Sales planning affects the spa in many ways.
How compensation is designed will play a key role in the success of the spa’s retail and retail plan.
At the Urban Spa …
Reuben clicked offline after making his plane reservations and went to the printer to pick up the conﬁrmation. He would be leaving for the ISPA conference in six weeks. He was especially looking forward to the Expo as he’d made appointments with two of his vendor partners to discuss their new lines.
Purchasing often feels somewhat akin to shopping. The retail buyer—whether it is a retail manager or the spa director—gets to browse catalogs and brochures, sample products, and search for the best deals. However, unlike the individual shopper, the retail buyer has a weighty responsibility on his or her shoulders.
Getting a start on vendor selection can be overwhelming. Whether a spa is planning a new retail space or just rethinking its current one, there are some guidelines that can help a spa professional through this process.
The relationship between spas and their vendors can go far beyond the simple provision and purchasing of products. The relationship is one that can develop into a partnership—a partnership that is of equal value to both the vendor and the spa. When this happens, the vendor goes from being a seller to being a resource partner.
While 42 percent of spas within the industry have private label products, there is a direct correlation between the size of the spa and whether it carries private label products.
At the Urban Spa …
Reuben laughed conﬁdently at the retail consultant’s question. “Of course I can tell you our top 20 selling items,” he said.
Once spa professionals understand how to establish a solid retail plan that incorporates product classiﬁcations and revenue goals, the next step is learning how to support the plan. This chapter presents the essential concepts and tools for effective retail inventory management. Many of these concepts and methodologies are second nature to those working in traditional retail operations, but are not so intuitive for many spa professionals.
Two key concepts are fundamental to all retail management: turnover and stock-to-sales ratio.