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10 Tips for Spa Profitability

Thursday, November 6th, 2008

Tip #1: Increase your service income over the phone!

:

• When a new customer calls to ask about your spa

treatments or hair services, describe first a popular hot

seller—one that’s priced above your “entry level”

treatment. Never suggest low-cost services unless asked

to!

• Set a company goal to make your higher priced treatments

your #1 sellers.

• Teach all employees to suggest premium services to

clients and callers first—they can go to a lower priced

offering if needed.

 

Tip #2: Sell more of your slower appointment time!

Problem: Evening and weekend appointments go quickly

but midday hours lack customers.

Solution:

• Instead of asking a client about preferred time first, tell

clients about the time you have open: “I’d be happy

to schedule your appointment. How would Tuesday or

Wednesday at 2:00 or 3:00 work for you? I have that

open right now.”

• Don’t assume that clients won’t accept those hours because

they haven’t seemed popular. If you want to sell something,

it helps to promote it instead of waiting for someone to ask!

 

Tip #3: Reduce the number and length of your spa packages!

Problem: Too many package choices; the larger packages are

expensive to track and train employees on, are difficult to

schedule (and take some of your best appointment times), create

big business losses when cancelled, and decrease retail sales.

Solution:

• Reduce packages to three in number, and not more than 4 hours

in length.

• Be sure to include a good retail-producing service (such as a

facial) at the end of the package to increase the chances of a

purchase.

This will open more of your prime time appointments for your

regular clients - the clients that are the most loyal, give the

most referrals, and buy more of your products!

 

Tip #4: Build some retail into your spa packages and premium priced

hair services!

Problem: Spa packages don’t produce any retail product sales and

some stylists can’t seem to be taught to sell anything.

Solution:

• Guarantee it! Create spa packages that include some home-use

products and price accordingly. Since most spa packages are

sold as gifts, they aren’t as price sensitive as other services.

• Your “Stress Relief” package can include a facial, massage,

pedicure, plus an aromatherapy candle and scented bath gel that

the recipient can enjoy before coming in for the appointment.

• High-end color treatments can include a shampoo or conditioner.

This allows a retail sale that isn’t subject to sales commissions and

permits you to sell some slower-moving items. This is a great

way to close-out some of your older inventory!

 

Tip #5: Don’t discount slow-selling products—showcase them!

Problem: Most spa and salon products fail to sell because they get

ignored, not because they’re unwanted by clients.

Solution: Instead of tossing them into the “sale” basket try these sales

techniques:

1. Move the product to a prominent place in the spa retail area, even the

reception counter.

2. Create a sign that says: “New!” or “Just Arrived!” and describe the

qualities and benefits of the product—emphasize positive feelings and

sensory descriptions!

3. Teach all employees that promote your retail products about the featured

item, why it’s great, who would want it, and then have everyone try it.

4. Make a contest to sell all of the inventory by a set date (no more than two

weeks) with a special prize for the highest seller – create enthusiasm!

 

Tip #6: Create a new and exciting “high-end” spa or salon treatment!

Here’s your opportunity to increase service sales

with little or no cost!

• Ask your stylists, estheticians, nail techs and body therapists to

create a new treatment using your existing products.

• Have them plan the protocol, name the treatment, and describe

how to promote it to clients.

• Make the treatment exotic, results-producing, and price it well

above your other standard offerings.

• Plan seasonal treatments that change regularly—this works

well!

Your customers and employees all love something new to try, so

why not author your own exclusive services?

This is a creative and income-growing way

to build your business!

Tip #7: Upgrade your gift certificate sales!

So easy that it’s funny! A man buying gift certificates for a woman in a

spa is like a woman buying gift certificates in an auto parts store;

they have one goal in mind: to get out of there as quickly as possible!

Rather than offer a man a service menu he probably can’t read, offer

him a (your) suggestion instead. Here’s the plan:

1. Select the spa package you most want to sell (not the least expensive

one like you used to…)

2. Ask him if he’d like a suggestion for a great gift that all of your

clients love! Of course he would…help him!

3. Tell him about your wonderful package and how much his recipient

will appreciate him for his choice. (Love Boat theme starts here…)

4. After he buys the package (yes, he will!) reinforce what a great

choice he made and what a lucky woman he has. Everyone’s happy!

Tip #8: Free yourself from the gift donation demand trap!

Problem: You love all of your customers, but how many times can you

hand out services to their charities before going broke?

Solutions: Here are two guaranteed ways to still be a generous business

but avoid giving away all of your valuable appointments:

• Give skin analysis gift certificates. These will only bring in the truly

interested clients, cost almost nothing to perform, and may produce a service

or product sale.

