Salon Spa Business Information for Salons and Spas

Service Menu Audit

10.26.2017 · Posted in Articles

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Creating a profit building service menu is not something you can keep putting off, at least not if your wanting to have a healthy bottom-line.

Overly large service menus are inherently unprofitable. When doing a audit on the service menu there are a few key elements to observe. First go through and list your top profit services. Not only in profit per treatment but also in the potential of up-grades; retail; and potential program sales these services generate. Keep these services and highlight them in the menu.

Secondly do a spread-sheet of all services and list the numbers of each treatment sold in the last 6 months. If some of your high profit services have low numbers then you know they need to be promoted. Some services may have very few or no sales if this is the case you need to decide are numbers low because clients are unaware you provide these services, in which case do trial marketing to see if interest can be generated. If sales don’t improve with marketing this would indicate these services have reached their “best used-by” date, they need to be removed from the menu.

Others may be classed as “loss-leaders” where the profit is low but they draw people through the door. Think of them like the $2 milk of the beauty industry, they bring clients in and while they’re there your staff up-grade them, sell another service, or retail. The perfect example is the old standby eyebrow wax, you’ll never get rich on the profits of this treatment but it does give the opportunity for your therapists to observe the clients skin and start a dialogue with the client about other services they can provide.

Design your menu to deliver the highest profit possible. Make sure it is easy to read, offers clearly explained Up-Grades that will extend treatment results, and keep the content short and not overly embellished.

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