JUN 2013

DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.

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Page 109 of 139

PROFIT CENTER Money On the Shelf In their efforts to bolster profits, most spa managers and owners focus on the revenue side of the equation, and understandably so. But what if I were to tell you that there are likely two, or even three, additional percentage points of profit sitting in your spa at this very moment? These profits can be found in something you come into contact with every day: your professional and retail product inventory. Products are among the most important tools in your spa, helping to deliver the relaxation, enjoyment and therapeutic benefits clients expect—and their retail versions allow your guests to build upon their treatment results, while providing sensory memories of the spa experience. Despite the primary role of products, however, we often overlook the importance of proper inventory management. Fortunately, chances are good that by instituting or tightening some of your inventory management procedures, you can positively—and immediately—improve your spa's bottom line. TAKE INVENTORY OF INVENTORY Before you get down to deciding par levels and reorder points, stand back and look at the big picture. 108 DAYSPA | JUNE 2013 How many lines, or brands, do you use? Once you have that number, ask yourself how many product manufacturers are really required for you to deliver all of the services on your treatment menu. Many spa owners, in an attempt to provide plenty of choices to clients, and/or because of their technical staff's insistence on particular products or brands, end up with an oversupply of inventory. With the wide array of wonderful lines available today it can be difficult to narrow down your list of purveyors. So how to decide? First and foremost, the manufacturers that you partner with should strongly align with the specific branding and image of your spa. If your spa has a botanical or holistic orientation, then skincare products made with animal-derived ingredients would not be a good fit. Then there is the matter of quantity; if your spa has six or fewer treatment rooms, you may not need to carry three different skincare lines. Rather, you might cover all of your bases with one brand that offers options for different skin types, plus a second, smaller or niche brand that addresses a specific need or is oriented to a particular ingredient or technology. Other important considerations concerning brand selection are price point, packaging and efficacy. ©ISTOCKPHOTO.COM Expand your day spa's profit margin by applying five simple inventory strategies. By Lisa Starr

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