• Give makeup lessons. These are always the least-selling services at most spas

but a good place to look for new business. They’ll come in, produce

considerable retail sales, and help to fill those lonely makeup stools!

No cash value, swapping for something else, and loss of important service time!

Give a zillion of them, big hearted spa owner that you are!

*never give your appointments as raffle or door prizes—they’re often not valued by winners.

Tip #9: Stop killing retail product sales with samples!

Problem: Did you know that by offering your spa customers product

samples instead of recommending products to buy on-the-spot you lose

over 50% your potential sales? Samples allow customers time to reconsider

when they’re already primed to buy, cost you money to give away, and lets

employees run away from the responsibility of offering home-care advice.

Solutions:

• Require every service employee to fill out a product recommendation

form for every new spa customer. Sample only when clients ask for

samples, not before! You’ll need to make sure that this plan is being

faithfully fulfilled.

• Give samples only when: 1) Client doesn’t buy anything. 2) Client

reports already having a product similar to one suggested. 3) Client

has bought several items and you want to “gift” them with a sample.

4) They’re requested.

Tip #10: Doctors: cross sell your patients to your estheticians!

Problem: Physicians expect their patients to discover the services of the

office or medispa estheticians, but there’s often little to show for it.

Solution: Stop waiting and make it happen!

1. Have a facial and ask your esthetician to teach you about the treatment

and how to promote it to your patients (amazing how rarely this is done!)

2. Instruct patients on the wisdom and benefit of esthetic follow-up care

after receiving laser, IPL, peels, and other high-potency procedures.

3. Meet with esthetician(s) to plan a personal introduction routine and

description of post-treatment facial services.

4. Have an esthetician available for you to personally introduce to the patient

following your post-treatment advice.

5. Build the first facial treatment into the surgery price to stimulate use of your

esthetic services.

Do the above without delay! Your estheticians will appreciate the show of

support and you’re Profit will INCREASE!

 

Hold My Mail……and Cell, and Blackberry – I’m on Vacation.

Wednesday, September 3rd, 2008

Hold My Mail……and Cell, and Blackberry - I’m on Vacation   By Liz Galloway

My last vacation was a series of fantasy like images of crystal waters and white sand beaches, straight from a magazine. This perfect vacation included a happy bonding family enjoying some well deserved time together. Part of the 3.9 vacation and holiday days set aside for typical Americans.

 

Unfortunately my vacation existed more in my mind’s eye than a real escape. My last vacation unsuccessfully combined my work with a family getaway. The reality of it was, I spent my time with clients and students, while my family had a vacation, minus one. Me.

If you’ve ever felt you need a vacation after your scheduled vacation, schlep around a cell phone and laptop on the beach, or think its a good idea to combine work with bonding moments, it may be time to rethink your vacation goals. Though you may carry the red badge of courage for overtime and dedication at work, are you able to apply those same attributes to being the ultimate traveller? Forego vacation deprivation and getaway guilt and find out what kind of traveller you are. It can tell you a lot about yourself. How you handle critical thinking, project management, adaptation and flexibility to change, oversight of many different personalities, and stress relief. Use a vacation as a learning experience and bring a fresh perspective to your work. That time away can be extremely valuable.

 

As a provider of educational workshops and getaways for both spa and wellness professionals and savvy consumers, its apparent that people have a yearning to combine enlightenment with stress relief. Which is exactly why we create specially tailored getaways that provide opportunity for purpose, education and a well deserved vacation. Vacation goals may be different for everybody, but its time to get back to the passion that inspires us when we let ourselves just be, rather than continually doing. Take that into consideration when planning your next edu – vacation.

 

There are many variations on vacation themes. Don’t know how to choose? If your looking for a good example of an excuse to take your vacation time, join our 2008 Cruise for P.I.I.N.K., a charity wellness retreat in support of breast cancer awareness. October 13-18. I know, I know. Your ambitious, and take it upon yourself to get things done at work. Have mounds of responsibilities that you could never ask a colleague to take on. The reality is, you can and should.

 

A healthy work environment and a healthy individual requires a balance. That balance is time for yourself. People typically go on vacation for several reasons, and according to tourism and resource boards here are some of the top;

 

People want to build and strengthen relationships. Vacation time is also family time. Especially with a typically family schedule that leaves little for quality time together. A vacation is a perfect time to get a fresh view of family away from home stresses and workstresses. Along with family bonding, this is an ideal time for children and adults to socialize and make new friends.

