When it comes to spa profits, while yours may be good, there is a chance that you can significantly improve them. You may be wondering how this is possible, especially if you are happy with the price of the services you provide.
However, when it comes to an increase in profits, it is not necessarily the services you provide that you need to look at, it is the bigger picture.
When it comes to the profits of a spa, there are so many things that you will need to take into consideration in addition to the services provided.
Some of these things include treatment options, employees, and even the amount of discounts you are providing.
This is why you should always look at all areas of your spa business when thinking about profit.
It may surprise you to learn that some areas are more profitable than you may first seem, and the last thing you will want to do is lose out on this profit.
There are so many different revenue streams to take into consideration that often some will fall by the wayside. However, by changing your mindset about all aspects of the business, you can help to increase your spa profits.
In this article, we are going to be discussing seven different revenue opportunities that you need to take into consideration or review. These seven revenue streams cover different aspects of a spa business.
While you may already be using these for profit, we are going to talk you through how you can get the most out of them. We will be covering some aspects you may be implementing that are not the best for your spa business.
1. Your Treatment Options
The treatment options you offer is one of the most important things to consider at your spa. After all, they are the main reason why a person is choosing to visit.
As a result of this, you will want to make sure that you have a good amount of options available.
You will want to offer a wide variety of options to cater to many people. It is important that your clients are able to receive the treatments they are interested in.
If the treatments are not available, the likelihood is that they are going to visit a different spa instead.
However, you do not want to offer too many treatments as this can overwhelm a customer. While it is great to include new treatments options, the majority of customers do prefer a more basic treatment list to look at.
You will want the treatment options to be easy to understand and not overly complicated. The layout of the treatment list should be clear to read and understand. The text should be easy to see, and the treatments should be priced clearly.
This will help the client to choose their treatments with no issues, and if your treatment listing is online, they will be able to read this easily, without having to contact the spa.
2. Employee Performance
When it comes to your employees, it is important that they are performing to the best of their ability and meeting targets.
This is something that you will want to monitor to an extent, because if an employee is not performing, then this could be having a negative effect on the profit of the company.
This is especially true if you are rewarding every colleague each month, without looking at their performance. Ideally, you will only want to reward colleagues that are doing well, rather than the ones that are not.
While this is something that is complex, you will want an incentive that encourages your colleagues to work to the best of their ability. This will then mean that the colleagues will push to achieve their goals, in order to achieve the incentive.
A great idea is to also have team rewards, as this will encourage everyone to do well and participate so that the entire team can receive a reward.
3. Excessive Discounts
Discounts are a great way to attract new customers, and to reward loyal customers. However, if you are providing too many discounts, then this will naturally have a negative effect on the company.
Instead, you will want to be clever with the discounts you are offering, and they should be reasonable so that you can still make a profit, but the customer is still receiving a good deal.
Having set discounts, or discounts that run for a short period is a great option. The discounts should have a structure, rather than running through the entire company.
They should help to increase profit for the quieter times, rather than offering too much discount on your busiest times of the day.
4. Products Sold
The great thing about having a spa business is that you can also choose to sell some products used in the treatments. This is a great revenue stream when it is utilized correctly.
However, it is something you need to be careful of. You only want to purchase enough products that will sell so that you are not left with excess stock.
In addition to this, you will want to advertise them in the correct way, such as encouraging employees to recommend products after treatments.
It can be difficult to sell products in a spa, but when you have found a solution that works well for you, it can increase your profits significantly.
5. Have A Clear Idea Of Your Goals
As a spa owner, you need to have a clear idea of what your goals and achievements are so that you and your employees can work towards this.
One way in particular that you can measure how well the company is doing is through Key Performance Indicators (KPI’s).
KPI’s are specific targets that the company and the employees are expected to reach and maintain. By keeping track of this, you will be able to see if there are areas of the business that need to be improved on.
Keeping a close track of performance is so important because if the business is not performing well, then this is ultimately going to affect profit and sales.
6. Existing Customers
As a spa owner, you will want to appreciate and reward loyal customers. Brand loyalty is so important in businesses, and spas are no exception to this.
Loyal customers are great at championing and recommending businesses, especially when they are happy with the service they have received.
As a result of this, it is useful to set up a rewards scheme or provide occasional discounts to loyal customers. While you are giving back to the customer here, they are also providing regular profit for you, and they are a valued part of the business.
Good exposure is so important for a business, and the last thing you will want to happen is for a regular customer to leave because they are able to receive awards from a different spa business instead.
Loyal customers are often underutilized in businesses. While new customers are essential, so are loyal customers.
7. Attracting One-Off Customers
One-off customers are often not targeted, because they only provide a small revenue. However, they are a great way of increasing profit, especially if you own a hotel spa.
While it is not ideal for a customer to only visit the spa once, if you have a constant stream of one-time users, this is a great source of profit.
Given this, you can focus on these customers, to provide a service that a lot of people would be interested in using.
If you are linked to a hotel, you could perhaps provide a specific service for people using the hotel or a special discount.