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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 4 of 19

$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