 

A need to improve health and wellbeing. Physical and mental well being is vital to everyday successes and a balanced work/family life. Health and well being getaways can include physical outdoor activities, and other ‘themed’ vacations that include nutrition, spa, relaxation, stress relief, education, sports etc. These are lifestyle focused.

Desire to rest and relax. Third on the list is reason to escape from work, schedules, worry, and everyday demands and just relax. Many cruiseships for exmple play up this goal by providing easy access to many relaxation methods in one spot. If you can find a cruise style that offers an itinerary that fits with your purpose its even better. Get a fresh view.

 

Enjoy new adventures. Many travelers find popular destinations with adventure getways. Eco adventures, Extreme Sporting adventures, Detox/Boot Camp adventures, Wine Socials, and even Naked cruising top the list. Adventures are to evoke new emotions, and experiences, what ever your goal may be. Romance, heightened sensation, visual stimulation, danger, its all at a travellers fingertips with the right planning.

 

Just to escape. This can mean many things, and is usually when people are looking for

something that is deficient in their daily lives. Something different. Different climate, quieter surroundings, better scenery, a slower pace of life, culture, learning, or anything else that may create a passion in peoples lives.

 

Knowledge building and learning. People are savvy, and have demands placed on them daily that require a high level of knowledge, pulling them in many directions. That knowledge also motivates today’s travellers. Better educated, and motivated for additional learning and stimuli, people travel to explore language, cultures, spirituality, mind-body connections, health, gourmet foods, and many other pursuits dedicated to knowledge and personal development. They want to see, touch, or feel something unfamiliar, yet apply their knowledge to a cause.

 

Celebrate special occasions. Some travelers take vacations to celebrate milestones in their lives: new relationships, marriages, birthdays, or professional achievements. Vacations that mark special occasions are usually taken with loved ones and provide memories that last a lifetime.

 

To save money or time. Although going on vacation almost always costs money and

time, where one goes on vacation can influence costs. You can still vacation and save money with mini vacations close to home, or on a scaled down version of another vacation. Virtually every budget can find a vacation that fits.

 

To reminisce. Many people travel to relive fond memories. Some will revist old places, or people to rekindle memories from a previous vacation, childhood or other memory. All of this focus on travel, food, and souvenirs, is really about buying an experience, and a sentimental journey.

 

There are nine perfect reasons to start planning your next vacation. Our upcoming cruise is a tenth reason. Many of us can be reluctant to understand the importance of time away from routines and stress factors. This is mostly a self induced state. Let’s make it a new generation of downsizing working vacations, and start understanding that it is not only our work that defines us, but our true calling and passion. Though we may feel we have a lot to lose at work. All of us have a lot more to lose if we can’t grasp the importance of enjoying the here and now.

 

Liz Galloway © 2008

Liz is the guest blogger for this article and the owner of The Lotus Effects.  Check out her website at

http://www.thelotuseffects.com/ and joins us for the cruise on October 13th-18th.

 

 

 

 

 

 

 

 

 

 

 

 

No Show at the Five Star Spa

Sunday, August 10th, 2008

All I needed was a Massage!Okay, it can happen to even the best of spas.  My jewel of a friend needed a little escape, so I scheduled 2 massages last Saturday morning.  We drive 45 minutes to the five star spa.  The hotel is brand new and over the top.  The reason I chose this spa…I knew that the massages would be great and the service outstanding.

The appointments were at 9:00, also the time that they open.  We waited at the glass doors and finally at 8:55 the spa concierge appeared and opened the doors.  She wasn’t really rude, but not really friendly either.  She was just doing her job.  She had us fill out the forms and blandly showed the locker rooms and lounge.  We quickly changed into robes and waited for our therapists.

I was called quickly into the treatment room and bid goodbye to my friend.  Little did I know, she was going to read a magazine for a half hour, before she realized that no one was coming to get her.  She then asked spa concierge about her massage, and her therapist was a “NO SHOW” for work.

Now I have many questions.

  1. Don’t you have your therapists arrive 20 minutes before the first appointment?
  2. Shouldn’t you know before client intake if your therapist is missing in action?
  3. Be prepared in advance.  Be a good Boy Scout.
  4. Have a backup for No Show Therapists.  It is going to happen. Have an on-call therapist.  That is why Broadway shows have understudies.  The show must go on.
  5. If you fail in your service, provide an over the top gift to apologize.  A mumbled “I’m sorry” with a gift certificate does not complete the service transaction with delight.

We left the five star spa without delight or happiness, never to return.  Why pay for five stars when you can pay less and get the same treatment?

