Are you earning less than minimum wage?
Podcast Episode NotesWelcome to Outside the Treatment RoomThe podcast about the business side of the beauty industry. Iâm your host, Connie Holm.Episode Title: Are You Earning Less Than Minimum Wage? IntroductionWelcome back to Outside the Treatment Room! Today weâre tackling a tough topic that might make you a little uncomfortable: Are you unknowingly earning less than minimum wage?In this episode, Iâll break down the numbers, explain why this happens, and give you actionable tips to shift from working hard to working smart. So grab a coffee, letâs get real, and letâs talk money!Many solo estheticians feel like theyâre earning great money because theyâre booked solid and bringing in cash. But after expenses, rent, taxes, and time spent on unpaid tasks, the reality can be shocking.Example: If you charge $100 for a facial, but products, rent, and insurance eat into your profits, your real income per hour could be closer to minimum wage (or even less!).Reflection Question: Whenâs the last time you calculated your real hourly rate?If you havenât, donât worryâweâre going to do the math together.Hereâs how to calculate your hourly rate:Gross Income: Total monthly earnings (e.g., $4,000).Expenses: Subtract rent, products, insurance, taxes, and supplies (e.g., $2,000).Net Income: Whatâs left ($4,000 - $2,000 = $2,000).Divide by Hours Worked: If you worked 160 hours, thatâs $2,000 / 160 = $12.50/hour.This number has to cover everything: sick days, health benefits, and retirement. If your hourly rate surprises you, donât worryâIâm here to help you fix it.Undercharging for Services: If you havenât raised prices in years, rising costs (like inflation) mean youâre earning less. Example: Gloves that once cost $6 now cost $22âyou must pass these increases on to clients.Too Much Discounting: Promotions are great occasionally, but constant discounts devalue your work.Hidden Expenses: Fancy packaging, unused software, or premium products can drain profits.Unpaid Time: Youâre also your own receptionist, marketer, and cleaner. Those hours count!Does any of this sound familiar? If so, letâs focus on solutions.Here are 5 actionable steps to increase your income:Raise Your Prices: If itâs been more than a year, start small with $5-$10 per service. Your expertise has value, and clients expect increases.Streamline Services: Focus on high-profit treatments that take less time and product. Stop offering unprofitable services.Track Expenses: Audit your expenses. Cancel unused subscriptions, buy in bulk, and optimize your budget. (Example: I use Zoom Premium only for my September laser events and cancel it for the rest of the year.)Charge for Your Time: Enforce no-show fees, cancellation policies, and charge appropriately for consultations.Set Income Goals: Break your monthly income target into weekly and daily benchmarks. Know how many services you need to hit your goals.Hereâs your homework:Sit down this week and calculate your real hourly rate.If you donât like the number, use todayâs tips as your starting point for change.Key Takeaway: You didnât start your business to struggle. You deserve to thrive and be paid well for the transformation you bring to your clients. You have the power to make that happen.Todayâs Quote: âYou must gain control over your money, or the lack of it will forever control you.â âDave RamseyWhy This Matters: I recently saw a Facebook post where many beauty professionals admitted to earning less than minimum wageâeven though their businesses looked successful. My goal is to give you the tools to take control of your income and move closer to financial freedom. Enjoyed This Episode?Share it with a fellow esthetician who needs to hear this.Subscribe, leave a review, and stay tuned for upcoming courses in 2025 to help you grow your beauty business.Thank you for joining me today on Outside the Treatment Room! Letâs keep working smarter, not harder. See you next time!
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