Avon Beauty Center Business Plan: What You Need to Know

An Avon Beauty Center business plan provides you with a process to evaluate the profitability of your Avon Beauty Center, improves the site selection process, and provides a basis for your loan application. Reps can earn four ways with a licensed salon: New Customer Retail, Brochure Sales, Recruitment, and the halo effect of retail visibility and consumer awareness in your overall direct selling business. These are the essential components of the Avon Licensed Beauty Center business plan that will help you win over new customers and increase revenue.

Site selection

One of the main ways to drive traffic to your retail business is to select the right location. Avon will approve your selection and can also help you decide. You should look for sites that have a population of 100,000 within 5-10 miles, demographics with 20% or more women ages 18-44, a minimum of 2 business areas within your business area, and a median household income of $ 30 to 50 thousand. Check with your local Chamber of Commerce for free information on households and population.

Once you’ve located the mall, you need to balance opportunity, cost, and risk, looking at anchor tenant, occupancy levels, tenant mix, visibility, quality, and activity.

When considering a space, look at the physical layout, competition, and lease proposal. A real estate broker can often help you evaluate the terms of the lease, a contractor can suggest improvements, and it may be wise to have an attorney review your plans before finalizing them.

Start-up costs

The authorized Avon Business Center operator is responsible for setting up the space. There are no Avon license fees at this time. Representatives in good standing recommended by the division and district managers and approved by their regional vice president may apply.

Products are tracked on a separate Beauty Center account and all purchases are guaranteed 50% profit on cost. Applicants must qualify for Paymentech credit card processing.

The two most important monthly expenses will be lease payments and personnel costs. Advertising is additional. Start-up costs, including first month’s rent, legal certificates, insurance, cash register, credit card processing equipment, telephone, and miscellaneous supplies, range from $ 3,000 to $ 10,000, depending on the amount of the lease. Also, the suggested opening order for the kiosks is a customer price of $ 15,000. Avon provides 60/120 day credit to minimize upfront costs and publishes a list of the most popular products for sale.

Avon provides counter signage, visual merchandising unit, testers, samples, sales aids, training manuals and videos, and other start-up supplies. Avon will also provide a customer service contact at each location.

Personal

A well-trained and knowledgeable staff is a key factor in the success of your Avon Beauty Center Business Plan because staff will strengthen your business and develop a loyal customer base. A beauty business is comprised of core, transactional, and holiday businesses, so it is critical that the Representative and staff have retail experience, are aware of the retail sales calendar, and schedule accordingly. The retail business is about customer relationships, long work hours, and great staff.

By covering the basic ingredients of the Avon Beauty Center Business Plan in your planning, you are including the key aspects that will help you set up and manage your new Center right from the start.

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