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Chapter 4: The Financial Abundance Factor

Jamie Scalise

Editor’s note: This article is an unedited chapter from Jamie Scalise’s unpublished book The Power of Three Method: How to Upgrade Your Spa/Salon Income Without Selling. An excerpt from the chapter is running in the July 2009 issue of Skin Inc. magazine; however, it has been edited to fit the magazine’s format and style. Download this article as a PDF.

Abundance means ‘more of something’ and the beauty is that you get to fill in the blank. Whether it’s more love, more joy, more clients, a plentitude of happiness, more money, better relationships, or a bounty of peace, it’s all good. In the context of this book, we are mostly referring to the financial abundance factor, being that we are providing a blueprint for generating more income and profits. But as you have heard, and will continue to see, this financial abundance just a piece of the whole pie.

Most importantly, we are able to enhance the results, experience and eventually the lives of the clients we serve. We provide them abundance in the form of inner peace, improved skin condition, enhanced moods and feelings of love through our compassion, understanding and acceptance of them as perfect children of God.

Scarcity versus sufficiency

If you have experienced a reaction to this book, whether negative or positive, about increasing your income as well as the income of the spa you represent, consider where you are currently positioned on the scarcity versus sufficiency continuum. If when you read any part of this book so far you harbored thoughts or feelings of discomfort, or if you considered the possibility that Ameann and I might just be greedy for creating a book that promotes upgrading clients, check in with yourself. As it has been incessantly stressed that the client’s results are the first and only concern, not the income increases, notice the uncomfortable thoughts and feelings as you check in with yourself. It’s very possible that your relationship with money, like the rest of us (including said authors), needs some healing.

If you think your relationship with money is good, allow us to ask you a question. Have you ever not recommended something, whether a cream, styling product, serum, or even a top level service, because YOU decided that the client couldn’t afford it? I know Ameann and I have both neglected to offer in the past, and we bet you have too. So do you want the truth here? Or better yet, can you handle the truth?

All of us, when WE make a decision for a client from our own feelings of lack or insufficiency, cheat that client out of a possible outcome. While we ‘think’ that we are saving them the time and effort of not having to say ‘no’ to us, unconsciously we are completely and selfishly limiting them on their potential choices and eventual outcomes. Can you possibly now see how our limited financial belief systems not only poison ourselves by limiting our allowance of abundance to flow in, but also cheat those we are supposed to be serving?

So we need then to get beyond scarcity and insufficiency, for the good of ourselves and our clients, and into a sufficiency mindset in order for us to better allow abundance into our lives. In a moment, we’ll define for you our interpretation of the difference between the two as an introduction to this concept.

For those of you who already understand that you are drowning in scarcity, or at least sometimes find yourself soaking wet in the chill of the insufficiency pool, allow us to suggest a trio of books that helped us both come out the other side, warm, dry, and basking in the glow of sufficiency.

To provide specific help here, may we suggest purchasing and reading, in no specific order, The Emotion Behind Money by Julie Murphy Casserly, a Certified Financial Planner with a warm, engaging, and spiritual take on improving your relationship (and yes you do have a relationship whether, good, bad or indifferent) with money found at www.EmotionBehindMoney.com; and the The Soul of Money by Lynne Twist, where she describes the concepts of scarcity vs. sufficiency, among many other helpful, financially healing concepts in great detail at www.wwnorton.com. If you have a really open mind, the abundant teachings of the spirit guide Abraham are chronicled in Money, and The Law of Attraction by Esther and Jerry Hicks.

And if you are feeling good about your abundance receptivity, and think your connection with allowing financial prosperity into your life appears to be without corrosion, the following definitions on scarcity and sufficiency mindsets may either confirm your feelings, or change your mind and send you book shopping for more help! Either way, it’s all good…

So read on and come to your own conclusions. If you feel you possess a bruised relationship with financial abundance, as most of us do on some level, go get some additional help once you’ve finished “The Power of Three Method.” This method will work in any case, but you will inevitably experience higher upgrade percentages, better client relations and results, and more abundance flowing into your life if you take the time to improve your own relationship with money. We promise, like any relationship, the healing will occur if you seek it.

