Top 10 Tips To Increase Your Spa’s Profitability
Here are the top 10 tips to increase your spa's profitability
[1] Simplify your Menu Structure
A well designed and structured spa services menu can provide the essential flexibility to book services, schedule resources and run promotions that maximizes your Spa’s bottom line. For each treatment, understanding the associated range of your labor costs and true profit margin is critical in this planning exercise. Strategizing to maximize the booking of high-end, high-margin specialty services creates more opportunities for therapists to further improve revenue capture via upgrades and retail sales.
[2] Apply Revenue/Yield Management Techniques
The ability to leverage a well structure spa services menu (low, med and high margin services) is best exemplified by revenue management techniques. In simplest terms, using dynamic availability, reducing the list of services of available (highest margin) during peak times has a tremendous impact on profitability. Even with the same number of services booked (by the same treatment providers) the resulting boost in bottom-line performance can exceed 25%. It also tends to push more bookings in to non-peak times that would otherwise go unsold.
