any business, satisfied customers return for further services. So, in theory, the investment could be regained by even fewer clients. While not necessarily realistic, this time span would be attainable under ideal circumstances but a month or two would be more in line with reality. This illustration is drawn simply to illustrate the possible speed of the R.O.I

The R.O.I. of Permanent Makeup
Cost Low High
Training $5,690 $5,690
Machine $4,125 $5,350
Pigments $110 $110
Anesthetics (Canada) $50 $50
Supplies, needles, gloves $250 $250
Total Investment $10,225 $11,450
Rate of Return
Average charges depending on procedure $450 - $550 per hour
Pay back based on an average of $400 19 - 22 procedures
Charges for services
Upper Eye liner $400 - $500 (1 1/2 hour)
Lower Eye liner $350 - $500 (1 hour)
Eyebrows $400 - $550 (1 hour)
Lipliners $400 - $500 (1 hour)
Areola $250 per hour
Consultation $50 (15 minutes)
Yearly Income Potential
To put the above into perspective as to what it means as a yearly income, review the following minimum assumptions
Minimum Assumption: 3 procedures per week
Average Revenue $ 500.00 per procedure
Weekly Revenue 3 @ $ 500 = $ 1,500.00 per week
Yearly Revenue 50 weeks @ $ 1,500 or $ 75,000.00 per year
Hours worked 5 hours per week for 50 weeks = 250 hours

If you advertise, network, contact women's groups and promote your business there is no reason why the 3 client per week scenario could not realistically be three clients per day or more as do the successful technicians and spas. Consider operating on a free lance basis. Approach the salons and spas in your area that do not offer these procedures and promote your services to them using their premises and splitting the revenue.

When you contrast the above to the esthetics field, an esthetics course takes 6 to 8 months to complete at a cost of $ 8,000 to $ 10,000 and upon completion the graduate will re-coup her investment at a rate of $ 30 to $ 60 per hour.

To put all of this into financial perspective as to what it really means, compare it to high income service professions such as the legal profession. Depending on the city, a first year law graduate working for a large firm earns between $ 40,000 and $ 95,000 per year (Google: Bay St Lawyer Blues) and works a minimum of 60 hours per week to get that. A senior partner in a large firm will bill out their services at $ 350 - $ 500 per hour which as you can see above, is comparable to cosmetic tattooing.

If you are an individual or an existing spa owner, it is easy to see that adding Permanent Make-Up to your portfolio will provide an above average income to you personally or dramatically increase the numbers on your bottom line.

In summary the cosmetic tattooing business shows no signs of slowing its momentum. On the contrary, the consumer is proving to be the catalyst to accelerating this business through demand, demand not just for the services it offers but demand for more proficient technicians, for higher quality products and a more modern and clinical approach to an age old profession.

Through the standards of excellence established by the Micro-Pigmentation Centre and instilled in their students, the consumer's expectations are not only being met but are being exceeded as a result of the efforts of the company as is evidenced by its growth, loyal following and reputation as an industry leader.

Invest in yourself…invest in education!

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