How to open a spa: Part 1 – Concept and feasibility

 

We are happy to kick off a new series of eight articles featuring tips and recommendations dealing with the process of opening a new spa from start to finish. During the next two months, we will be covering the most important aspects of conceiving and implementing a spa.

This week, we would like to discuss the first step you need to take when opening your spa: defining the concept and studying the feasibility of your new business. This post will provide you with a good understanding of the foundations you need to build for your spa.

Read more...

How to Price Spa Packages

Creating a spa package that sells well is in itself a challenge for most spa operators, let alone finding an appropriate pricing policy for these packages.  It is a fine science, and is not merely a question of finding your most poor selling treatments, putting them into a package and selling them at a huge discount.  If your consumer did not buy the treatment in the first place for the original price, it is highly unlikely that a decrease in price will entice them to buying it.  Spa operators need to understand what consumers want to buy and sell them what they want.

Read more...

Pricing Strategies: The Right Price

 

Understanding how to create and implement a coherent spa pricing strategy is essential for maximising yield.

There is no doubt that implementing a coherent pricing policy is one of the key factors for ensuring optimum revenues and higher profits.  But what constitutes a ‘coherent pricing policy’?  What are the important variables that need to be considered in order to maximise yields?  It is not uncommon for spa operators to consider their cost base (mainly cost of labour and product) and add on a profit margin of what they find a ‘reasonable percentage’, especially when entering into new markets with limited competition.  However, there are a number of other important variables that must be considered in order to maximise yields, such as:

Read more...