Running a laser hair removal clinic can be very lucrative. In fact, the hair removal business is already a multibillion-dollar industry. Through 2025, the global laser hair removal market is expected to have a 17% compound annual growth rate (CAGR), according to a MarketWatch report. The last thing you need are unnecessary expenses that eat into your hard-earned profits.As the owner of a laser hair removal salon, you certainly want to reap the rewards of your industry’s growth. After all, you’ve made a big investment:
Clearly, running a laser hair removal clinic and waxing salon can cost you well into six figures upfront. And it cost you well over $10,000 per month to run (and potentially much, much more). That brings up the question: Have you looked at the credit card processing fees at your laser hair removal clinic? Do that, and ask yourself: Why do I have to pay these fees? Want to know a secret? You don’t.Here’s how you can reduce credit card fees and boost revenue for your laser hair removal salon:
What you’re paying in credit card processing fees may differ from other waxing salons and laser hair removal clinics. As the chart from ValuePenguin shows below, your payment processing rates could be as low as 1.43% or as much as 3.5%.
If you talked to other laser hair removal clinic operators, you’d probably discover a more complex situation. It’s not as simple as a set rate per transaction. For example, some merchant service providers (MSPs) may include complicated surcharges and multi-tiered plans. And what laser hair removal clinics actually pay in credit card processing fees could greatly exceed 3.5%—the highest fee rate that American Express charges. Why do MSPs do this?The honest answer is because they can. Many owners don’t have time to shop for lower fees. Moreover, the credit card processing industry lacks regulations, and MSPs know laser hair removal clinics have a busy schedule. They set high fees and rake in the money as long as they can without the clinic noticing. Don’t let this happen to you.Make the issue a priority at your laser hair removal business. Because credit card processing fees don’t just nip at your profits. They bite off a big chunk.
Only you can figure out the exact numbers here. To get a better idea, look at consumer research. You’ll see a significant portion of your revenue comes via credit card payments. First, the 2018 TSYS US Consumer Payment Study found credit card has been the preferred payment method for 26-35% of transactions since 2013:
Second, as data from Statista shows, the average value of a credit card transaction is quite high across all brands:
People swipe the credit card more for larger transactions. This makes sense, given the consumer protections credit cards offer. Even though debit cards account for a higher percentage of transactions (54% to 26%), credit card purchases account for nearly 53.5% of total card spending, versus 46.5% for debit (Barron’s research). Now, consider the average cost of treatments at your laser hair removal clinic.
As you know, most of your clients spend a good deal of money. Considering what the research says, a good portion of your clients undoubtedly pay with a credit card. If you offer discounts for multiple treatments, such as a 20% discount per waxing session if you buy 10 at once, then it’s even more likely a customer will use a credit card at your waxing clinic. And these will be some of your largest client bills.Knowing all this, it’s possible 60-70% of your laser hair removal clinic’s revenue comes from credit card transactions. This makes it all the more crucial to stop unnecessary payment processing fees.
Let’s see how much more money could be in your pocket. If your laser hair removal clinic generates $800,000 per year in revenue with a net margin of 10%, you earn $80,000 for yourself as the owner. You may be perfectly satisfied with $80,000 per year. But you could easily earn more without even increasing your revenue. Because what if you’re paying 3% in credit card processing fees at your laser hair removal clinic? Considering the treatments you offer, credit card payment could be how you receive 65% of your revenue. The could mean the following:
That’s insane!Now, what if you eliminated those credit card processing fees? Well, in this example, your income as the owner of a laser hair removal clinic would jump from $80,000 to $95,600 overnight. That’s a salary increase of 19.5%!Evidently, it pays to pay attention to what your MSP charges. Over a decade of doing business, it could mean more than $150,000 back into your wallet. Think of what you could do with that money:
The point is: You don’t have to pay ridiculous fees to your MSP. By taking steps to get rid of credit card payment processing fees at your laser hair removal clinic, you can get the money you deserve.
You don’t simply pay one fee to your merchant service provider. You pay several fees:
Combined, these make up your total fees. But it doesn’t end there…In addition to your total fee, you could pay cancellation fees on transactions, though your MSP should waive this (do ask!). You may also not get fees back even when you issue a client a refund (discuss this with your MSP). Even worse, your MSP may implement rate increases due to “inflation”. Don’t agree with this. Because credit card processing fees at your laser hair removal clinic are a percentage of each transaction—and therefore naturally rise with your prices.Even though running a laser hair removal and waxing treatment business gets busy, take the time to figure out how you can avoid payment processing fees. Your efforts will prove worthwhile. Because what you pay your MSP each day, month, and year is not only excessive, it’s also unnecessary.
A cash discount program gives you the best of both worlds. You can decrease payment processing fees at your laser hair removal clinic and waxing salon. And you can still accept credit cards. How does that work? Well, a cash discount program empowers your clients to choose the most convenient and affordable payment tool. The program utilizes a surcharge structure designed to reduce credit card transaction fees as much as possible. The best thing about a cash discount program is that it’s a win-win. As the operator of the laser hair removal clinic, you increase margins. And your customers save money. And don’t worry, a cash discount program is also 100% legal and compliant. Want to learn more about how your laser hair removal clinic can benefit from a cash discount program? At NadaPayments, we can tell you all about it and set one up for within a week. Call +1 (929) 293-1800 or click the link below.