If we come from a sufficiency mind, ‘more is better’ simply means that even though we already have enough, we desire to experience a grander vision of abundance for ourselves and our families, as well as share our unique gifts on a larger scale and with more and more people. These gifts include our talents, knowledge, time and money, so in this case, our expansion becomes a spectacular, connected pursuit of higher good and is aligned with the Universal Laws.

But if we come from the scarcity mindset that says we need more for our Ego’s personal gratification, that we can never really have enough, “the Joneses” always have more than we do, and that our inner worth is measured by what we own and have, then as described here, ‘more is better’ is a disconnection from Source and becomes a time bomb waiting to implode or explode, or both. The Universe will not support us in this self-centered, wounded effort. The question remains, from which place do you come?

Is your desire for more based out of fear, insecurity, jealousy and wonton wanting? This is a scarcity mindset. Or do you wish for more, all the while knowing you already have been blessed with enough, but at the same time realizing you have more to offer a larger number of people on a bigger stage in life, and therefore deserve more financial abundance in return. Of course this is the sufficiency mind, and the difference between the ways in which you seek more in life will make all the difference in the world in your actual results.

You will either be supported by Universal forces (if you own a sufficiency mind) in your expansion efforts, or thwarted if you operate from a scarcity mindset. You can heal your financial views and make the conversion from one to the other with some reading and personal work. This is a very important topic to internally reconcile, as it will not only affect your view of the world, but your future successes as well.

Financial models: Pricing the three options

Now that we have laid the foundation for abundance as viewed from a place of sufficiency, let’s explore some calculations based on the numbers that you’ll see in more detail in the following chapter. You’ll there find prices from both from the spa where I practice my trade, the Spa at DelMonte and a fictitious spa, Spa Bella, which is more moderate in price structure. In the next chapter we use these prices below for giving you more detail and a foolproof ratio to help set your own prices for the Basic facial, the mid-line (Kiss) and then up to the high end (Super Kiss) facial.

 

Basic

Kiss

Super Kiss

Spa at Delmonte

$95

$140

$175

Spa Bella

$75

$110

$140

Again, we’ll tell you how we arrived at these prices, along with the ratios used, in the following chapter. For now though, let’s take these numbers and apply some calculations to see how allowing clients to upgrade affects ones income. For the Spa at DelMonte, let’s assume in this fictitious example we are paid an hourly rate. Remember, we have assured you this will work in either case, whether you are an hourly employee or commissioned, assuming your owner/manager is open to both of you making more money. And if you rent or sub contract, the value of allowing client upgrades is logically built in as you are your own sole income source in that case. For the Spa Bella example we will use a 35% commission rate on services performed for our calculations. Here, since we are on

commission, the more we make for the spa the more we make for ourselves, which is both easy to calculate and understand.

The Spa at DelMonte: Bonus Plan

Let’s get back to the Spa at DelMonte, where hypothetically Shauna the Esthetician has now read this book and is excited to use “The Power of Three Method”, but she is currently paid a flat hourly fee. And quite frankly she feels that she should be rewarded for her proactive efforts in implementing this method and making the spa more money, creating a win-win situation. That’s only fair, right?

Shauna decides to take her idea into the Spa Director and the plan they develop is simple. It’s based on a bonus for each time she, or the other providers perform the Kiss or Super Kiss instead of the Basic. There is no need to change the pay structure, as she’ll still be paid her flat hourly rate plus any “The Power of Three Method” upgrade bonus she earns each week.

In this case they decide it costs $3 in product to upgrade from Basic to Kiss, and $6 to upgrade from Basic to Super Kiss. Of course, the flat hourly pay and the owner’s hourly fixed costs are all the same since any and all of the choices are one hour long, so they don’t need to include them in the negotiations.

