Spa: A Comprehensive Introduction
Philosophy of Spa
Philosophy is often considered a foundation upon which people build their knowledge and belief structures. The Greek word for philosophy translates to “love of wisdom.” It is appropriate then, that this text begins its exploration of spa by delving beyond the business models and types of treatments to take a close look at the wisdom and “why” of spa philosophy encompasses the deeper meaning and sacred significance of spa.
Most of the world begins its definition of spa with water. Without water, most say, there is no spa. The original spas—mineral springs and hot springs—have been a part of relaxation and healing in many cultures for millennia. Towns with hot springs grew into popular destinations for holiday retreats.
Variations of Spa
There are many approaches to spa throughout the world and each spa provides services according to its own unique vision and mission. As the number of spa locations increased dramatically during the 1990s and into this century, classifications became necessary to categorize the array of spa experiences being offered in the market.
When spa-goers talk about spa, the language they use includes such words as:
These images and associations create exceedingly high expectations among guests for their visits to spas. They expect from spas deep gratification, or something close to it. Their high expectations derive, in part, from the way the word “spa” stands in their minds as a symbolic promise of unusually meaningful and pleasurable life experiences.
Retail Management for Spas
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.
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.
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…
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.
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.