10 Do’s and 10 Do NOT’s for Success in Life & Business

Thursday, July 17th, 2008

10 Do NOT’s

 

1.      Do NOT blame.

2.      Do NOT justify (Excuses, Excuses).

3.      Do NOT complain.

4.      Do NOT  feel guilty about being out of balance ( it’s ok for a season).

5.      Do NOT quit starting and stopping. Stick with it.

6.      Do NOT take a million breaks.

7.      Do NOT be afraid .

8.      Do NOT manage or mingle in other people’s business (mind yourself).

9.      DO NOT listen to the wrong people (success will silence your critics).

10. DO NOT expect to much in the short run and too little in the long run.

 

10 Do’s

 

1.      Do believe (in your choices).  You have a choice.

2.      Do put both feet in.  Give it your all.

3.      Do be a lifer…no matter what your age.

4.      Do focus (successful people often have tunnel vision).

5.      Do mind your self-esteem (try not to speak badly to yourself).

6.      Do work it everyday.  Just DO IT!

7.      Do pretend you are going on vacation everyday. (You know how much you get done the day before vacation?)

8.      Do lead by example. (pretend like you have a team).

9.      Do love people where they are.

10. Do laugh at yourself.

 

Hire a Spa Professional at Minimum Wage??

Monday, May 26th, 2008

Hello Corporate Spa Raiders….this is not a minimum wage business.    A recent ad in a local paper offered work at a hotel spa–Nail Technician-$6.95 per hour plus tips.  Yes, the schools we go to don’t offer a four year degree, but we are professionals who have spent years perfecting our skills.  We spend a great deal of money training, learning and practicing our skills.

Do you really think it is appropriate to pay minimum wage plus tips for a perfect manicure or pedicure?  Let’s see, you get what you pay for? Or do you really want to hire a professional, someone who knows about diseases of the nails, who knows proper sanitation, who knows how to file properly, who knows how to massage to perfection?  Which do you want–the skilled professional technician or the just out of school untrained, will work for minimum wage. 

How about you?  Will you pay a little more for a skilled and knowledgeable technician?  Do you want someone who is touching you to be a professional?

Maybe the corporate spa director never had a pedicure before?  Who would have thunk it?

The Only Thing Tackier Than Asking for a Tip in Cash, is an Actual Tip Jar Itself

Sunday, May 4th, 2008

Only Thing Tackier Than Asking for A Tip in Cash is a Tip JarImagine the horror when you hear that a therapist is telling new clients that she only takes tips in cash.  The ongoing debate on tips in the spa has reared its ugly head.  Some spas charge the tip automatically giving the entire tip to the therapist, while others split the tip with a percentage going to cover overhead.  Others have even been known to use the tip as part of the therapist’ compensation plan.  The latter, I think has some type of moral repercussions, if not labor laws.

  1. Last time I checked, a tip is not required.
  2. A tip is an appreciation for super service above the norm.
  3. Why only in cash, because you get it sooner?
  4. Did you also tell the client that you have to wait until your paycheck to receive your other tips?
  5. Did anyone share with you spa etiquette?

Whether your spa collects tips automatically or as a thank you, my southern hospitality tells me that from the dawn of ages, a tip is a special thank you for going above and beyond.   It should not be automatically added to the check unless you have a large party and it definitely should not be part of a compensation plan. 

The client’s motive for telling us about her experience, was that she thought it was inappropriate to discuss tips before having and during the service.  The client also questioned as to whether we actually paid the whole tip to the employee (a practice which some spas use by taking a portion of the tips).  In this particular case, the employee had breached the client/staff line, where something that should be private is aired in public–like airing your dirty laundry.

When approached, this employee, of course, denied telling the client she only took tips in cash.  She said that the client must have misunderstood.  We walked through the inappropriateness of the conversation and why you do not discuss tips with your clients and guests.  Discussing money with anyone except your accountant or a financial adviser is etiquette taboo.

Is Your Spa Vision Eastern, Alternative? Are Your Therapists More South Beach Hip?

Friday, May 2nd, 2008

Is Your Spa Vision on Track?On a recent visit to a gorgeous spa, we experienced a 2 day training event that made us very glad to work at our spa.  You see there were some major differences in our culture (fun, family, client is king) versus their culture (cold, lack of customer service, no sense of spa culture). 

On the way home, my manager and I discussed the animosity in the training room, and the therapists that showed disrespect.  The culture and vision of the owners and manager did not match the vision of the therapists.  We basically felt that the spa should wipe the slate clean and start over with new therapists that understood their mission and vision. 

  1. What happens when your therapists don’t see your vision?
  2. What happens when you are not able to express your vision?
  3. Does your vision clash with religious or political beliefs?
  4. Is your spa vision in conflict or are therapists getting mixed signals?
  5. Does your vision match your mission?

