Ton and Scurvy,
Actually all electrolysis consumers:
Yes after being in business for 10 or so years many electrologists make about 50k, maybe, depending. Some will make more, or less.but none of them start there.
My total sales for 2016 wont have topped 32000. Before expenses. Of that, here's an approximate breakdown of costs:
probe costs $250
auto clave spore testing ( about 40 a month 400/year)
annual membership fees/FCEA $150 so, $10 a month?
Scheduling system : $30/month
employee wages ( was approximately $300/month, now zero as Nancy has left to work in the governemnt. She might be back)
Advertisng- this is a big one, at one point yelp was billing me $750 a month, for an ad with no res$ults at all!Groupon means a very small amount for your treatment ( $12 /30 min?) and a high probability you will never see that client past their groupon package.
When I opened my office, my offices were not ideal. As a result, I've spent approximately $20000 on making my offices presentable installing flooring, walls and doors, painting, installing security access systems etc... And yes we are talking canadian dollars, not american dollars.None of this amount has been attributed to income this year as an expense.
If an electrologist is working from home, they are able to enjoy much lower costs as a result. I however live in a slum, not suitable for doing electrolysis with 2 kids and 2 dogs, and cannot do so ( and moving would cost more than my home and office rents combined) .While a $70 per hour profit might be doable for a work from home electrologist ( actually I dont know any that charge more than $60 locally), vancouver is an expensive market), I dont make any of it. And all of this is before you think about that I give away, roughly 25 percent of my work to low income transpeople . Yes, you heard that correctly. Sometimes, those clients are my best advertising, and bring me more clients so it works out.
Right at this very moment, I've just experiences about 4-6 weeks with virtually NO BUSINESS. Literally the majority of those days, one 15 or 30 minute appointment per day. This was expected. A few weeks before chrstmas, until at least mid-late january, people just generally stop doing electrolysis. Partially this is due to the hecticness of christmas season, personal finances, but also extreme weather conditions that keep clients, at home! My total sales for december? under $1000. the first 2 weeks of January exactly the same maybe less . It's only this week starting to recover a tiny bit.
An electrologists popularity, has zero to do with how much business will come though the door. That is dictated by the market, which follows its normal trends. In the first year of operation ( I worked for someone else a year ago) almost no businesses make money. Its very hard on entrepreneurs.I also havent deducted a single penny in depreciation on my $13000 apilus epilator, nor the $1500 autoclave I replaced this year.First year you do not benefit from things like search engine ranking. Customers only come, when they know you are in business.
Will it get better? Gosh I sure hope so.All told, I started 2017 with $65000 in the bank, and ended with next to zero jan 1. These are real costs, and they add up quickly.
All told, my monthly costs, just to be in business, top about $2400 a month. This is the amount of business I must bring through the door, BEFORE I bring cent one home ( which hasnt happened this year) . In other words my income this year, will be less than zero.This month, I 'm borrowing just to make expenses ( literally almost all of it) , in the hopes I can make that money back later in the season.
Ton, your electrologist is right, there is great personal reward to doing electrolysis. Personal reward however doesnt buy you groceries or pay for your expenses.
Many clients assume, that also means that your electrologist is doing well financially. It however isnt the case.Skurvy is correct, the ability to market oneself is a crucial skill.I'm not sure I have that ability in great amounts.Unlike Skurvy's market, my price I can charge caps out about $85-$90 canadian ( about $65 american) before clients will no longer book with you and go to the cheaper option . This is particular to my market which is largely composed of government employees, many of whom havent been paid properly in 2 years or more due to issues with the Phoenix pay system. The first thing to go when this type of thing happens, are luxuries like electrolysis.
Now I had some advantage this year, I brought some initial clients with me when I opened my clinic. I am not sure that more than 5 of them are still with me. Many have finished . Some have moved away ( I swear, if one more client moves to austrailia I'm going too!) . I've brought on new clients, but not at the rate at which I have finished others. This is the typical first year blues in business, you have to learn how to bring on a steady stream of new customers,it does not come naturally ( at least for me) .I've heard estimates that the average small business does not make money for 8 or more years.I hope not that long.It takes that long to learn to minimize expenses, bring on new customers, and dont forget, that every hour worked paying expense, is an hour that electrologist has worked for free.
There's a million expenses I'm not including in this simplistic listing. Things like an AC unit to keep the customers comfortable in the summer time.Smalls like towel, tweezers, sterilization pouches, garbage bags, toilet paper,hand soap, treatment bed sheets, witch hazel, cotton cosmetic pads , carpet runners for the hallway, office furniture, etc etc etc . Credit card processing fees. And dont forget that none of my personal living expenses are included . If I am making 32000 a year, rent alone for a 3 bedroom townhouse for my family is going to $1500 a month, which alone is more than half of that amount ( that I didnt make).
My second electrologist was brought on not because of excess business, but as an attempt to get some value out of the other 50% of my office space, which currently and for the last year has sat empty.She has gone to work for the government, because she wasnt able to bring enough business in to make it worthwhile. She might be back , and has already offered to come back part time,but without the business to support it. it's not worthwhile at the moment.
So there you have it. While certainly some of this cost structure is particuar to my situation and market, all electrologists have similar costs. You dont earn to bring custmers in the door consistently for several years after the launch of a business. Anyone who thinks the electrologist is making a ton of money, unfortunately is incorrect. While it could happen eventually if they are persistent and good at what they do, in the majority of cases they will lose money for the first several years. I consider myself lucky that I ALMOST met the majority of my expenses this year.