New spas preparing for a grand opening require a different set of budgetary considerations than an already operational spa. While an existing spa that has built a reputation in the community and has established a customer base will generate a revenue stream to cover expenses, a spa in its preopening phase usually must seek financing for the many costs incurred before its doors open to guests.
A good feasibility study is imperative in the early stages of planning a new spa. The study should include market research of the area and your competitive set, a well-established marketing and public relations (PR) plan and an operational budget that would reflect at least the first five years—and in some cases 10 years—of operation. A feasibility study will identify how long you will need to record a return of the investment and will help you to predict whether your spa will clear a profit—or at least break even—during the first years.
Knowing what to expect—by researching spa budget tools and operations before opening day—will help prepare you for the annual process of budgeting and the day-to-day actions necessary to avoid any unhappy financial surprises. You need to know your spa business’s overhead by understanding your P&L’s (profit and loss statement); how to get the most from your software system through valuable reports showing KPIs (key performance indicators); how to make smart use of any downtime, such as pre-planned cross training for team members; how to take care of your staff and recruit and retain talented team members; and how to manage inventory and cost controls.
Located in the heart of Wisconsin’s capital, Rejuvenation Spa is dedicated to the art of achieving its name by providing guests with a restorative wellness experience. “Rejuvenation Spa serves as an oasis of relaxation and self-care amidst the bustling city life,” says Spa Manager Alexandria Benter. “Located conveniently within the city, it provides easy access for urban dwellers to unwind and recharge. With a focus on wellness and rejuvenation, the day spa aligns with Madison’s health-conscious and vibrant community, catering to those seeking holistic well-being and a respite from the urban hustle and bustle.”
There are many choices in today’s world of spas. With so many options for consumers to choose among, spas make themselves stand out by creating a spa philosophy, a culture within the spa that embodies its mission and core values.
Retail Management for Spas represents an important step in the sustainability of the spa industry. The global spa industry has experienced a great deal of change. In some countries, the industry has seen phenomenal growth and in other areas, this growth is just beginning.
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During the 18th, 19th and 20th centuries numerous European spas ﬂourished and were supported with full medical staffs and professional personnel. Typically spa visitors were sent to a resort spa by their home doctors in order to “take the waters” and “make a cure.”
Spas have long centered around responding to the needs of people to ﬁnd relief from stress, improve their health, and enhance their overall wellness. Spas design their treatment menus around meeting these guest needs. The retail environment of a spa is a part of that entire package, one that complements and supports the spa’s philosophy.
Bob Hope was known to mention the beneﬁts of his daily massage for feeling so well in his later life. Unfortunately, it is the rareﬁed few who will enjoy the beneﬁts of a daily treatment. This is one of the reasons that retail ﬁts in with the overall purpose of spa.
The word “retail” covers a broad expanse of businesses. It can cover anyone who sells anything in small quantities to the person who will consume those items. Retail stores take on a lot of different appearances. They can be huge department stores, small souvenir shops, arts and craft booths, or gift shops.
Even in the spa environment there is no single picture that illustrates retail. Rather there is a collage of portraits ranging from shelves in a hallway to large boutiques to cozy lounges to shiny displays.
At the Seasons Spa …
Jazmine melted onto the bamboo mat, rubbing the Seasons Spa’s moisturizer onto her arms as she prepared to meditate. It was the end of her ﬁrst day as spa director at the Seasons Spa, a resort/hotel spa with a medical emphasis built into a beautiful beachfront destination resort.
Planning is at the heart of good management. Every spa manager, retail manager, or spa executive has a responsibility to become as knowledgeable as possible about the art and science of management—hence the plan.
The key elements of a retail plan are…