New Year Resolutions That Will Change Your Day Spa Business
http://www.articlesdirectory.org/articles/138968/1/New-Year-Resolutions-That-Will-Change-Your-Day-Spa-Business/Page1.html
Scott White
Scott White is a certified personal trainer and nutritionist located in Scottsdale, Arizona. For more information about nutrition and fitness, reach Scott at swhite@personalpowertraining.net. Also: http://www.personalpowetraining.net. By Scott White
Published on 29 April 2009
Solutions that will get the strategy that will change your Day Spa business. Make this year the best year for your Health Spa business with these secrets.
Change your Day Spa and ask yourself these questions so you understand how to run a day spa business.
1. Are you happy with your current business model?
2. Are you happy with your profit margins?
3. Are you happy with your turnover?
4. Are you happy with the interior design and layout of your business?
The Health and Wellness Industry is no doubt still one of the fastest growing industries in the world! With this in mind I am sure you are feeling like competition is getting stronger, the spa goer is more educated on different types of treatments and service expectations are much higher than they have ever been.
Start with the basics! Yes, analyze your business for a few hours and ensure that the basic fundamental business systems and procedures are in place before you start looking for any complicated strategies and marketing plans to make your business grow.
Check your business against some basic fundamentals listed below and implement any systems you are not currently following. I promise you that if you take them seriously and really put them into action, you will see the results and your business will change.
1. Have Weekly Staff Meetings
Start now and if you are not having weekly staff meetings where you give your staff feedback and let them know where they stand and where the business is heading. Share figures with your staff. If you keep your companies turnover figures to yourself you are not making your staff a part of the business. Your business can only grow if your staff make it grow and by making them a part of the business by not hiding what the business is doing is the first step. Share each individual staff member turnover figures with all the staff and in this way you can help praise excellent achievers and build those needing some help.
Ensure your meetings are not boring and only your voice is heard. Give different staff members different sections of the meeting to cover and then have an open forum where you go round the room and each staff member has their say over the previous week.
2. Consolidate your Product Ranges
If you are a small or medium size business and stocking more than two product lines, then its time to clean up and clear out. You cannot focus on four or five product lines, be careful also not to get into the trap of stocking bits and pieces of different product lines that you assume sell well, this does not send a clear message to the consumer and you may find they only end up buying those bits and pieces from you but their main product range from another salon.
If you have a large size business then you should not be stocking more than three full product lines. If you are, carefully consider the ranges that are not moving so fast and get them out. You will find your staff can focus better and the consumers will appreciate your clearing up the clutter.
3. Average Docket Value
This is one resolution that can dramatically change your business. If you are not checking average docket value on a monthly basis and then doing something about that average then I am not sure why you are in business.
Average docket value is about the most valuable piece of information you can have in your business. It tells you what the average spend per client is where you can then compare each individual staff member average to the business average to see how each staff member is performing in relation to the entire business.
Below is a basic table showing how average docket value is analyzed.
No of clients Total turnover Average per client Services Retail Retail %
Total 10 3500 350 3000 500 15%
Therapist A 3 600 200 550 50 8%
Therapist B 4 1500 375 850 650 43%
Therapist C 2 650 325 500 150 23%
Therapist D 1 750 750 220 530 71%
Which is your best therapist? Why?
Which is your worst therapist? Why?
Tell me about Therapist D?
Is the salon Retail % to total turnover good? Why
Is the total Salon Average Docket per client good? Why?
4. Clear Out The Negative Energy
If there is a staff member that is negative, get rid of them once and for all. Remember one rotten fruit will contaminate the whole bunch in time. Plus don't wait and start the process immediately to clear your business out of negative energy.
5. Book Refresher Education Classes
Book every single member of staff on refresher training for the product houses you stock. Make it compulsory salon policy that they attend yearly and ensure to get feedback from them on their return. I have a form I give staff where I ask them to list 10 new things they learned at the training they attended. This gives you an idea of what made an impression in their minds and then you can build and work on it.
Please do not assume your staff are adequately trained or they have been working with a product house for 20 years so they know exactly what is going on. Don't be fooled, technology and ingredients progress quicker than we think and you can never ever know everything!
6. Plan Your Promotions for the Year
If you plan your promotional calendar with your staff and suppliers a year in advance it makes it easier just to simply implement the promotion every month or quarter or season.
Decide whether you will offer monthly, seasonal or quarterly promotions and then make each staff member in charge of that promotion, from the ordering of the promotional stock to the printing of fliers or posters to the sms the promotion message to clients to the incentives for the staff, etc.
This takes a bit of pressure off you to always do everything and you may be surprised at the pro-activity of your staff. Always be sure to give parameters in which to work for example you can allow them to order the promotional stock but if it comes to higher than R2000 they have to get your approval.
7. Plan at least one Funtion
Plan a salon birthday cocktail function, a charity fundraiser, a 2 hour 40% sale, a bring a friend and win! Whatever, the point is do something, just one function per year where you go out of your way to do something more, different and bigger and get your clients involved and remember to give them adequate notice!
8. Purchase A Piece of Profitable Equipment
If you don't already own a piece of equipment that generates high profit then you must seriously and carefully analyze your business. The fact is that consumers WANT machines that produce results! So act quick and invest in a non-surgical face lift machine, cellulite removal machine or even an IPL.
9. Get Online
If you salon is not computerized and you are not able to receive and send emails or go on the internet, then please sort yourself out and get with the program! Technology is power today and I can assure you that your business will benefit from a salon computer program and internet accessibility.
