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New Belief, New Income Potential
By: Dori Soukup
Posted: January 28, 2011, from the February 2011 issue of Skin Inc. magazine.
Do you want to increase your income this year by 30% or more? You can, by focusing on delivering a complete client experience in the spa and at home. The spa industry does a great job with performing treatments in the spa, but in most cases, misses the boat with retail opportunities and educating clients about how to take care of themselves at home between services. It is unfortunate, but many spa teams don’t recognize the importance of home care products in the wellness of their clients. You mention the words “products” or “retail,” and everyone panics. The truth of the matter is that you don’t need to sell; you need to recommend.
Why is retail such a sore subject in the spa industry? Some team members don’t give a hoot about making home-care recommendations. It seems many spa teams only care about service income and don’t understand how much money they are losing by not making home-care suggestions. These teams are missing out on significant revenue that can be generated through retail. It’s a fact: Billions of dollars are spent on beauty and self-care products per year. Unfortunately, most spas hardly tap into it.
As a spa professional, you can tap into several revenue streams. In most cases, there are four potential revenue streams: service, retail, gratuity and benefits. Currently, you might be tapping into three of the four revenue streams while completely missing most retail revenue opportunities. How much income are you missing out from home-care retail?
Let’s take a look at typical compensation by revenue stream. Do you know how much revenue was generated by your compensation mix last year or last month? Do the following exercise and explore your opportunities. Let’s assume you made $40,000 last year. Break down your income and see what percentage of it came from services, retail, gratuity, and benefits. This exercise will help you realize additional income potential and assist you in setting new goals.
What can you do to maximize your income? Practice the following 12 retail commandments and experience exponential growth.