Improvement of Revenues, Margins & Overall Financial Performance
Improving the financial performance of your spa or salon is the goal of every business owner. Have you wondered if your business is performing to its maximum potential? Have new competitive businesses entered your marketplace? Are you afraid you may not be able to compete with your current concept? The salon and spa industries are fashion businesses. This means they change just as fashion does. Are your guests asking for new products and treatments? Have your sales and profits decreased? Does your salon or spa have the potential to be more productive and profitable? What sets you apart from your competitors? How can you offer your clients and your employees what they want without breaking the bank? Which new treatments represent “fads” and which treatments have staying power-or are the “fashion” mainstays that drive profitability?
8 to Evalu-8 Program
Improving your financial performance begins with a thorough evaluation of your current performance. During our evaluation process, we thoroughly review eight key elements within your salon or spa to determine necessary adjustments and determine how to increase profitability. Next, we chart a course to success. To do this, we look at your entire business, from financials to staffing to branding and beyond. Sometimes after careful evaluation, we may not be able to chart a course to profitability. High rents, high labor costs, lower-than-expected sales are sometimes insurmountable. If we do not feel we can help, we will let you know quickly.
Sometimes this process begins on site or remotely with adequate data provided. The in-depth analysis includes:
- Financial Model Evaluation including all key expense elements
- Review of staffing (revenue versus non-revenue generating), chain of command, policies, compensation rates, rental fees, product charges and more
- Front desk and back-of-house operational review, review procedures and paperwork, develop where needed, scheduling
- Menu evaluation, service sales recap and retail performance to total cost of goods analysis
- Guest standards, amenities, experience, retention
- Marketing, social media, brand evaluation, guest perception of brand
- Space planning and facility flow-space utilization
- Benchmarking, budgets, goals, standards with a one-year and three-year performance plan
We call these the “8 to Evaluate.” With this data, we will be able to tell you where you can make improvements, how to maximize service and retail sales, how to improve margins and more.
How this process benefits your business
Successful spas and salons know that regular evaluations of their operations, service assortment, staffing, marketing, electronic media, brand identity and guest services assures that they’re properly positioned in their marketplace. Often times, just keeping everything going takes up more time than the operator has available. Once per year, every operator should review past successes and failures and formulate a plan going forward. A one-year budget should be formulated along with a one-year marketing plan!
If your facility is under-performing, there could be many reasons for it. Often the systems set in place at opening have not been maintained, defined or modified as needed. Let us figure out where your facility may be deficient and formulate a plan to get it back on track. We can make sure your facility is operating at maximum efficiency with sound procedures in place.
Sound marketing and the message you want every guest and potential guest to take away may not be apparent or effective. Let us help you define and refine. Let us perform an audit of your facility, figure out what is working well and formulate a branding strategy for the future. Our program includes:
Operational Evaluations-Existing Business Model
- Review Operations
- Review Software data
- Review Staffing, Remuneration, Retention, Sales
- Review Lease and Other Commitments
- Review Vendors
- Review of Financials
- Review Marketing Expenses
- Review Systems, Policies and Procedures, Service Times
- Detailed evaluation by month-Sales and Expenses
Brand Evaluation and Position in Market
- Electronic Media Review
- Web Page Review
- Core Message Review
- Brand Identity Review
- Competitor Review
- How is the facility perceived by customers?
Service Evaluation and Pricing
- Review lines used
- Review service offered
- Review performance of each service
- Recommend new services or add-ons as needed
- Evaluation of existing services
- Pareto’s Principle applied to services
- Sales per square foot analysis
- Sales by item evaluation
- Assortment planning
- Integrating retail recommendations into services
- Addressing aged products and overstocks
Development of New Brand and Marketing Strategies
- Define current client and target market
- Create a consistent message
- Develop pointed, effective marketing campaigns
- Positioning as a community leader
- Charitable giving through the salon or spa
- Path to being identified as an Expert in the marketplace
- Quantify and define your brand’s message
- Integrate new trends and services into the facility
- Define how the brand is different and better
- Define how the brand will compete in the market
Implementation of New Systems, Culture & Procedures
- Update Service Menu integrating add-ons, upgrades and retail recommendations into the process
- Build technician and guest communication
- Define how all support systems will function
- Daily Operational Forms and Policies
- Update of Manuals for training and operations
- Site Visits
- On-going communication with facility
- Monthly Sales and Productivity Review
You may need all or just a portion of the services we offer. Rest assured we will dissect your business and formulate a plan that, when implemented, will set a new course toward success.
Our program begins with an in-depth review of your sales performance for the past two years, employee and remuneration review, in-depth session with owner to discuss issues and challenges, review of systems, marketing, pricing, vendor matrix and more. A site visit prior is the most effective way to get the relationship started.
Please call for rates. We have packages available. Rates do not include travel or other expenses.