The additional profit (Kiss $140 minus Basic $95 = $45) from Basic to Kiss is, $45 - $3 (our cost of products), or $42. So they agree that of the extra $42 generated, Shauna and the other providers should get a bonus of $17 and the spa should keep $25 for each upgrade from Basic to Kiss. This amounts to an approximate 40% provider, 60% spa split.

In the case of a client upgrading from Basic to Super Kiss, the additional profit (Super Kiss $175 minus Basic $95 = $80) from Basic to Super Kiss is, $80 - $6 (our cost of products), or $74. Of this additional $74, they agree that providers should get a $30 bonus and the spa should keep $44 for each upgrade from Basic to Super Kiss, with the same approximate 40/60 split applied to this example. The split you and your management/team agree on is up to you and you alone.

Fictitious ‘Bonus’ Program for The Spa at DelMonte (with the base facial being the Basic @ $95)

Service

Price

Bonus Amount Paid

Spa Gets to Keep

Kiss

$140

$17

$25

Super Kiss

$175

$30

$44

As you can clearly see, we have created a win-win-win situation, where with very little effort, clients win through an enhanced experience and result from choosing better facials, we as providers win through more control over potential income earned as well as more influence on the client’s skin care results, and the spa wins by improving it’s bottom line and building long term viability. Who would say ‘no’ to something as positive as this?

Now back to our “bonus” program example implemented by Shauna and management. Below is a fictitious, yet possible projection, that does not reflect anything but income possibilities based on various percentage upgrades using our ‘bonus’ program numbers from above.

Shauna’s plan pays off

Here we are going to do “extra” income projections possible from Shauna’s efforts, as from this example begun previously, we’ve agreed on a bonus system (numbers are shown again below) based on the fact Shauna is paid a fixed hourly rate. So again what we are calculating here is all “gravy” on top of, and in addition to her current hourly income.

Let’s do a 2 day, 1 week, 4 week (month), 3 month (quarter), and a 1 year projection for our fictitious example based on a 30% upgrade ratio where 30% equals 20% of her clients doing a Kiss Facial, 10% doing Super Kiss; and a 60% upgrade ratio, where of the 60%, 40% do a Kiss, 20% do a Super Kiss. Remember we’re using the bonus numbers (shown again below) that we’ve agreed upon as a team in conjunction with management.

Provider - Shauna, Esthetician, extra income projections

Fictitious ‘Bonus’ Program for The Spa at DelMonte (with the base facial being the Basic @ $95)

Service

Price

Bonus Amount Paid

Spa Gets to Keep

Kiss

$140

$17

$25

Super Kiss

$175

$30

$44

These first calculations are based on a 30% (20% do Kiss, 10% do Super Kiss) total upgrade average and are showing ADDITIONAL income possible over and above her hourly rate of pay. We assume Shauna is performing 5 facials per 8 hour day, with her week based on a 5 day work week. We’ll then do the numbers on a 60% (a slightly lower percentage than I currently average in the field every day) upgrade average.

Shauna’s Bounty at Thirty Percent

Extra income generated for Shauna with a 30% upgrade average

Two days: $64 in additional income ($32/day)

calculation: .20 x 10 facials = 2 Kiss facials (2 x $17 = $34)

.10 x 10 facials = 1 Super Kiss facial (1 x $30 = $30)

One week: $160 in additional income

calculation: $32/day x 5 days = $160

Four week/month: $640 in additional income

calculation: $160/week x 4 weeks = $640

Thirteen week/3 month (quarter): $2,080 in additional income

calculation: $160/week x 13 weeks = $2,080

One year: $8,320 in additional income in Shauna’s paycheck

calculation: $2,080/quarter x 4 quarters = $8,320 - or -

$160/week x 52 weeks = $8,320

Shauna’s Take at Sixty Percent

Extra income generated for Shauna with a 60% upgrade average

Two days: $ 128 in additional income ($64/day)

calculation: .40 x 10 facials = 4 Kiss facials (4 x $17 = $68)

