How To Make Your Retail Cosmetics Store More Profitable: 5 Tips

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Your retail cosmetics store is getting along just fine. But you could always use more sales, bigger profits, and an easier operation to run – right?

Retail always takes a lot of work and many hours of dedication. There are times when you have to work holidays, or stay long after hours, or spend your weekends solving problems.

Here are some helpful tips to make your retail cosmetics store easier to manage, more enjoyable, and more profitable. These professional ideas have been chosen from the best industry information available. Even just one of them could make a significant difference in the performance of your business.

1. Take FULL advantage of the high profit margins in the retail cosmetics industry. The most profitable retail sectors are diamonds, eyeglass frames, bottled water, and cosmetics. As you know, markups are frequently in the 80% range. The willingness to give you excellent profit margins should be one of your best reasons for earning a great income. Use this industry trait to your advantage by choosing products with better margins and negotiating improved terms when possible.

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2. Use smart merchandising to increase sales. Lighting is a key factor in retail cosmetics. Most ceiling lighting makes customers less attractive in mirrors. This traditional lighting provides unattractive shadows and gives skin an unnatural greenish or blue hue. The result is customers feel unattractive. Some cosmetic stores have installed clear white lights and LED bulbs to provide more attractive lighting. Customers like the way they look and buy more product from you and not your competitor.

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3. Adopt some of the beauty industry’s most successful profit centers.
Aging clinics and aroma therapy are hot and successful. Also consider a Beauty Spa or Body Piercing. Look for popular and upcoming trends in the beauty world, then find ways to incorporate those in your store. This makes you current and in tune with customer interests and desires.

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4. Sell handmade beauty products, especially those that are locally or regionally produced. There is a large and growing list of small soap manufacturers, many who use natural ingredients that heal and enhance face and skin. Making your own handmade soap and lotions is a lot easier than you might think. After all, 100 years ago many people made their own soap. Popular ingredients like Shea Butter, Mango Butter, and Avocado Oil are inexpensive and easy to obtain.

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5. Get a modern point of sale system. Nova leads the pack with a full-features business management system specifically designed for retail cosmetic stores. With these advanced yet easy to use systems, you can run your business from home or anywhere from your phone. You can keep track of sales minute-to-minute and know just how much each employee is ringing up at the cash register.

Use these five tips to enhance your operation, sales, and profits. Above all, use these ideas to put the fun back into running your store.

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