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Archive for October 2012

Watch those margins

A quick flick through the latest spa deals on Wahanda and Spa breaks shows that you can buy a spa day for just £25 including lunch! Sounds like a bargain to the customer but to the industry I have just one question. Who makes any money on this?  When I look at how it might be broken down, the sums just don’t seem to add up! – or they do and I get £0.18 profit!!

Which brings me onto margins. What is acceptable and how many spas really understand what their offer packages are costing them?  I’ve always worked to a base margin of 55% as I’ve calculated that anything under that isn’t worth it.  It’s too easy to become a busy fool in this industry.  Lots of offers, lots of customers but with little or no profit!  To ensure my clients get the best possible return I follow a simple check list which I thought might be useful to share.

  1. When discussing pricing talk about the net profit contribution not turnover.
  2. Don’t forget to deduct the VAT element before calculating your profit.
  3. Work out the true therapist costs taking into account their downtime, breaks etc.
  4. What are your operational costs for the venue?  Have you worked out the depreciation costs?  I would agree a % cost.
  5. What is the % product cost for each package/Treatment?
  6. How much is each towel ,robe and slippers costing you for each treatment?
  7. What guest services are you supplying?  If you are a hotel you will need to understand and negotiate your contribution back to the food and beverage department.
  8. Have you included reception /admin staff costs?
  9. When working with 3rd party websites have you taken into account the full costs involved?

Having a formula in place enables you to quickly calculate the profit margin on each package making for a more sustainable and successful business long term.

Good luck.

Jeremy Smith

Blue Spa & Leisure

www.Bsandl.com

 

Why the right words matter

Why the right words matter

Not sure where to start with writing effective communications about your spa?

We agree with Andrea Gardner’s philosophy – getting the words right can make all the difference…in life and in effective copy-writing. Check out her Youtube video that poignantly demonstrates how much difference the right words can make.

Investing time, energy and passion in creating a stunning spa is wasted if you don’t communicate what’s special about it to new and existing clients. That’s why Blue Spa offers a professional copy-writing service.

May we introduce…

Blue Spa and Leisure would like to introduce Elaine Riley, our Spa Manager at the Garage.  We are absolutely delighted that Elaine has joined The Garage family and is heading up our team of wonderful therapists.

Elaine, who lives close by in Darlington, has over 18 years of spa experience having worked with a whole host of prestigious spas within the UK and abroad including spending some time in Bermuda and on cruise ships ( lucky thing!).  She loves our quirky personality and that we’re different to any other spa which gives her opportunity to deliver a really bespoke service to our guests.

With so much to do, Elaine has been busy recruiting therapists, planning our products and treatments with our sister company  The Natural Spa Factory and sorting out the booking system with Premier Spa.

Elaine says she’s looking forward to providing a personalised spa experience which we’re sure will reflect the warm and relaxed environment of The Garage.  We have no doubt that it will be a real treat having already experienced her first class massage skills in our training.

So a big welcome to Elaine and we look forward to introducing you to the rest of the spa team very soon.