.20 x 10 facials = 2 Super Kiss facials (2 x $30 = $60)

One week: $ 320 in additional income

calculation: $64/day x 5 days = $320

Four week/month: $1,280 in additional income

calculation: $320/week x 4 weeks = $1,280

Thirteen week/3 month (quarter): $4,160 in additional income

calculation: $320/week x 13 weeks = $4,160

One year: $16,640 in additional income in Shauna’s paycheck

calculation: $4,160/quarter x 4 quarters = $16,640 - or -

$320/week x 52 weeks = $16,640

HOLY CRAP! If she averages a 30% increase in upgrades in our hypothetical example, in one year Shauna will earn an additional $8,320 in income, and at a 60%, upgrade average, which IS doable as I’ve proven, she would earn a staggering extra $16,640 in her paycheck!

What about Tips?

And here’s the kicker – this calculation doesn’t even take into consideration the additional TIP revenue Shauna would bring in, so let’s have some fun and add in a conservative 12% in additional tips based on her extra revenue from allowing client upgrades.

Additional TIP calculation:

$ 8,320 x .12 (12%) ~ $1,000

$16,640 x .12 (12%) ~ $2,000, so…

EXTRA INCOME FOR ONE YEAR @ A 30% UPGRADE AVERAGE: $9,320

EXTRA INCOME FOR ONE YEAR @ A 60% UPGRADE AVERAGE: $18,640

And remember, the spa owner is making even more profit than that for in our example, as it was set up and agreed upon, the spa was getting 60% of the additional income from Shauna’s efforts of allowing clients to upgrade, and she was getting 40%. Are we all happy now? OK, we can hear the owners asking for their exact numbers based on this example, so read on…

The Owners Cut

Below is a fictitious example that does not reflect anything but income possibilities based on various percentage upgrades using our ‘bonus’ program numbers from above.

Here we are going to do “extra” profit projections for the Spa made possible from Shauna’s efforts (one provider), as from this example begun earlier, we’ve agreed on a bonus system assuming the Basic Facial as our base facial performed. So again, what we are calculating here for the spa is all “gravy” profit on top of, and in addition to what the Spa would have made if Shauna did Basic Facials all the time, which unfortunately can often be pretty close to reality.

Let’s do a 2 day, 1 week, 4 week (month), 3 month (quarter), and a 1 year projection for our fictitious example based on a 30% upgrade ratio by Shauna, where 20% of her clients do a Kiss Facial, 10% do Super Kiss; and a 60% upgrade ratio, where 40% do a Kiss, 20% do a Super Kiss. Remember we’re using the bonus numbers shown below that we’ve agreed upon as a team and with management. Spa Owner: The Spa at DelMonte, additional profit projections from Shauna only

Fictitious ‘Bonus’ Program for The Spa at DelMonte (with the base facial being the Basic @ $95)

Service

Price

Bonus Amount Paid

Spa Gets to Keep

Kiss

$140

$17

$25

Super Kiss

$175

$30

$44

These first calculations are based on a 30% (20% do Kiss, 10% do Super Kiss) total upgrade average and are showing ADDITIONAL spa profit generated by one provider, Shauna, over and above her performing all Basic base facials. We assume here that she performs 5 facials per 8 hour day, with her week based on a 5 day work week. We then do the profit numbers for the Spa with Shauna at a 60% upgrade average.

