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5 Tips for a More Profitable Spa


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Post 16 of 20

Design is key

It can be extremely difficult to design the layout for a new spa, especially a spa which is keen to follow the latest spa trends and work to their clients demands. How many treatment rooms should we have? How much space should we devote to specialist services? How much space should be devoted to spa products and sales? The key to good design is flexibility, allowing you to adjust, invest and redesign as your always evolving spa products and services dictate. Always be open to redesigning and reinvesting to quickly to maximize your spa’s revenue potential.

 

 

Always have an upgrade

For every type of treatment you have you should try to have an upgrade fast at hand, especially on your most popular services! Upgrades should not only be attractive and well advertised, but they should also be readily available during treatment time. Staff should also be given good incentives to promote (but not over-promote) and sell upgrades, as the incremental revenue of an upgrade is almost always all profit. Giving incentive to staff to promote upgrades, or moreover, promoting the right upgrades and services to the right clients, can also encourage them to be more aware and engaged with the clients overall spa experience.

Reward Good Employees

Spa labour costs can typically be 50% of the spas outgoings, so making sure you reward and compensate good employees, positive behaviour, and great sales, is crucial to producing the best results and a profitably working environment. A good spa should be structure in a way that your employees profit during high productive periods. Not only should incentives be given to individuals who produce good results, but team bonuses should be in place to help promote teamwork and a positive vibe in the workplace.

Reward Loyalty

Building a close relationship with your local spa customers and rewarding loyal ones is another important part of a successful spa. All too often spas concentrate their promotions on new and passing clients, whereas in quieter times it is the local and local clients who help you reach your margins. Build up a ‘fan base’ and mailing list of your regular clients, and offer them last minute deals and promotions during quieter times or special occasions. This can be simply done through email and text services, while building up a social media page, such as facebook or twitter, can help build closer relationships and better promote special discounts and sales.

Better Service Before Lower Price

Give your customers reasons to come back again and again before going down the route of price slashing. Reducing the price of treatments and services can often give the impression of cheapness or desperation, while maintaining the price and improving the service by adding to the experience with ‘extras’ that are low or no cost to you, help promote your services and image in a highly positive way. Simple ideas include extra time on the table (this could even be in the form of a free ‘nap time’ after treatment, especially during times of low trade), or product giveaways (this can be using liquidated stock or helping to promote your vendor’s products).

 

Sell the Product!

Product retail in spas can often make up around 20-25% of a spas profit, but it’s surprising how little time and effort many spas put into product awareness and after treatment sales. If you have a good, unique, and/or interesting product (which you certainly should have!), then making your clients aware of the skin care product’s use, benefits and availability is the very least you can do, for both your spa and the client! And if you don’t have skin care products you are proud to sell then finding a new product to build your spa around should be your very next step!

written by Kim Loe

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