Boosting Your Spa Retail Sales - A Golden Opportunity

By Gary Henkin President & Founder, WTS International | May 07, 2010

Whether you are just now considering the addition of a spa or if you have an existing facility, an effort should be made to focus on lifting your retail sales to higher levels of service and profitability. A spa can produce revenue and profits in any number of ways, but one of the most important is to have a vibrant product and retail area which consistently supports a positive net operating income. Product and retail sales can contribute as much as 20-40% of total revenue with a high profit margin. Thus, to gloss over this area can be a costly mistake.

There are numerous areas to consider that are crucial to building higher product sales and to maximize profit margins. Several important items for consideration are:

  • When offering home care solutions to guests, there is the chance to create an ongoing relationship. Thus, encourage the consumer to continue the spa and wellness experience at home and to return to the spa again and again. Few spas do a good job in maintaining a line of communication with their guests which is a missed revenue enhancement opportunity. Spa bulletins or newsletters are important tools in this regard.

  • The spa staff needs to be fully educated regarding the products and services sold. Guests should feel that they have gained valuable knowledge that will enhance or improve their lifestyle, health or well being. They will more likely continue with a homecare program if they had an enjoyable but also educational experience at the spa. The sales process should be "stress free" for the guest and a seamless part of the overall spa experience.

  • Typically, in a spa environment, there is more time to educate and sell to guests than there is in more traditional retail venues. Take enough time with each guest to educate and explain the benefits of your products and services. In many instances, spas try to usher guests in an out quickly, which can easily render an impression that the service staff simply don't care. This approach can produce a negative consumer impression which is difficult to combat for future referrals.

  • Bundling of retail services can take a number of forms. For example, putting two products together along with a "Goes Well With" sign encourages the purchase of both products. Find an easy way to gift wrap items and make it convenient for guests to purchase. Using gift with purchase (GWP) promotions are also a good way to bundle retail; work with your product vendors to gain access to free samples or giveaways that they will send to you for use in GWP programs. Rewards are another easy way to package services; as an example, if a guest purchases a gift card for $100, he/she could receive a $25 voucher with a time limit to encourage the guest to return.

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