May 19, 2016
The Top 7 Ways To Increase Your Spa’s Profitability
1. Simplify your menu.
To truly benefit from this tip, you must understand the labor costs and profit margin
associated with each treatment. Focus on booking high margin services that will offer more
opportunities for the therapist to boost revenue, through service upgrades and by the selling
of retail items. If you have lower cost memberships, focus on increasing your memberships as these will prove to be a high margin product for you in the long run.
Clients will stay on longer if they have committed to your business.
2. Compensate employees
Employees will work better when they are generously compensated, and happy workers
relate to higher profits. There should be fixed compensations in play, as well as various
types of financial and product-based bonuses.
3. Maximize available space
When a spa is first designed or plans to expand, it may be challenging to know exactly
what services will generate the most profit. It is important to closely observe the utilized
space that is generating the most profit and reconfigure the space accordingly. This
simple strategy will boost your potential profitability.
4. Develop strategic promotions
Staying connected with current and potential clients will make it easier to offer “last
minute” specials, using email or text messaging. In addition, make sure everyone
knowns about your social media accounts, and that “fans” of these pages will be privy to
extra special “specials”. This gives clients a discount, and otherwise unsold slots will be
filled. These types of promotions are a win-win situation for you, your clients, and the
5. Manage inventory
This is a very important tip to keep in mind, as revenue will be instantly improved. Many
times a spa will run out of its popular products and sale opportunities will be lost, with a
guest walking out the door not totally satisfied. Carrying too much product may result in
product spoilage, unsold inventory, and possible theft. Having a healthy balance of
product on hand and re-ordering as needed is essential, for boosting sales and building
6. Create customer loyalty
Although everyone loves a free gift now and again, you can build loyal customers, who
will book services on a regular basis, without giving away too much revenue. Basically,
delight them by offering insider information and letting them know about upcoming
promotions before they are released to the general public. Another tip, to boost
profitability and generate customer loyalty, is to offer a customer a special free bonus to
their current service. For instance, a 10 minute rest on the massage table after their
treatment, so they can enjoy the relaxation experience and even dose off for a few
minutes. Giving away overstocked product is a great way to move product off your
shelves, build loyal customers, and learn which products will sell in your spa.
7. Make service upgrades easy.
Make it simple for customers to make a last minute decision for upgrading current
service. For instance, have hot stones in each room that offers massage therapy, so that
when this delightful service is offered to a client already on the table for a standard
massage, they can easily say “yes” to a fantastic relaxing service upgrade.