Their Take at Thirty Percent

Extra profit generated by Shauna for the Spa with a 30% upgrade average

Two days: $ 94 in additional spa profit ($47/day)

calculation: .20 x 10 facials = 2 Kiss facials (2 x $25 = $50)

.10 x 10 facials = 1 Super Kiss facial (1 x $44 = $44)

One week: $235 in additional profit

calculation: $47/day x 5 days = $235

Four week/month: $940 in additional profit

calculation: $235/week x 4 weeks = $940

Thirteen week/3 month (quarter): $3,055 in additional profit

calculation: $235/week x 13 weeks = $3,055

One year: $12,220 in additional profit

calculation: $3,055/quarter x 4 quarters = $12,220 - or -

$235/week x 52 weeks = $12,220

Owners Delight at Sixty Percent

Extra profit generated by Shauna for the Spa with a 60% upgrade average

Two days: $ 188 in additional profit ($94/day)

calculation: .40 x 10 facials = 4 Kiss facials (4 x $25 = $100)

.20 x 10 facials = 2 Super Kiss facials (2 x $44 = $88)

One week: $ 470 in additional profit

calculation: $94/day x 5 days = $470

Four week/month: $1,880 in additional profit

calculation: $470/week x 4 weeks = $1,880

Thirteen week/3 month (quarter): $6,110 in additional profit

calculation: $470/week x 13 weeks = $6,110

One year: $24,440 in additional profit

calculation: $6,110/quarter x 4 quarters = $24,440 - or -

$470/week x 52 weeks = $24,440

HOLY COW PIE! If your one provider, Shauna in this case, averages a 30% increase in upgrades in our hypothetical example, in one year your Spa will earn an additional $12,220 in profit, and at a 60% upgrade average, which CAN be done as I’ve proven in the field, your Spa would earn a staggering extra profit of $24,440 from one provider’s efforts!

Additional SPA profit for one year with Shauna at a 30% upgrade: $12,220

Additional SPA profit for one year with Shauna at a 60% upgrade: $24,440

The more Employees the Better

Spa owners, have you purchased copies of “The Power of Three Method” for your staff yet? OK, in case you haven’t, if you had a staff of four full time Estheticians, all of them using the method and averaging a very modest 30% (we believe anyone can average 30% just by asking the qualifying question and providing 3 choices, with little else), your additional profit for the year becomes a colossal $48,880.

The same four at a 45% clip of allowing client upgrades would net you a yearly profit increase of $73,320 and at 60% your awesome team of four would pad your books by a whopping $97,760 per year.

Doesn’t this just make you want to build more rooms on and hire and train more employees. Well, OK, you’re not that excitable then. And these numbers alone don’t speak to the joy of experience your clients relish in as a result of being respected and gently allowed to upgrade to the place of worthiness where they rightfully belong. It also doesn’t tell the story of how loyal they become, and how actively they tell friends about you and your spa.

It’s NOT just about the Money

These numbers are incredible, but beyond the profit this method allows you to cultivate client and provider loyalty second to none. As a result of you sharing your profit through enhancing your spa, product offerings, your equipment, and adding in some client perks as well as raises and educational trips you provide for your staff, you retain loyalty from both. This financial abundance also affords you a lifestyle worthy of the hard work and risk you took to become a Spa owner in the first place – finally!

Speaking of finally, let’s complete our financial abundance chapter by taking a quick look at our other example, Spa Bella, and how these upgrade percentages would impact the owner of a more moderately priced spa and it’s providers, who earn a 35% commission rate on services performed.

But first, let’s take a moment to realize that money is simply an energy we exchange, and like the energy of love, the more you give the more you get back. It’s another one of those Universal laws. Additional profits, and enhanced provider income as mentioned earlier in my own individual situation, only feels good if used to better oneself, one’s family and the world at large. Remember the sufficiency/scarcity mindsets? Where is it you are coming from?

Sure, go buy a few toys, you deserve it. But don’t purchase them to impress others. You are not on this planet to impress anyone, but conversely to live your passion and touch others through the life you create. But if you must, the path to impressing others comes from the spirit within you, not from what you own. So invest in your own personal growth and turn into a better you. Then give to a charity or ten if you hadn’t previously, travel the world, and share the richness of your new found bounty with friends and family.

