Retail Management for Spas

Retail Management for Spas | Chapter 7 | Visual Merchandising

Textbook | Category: Retail Spa Operations

At the Urban Spa …

Reuben rounded the corner by the Urban Day Spa’s cash/wrap counter and nearly collided with the nesting tables that held a display of Zen sand gardens and other relaxation products.

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Retail Management for Spas

Retail Management for Spas: Chapter 6.5 Value-Added Customer Service

Textbook | Category: Retail Spa Operations

Sometimes simple add-ons can make a difference to customers between buying a product at a spa instead of a department store or any other competing organization.

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Retail Management for Spas

Retail Management for Spas: Chapter 6.4 Education & Training for Effective Selling

Textbook | Category: Retail Spa Operations

Anyone in the position of clarifying why an individual would possibly be compelled to give money in exchange for goods or services—is a salesperson.

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Retail Management for Spas

Retail Management for Spas | Chapter 6.3 | Effective Selling

Textbook | Category: Retail Spa Operations

No matter what the spa product is, when spa professionals sell it, they are helping to extend the service of the spa. Selling is a highly personal art. Highly successful salespeople view it as an art and build a tremendously loyal following—to say nothing of a very successful business.

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Retail Management for Spas

Retail Management for Spas | Chapter 6.2 | Occupo Vendito - Seize the Sale

Textbook | Category: Retail Spa Operations

“Everyone in the company sells the company.” The entire spa team contributes to the sale because guests are being encouraged to take the spa experience into their daily routine. Everyone contributes to the sale whether directly or indirectly. Sales begin the moment the guest calls to book an appointment, the moment that a guest first sees an advertisement about the spa or hears about it from a peer.

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Retail Management for Spas

Retail Management for Spas | Chapter 6.1 | Sales is Part of Service

Textbook | Category: Retail Spa Operations

The spa’s services are a great sampling opportunity to generate a product sale. They are a process that creates a unique form of dialogue around the experience of using spa products such as skin care, body care, apparel, books, and relaxation CDs. The spa’s services are unique opportunities to connect with guests in a traditional sales manner. Therapists are able to build rapport through experience and education.

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Retail Management for Spas

Retail Management for Spas | Chapter 6 | Introduction

Textbook | Category: Retail Spa Operations

At the Seasons Spa …

Jazmine and the Seasons Spa are avid participants in the Jelly Bean League. They meet monthly to compete against other spa retail staffs.

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Retail Management for Spas

Retail Management for Spas | Chapter 5.9 | Spa Retail Budgeting

Textbook | Category: Retail Spa Operations

Spa professionals prepare the retail department annual budget at the same time that they prepare the budget for the entire spa operation. For the budget to be most useful and accurate, spa professionals have to prepare a forecast of retail activities as it represents the road map of the retail operation.

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Retail Management for Spas

Retail Management for Spas | Chapter 5.8 | Inventory Turnover

Textbook | Category: Retail Spa Operations

While inventory has been thoroughly covered in a previous chapter, some of the concepts apply directly to evaluating performance and maximizing a spa’s profits.

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Retail Management for Spas

Retail Management for Spas | Chapter 5.7 | Cost of Sales Percentage

Textbook | Category: Retail Spa Operations

The cost of sales measures the profitability of retail sales. It is a ratio between the cost of the goods sold and the net revenue. It is always expressed as a percentage of net revenue, never as a specific dollar amount. The specific dollar amount is expressed as the cost of goods sold. It is the largest expense within a spa retail department and merits study on a monthly basis.

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Retail Management for Spas

Retail Management for Spas | Chapter 5.6 | Retail Sales Per Square Foot

Textbook | Category: Retail Spa Operations

In the classic retail environment, revenue is monitored on a sales per square foot basis that is calculated annually by dividing total retail revenue by the square footage of the spa retail space. 

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Retail Management for Spas

Retail Management for Spas | Chapter 5.5 | Retail Markdown Percentage

Textbook | Category: Retail Spa Operations

Markdowns and retail discounts are two factors that affect the cost of sales. Discounts are strategic decisions made by management. 

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Retail Management for Spas

Retail Management for Spas | Chapter 5.4 | Retail Sales by Therapist

Textbook | Category: Retail Spa Operations

The most common measurement of spa retail is retail sales per treatment by therapist. 

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Retail Management for Spas

Retail Management for Spas | Chapter 5.3 | Retail Sales Per Ticket

Textbook | Category: Retail Spa Operations

Another way to evaluate the retail sales of a spa operation is to compare retail sales to the number of tickets posted during the month. 

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Retail Management for Spas

Retail Management for Spas | Chapter 5.2 | Retail Sales Contribution by Merchandise Classification

Textbook | Category: Retail Spa Operations

Some spas with significant retail revenue will want to monitor retail sales by classification as compared to plan. This information is valuable as it can aid spa professionals in...

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Retail Management for Spas

Retail Management for Spas | Chapter 5.1 | Retail Sales Percentage of Total Spa Revenue

Textbook | Category: Retail Spa Operations

All of the information needed for financial evaluation can be found on the retail department schedule in Exhibit 1. This departmental schedule covers revenue, adjustments, cost of goods sold, gross margin, direct expenses, and the final income/loss departmental contribution. This is a generic schedule designed to fit all spas; individual spas will have modified schedules to meet their own needs and requirements. Several of these items are evaluated monthly.

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Retail Management for Spas

Retail Management for Spas | Chapter 5 | Evaluating Financial Performance

Textbook | Category: Retail Spa Operations

At the Urban Spa …

Reuben, the manager of the Urban Spa, hung up the phone in frustration. Fiona Matthews, the owner of the Urban Spa, a day spa and salon, was demanding that Reuben explain why the cost of goods sold in April was 56.5 percent when it was budgeted to be 50 percent.

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Retail Management for Spas

Retail Management for Spas | Chapter 4.5 | Shrinkage

Textbook | Category: Retail Spa Operations

Simply stated, shrinkage is the difference between the inventory the spa has on hand and what it should have on hand. In the retail industry, an estimated 1.54 per cent of annual sales losses are due to inventory shrinkage. According to the 2004 National Retail Security Survey, specialty apparel is the category with the highest shrinkage, at 2.93 percent, while department stores run around 1.51 percent. But where is the merchandise going? Losses break down as follows: 47 percent internal/employee theft, 34 percent shoplifting, 14 percent paperwork errors, and 5 percent vendor fraud.

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Retail Management for Spas

Retail Management for Spas | Chapter 4.4 | Manual Recordkeeping

Textbook | Category: Retail Spa Operations

An important step in monitoring the retail plan requires posting to the planning format each month’s actual sales, markdowns, and other activity. 

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Retail Management for Spas

Retail Management for Spas | Chapter 4.3 | Advanced Retail Management

Textbook | Category: Retail Spa Operations

Basic retail management concepts can help spa retail professionals improve their inventory management methodology by implementing the basic techniques of min and max order levels and keeping the stock-to-sales ratios within industry standards. This will certainly improve their retail effectiveness but it does have limitations in terms of how precisely it can hold the operation to its retail plan.

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