Return on Investment

What is the life expectancy of a well-built system?

The Dual Port DT2, NewApeel and NewApeel Petite “crystal free” microdermabrasion systems are approximately 10 plus years. This investment cost is $1000 per year or $83.33 per month.

 

Depreciation

Each time we invest in a new asset for our business, we are allowed to depreciate its value for the course of its life expectancy. Using the example of a $10,000 asset with a 10 year life expectancy, you will be able to realize a $1000 tax value (deduction) per year. This is interesting as this is the same dollar amount that costs per year to have the device. At end of 10 years, this investment will have cost nothing.

IRS Rule 179

There is a U.S. IRS tax rule specifically put in place to incentivize businesses to invest, as well as to keep the economy rolling. IRS Rule 179 allows businesses to accelerate the depreciation of all applicable assets to one year. This means that in one year, the $10,000 investment will have cost nothing.

Income Potential

Let’s assume that the average cost for a 30 minute service is between $125 and $250. Using the lower of the service averages, this is how income profit potential may look:

‚Äč

  • 1 service per week (52 per year) = $6,500

  • 2 services per week (104 per year) = $13,000

  • 5 services per week (260 per year) = $32,500

  • 10 services per week (520 per year) = $65,000

 

Keep in mind that each service is based on 30 minutes.

Cost per Application

Approximately $1.00 per treatment performing the dry exfoliation only. Adding in serum infusion to your treatment using the Hydro Wands and Hydro Serums is less than $3.00 per treatment.

Many who shy away from investing in new equipment do so because they feel that they can exploit more business out of their current model without adding anything new. The bottom line is it’s better to have the best equipment and newest technology to offer to your clients. Your business will run more efficiently and clients will be satisfied by your forward thinking with the newest equipment you offer.

Regardless of which way you slice it, investing in technology is smart business.