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?

As 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?

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.

Speaking green all over the world, Cosmoprof Italy saw new brands hit the green parade with natural ingredients combined with the latest technology.  The new combination of tech and green pushes the creativity and eco-consciousness of all brands.  Some touted highlights of the show include “Boob Job” (a breast & cleavage firming cream), “Organic Surge” (an upscale body care line), and Polaris, (a new chemical free straightening treatment).

As every cosmetics and beauty show starts to hit Green pay-dirt, will the organic frauds start falling out?  If you are organic, say the percentage that you are organic.  If you are natural, be natural.  Will it take a federal grand jury to keep manufacturers and marketers from green washing the spa & beauty industries?  Just be greenly honest…sometimes you can not afford to be totally green…that is okay if you just admit it.  There is no fooling your greenies.

Working with mostly women is always a treat, but when one of them does something outrageous, it suddenly becomes fodder for the entire spa. 

It starts with the ever fashionista hair stylist who tells one of the estheticians–hey, you need to teach her how to wax her sideburns.  She is cutting them, and not for nothing, she looks like ELVIS.  And, we cannot have ELVIS here at the spa, performing a massage.  This just isn’t right.

You know, it was okay for Elvis, but then again, Elvis was a man, yes, it was okay for Elvis to have sideburns, but not a girl.  Especially in the spa business.  Say NO to sideburns or maybe she ain’t a hound dog.

How do you master the fine line between technology, relaxation, and the insatiable appetite for staying in touch?  It is a new tech world out there and how does the spa fit in?  Some spas are very hard line…no Cell Phones, no TVs, no WiFi Access, but as technology creeps up on the horizon, you start to show your age with all of the No Phones, –No, NO, NO.

When we were planning the new spa, this new technology line was something to consider.  Where do you put TV’s?  Do you have Wi-Fi?  Are cell phones okay if you do not talk on them?  Each spa has a different experience, and a different feel.

What is your policy at your spa? 
Do you have TVs?
Do you have Internet Access? 
How do you balance technology crashing into relaxation?
Should technology be a part of a spa?

Do you want to take your retail to new heights?  Get your front desk involved.  I was not a believer until we gave the front desk the power.  The power?  Yes, more like empower.

Your front desk, your reception area, the people who have client interaction…they have the power.  The power to recommend and the power to receive the commission for retail. 

It has always been a touchy subject in the salon or spa to have the front desk receive retail commission, but I must say, it is one of the best decisions.  We have 4 full time front staff who retail between $4,000-$6,000 a month….that is $16,000 to $24,000 in additional retail.  Yes, some of that might have been purchased anyway, but when you put together a program for the front desk to give them incentives for their hourly wages and for their retail commission, your results will be empowering.  The implementation of the retail program took 6 months from the initial introduction to seeing the weekly goals attained.

Not only does it make the therapists aware of their daily numbers, but it gives your front desk staff something to crow about.  Often it is the front line that takes the hits from the clients, and the staff.  There is a great deal of pressure to perform and smile.  When you can take home a fifth weekly paycheck every month just from retail commission–now that is incentive and that gives them the power.  Another benefit is the added teamwork from the staff.  They work together now to create home care recommendations for the guests and clients.  Spa retail teamwork—now that is empowering.