Why Wholesale Massage Supplies Are Better Than Retail For Spas
Choosing between wholesale massage supplies or retail sourcing is a crucial decision for spa owners.
At first glance, retail appears to be the safer bet - it offers flexibility and requires less commitment, while signing a contract with a wholesaler can seem like a high-stakes move.
But don’t rule out wholesale just yet!
Wholesale’s benefits are less obvious, but they pay off in the long run.
That’s why we’ve created this in-depth guide – to highlight the four biggest reasons why switching to wholesale is a game-changer for massage spas.
We’ll also explore why cutting product costs is key for survival in the massage industry, and the pros and cons of sourcing from retail compared to wholesale.
How To Succeed In The Massage Business In 2024
Massage therapy is a lucrative business that is projected to expand even further in the near future. According to Statista, the global spa industry is anticipated to grow from $95 billion in 2021 to over $185 billion by the year 2030.
Hiring skilled masseuses is key, but thriving in this industry requires more than just talent.
Long-run success ultimately comes down to profit, so let’s talk business strategy.
Revenue - Costs = Profit
Thervo estimates that the average massage cost between $50 and $90 in 2023. Sounds like solid revenue for one 60-minute treatment, right?
Don’t lose track of the bigger picture.
First, you must hire enough clients willing to pay this rate each month to stay afloat.
Second, remember - revenue is not profit. You must deduct the costs per treatment to calculate your profit margin.
Cutting Massage Supply Costs Helps Maximize Your Profit Margin
One way to maximize your profit margin is to increase the prices of your massage treatments. However, retaining and attracting new massage clients with a new, less competitive pricing strategy can be difficult.
Alternatively, you can cut your costs to increase your profit margin. The costs of running your business include staff wages, overheads, and also the costs of your massage supplies.
Competitive wage rates are a must to retain your top talent, and slashing overheads is tough if your rent and utility contracts are already locked in.
That’s why cutting your massage supply costs is the most realistic and practical way to boost your profit margin without compromising the quality of your massage services.
When done correctly, this strategy benefits everyone.
Your clients get the same treatments at no extra cost, and your business enjoys reduced costs per treatment.
Shopping around for better deals on high-quality oils and creams is a good place to start.
But if you really want to maximize cost savings, the switch from retail to wholesale massage supplies is a game changer.
Is Retail Sourcing A Viable Business Strategy For Massage Spas?
There are clear advantages to sourcing massage supplies from retailers at the early stages of your business.
With no minimum order requirements, you’ll enjoy lower upfront costs and won’t have the same storage challenges that come with buying in bulk.
Retail buying is a more flexible approach - you purchase massage products as needed and restock them when supplies run low. This way, you can easily adapt to changing client preferences, beauty industry trends, and fluctuations in demands from season to season.
With retail sourcing, you don’t need to commit to a specific massage oil or cream from the start. It’s a fantastic way to test new product lines and adapt your purchases based on client feedback.
Acknowledging the benefits of retail sourcing is important, however it’s not a viable option for massage businesses that want to become profitable in the long term.
The Advantages Of Choosing Wholesale Massage Supplies
There are four main advantages of choosing wholesale over retail sourcing for massage businesses:
1. Wholesale Costs Are Lower Compared To Retail
Wholesale massage supplies are generally less expensive than retail products for four key reasons:
Economies of scale mean wholesalers can produce large quantities at lower production costs, which results in lower prices per massage oil or cream for businesses like yours
Buying from wholesalers cuts out the middleman, allowing you to avoid the vendor markups added by retailers
Governments offer sales tax exemptions on wholesale products purchased by businesses in many cases
Bulk buying is often rewarded with incremental discounts from wholesalers, which reduces the price of wholesale massage supplies even further
At Genie Supply, we offer competitive prices for our high-quality clean, cruelty-free, and sustainable wholesale skin care products. Learn more about our preformulated products (available on a bulk or private label basis) in our latest product catalog here.
2. Wholesale Massage Supplies Can Be Customized
Another benefit of choosing wholesale supplies is the option to customize your product formulas.
Quality skin care labs offer both preformulated and customized massage products.
Customization opportunities include:
Scent options for preformulated products - selecting from a list of scents to add to bulk or private label products
Custom product creation - adding an ingredient or two to an existing formula
Custom formulating - creating brand-new massage oils and creams from scratch
While customization is more commonly associated with formulating for retail, adjusting your massage product supplies can add value to your professional treatments.
For example, if you use specific scented essential oils as part of the holistic massage experience, wholesalers can incorporate them into your products.
Or maybe there’s a particular blend of oils or creams that you rely on for your massages? Skin care suppliers can help you merge them into one custom hybrid formula.
At Genie Supply, we’re experts at formulating clean, cruelty-free, and sustainable skin care including body creams and oils.
Our services include bulk, private label, custom product creation, custom formulating, and contract manufacturing. Find the right product sourcing method for your massage business by taking the quiz on our website here.
3. Create Your Own Range Of Massage Products Through Wholesale
Thinking about launching your own range of massage oils or creams?
Skin care wholesalers can help you create massage products for retail using preformulated or custom-made formulas.
Many labs sell the same preformulated products on both a bulk and private label basis, allowing your business to use the same formula for in-clinic treatments and your branded product range.
Some manufacturers cover everything from formula creation to legal testing, product filling, and shipping.
At Genie Supply, we provide a range of services for both our preformulated and custom-formulated ranges. Our capabilities include quality skin care formulation, legal testing and batch testing, and product filling.
Plus, we offer a limited dropshipping service through Amazon FBA. Learn more about our range of services at Genie Supply here.
4. Wholesaling Facilitates Efficient Inventory Management
Choosing wholesale massage supplies can help create a more efficient inventory management system.
While retail sourcing is acceptable in the beginning stages of your business, it becomes increasingly inefficient as you scale over time.
Purchasing from wholesalers in bulk makes inventory management easier for three key reasons:
Large bulk purchases cut down on the time and costs associated with frequent restocking and remove the hassle of waiting for retailers to reorder out-of-stock products on your behalf.
Partnering with a wholesaler over the long term helps develop a close working relationship, which can include loyalty perks like automatic restocks when inventory runs low.
Fewer restocks help save on shipping costs, with some wholesalers also offering reduced or free shipping on bulk orders.
At Genie Supply, we can provide skin care in a wide range of quantities to suit your massage parlor or spa’s needs – starting from 5kg up to 120kg or more. Learn more about our bulk discounts in our latest product catalog here.
In sum, the main advantages of choosing wholesale massage supplies over retail alternatives include:
Saving on costs due to bulk manufacturing and buying discounts, tax exemptions, and avoiding retailer markups
Wholesale products can be customized - including adding scents to preformulated products, adding a limited number of ingredients to a base formula, and creating new massage oils or creams from scratch
Planning to launch a massage product line? Wholesalers can provide the same product on both a bulk and private label basis
Buying in bulk from wholesalers results in more efficient inventory management with fewer restocks
Searching for wholesale supplies for your massage business? Genie Supply would love to work with your brand. Get in touch via email: customerservice@geniesupply.com or by phone: (812) 329-1105 to discuss our preformulated and customization options for your business.