The energy of money ultimately represents more choices and more freedom. Maybe by applying “The Power of Three Method” you now can earn more as a provider in 32 hours than you did while previously working 40 hours. You could therefore save your body and mind 8 hours a week, and use the hours and energy to start a writing career, volunteer at your children’s school or perhaps at a homeless center.

As a spa owner, maybe you can now take guilt-free vacations, or spend more time with your spouse and children because with the extra profit being generated you finally know in your heart it’s all going to work out. Maybe you could get back into the gym, speaking of working out. How would your health change if only you didn’t have to worry all the time? We think we know the answer.

You see it’s not the additional money itself, but rather the choices and lifestyle change it affords you. Wow, in that case more is clearly better, so let’s see how our friends at Spa Bella made out by incorporating “The Power of Three Method” into their commissioned practice.

Spa Bella – Commission Model

Now, let’s do some quick calculations for our hypothetical Spa Bella example, a more moderately priced spa, where the prices again are $75 for Basic, $110 for Kiss and $140 for Super Kiss, and the commission rate is 35% on services performed. So when Angela, an Esthetician there, performs the Basic Facial she makes, $75 x .35 = $26; the Kiss, $110 x .35 = $39; and the Super Kiss, $140 x .35 = $49. (Please note that we rounded these calculations off to the nearest dollar.)

Provider - Angela, Esthetician, extra income projections

Fictitious Commission Program for Spa Bella (with the commission rate @ 35%)

Service

Price

Commission Amount

Spa Gets to Keep

Basic

$75

$26

$49

Kiss

$110

$39

$71

Super Kiss

$140

$49

$91

We are about to get into some upgrade percentage calculations, but you can see rather quickly that for each hour you have a facial booked, you can make anywhere between $26 - $49 dollars, and the spa can take in between $49 - $91 per hour in profit less it’s fixed costs. And don’t forget, most people tip Angela a percentage based on the total cost of the service, so as her service dollars increase, so do her T I P S!

These first calculations are based on a 30% (20% do a Kiss, 10% do a Super Kiss) total upgrade average and show ADDITIONAL income possible over and above simply doing Basic Facials. We assume Angela is performing 5 facials per 8 hour day, with her week based on a 5 day work week. We’ll then do the numbers on a 60% (40% do a Kiss, 20% do a Super Kiss) upgrade average.

Here are some new numbers to keep in mind here for our moderately priced Spa Bella. The Basic Facial commission amount is $26, the Kiss Facial amount is $39 and Super Kiss commission is $49. So the commission difference between a Basic Facial ($39 - $26 = $13) and a Kiss is $13, and the additional money earned by doing a Super Kiss over a Basic Facial ($49 - $26 = $23) is $23.

Angela’s Abundance at Thirty Percent

Extra income generated for Angela with a 30% upgrade average

Two days: $49 in additional income ($24.50/day)

calculation: .20 x 10 facials = 2 Kiss facials (2 x $13 = $26)

.10 x 10 facials = 1 Super Kiss facial (1 x $23 = $23)

One week: $122.50 in additional income

calculation: $24.50/day x 5 days = $122.50

Four week/month: $490 in additional income

calculation: $122.50/week x 4 weeks = $490

Thirteen week/3 month (quarter): $1,592.50 in additional income

calculation: $122.50/week x 13 weeks = $1,592.50

One year: $6,370 in additional income in Angela’s paycheck

calculation: $1,592.50/quarter x 4 quarters = $6,370 - or -

$122.50/week x 52 weeks = $6,370

Angela’s Increase at Sixty Percent

Extra income generated for Angela with a 60% upgrade average

Two days: $98 in additional income ($49/day)

calculation: .40 x 10 facials = 4 Kiss facials (4 x $13 = $52)

.20 x 10 facials = 2 Super Kiss facials (2 x $23 = $46)

