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:

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The Challenges of the Spa Industry

 

 

The challenges the spa industry faces today are numerous. Many of them are a consequence of the way the sector has evolved in recent years. Although spas becoming mainstream is faced with many obstacles, future trends hint towards a more rapid process.

Those spas that are willing to improve the quality of services through specialisation and an appropriate pricing policy will undoubtedly have a competitive advantage in the market. In order to achieve that, it is essential to implement, once and for all, a clear business model focused on the needs of the client along with a coherent pricing policy.

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