JAN 2014

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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PROFIT CENTER A RETAIL CONNECTION Another factor to consider in determining ROI is whether a treatment leads naturally to retail sales. Such sales may or may not be ROI-friendly, depending on your profit margins, but they can deliver ancillary benefits such as boosting client retention. We see this in the skincare department: the esthetician's ability to add low-cost micro-treatments to boost the sales price, along with the lead-in to retail generation, means that the well-marketed skincare department can be the sales engine for the entire spa. At AvantGard Spa in San Carlos, California, founder Blanca Caballero has noticed that the services producing the highest ROI are the ones with the potential to recommend retail. "Our spa's highest return area is the Brow Bar," reports Caballero. "Before creating this department, our makeup sales were dismal, but now this department has two full-time esthetician/makeup artists and a simple 15-minute brow appointment can earn the company plenty of profits. Not only do our brow services create greater frequency of visits (every three to four weeks), but because the Brow Bar is in the front next to the store, guests can shop while waiting. The technician has so many makeup retail opportunities. Our current SOURCES Nufree finipil, make sure you use a hair removal product that does not stick to skin or require high temperatures, so it is easy and ready to use quickly. Then you can direct the client to your retail department to purchase ancillary products for pre- and post-service use. Nina Milano, founder of la therapie Spa at Preston in Cary, North Carolina, as well as the new Lorena Luca Spa in Raleigh, relates that while facial waxing does provide a high ROI, body waxing has become less of a focus. "We've noticed over the last few years, especially with the opening of local wax-only facilities, that we actually don't experience significant return on body waxing. The cost of wax has gone up and the return is very small. Facial waxing, on the other hand, takes minimal time and supplies, therefore producing better profits." Milano adds, however, that most of her spas' marketing emphasis is on massages, because to date she has found that these services "produce highest ROI for our spas." 90 DAYSPA | JANUARY 2014 Here's a partial list of spa-friendly companies offering products and support for spas wishing to capitalize on some the typical high-ROI services: hair removal, nail care and spray tanning. For sources related to cosmetics and lash/brow treatments, see our Feburary issue. HAIR REMOVAL: clean + easy, an AII company, Equibal, GiGi, an AII company, Nufree/finipil, NAIL SERVICES: CND, Cuccio Naturalé, Essie, OPI, SpaRitual, SPRAY TANNING: Norvell, Sunless, Inc., NUMEROUS PRODUCT CATEGORIES: American International Industries (AII), Universal Companies, ©ISTOCKPHOTO.COM Another factor to consider in determining ROI is whether a treatment leads naturally to retail sales.

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