by Dori Soukup, Executive Director of InSPAration Management
I am frequently asked, “What type of spa discount or specials should I offer?”
Before I get into best practices, let’s talk about the goals you are trying to achieve from offering a discount. You don’t want to offer a discount to make less money, the goal is to make more sales and money, although it may be at a reduced profit margin.
But what I commonly see is a spa offering a percentage off, such as 20% off and so on. This type of discount is not going to increase your revenue, all its going to do is cause you to make less money. Here are some best practices to offer discounts:
1. Buy one spa treatment at regular price and receive ___________% off on the second: This type of discounting will guarantee an increase of revenue because it requires the consumer to buy something from you at full price to qualify for the discount . It’s still a great deal for the consumer and it’s a much better deal for you.
2. Gift with purchase: Department stores have been doing this for many years, because it works! The great thing about this promotion is to make the gift a retail product. This will introduce the consumer to your retail products, and if they like the product, they will purchase more. You can partner with your vendors for this type of promotion and negotiate a special price. This practice will not cut into your profit margin.
3. Guest check-out and future spa reservation: Many spas hand out a coupon for next visit. That’s a good effort, but who knows when the next visit is going to be? When offering next visit discount, make sure you place a date on it. The practice should be to reserve your next treatment now and receive ____%. You must create urgency and not leave the window of opportunity wide open.
By implementing these types of discount strategies, you will be able to offer spa specials that will increase your revenue without shrinking your bottom line. Try them and give us your feedback, we are always interested in your results! Marketing is the key to your success make sure you include all your specials in your monthly the consumer e-newlsetter. if you dont have one call us we have a great solution for you.
Also, for an add-on revenue stream please visit Sparkle Plenty Designs. Sparkle Plenty can recreate your Spa logo in beautiful Swarovski crystal or sparkling high quality rhinestones. They also have a full collection of crystal apparel made especially for the spa and beauty market – and if they don’t have it, they can create it!
If you own or manage a Spa, or wish to find out more information about coaching services to ignite your operation for dynamic spa performance please visit InSPAration Management. InSPAration management specializes in delivering a full spectrum of proven-effective spa consulting solutions to ensure your spa’s success. Whether you have an existing spa or are opening a new spa, InSPAration offers professional spa consluting from pre-opening to grand opening…and beyond.
InSPAration management specializes in delivering a full spectrum of proven-effective spa consulting solutions to ensure your spa’s success. Whether you have an existing spa or are opening a new spa, InSPAration offers professional spa consluting from pre-opening to grand opening…and beyond.
“Change is inevitable, growth is optional,
choose your passage to excellence.”