Want More Education?
Delve deeper into the science behind skin care with —Skin Inc. Video Education!
Most Popular in:
The Financial Abundance Factor
By: Jamie Scalise
Posted: June 29, 2009, from the July 2009 issue of Skin Inc. magazine.
page 4 of 5
If you use the Power of Three Method, providing each client with three treatment choices, your income from clients upgrading themselves will be enhanced considerably, as will the results and experience of your clients. The following financial examples from fictitious spas illustrate how two different pay structures can be affected when implementing the Power of Three method.
Total Destination Spa: Employees are paid hourly with an added bonus structure for upgrades.
- Extra yearly income for Shauna the esthetician at a 30% upgrade average: $9,320
- Extra yearly income for Shauna the esthetician at a 60% upgrade average: $18,640
- Additional Total Destination Spa one-year profits with Shauna at a 30% upgrade: $12,220
- Additional Total Destination Spa one-year profits with Shauna at a 60% upgrade: $24,440
Spa Beautiful: Employees are paid on commission, and upgrades automatically equal more income.
- Extra yearly income for Angela the esthetician at a 30% upgrade average: $7,135
- Extra yearly income for Angela the esthetician at a 60% upgrade average: $14,270
- Additional Spa Beautiful profits in one year with Angela at a 30% upgrade: $11,180
- Additional Spa Beautiful profits in one year with Angela at a 60% upgrade: $22,360
Just think what would happen if you had a staff of four full-time estheticians, all of whom used the Power of Three Method. If they average the modest 30% in the Spa Beautiful example—and it’s likely nearly anyone could average 30% simply by asking the proper qualifying question and providing clients with three choices—your additional profit for the year becomes a colossal $44,720. The same four estheticians at a 45% clip of client upgrades would net you a yearly profit increase of $67,080, and at 60%, your team of four would pad the books by an incredible $89,440 per year.
Those numbers are just for your estheticians. What would it look like to have your entire spa team involved in a system of positivity? The benefits abound—from increased income, enhanced results and clients feeling respected—to a higher sense of provider self-worth, a greater development of loyalty and more repeat clients, all leading to earning more profits to spend on those you care about, including your staff and clients.