Successful Bottom Line Practices

Bonnie Canavino President

Red Cherry Certified Organic LabsIECSC 2009

Treatment Room Concept

• Blue Print Inventory

• Storage & Usage

Reality with Results

• Grows Culture

• Expands Possibilities

Spa Inner-Line to Bottom Line

Our Spa Blueprint Definition Who, What & When of Inventories

› Treatment VS Dispensary› Laundry Room VS Locker Room

Services Match the product Usage› Blue print of Service Product measurements› Manuals measure UP

Ordering Strategy› What’s Hot & What’s Not product Levels› Impulse VS Last Minute Purchasing

Lets examine Today

Destination / Resort Spa• 10 + Spa Service Rooms• 15 + Service Professionals• Custom Blending• Pre-Blended Custom Products• Multi Layered Management• Retail Service Area / Retail Pro Staff

Day Spa• 3 to 10 Rooms• 5 to 15 Service Professionals• Custom Blending• Pre-Blended Custom Products• 1 manager• Retail Consultant / Reception /Pro

Spa Size & Culture Difference

Inventory Where?

Service Room

Service Cost

Product Per Service Cost Laundry

Amenities

If you Use, See or Smell it… Inventory it!

Support Payroll +

Develop an over head Cost = Lights /Energy/ Water

Operations

Keep Looking

Add up the over head - total for one week!› List with Cost for Utilities› List Support Payroll expense

Reception, laundry, retail, mgr. etc.› List Support Expenses

Amenities, Locker supplies, etc. Add up the number bookable hours in one week for one

service room, then multiple the number of rooms Now divide the number of bookable hours by the total $

over head..

Example Spa 5 rooms = 10 hours per day X 5 = 50 services a day X 6 days 300 bookable hours per

week…Divide into the expenses per week of 2500.00 = 8.33 per service hour of support staff expense

Over head-Cost Formula!

Add up 3 (three) one hour basic services and divide by 3 to formulate your base dollar per hour standard charge

Dollar Per Hour Charge?

Body Wrap

Body Massage

Facial

110.00 95.00 78.00

110.00 + 95.00 + 78.00 = 283.00 Divide by 3 = 94.33

Name/SKU Units DateItem Lavender Oil Gallon

L345610 11/2/09

Service ID, Charge, Time

Lav-Massage 100.00 1 hr

Aroma custom

Cost per Treatment 1.17 Product Cost

Support Cost per Treatment

8.33 General Overhead

spa payroll + room expenses +laundry

43.67 Spa payroll 40% -Rm

Cost= 1.35 –Laundry=

2.32

Total Cost 52.66

Profit 47.34

Total Treatments Sold Prior month

40 = 20 days 2 per day

Estimate of Profit 1893.60 One month

Who-What-When of inventories

October Status 2006

2007 2008 2009

Item Lavender Oil Gallon L3456

same same same

Service ID, Charge, Time

Lav-Massage 100.00 1 hr

Same 105.00 1 hr same

Total Expense 52.66 52.66 53.20 53.20

Profit 47.34 47.34 51.80 51.80

Total Treatments Sold Prior month

40 52 48 33

Estimate of profit

1893.60

2461.68 2486.40 1709.40

Where We Were, Are and Going

Design a service room “BLUEPRINT” based on the number of bookable service per day, per week etc.› Signature Professional Products› Daily Use items per services› Laundry per service› Room amenities = robes etc.› Equipment & tool list

Design a weekly inventory sheet

Services match the Product usage

“Lavender Day Spa”“BLUEPRINT” Massage Room

› 16oz. Signature Cert Organic Unscented Oils 16oz. Sig Blend-1 16oz. Sunflower-1 8oz. Extra Virgin Olive Oil-1 8 oz. Jojoba Oil-1

› Disposables 1 box Kleenex-2 Plastic trash bags-7

› Laundry per service 5 organic cotton flat sheets 2 organic cotton blankets

› Room amenities 5 organic cotton robes

› Equipment & tool list One Hot Cabi One heat Lamp

Design a weekly inventory sheet

Services match the Product usage

Dispensary Weekly / Daily

Back Bar Pro Products: in a Dispensary for Exotic Services: by costs, usage and control

Back Bar Bulk Basic Pro Service items Back Bar Laundry: weekly use /per day Back Bar Room Amenities: Robes, Candles

Etc. Back Bar Extra Tools and Equipment

Experiment and find your spa culture’s formula

Dispensary “Does and Don’ts” Do Not

› Leave it an open-to-take› Leave the control to a part-timer…Cover Important times› Leave it Unlocked› Use Disposable Dispensary Plastic and Paper Cups!

Do› Assign a Controller› Create a signin-take sheet› Inventory weekly› Demand weekly maintenance and inventory› Demand Dispense in only Sanitized Bottle and Jars

Experiment and find your spa culture’s formula !

Learn the manual

Create your spa manualBlue Print

Teach quarterly

how to use!

Add new notes

Keep life simple

Manual Heaven or Hell!

Keep a ledger of what’s hot and what’s not so hot› Mirror the Hot? Developing your spa

culture!› Eliminate the not so hot ? Good temp Gage

Create a month to month Calendar and base it on the prior year to analyze the up and coming months

Match you order projection with reality and forecasting.

Ordering Strategy

Recognize by

Documentation

Look back to go

forward

Evaluate Every Choice

Opportunity grow Spa

culture

Review to Refresh & Rejuvenate

Red Cherry Group

Booth 1416