Dayspa

NOV 2013

DAYSPA is the magazine of spa management. Spa owners and spa managers turn to DAYSPA for spa management trends, spa management tips and more.

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PROFIT CENTER IS THE PRICE RIGHT? 84 DAYSPA | NOVEMBER 2013 something quick like a brow wax, believing that it sets up clients to expect free services going forward. Soukup also suggests using an order form for enhancements to make them easy to track. "Many spas still don't have systems in place for keeping records of which services they're performing, which ones they suggest for next time or which homecare products they recommend," she points out. Sometimes add-on opportunities present themselves during treatments, especially when a facial reveals additional skincare issues. "If a client is getting a 30-minute express facial that doesn't include extractions, but her skin is clogged, I may tell her that I can do extractions if they're willing to upgrade," says Lavigne. Post-treatment time and re-booking time may also lend themselves to selling add-ons. "For instance, I may tell a male client who's in the lobby paying for the back waxing he just had that next time he should try a massage while the hair isn't in the way," adds Lavigne. "He'll usually schedule his next back wax with a massage to follow." As for bringing up the potentially tricky subject of cost with the client, Soukup suggests emphasizing ©ISTOCKPHOTO.COM careful consideration to her needs before making a suggestion. Automatically offering the "service of the month" is not likely to evoke a positive response. "Ask what the client's goals are for that visit," suggests Christie Lavigne, director of skin care at Oasis Day Spas in New York. "You may want to treat one thing, but she may want something entirely different. Don't do a hard sell that will leave her cringing; the client must be part of the idea. When she believes in what you're doing, she'll trust you and take that journey with you." Dori Soukup, founder and CEO of InSPAration Management in Daytona Beach, Florida, believes that treatment add-ons should make clients feel like they're upgrading to first class on a plane or getting a better table at a restaurant—which is why she prefers the word "upgrade" to "add-on." What about timing? The general consensus is that add-on services should be offered to clients either: 1) during the initial booking; 2) during the pre-treatment consultation; or 3) while booking a follow-up appointment. Regardless of the approach you take, make sure that the client's appointment time allotment is appropriately adjusted. "We encourage our therapists to 'gift' their time when they have it, in order to introduce a guest to a premium service," says Borgman. "A Benefit Booster may be offered to the guest after the pre-treatment consultation, when she shares a specific concern that could be addressed with an additional modality." Soukup advocates inquiring about the client's needs during the consultation and recommending enhancements at that time. Lisa Starr, senior consultant at Wynne Business, agrees. "After the private consultation, the therapist will be privy to exactly what the client's needs are for that particular treatment, so for me, post-consult is the best time to suggest any additional services," she says. Neither Soukup nor Starr believes in giving away add-on services, even if it's An effective add-on service strategy rewards both the spa business and its clients. But pricing and selling these add-ons can be a delicate business, one that many therapists would just as soon avoid. However, when an add-on is truly beneficial and fairly priced, there's no need to feel uncomfortable. Make sure there's time for the add-on and then be upfront when suggesting it and communicating the cost. "It's essential to let a guest know the price of a treatment, even though that conversation may feel a little 'transactional'," says Peggy Wynne Borgman. "They don't want any surprises at checkout." How much should an add-on cost? Less than many spa owners think, according to consultant Lisa Starr. "The biggest mistake I see is add-ons that are priced too high; for example, the facial is $85 and the add-on is $30," she says. "The purpose of the add-on is to raise the average ticket and expose the client to menu options, targeted results and potentially more retail products. I like to see a selection of add-ons priced in a way that incrementally increases the client's total spend. With an $85 facial I would suggest add-ons priced between $9 and $18, which is approximately 10% to 20% of the facial price." These percentages may sound modest, but they still represent a boon—as long as the cost of providing the addon remains little to nil. As Dori Soukup sums up, "Add-ons should be able to be performed within the same amount of time as the scheduled service so that you're adding revenue, not time, and they should be low on product cost."

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