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Average hourly service price

A question submitted to Spas2b:

I recently heard that there is an easy forumula that you can use to calculate your average hourly service price. Can you help me find that information to help speed up the process?

 

Our Response:

We use average hourly service prices to project revenue. When calcuating your average hourly service price, each service on your menu must be calculated out, based on one hour. You can calculate an average hourly service price for your entire service menu and project revenue from this number, or you can break your services down into departments, which will give you much more accurate figures to work with when projecting revenue.

The formula for calculating your average hourly service price is:

Actual service price divided by actual length of service in minutes, x desired minutes for calculation = Hourly service price.

For example:

$175 Acutal Service Price, divided by
90 minutes Actual Length of Service in Minutes
= $1.94 per minute
x 60 minutes (desired minutes for calculation)
=$116.40 Hourly Service Price

Leslie Lyon

We can help you get ahold of your finances.

See more on Spa Finances 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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