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Revenue (Yield) Management

 

What is it?

Yield Management is zeroing in on the best mix of services and products to sell at given times to generate the highest revenue and profit.

It all about better managing your financial outcomes.

There are business measures that have been used for many years in the hotel and airline industries that help to maintain a consistent, somewhat controllable, even predictable bottom line during seasonal highs and lows and fluctuating supply and demand.

If we study our historical reports, we can analyze these past results to more successfully adjust sales and pricing in order to achieve better results in the future. Spas are a good candidate for Yield Management, as we experience extreme fluctuations, to the point of turning away clients on Saturday, and not having a single one on Monday. A business can’t stay in business that way for long.

Employing some of these better-known yield management techniques may show you a dramatically different business outcome.  Consider these to begin with:

  • Sell premium services only at peak spa times
  • “Cap” the number of lower margin services you accept in a day, leaving space for the more profitable ones
  • Offer “price advantages” on future bookings for off-peak times
  • Install week day/weekend pricing schedules, and even time of day pricing programs.

 

Yield Management and so much more is covered in detail in our Spa Finances Business Manual and within our Spa Business Management Education Courses & Training Tools.

 

 

About Leslie

Spas2b Inc. is a full service Spa Development company, specializing in Online Spa Management Distance Learning Courses, Spa Business Manual Instant Downloads & Resources, and Spa Consulting Services.
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