Operating a spa business is not for the faint of heart – it takes plenty of work, sweat equity, patience, and vision. Surrounded by competition, how can you grow your business? Financially speaking, there are really only two ways to grow your business: increase revenue or decrease overheads.
Often referred to as fixed costs, items like rent, electricity, taxes, insurance for the facility, and professional liability insurance cannot generally be controlled. Without these, our businesses would not exist; however, whether we generate any income or not, these bills need to be paid monthly.
As a business coach, I speak to aestheticians daily that are leaving cold hard cash on the treatment table and these are the ones that we’re going to focus on. Prior to even thinking about numbers, start with your attitude. Show up with enthusiasm and always be grateful for clients.
Three ways that you can increase your revenue are: increasing dollars spent per visit, increasing frequency of visits, and retailing recommendations.
INCREASING DOLLARS SPENT PER VISIT
Implement this simple step with every client and watch the transformation in your numbers. Imagine you saw only three clients a day and they each spent just an extra $10 and you work five days a week. You will gain about $150 more each week, which equates to about $600 additional revenue a month!
If you saw four clients using this same formula, you would generate $200 extra a day, or $800 more a month.
I think you would agree that this is a lot of extra money and, the best part is, it did not cost you any advertising dollars.
The only effort on your part would be for you to suggest the upgrade with enthusiasm. Now, keep in mind, most upgrades in our industry are often more than $10, so that estimated extra revenue is actually super conservative.
What kind of upgrades could you offer? Here are some ideas:
- essential oil add-on to any body treatment or massage
- paraffin add-on for hands, feet, or both
- exfoliating treatment for hands and feet
- upgraded peel or enzyme for a facial
- hot stones add-on for a massage
- a specialty sheet or peel-off mask
The list is endless. Get creative and just remember to invite and offer with enthusiasm – it will make a world of difference.
INCREASING FREQUENCY OF VISITS
This is another simple idea that is huge in generating revenue without any output of dollars. To use some simple math for the sake of my example, let’s say a client spends $100 a visit and you see them every six weeks, averaging about $8.66 visits a year. If at every visit they spend $100, multiplied by $8.66 that is $866 in revenue from each client. Then, let’s increase their visits to every five weeks, or 10.4 visits a year. Your revenue now jumps to $1,040 a year. That’s another $174 a year from each client.
And, all of this is assuming they spend nothing additional and your prices don’t change.
RETAILING PRODUCT RECOMMENDATIONS
This can lead to doubling your revenue with very little time output. Sadly, the industry average for retail is very low, hovering around 10% to 12%, which basically translates into selling about $10 worth of homecare for every $100 of services.
I truly believe that recommendations should be part of the conversation throughout the treatment, not as a pitch at the end. This is especially important during the consultation – you set the tone for the relationship by offering authentic feedback.
If you tell clients that you will be offering your expert recommendations, then it will not come as a surprise at the end of the treatment or feel pushy. By not recommending, you are doing your client a disservice; they need your advice. Statistics show that loyalty to your brand increases by 35% if a client buys any products from you, so do yourself a favor and stop leaving cold hard cash on the treatment table.
A highly respected, passionate professional for over three decades, Tazeem Jamal, PMDT, L.E., is an award-winning master aesthetician, spa business coach, and international speaker. She has been a brand ambassador with Tedx and has been featured in multiple books, including a number one Amazon best-selling book. Her mission is to raise the bar and inspire others to passionately build rocking businesses. Jamal believes in giving back and has volunteered on various spa boards in Canada and the United States. Her love for skin care keeps her in the treatment room part-time at her studio Skindulgence Spa in British Columbia, Canada. tazeemjamal.com