10. Complete Your Standard Operating Procedures Manual
This is no doubt the MOST valuable operations asset you can give your business and the sooner you get down and complete this manual the better it is for all your staff. This manual is the bible of your business and clearly outlines all service standards and clearly explains exactly what is expected of each staff member. If I can motivate you to do ONE important change in your business this year I would like you to draw up your S.O.P manual. Once it is done it will be of no value if you don't train your staff on each procedure and implement strict evaluation systems.
I hope that you have found at least one resolution to make in your business for 2009!
1. Are you happy with your current business model?
2. Are you happy with your profit margins?
3. Are you happy with your turnover?
4. Are you happy with the interior design and layout of your business?
The Health and Wellness Industry is no doubt still one of the fastest growing industries in the world! With this in mind I am sure you are feeling like competition is getting stronger, the spa goer is more educated on different types of treatments and service expectations are much higher than they have ever been.
Start with the basics! Yes, analyze your business for a few hours and ensure that the basic fundamental business systems and procedures are in place before you start looking for any complicated strategies and marketing plans to make your business grow.
Check your business against some basic fundamentals listed below and implement any systems you are not currently following. I promise you that if you take them seriously and really put them into action, you will see the results and your business will change.
1. Have Weekly Staff Meetings
Start now and if you are not having weekly staff meetings where you give your staff feedback and let them know where they stand and where the business is heading. Share figures with your staff. If you keep your companies turnover figures to yourself you are not making your staff a part of the business. Your business can only grow if your staff make it grow and by making them a part of the business by not hiding what the business is doing is the first step. Share each individual staff member turnover figures with all the staff and in this way you can help praise excellent achievers and build those needing some help.
Ensure your meetings are not boring and only your voice is heard. Give different staff members different sections of the meeting to cover and then have an open forum where you go round the room and each staff member has their say over the previous week.
2. Consolidate your Product Ranges
If you are a small or medium size business and stocking more than two product lines, then its time to clean up and clear out. You cannot focus on four or five product lines, be careful also not to get into the trap of stocking bits and pieces of different product lines that you assume sell well, this does not send a clear message to the consumer and you may find they only end up buying those bits and pieces from you but their main product range from another salon.
If you have a large size business then you should not be stocking more than three full product lines. If you are, carefully consider the ranges that are not moving so fast and get them out. You will find your staff can focus better and the consumers will appreciate your clearing up the clutter.
3. Average Docket Value
This is one resolution that can dramatically change your business. If you are not checking average docket value on a monthly basis and then doing something about that average then I am not sure why you are in business.
Average docket value is about the most valuable piece of information you can have in your business. It tells you what the average spend per client is where you can then compare each individual staff member average to the business average to see how each staff member is performing in relation to the entire business.
Below is a basic table showing how average docket value is analyzed.
No of clients Total turnover Average per client Services Retail Retail %
Total 10 3500 350 3000 500 15%
Therapist A 3 600 200 550 50 8%
Therapist B 4 1500 375 850 650 43%
Therapist C 2 650 325 500 150 23%
Therapist D 1 750 750 220 530 71%
Which is your best therapist? Why?
Which is your worst therapist? Why?
Tell me about Therapist D?
Is the salon Retail % to total turnover good? Why
Is the total Salon Average Docket per client good? Why?
4. Clear Out The Negative Energy
If there is a staff member that is negative, get rid of them once and for all. Remember one rotten fruit will contaminate the whole bunch in time. Plus don't wait and start the process immediately to clear your business out of negative energy.
5. Book Refresher Education Classes
Book every single member of staff on refresher training for the product houses you stock. Make it compulsory salon policy that they attend yearly and ensure to get feedback from them on their return. I have a form I give staff where I ask them to list 10 new things they learned at the training they attended. This gives you an idea of what made an impression in their minds and then you can build and work on it.
Please do not assume your staff are adequately trained or they have been working with a product house for 20 years so they know exactly what is going on. Don't be fooled, technology and ingredients progress quicker than we think and you can never ever know everything!
6. Plan Your Promotions for the Year
If you plan your promotional calendar with your staff and suppliers a year in advance it makes it easier just to simply implement the promotion every month or quarter or season.
Decide whether you will offer monthly, seasonal or quarterly promotions and then make each staff member in charge of that promotion, from the ordering of the promotional stock to the printing of fliers or posters to the sms the promotion message to clients to the incentives for the staff, etc.
This takes a bit of pressure off you to always do everything and you may be surprised at the pro-activity of your staff. Always be sure to give parameters in which to work for example you can allow them to order the promotional stock but if it comes to higher than R2000 they have to get your approval.
7. Plan at least one Funtion
Plan a salon birthday cocktail function, a charity fundraiser, a 2 hour 40% sale, a bring a friend and win! Whatever, the point is do something, just one function per year where you go out of your way to do something more, different and bigger and get your clients involved and remember to give them adequate notice!
8. Purchase A Piece of Profitable Equipment
If you don't already own a piece of equipment that generates high profit then you must seriously and carefully analyze your business. The fact is that consumers WANT machines that produce results! So act quick and invest in a non-surgical face lift machine, cellulite removal machine or even an IPL.
9. Get Online
If you salon is not computerized and you are not able to receive and send emails or go on the internet, then please sort yourself out and get with the program! Technology is power today and I can assure you that your business will benefit from a salon computer program and internet accessibility.
10. Complete Your Standard Operating Procedures Manual
This is no doubt the MOST valuable operations asset you can give your business and the sooner you get down and complete this manual the better it is for all your staff. This manual is the bible of your business and clearly outlines all service standards and clearly explains exactly what is expected of each staff member. If I can motivate you to do ONE important change in your business this year I would like you to draw up your S.O.P manual. Once it is done it will be of no value if you don't train your staff on each procedure and implement strict evaluation systems.
I hope that you have found at least one resolution to make in your business for 2009!