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Are you earning less than minimum wage?

Are you earning less than minimum wage?

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 Podcast Episode NotesWelcome to Outside the Treatment RoomThe podcast about the business side of the beauty industry. I’m your host, Connie Holm.Episode Title: Are You Earning Less Than Minimum Wage? IntroductionWelcome back to Outside the Treatment Room! Today we’re tackling a tough topic that might make you a little uncomfortable: Are you unknowingly earning less than minimum wage?In this episode, I’ll 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, let’s get real, and let’s talk money!Many solo estheticians feel like they’re earning great money because they’re 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: When’s the last time you calculated your real hourly rate?If you haven’t, don’t worry—we’re going to do the math together.Here’s 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: What’s left ($4,000 - $2,000 = $2,000).Divide by Hours Worked: If you worked 160 hours, that’s $2,000 / 160 = $12.50/hour.This number has to cover everything: sick days, health benefits, and retirement. If your hourly rate surprises you, don’t worry—I’m here to help you fix it.Undercharging for Services: If you haven’t raised prices in years, rising costs (like inflation) mean you’re earning less. Example: Gloves that once cost $6 now cost $22—you 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: You’re also your own receptionist, marketer, and cleaner. Those hours count!Does any of this sound familiar? If so, let’s focus on solutions.Here are 5 actionable steps to increase your income:Raise Your Prices: If it’s 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.Here’s your homework:Sit down this week and calculate your real hourly rate.If you don’t like the number, use today’s tips as your starting point for change.Key Takeaway: You didn’t 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.Today’s Quote: “You must gain control over your money, or the lack of it will forever control you.” —Dave RamseyWhy This Matters: I recently saw a Facebook post where many beauty professionals admitted to earning less than minimum wage—even 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! Let’s keep working smarter, not harder. See you next time! Thank you for tuning into this episode of the Outside the Treatment Room podcast! Connect with Us:Instagram: www.instagram.com/rosegoldlearningFacebook: www.facebook.com/rosegoldlearningEmail: info@rosegoldlearning.comIf you enjoyed this episode, please consider leaving a review and subscribing. Your support helps us reach more beauty business owners like you!Stay inspired and keep growing!

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