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Chapter 4: The Financial Abundance Factor
By: Jamie Scalise
Posted: June 16, 2009, from the July 2009 issue of Skin Inc. magazine.
page 11 of 19
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%)