This spa has a wonderful opportunity to be an outstanding spa, but the spa culture and mission must live and breathe in every one of the therapists.  Sometimes it is just not a fit.  Do your therapists believe in the mission of your spa?

Booth Rental vs. Employee - Do Hair Stylists Want Spa Careers?

Tuesday, April 29th, 2008

Hair Stylist Reviewing Style Having friends that own spas, we are constantly discussing opportunities, staff changes, and growing the spa.  One spa owner recently had a group of stylists that were being lured to a defunct day spa that is now operating as a booth rental for stylists.  The booth rental operation was exclaiming to stylists that they could keep 80% of every dollar that they charged.  Does this sound too good to be true? Yes, they have free lunches too.

You do the math, but last time I checked, the booth rental stylists have some facts that they need to face. 

  1. Are you prepared to pay quarterly taxes to the IRS? And the self-employment tax.  And don’t forget taxes on tips.
  2. Are you prepared to pay retail sales tax?
  3. Do you have your own phone line to make your own appointments?  There is no receptionist (if there is, this is not a true booth rental)
  4. Wait until you wash all of your laundry, clean and pay your (I gotta have) assistant.
  5. Oh yes, don’t forget the insurance, liability, property, and 100% of your health insurance.
  6. Are you a self-starter, a go getter….out to bring in the business?
  7. The cost of doing business does not change, just how you handle the money.  It is fairly industry standard that you will make at the most 15-20% profit if money is handled appropriately–80% is someone pulling the free lunch over your eyes.
  8. If you want further education and training, you must pay for everything yourself.

Immediate cash to the stylist may be the only be real benefit to the rental business model–as you don’t have to wait for a paycheck.  And if you think you can fool the IRS for long with not paying taxes on cash….hmmmm.   You must also be a real go-getter to continue bringing in business with referrals and marketing, plus you need a sharp business head to watch expenses.

Working as a stylist at a spa gives you a real career and something even more important- security and a safety net.  When times are good, you will do great.  When times are not so good, you will do great.  Do you want a career? or Do you just want to be another stylist?

Perfect Key Indicators = Perfect Growth Performance

Sunday, April 27th, 2008

Running for Growth and Spa ProfitAs spa days go, yesterday was almost perfect.  The entire spa was humming along, with the following percentage of spa services:

  • Skin: 20%
  • Massage: 45%
  • Nails: 20%
  • Hair: 10%
  • Fitness: 5%

Of course, you match your retail to the service mix to see how each department performed.  The retail percentages were as follows:

  • Body Care: 5%
  • Clothing/Fitness: 13%
  • Gifts: 5%
  • Hair: 16%
  • Makeup: 5%
  • Nails: 10%
  • Skin: 46%

Without becoming too number obsessive (I have a fixation on numbers), you can easily see which departments are performing with retail.  Other numbers that are reviewed on a daily basis include:

  • Average Service Ticket ($127) - Above National Average, But Below Our Goal
  • Average Retail Ticket ($55) - ($1.00 Above Goal)
  • Pre-Book Percentage (34%) - (6% below Goal- we had a bridal party of visitors)
  • Retail to Total Service: (28%) - (5% above target)
  • Add-Ons & Upgrades: 24 Massage, 5 Skin, 4, Nails, 4 Hair (Look at those Massage Therapists!)

For a Saturday, not a bad performance.  So this begs the questions, which numbers do you look at and why?  Which numbers should you look at?  At the end of the day, should it just be the profit for the day, or are the indicators above the drive for profit.  The drive for profit should have started from day one of doors opening…just like you build a car for speed, you need to build your spa for profit.  The key indicators above are your road map to success–do you have your goals in place?  Do you check your numbers?

 

Hear the Drumbeats or Beat the Drums

Wednesday, April 23rd, 2008

Every Tuesday all the managers and I meet for lunch.  It started out many years ago as a way to stay up to date with everyone.  Now, it is a critical path.  Not one week should go by without hearing the drumbeats of your spa.  What does that mean?  It means that we cannot know what is going on in every department without hearing from the managers.  They know.

Sometimes, it might be who is pregnant (again)–I  think there is something in the water.  Other times, it is–we had a great training today, and we are ready to add the new treatment to the menu.  Or, you know our retail is double in the department over last month, because of the new promotion.  Another discussion yesterday, was summer series promotions for local clients—and you know you get better results and more drumbeats with more brains.  It is something about beating on the drums.  You actually get answers.

Weekly meetings give us a chance to hear the drumbeats or beat the drums.  You decide, but it is a must for motivation and management.

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