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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 19 of 19
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!
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.”