Spa: A Comprehensive Introduction
The divisions in a spa are categorized as revenue centers and cost centers. Revenue centers generate income for the spa through the sales of services or products to guests/clients.
All revenue and costs described in this chapter are recorded on the statement of income, which provides a financial snapshot of the spa. The statement of income shows the total sales by product or service category (massage, skin care, hair, nails, etc.) for a stated period of time, the expenses incurred in generating those sales, and the profit earned or the loss incurred as a result of those activities. The chapter appendix contains sample statements of income for a resort spa and a day spa.
The world of spa is one of the fastest growing service professions. As more and more people embrace the concepts of wellness and healthy lifestyles, the need for spas continues to increase, and with that, the need for well-qualified personnel and a skilled work force at every level is becoming more apparent.
The spa industry is waiting for soulful, caring individuals who love people and who want to make a difference in the world, one life at a time. Technical skills, business savvy, and an ability to read people are traits that will take people far in the world of spa.
Retail Management for Spas
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.
When it comes to retail, there are a lot of players who contribute to making it a success. There are partners, such as the media, ﬁnancial institutions, local businesses, and charitable organizations, all of which can also help a spa business grow and succeed.
Uniform System of Financial Reporting for Spas
A uniform system of financial reporting establishes standardized formats and account classifications to guide individuals in the preparation and presentation of financial statements. The recommendations set forth in this uniform system are based on a consensus of spa industry financial executives, public accounting authorities, consulting specialists, and a leading academy expert, and are consistent with generally accepted accounting principles.
Financial Management for Spas
This text is intended to provide spa beginners and veterans alike with a better understanding of financial management. Our hope is that you will learn to embrace the accounting process and to understand that, while accounting is in many ways a science, there is also an art to financial management. In the end, you will be able to appreciate the beauty in numbers.
Spa Operations Manual
The customizable manual includes comprehensive materials for spa job descriptions, new hire checklists, standard departmental information, specific departmental procedures, staff training, common spa treatments, reference guide templates and more.