Finance
Rising Supplier Costs = Raising Spa Prices - Part 1
April 3, 2013
Leslie Lyon
This Part 1 of our 2-Part Blog Series on Rising Supplier Costs will cover the importance of ‘reflecting’, not ‘absorbing’ price increases, as well as an introduction to setting standards for price increases in your business. Running a profitable spa business takes experience and know-how It’s very important that you watch that thin line between profit and loss like a hawk. As business costs rise, so must your prices. Let’s say your revenue has been increasing year over year, but...
Spa Profits?
November 29, 2011
Dori Soukup
The million-dollar question… what should my profit margin be? Here we are in December, about to close out another year and welcome a new one! How was 2011 for you? Did you achieve double digit profits? I get asked all the time what should my profit line be? Profit margins vary tremendously; it depends on which business model you have. It’s different for resort, medi and day spas. In resort spas, the spa normally has no major expenses. The hotel...
Manage Six Numbers, Make More Money
August 31, 2008
I'm constantly asked by business owners, "How can I make more money?" Then they look to me as though I have the magic dust that I can sprinkle over the business and magically transform their check book to a well of plenty. Bad news, no magic dust. What I can do is help you understand what profitability should look like, and how you can get more of it. Numbers are not evil. However, understanding the basic tools of financial management...
Key Financial Statements to Master for the Health of Your Spa Business
December 30, 2007
Cash Projections Worksheet - This is a projection statement and is used as a planning tool to help predict the outcome or viability of future business needs and financial goals; it is your "action plan" for both your short and long-term ambitions, and every business should have one. Considering your "beginning cash", or the anticipated amount left over from the previous period (week or month) and added to your current sales, provides you with your total sales (cash inflows) for...
Spa Management Metrics
November 9, 2003
Return on investment in a spa depends on many factors, inlcuding: What kind of spa (day spa, resort spa, etc.) How well-managed the operation is The amount of debt service That said, a typical rule of thumb is that the more the spent on the build-out, the longer the amount of time before break-even is reached. So a small day spa may take a year to stabilize, whereas a large resort spa may take 3+ years. A healthy return in...
