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Economies of Scale for Wellness Practitioners
Economies of scale refers to the principle that as the scale of production increases, the cost per unit of production decreases.
In the context of massage therapy, the economy of scale can be applied to the purchase and use of lotion.
Calculating the true cost of using a body lotion (as well as oils, gels, creams) during each treatment.
Buying lotions in bulk quantities usually results in a lower cost per unit. This is because larger quantities of lotions can be purchased at a discounted price. Additionally, some lotions may be more expensive and have more features than others, and buying in bulk can help to offset this cost.
By using a lotion pump designed to dispense a specific quantity, eg: one ounce (30mL) of lotion per pump, the studious RMT can calculate the number of pumps per gallon. They can also determine the average number of clients served per gallon of lotion.
Then consider the price per gallon, and calculate out the cost of lotion per pump — or the cost of lotion per client. This simple equation can be helpful in planning client costs and projecting clinic costs.
Example:
Biotone Advanced Therapy Lotion @ $79.99 per gallon
One American gallon = 128 ounces
Cost per ounce = 63 cents (.6249)
Average number of ounces applied per client (3 ounces)
Lotion cost per client $1.87
Average number of treatments per gallon = 42
Also consider the cost per service for the RMT who chooses to use a premium body lubricant with more features and premium ingredients (certified vegan, organic, etc.) vs a lower cost lotion.
The following equation demonstrates the average actual cost per treatment and differential to offer a premium product to the client.
SacredEarth Extra Glide Massage Lotion @ $105.50 per gallon
Cost per ounce = 82 cents (.8242)
Average number of ounces per client (3 ounces)
Lotion cost per client $2.47
Average number of treatments per gallon = 42
The true cost of offering and using a premium body lotion (oil, gel, cream) during each treatment is often less than $1.00.
The marketing value of these features is greater than the cost difference. The RMT or clinic is able to advertise a treatment with all the features of the product selected.
Once again — the marketing value for the RMT or clinic offering lotion treatments that are vegan, organic, cruelty-free, etc, easily offset the added cost per pump on those specialty products.
Note: If the RMT is sensitive to some ingredients, selecting a premium product that may offset skin sensitivities that build up over time. Good preventative skin care for the therapist.
A minimal investment with long term results.
Smart buying is important. However, clinic owners might consider the cost of lubricants, bearing in mind the added value of the features these lotions (gels, creams, oils) offer both the client and therapist.
Please note, there are
128 ounces in an American Gallon
153 ounces in an Imperial Gallon
135 ounces in 4 litres (sold in Canadian Gallon containers)
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