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Category Archives: Financial

“Presenting” your Staff Compensation Package

  Starting NOW, you must know how to “Showcase and Sell” both the monetary and non-monetary benefits of working at your Spa Over the past number of years, there has been a shift in drivers in the Spa Industry. Where … Continue reading →

Product Margins

  Just as it is beneficial for you to understand your service margins, it is also beneficial to understand your product margins. The standard mark up on branded skin care products is 100%, or 50% gross margin. In other words, if … Continue reading →

Service Margin Analysis

  Look ahead towards change and improvement Understanding which of your services have a good level of profitability and which ones do not is paramount to the success of your business. This information can be included in the development of … Continue reading →

Staff Compensation

A question submitted to Spas2b: I know that what you pay your staff is the most important expense category, but how do you match up what employees want with what you can afford to pay?   Our Response: Sometimes you … Continue reading →

About supply inventory..and how to determine % used.

  A question submitted to Spas2b: I am a Spa Director at a Resort Spa, and we have to complete a full inventory of our supplies every month (as well as our retail). Our head accountant takes the montly total … Continue reading →

Junior and Senior Staff Positions

A question submitted to Spas2b: I was just at a spa who had junior and a senior pay scales on their brochure. The junior staff services cost less than the senior staff services – is this a new trend? I’ve … Continue reading →

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 … Continue reading →

How should we charge for group bookings?

A question submitted to Spas2b: We have a question in regards to a large number of patrons (10)booking the spa on a Saturday. We have charged a rental fee in the past, and asked that everyone has 2 services done. … Continue reading →

Calculations for Services

A question submitted to Spas2b: When calclulating $/hr and GM% should the time needed for cleanup be added into the service time? I.E. A manicure may take only 25 mins for service, BUT takes a few minutes for set up and … Continue reading →

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 … Continue reading →