Pulse March 2019 - Page 39

reduce a guest’s price sensitivity on the other services listed. faction will improve. The project of creating and enhancing a menu should be fun. it is, however, vitally important to make updates and enhancements with a clear purpose in mind. and then, you can track your results. The impact your spa menu has on your business is priceless. n A clear Purpose as spas become more savvy with the development and refinement of their menus, revenues and guest satis- KNOW yOUr NUmBErS To optimize your revenues and guest satisfaction scores, it is important to continually track your actual booking data. you must know what services are being performed and what each service is contributing in revenue to your top line. Revenue Contribution: To determine the revenue contribution of each service you simply subtract the fixed costs to perform the service from the service price. (costs do not include labor, or any other costs associated with running the spa like laundry, and marketing.) The result gives you the revenue contribution value of each service. This helps you know what services to promote to generate the most amount of top line revenue. Service Popularity: Tracking how many of each service within a category is being performed over a given period gives you the service popularity or service demand. But please note, there may be inaccuracies in the actual demand of a service. For example, a service might have a low booking rate not because it isn’t being demanded, but because of a lack or a staff or resources. Be aware of this data. Once you have this data, don’t be afraid to remove the services that are continually underperforming. Eliminating extra inventory and training time reduces overhead and allows you to focus on the services which are most popular and contributing the most revenue. also, tweaking services that are popular but not high revenue contributors can prove beneficial. also, make sure you don’t discount your top performers. It’s better to add additional service value and avoid discounting. also, I don’t recommend discounting your Signature Services—that’s your brand, and that’s not negotiable. KATE MEARNS is a former ISPa Board member and chairman with more than 25 years of experience in the wellness industry. In 2016, she started 5 Spa consulting to help spas overcome operational challenges; in 2017, she joined LIVunLtd as Director of Spa and Wellness. march n PULSE 2019 37