Monitoring the Revenue in Your Spa – Can You Make More Profit?

When was the last time you did a business analysis of your spa?


Do you know what your competitors are charging? Are your prices in-line with what others are offering or are you just guessing?

Once a year as a business spa manager you need to be completing a price comparison of your key competitors. If there are spas offering the same product line as you, have you queried why their times are different to yours? You should be asking questions and also find answers in order to be one step ahead of your competition.


Next; on a savings level you should be assessing what you are spending in your spa. Could you be paying a better price for disposal underwear or tissues? Are you using disposable cups – when was the last time you assessed how much it is costing your business? Don’t just leave it up to your financial controller – take ownership of your business. This will help you develop your skills to become a spa director, group spa manager or a spa consultant in the future.

Whether money is going in or out of the spa you need to be scrutinising every single penny.


For example if you are paying €25 for a box of tissues and another supplier offers you the same quality products for €22 a box. No big deal right? It’s only €3 after all. But, if you go through a box per week - that’s €156 per year. Now make the same savings on 20 products in your spa and you are saving €3120 per year on expenses. That money goes to profit which means potentially a bigger bonus, more commission or extra money to buy new items for the spa.


As a spa manager I never let any invoice be signed off unless I was 100% happy with the prices and quality - this is how you evolve from a spa manager to a business spa manager.

Now let’s look at the therapist’s columns. Are you setting a daily target for each therapist? Remember your therapists will be at different levels so to expect a new therapist to reach the same financial targets as an experienced therapist simply isn’t viable.

However if you see that one column consistently reaches maybe €400 per day, then set a goal for €450, then €500 and so on. The therapists total should NOT include retail sales – this to me is my jam money. Its additional income for the spa but the initial revenue focus should be on getting the money out of every single hour.

An example is if one therapist has a 45 minute slot left to be sold. Do you just put anything in there just as long as you have a booking or do you encourage your reception team to sell the highest value treatment if it is possible?

Again let look at figures:

45 minute slot left once a week

Sell manicure at €25

Annual income €1,300

Sell a facial worth €50

Annual income €2,600

You simply double your revenue by closely monitoring each and every column daily. Imagine if this was happening daily 365 days of the year €9,125 versus €18,250. Now we are starting to talk big money and a larger loss for your business.


So when a spa manager tells me they are too busy to closely monitor these columns and train in their reception team or keep on top of it until they really have a grip on this process, I don’t see anything more important to be doing in your daily role.

Are your receptionists giving an up selling option to each and every person who tries to make a booking? I am working in a day spa where they get a high rate of return clients on a weekly basis.


They are prime examples of people who should be focused on first and foremost. They already spend money; they haven’t looked at the spa brochure since the first day they booked in so they have forgotten all the other services and add on’s that they offer.


When I go to a restaurant or even Mc Donald’s I expect to be asked if I would like a drink with my meal, would I like to upgrade my Mc Donald’s meal to a larger size, would I like dessert and so on. Its part of their customer service but it is also giving me the customer other options that I potentially haven’t thought about.

You know your business; your customer only knows what you tell them. They don’t study your brochure, they give the impression that they know everything and that they even know what you are talking about but in reality they are simply trying to save face. So educate your clients and give them options that they probably never realised they had and in return you will reap the financial rewards of your spa business and have very happy customers.


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