How Lipo Slim Ensure A Real Return On Investment

How Lipo Slim Ensure A Real Return On Investment

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Vital stats

  • Players: Hermarie Prozesky and Amelia Roux
  • Franchise: 3-in-1 Lipo Slim
  • Launched: 2014
  • Visit: 3in1liposlim.co.za

Hermarie Prozesky and Amelia Roux launched the 3-in-1 Lipo Slim franchise concept in 2014, after five successful years of developing an effective product line and business solutions.

“By 2014 we were offering a business in a box,” explains Prozesky. “We believe in simple, effective solutions. This meant a product line that was not only effective, but could prove its own results, as well as business training manuals that could assist our clients to set up and run their own salons.”

The problem was that although they offered their clients a full package solution, each salon was still its own entity. Prozesky and Roux had no control over customer service, salon hygiene or the overall client experience, but because their branding was on all the equipment and products, they were receiving complaints from salon clients.

“We realised that we had already developed everything necessary to launch a successful slimming salon franchise, and so we decided to take complete ownership over the entire customer experience through a franchise model,” says Roux.

Related: Beauty And The Business: How The Diva Slimming And Aesthetics Centre Is Full Of Opportunities

Developing a successful business offering

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3-in-1 Lipo Slim is the product of five years’ worth of business development. “We went into business together in 2009 selling consumables to salon owners,” says Prozesky. “This included facial sponges, pedicure ranges, waxing products and so on, but we received a lot of queries about slimming products.

 

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“We realised there was a huge demand for slimming and body sculpting products, and if we could find the right products, it would translate into a big opportunity for us.”

Prozesky and Roux started researching what was available, both locally and abroad, and imported a number of different machines that they tested themselves.

They launched with the Fir Sauna Blanket in 2010, which was such a hit that the entrepreneurs say they ‘killed the market’ with it.

This success was followed in 2011 with a lipo laser machine. “The two machines work well together, and so we started selling not just equipment, but a body slimming and sculpting solution,” says Roux.

This offering was increased when they discovered the Inbody solution through a local distributor. “Inbody measures and tracks the effectiveness of our other equipment,” explains Prozesky. This added huge value to Prozesky and Roux, but more specifically to their salon clients. Now they had a three step solution that could be measured and tracked, offering visible proof of the changes their clients were experiencing.

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“We also started developing business training manuals to assist our customers,” says Roux.

“Many of them either didn’t have business backgrounds and were setting up businesses for the first time, or were looking for assistance in how to run more successful salons.

“There’s power in simplicity. We like to distil everything down to core concepts that can be easily understood and implemented, and we’ve found that this is as true of product offerings as it is of operating a business.”

By 2012 the partners were also ready to develop their own slimming range.

“We partnered with a pharmaceutical company to develop the range,” says Prozesky. “We use all natural products, and the range includes a thermogel, detox caps, CLA caps, meal replacements, and detox oils.” In keeping with Prozesky and Roux’s approach to business, it’s a simple yet elegant and essential range.

“We’ve kept the price point so reasonable that our customers can add a 100% mark-up, when the norm is 30% at the most,” says Roux. “These products all work alongside our machines, and were a nice step in the door for us with new customers.”

Related: 3 Secrets To Franchising Success

Developing a franchise concept

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By 2014 Prozesky and Roux had developed a three part body slimming and sculpting range, complete with products and business manuals. They had also started importing the Fir Sauna Dome, a sophisticated dome that included vibrating pebbles. The Fir Sauna Blanket was exclusively reserved for customers to purchase and use at home.

“All the elements were in place, and when we realised that customers were looking for a predictable, quality experience, franchising seemed like the natural progression for our brand,” says Prozesky.

Two packages are on offer, and they include everything the franchisee needs to set up their business, from the machines, furniture and décor, to product and business training.

“Once set-up is complete, operating costs are low,” says Roux. “This means that the business quickly becomes cash positive. We say return on investment happens in three to six months, but we’ve had one franchisee who achieved ROI in two months. It just depends on how hard you’re willing to work.”

Prozesky and Roux’s ideal franchisee wants to start their own business and be an owner/operator working inside the salon.

“We’ve designed the system, but we’re not here to run businesses for our franchisees,” says Prozesky. “We give you the tools, but your commitment will be what determines your success.”

Ongoing fees

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Franchisees must commit to purchasing R7 500 worth of product from the franchisor each month. This secures a radius of 10 000 people and ensures there will be no other franchisees in your radius.

Marketing fees are R20 000 per year, and cover Google adwords, ads on the franchisor’s website and other marketing. The first year is free.

Related: Pay Attention To The Small Print

PACKAGES

PACKAGE 1

Set-up cost: R650 000
Operating capital: R100 000
Size of salon: 80m2 or two rooms
Set-up
includes:
1x lipo laser that can service two clients simultaneously in a partitioned room.

1x Fir Sauna dome.

All the furniture needed to set up the salon, including two beds, a coffee table, desk, couches, décor, canvases, door wrappings, branded towels, the POS system,
marketing system and
display cabinets.

PACKAGE 2

Set-up cost: R750 000
Operating capital: R100 000
Size of salon: 80m2 to 120m2 or four rooms
Set-up
includes:
1x lipo laser that can service two clients simultaneously in a partitioned room.

2x Fir Sauna domes.

All the furniture needed to set up the salon, including two beds, a coffee table, desk, couches, décor, canvases, door wrappings, branded towels, the POS system,
marketing system and
display cabinets.

With this package, four clients can be treated every half an hour.


Additions to packages

  • Facial package: Includes a scanner that reveals skin problems, and microderm and microlaser machines that treat skin blemishes, wrinkles and so on. Results are immediately evident.
  • Waxing package: Includes everything needed to offer waxes to clients while they are enjoying other treatments.
Nadine Todd
Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.