One week: $245 in additional income

calculation: $49/day x 5 days = $245

Four week/month: $980 in additional income

calculation: $245/week x 4 weeks = $980

Thirteen week/3 month (quarter): $3,185 in additional income

calculation: $245/week x 13 weeks = $3,185

One year: $12,740 in additional income in Angela’s paycheck

calculation: $3,185/quarter x 4 quarters = $12,740 - or -

$245/week x 52 weeks = $12,740

Yee Haa! If Angela averages a 30% increase in upgrades in our hypothetical example, in one year she will earn an additional $6,370 in commissioned income, and at a 60%, upgrade average, which IS doable if I can do it, Angela would earn a staggering extra $12,740 in her paycheck!

Let’s add in Tips

And again, here’s the better news – these calculations don’t even take into consideration the additional TIP revenue Angela would generate, so let’s apply a conservative 12% in calculating additional tips based on the increases in revenue from allowing client upgrades.

Additional TIP calculation:

$ 6,370 x .12 (12%) ~ $ 765

$12,740 x .12 (12%) ~ $1,530, so…

EXTRA INCOME FOR ONE YEAR @ A 30% UPGRADE AVERAGE: $7,135

EXTRA INCOME FOR ONE YEAR @ A 60% UPGRADE AVERAGE: $14,270

And remember, the spa owner is making even more profit than that for in our Spa Bella example, the spa was getting 65% of the total service increase from your efforts of allowing clients to upgrade, as you were getting your 35% commission. Is anyone besides us excited yet? Yes, you guessed it, now we do the owners increases using the exact numbers based on this example, so sit back and enjoy…

The Owners Additional Revenue

Here we are going to do additional profit projections for Spa Bella made possible from Angela’s efforts (one provider), as from this example begun earlier we know we’re projecting the differences between amounts generated based on the Basic Facial as our base facial performed, versus allowing client’s to upgrade to the Kiss or Super Kiss. So again, what we are calculating here for the owner is almost all additional profit (a nominal additional product cost, between $3 - $6, needs to be noted for each upgrade) on top of, and in addition to what the Spa would have made if Angela did all Basic Facials in her one hour time slots, which unfortunately can be pretty close to reality.

Let’s do a 2 day, 1 week, 4 week (month), 3 month (quarter), and a 1 year projection for our fictitious Spa Bella example based on a 30% upgrade ratio by Angela, where 20% of her clients do a Kiss Facial, 10% do a Super Kiss; and a 60% upgrade ratio, where 40% do a Kiss, 20% do a Super Kiss. Remember were using the commission scale shown below that is paid by our more moderately priced Spa Bella.

Spa Owner: Spa Bella, additional profit projections from Angela’s effort only

Fictitious Commission Program for Spa Bella (with the commission rate @ 35%)

Service

Price

Commission Amount

Spa Gets to Keep

Basic

$75

$26

$49

Kiss

$110

$39

$71

Super Kiss

$140

$49

$91

These calculations initially are based on a 30% (20% do Kiss, 10% do Super Kiss) total upgrade average and show ADDITIONAL spa profit generated by Angela over and above her doing all Basic base facials. We assume here that she performs 5 facials per 8 hour day, with her week based on a 5 day work week. We then do the profit numbers for the Spa with Angela at a 60% upgrade average to complete our example.

Here are the numbers to keep in mind here for our more moderately priced Spa Bella model. The Basic Facial generates the Spa $49, the Kiss, $71 and the Super Kiss income is $91 after commission is paid. So the difference for Spa Bella between a Basic Facial ($71 - $49 = $22) and a Kiss is $22, and the additional money earned for the Spa by doing a Super Kiss over a Basic Facial ($91 - $49 = $42) is $42.

