One obvious direct cost is the supplies used in treatments. We like to see service supply costs around 5% on average.

Let's see how gross profit can fluctuate based on the cost of the supplies we use.

Price of Swedish Massage: $100.00

For example, your hotel spa may have fixed costs that run at about 50% of revenues (overhead numbers are not always fully extractable, depending on how your expenses are allocated to the spa on the property's P & L) Let's see what happens if, with that same hour, in that same room, we sell a body treatment, with a higher supply cost, at a bit higher price.

Price of Jasmine Body Bliss: $105.00

Ouch. We have just 5% net profit after we pay our fixed costs (-50%).

Then there's waste. The Jasmine Body Bliss uses one cup of crushed rose petals and three drops of jasmine oil. What if the therapist, who's in a hurry, uses twice that amount?

Audit all your services to understand your exact supply costs. Use precise written protocols and provide adequate measuring tools. Staff members known as dispensers, and dispensaries, have long been in use in hair salons, and many large spas do a version of dispensing by pre packaging ...