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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 8 of 19

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.