Their Cut at Thirty Percent

Extra profit generated by Angela for the Spa with a 30% upgrade average

Two days: $86 in additional income ($43/day)

calculation: .20 x 10 facials = 2 Kiss facials (2 x $22 = $44)

.10 x 10 facials = 1 Super Kiss facial (1 x $42 = $42)

One week: $215 in additional income

calculation: $43/day x 5 days = $215

Four week/month: $860 in additional income

calculation: $215/week x 4 weeks = $860

Thirteen week/3 month (quarter): $2,795 in additional income

calculation: $215/week x 13 weeks = $2,795

One year: $11,180 in additional income for Spa Bella

calculation: $2,795/quarter x 4 quarters = $11,180 - or -

$215/week x 52 weeks = $11,180

Owner Rejoices at Sixty Percent

Extra profit generated by Angela for the Spa with a 30% upgrade average

Two days: $172 in additional income ($86/day)

calculation: .40 x 10 facials = 4 Kiss facials (4 x $22 = $88)

.20 x 10 facials = 2 Super Kiss facials (2 x $42 = $84)

One week: $430 in additional income

calculation: $86/day x 5 days = $430

Four week/month: $1,720 in additional income

calculation: $430/week x 4 weeks = $1,720

Thirteen week/3 month (quarter): $5,590 in additional income

calculation: $430/week x 13 weeks = $5,590

One year: $22,360 in additional income for Spa Bella

calculation: $5,590/quarter x 4 quarters = $22,360 - or -

$430/week x 52 weeks = $22,360

Oy Vey! If Angela averages a 30% increase in upgrades in our hypothetical example, in one year Spa Bella will earn an additional $11,180 in profit, and at a 60% upgrade average, which CAN be done as I’ve done it, your Spa would earn a staggering extra profit of $22,360 from one provider’s efforts!

Additional SPA profit in one year with Angela at a 30% upgrade: $11,180

Additional SPA profit in one year with Angela at a 60% upgrade: $22,360

Let’s go hire more Employees

So Spa owners, what happens if you have a staff of four full-time Estheticians, all of whom use the method? If they average a very modest 30% (we believe anyone can average 30% just by asking the qualifying question and providing their clients with 3 choices, with little else), your additional profit for the year becomes a colossal $44,720. The same four at a 45% clip of allowing client upgrades would net you a yearly profit increase of $67,080 and at 60% your awesome team of four would pad the books by an eye popping $89,440 per year.

If you haven’t purchased this book, distributed it as required reading and shared the individual provider income numbers with your staff, well then, well…we just don’t understand each other, now do we!

Final Words

We’ve provided separate financial models for two different Spas, both with very different pricing structure as well as pay plans for their employees. One Spa with hourly employees came together to design a bonus program that made both the providers and the owner some drastic additional income, a win-win. And with “The Power of Three Method” employed in which three choices were always provided, clients were allowed to make free will decisions, a rare form of respect, to upgrade their experience and result, a win-win-win.

Also we’ve shown you how individual providers, Estheticians in this particular case, but with the methodology working the same for massage therapists, hair stylists and nail techs, took control of their working lives through more influence and control over results for their clients. This simply delivered abundance to all involved.

If you work through the numbers and say “Well, my providers don’t average (5) 1 hour- long facial services per day”, then take the equations provided and plug your own numbers in. Insert your own prices, use your own percentages and create your own financial model, and watch as both you and your staff come out smelling like roses at the end. And don’t forget, I’m no genius and I have personally averaged between a 60-70 percent upgrade rate, working full-time in the field for well over a year now.

And as an owner, what would it look like to have your team of massage therapists, nail techs, or better yet, the whole spa team involved in such a beautiful system of positivity? The benefits abound, from increased income to enhanced results, from clients feeling respect to a higher sense of provider self-worth, and from developing loyal, repeat clients to earning more profits to spend on all whom you love, including your staff and clients.

Remember, it’s not all about the money, but rather the choices and lifestyle enhancements the money can afford you. What would it be worth to see some of those additional income numbers might affect your family, your friends, your health, and your peace of mind? Like the commercial says, priceless…

”You never get a second chance to make a first impression.”

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