Hire a Spa Professional at Minimum Wage??

Hello Corporate Spa Raiders….this is not a minimum wage business.    A recent ad in a local paper offered work at a hotel spa–Nail Technician-$6.95 per hour plus tips.  Yes, the schools we go to don’t offer a four year degree, but we are professionals who have spent years perfecting our skills.  We spend a great deal of money training, learning and practicing our skills.

Do you really think it is appropriate to pay minimum wage plus tips for a perfect manicure or pedicure?  Let’s see, you get what you pay for? Or do you really want to hire a professional, someone who knows about diseases of the nails, who knows proper sanitation, who knows how to file properly, who knows how to massage to perfection?  Which do you want–the skilled professional technician or the just out of school untrained, will work for minimum wage. 

How about you?  Will you pay a little more for a skilled and knowledgeable technician?  Do you want someone who is touching you to be a professional?

Maybe the corporate spa director never had a pedicure before?  Who would have thunk it?

The Only Thing Tackier Than Asking for a Tip in Cash, is an Actual Tip Jar Itself

Imagine the horror when you hear that a therapist is telling new clients that she only takes tips in cash.  The ongoing debate on tips in the spa has reared its ugly head.  Some spas charge the tip automatically giving the entire tip to the therapist, while others split the tip with a percentage going to cover overhead.  Others have even been known to use the tip as part of the therapist’ compensation plan.  The latter, I think has some type of moral repercussions, if not labor laws.

1. Last time I checked, a tip is not required.
2. A tip is an appreciation for super service above the norm.
3. Why only in cash, because you get it sooner?
4. Did you also tell the client that you have to wait until your paycheck to receive your other tips?
5. Did anyone share with you spa etiquette?

Whether your spa collects tips automatically or as a thank you, my southern hospitality tells me that from the dawn of ages, a tip is a special thank you for going above and beyond.   It should not be automatically added to the check unless you have a large party and it definitely should not be part of a compensation plan. 

The client’s motive for telling us about her experience, was that she thought it was inappropriate to discuss tips before having and during the service.  The client also questioned as to whether we actually paid the whole tip to the employee (a practice which some spas use by taking a portion of the tips).  In this particular case, the employee had breached the client/staff line, where something that should be private is aired in public–like airing your dirty laundry.

When approached, this employee, of course, denied telling the client she only took tips in cash.  She said that the client must have misunderstood.  We walked through the inappropriateness of the conversation and why you do not discuss tips with your clients and guests.  Discussing money with anyone except your accountant or a financial adviser is etiquette taboo.

Is Your Spa Vision Eastern, Alternative? Are Your Therapists More South Beach Hip?

On a recent visit to a gorgeous spa, we experienced a 2 day training event that made us very glad to work at our spa.  You see there were some major differences in our culture (fun, family, client is king) versus their culture (cold, lack of customer service, no sense of spa culture). 

On the way home, my manager and I discussed the animosity in the training room, and the therapists that showed disrespect.  The culture and vision of the owners and manager did not match the vision of the therapists.  We basically felt that the spa should wipe the slate clean and start over with new therapists that understood their mission and vision. 

1. What happens when your therapists don’t see your vision?
2. What happens when you are not able to express your vision?
3. Does your vision clash with religious or political beliefs?
4. Is your spa vision in conflict or are therapists getting mixed signals?
5. Does your vision match your mission?

This spa has a wonderful opportunity to be an outstanding spa, but the spa culture and mission must live and breathe in every one of the therapists.  Sometimes it is just not a fit.  Do your therapists believe in the mission of your spa?

Booth Rental vs. Employee – Do Hair Stylists Want Spa Careers?

Having friends that own spas, we are constantly discussing opportunities, staff changes, and growing the spa.  One spa owner recently had a group of stylists that were being lured to a defunct day spa that is now operating as a booth rental for stylists.  The booth rental operation was exclaiming to stylists that they could keep 80% of every dollar that they charged.  Does this sound too good to be true? Yes, they have free lunches too.

You do the math, but last time I checked, the booth rental stylists have some facts that they need to face. 

1. Are you prepared to pay quarterly taxes to the IRS? And the self-employment tax.  And don’t forget taxes on tips.
2. Are you prepared to pay retail sales tax?
3. Do you have your own phone line to make your own appointments?  There is no receptionist (if there is, this is not a true booth rental)
4. Wait until you wash all of your laundry, clean and pay your (I gotta have) assistant.
5. Oh yes, don’t forget the insurance, liability, property, and 100% of your health insurance.
6. Are you a self-starter, a go getter….out to bring in the business?
7. The cost of doing business does not change, just how you handle the money.  It is fairly industry standard that you will make at the most 15-20% profit if money is handled appropriately–80% is someone pulling the free lunch over your eyes.
8. If you want further education and training, you must pay for everything yourself.

Immediate cash to the stylist may be the only be real benefit to the rental business model–as you don’t have to wait for a paycheck.  And if you think you can fool the IRS for long with not paying taxes on cash….hmmmm.   You must also be a real go-getter to continue bringing in business with referrals and marketing, plus you need a sharp business head to watch expenses.

Working as a stylist at a spa gives you a real career and something even more important- security and a safety net.  When times are good, you will do great.  When times are not so good, you will do great.  Do you want a career? or Do you just want to be another stylist?

Perfect Key Indicators = Perfect Growth Performance

As spa days go, yesterday was almost perfect.  The entire spa was humming along, with the following percentage of spa services:

• Skin: 20%
• Massage: 45%
• Nails: 20%
• Hair: 10%
• Fitness: 5%

Of course, you match your retail to the service mix to see how each department performed.  The retail percentages were as follows:

• Body Care: 5%
• Clothing/Fitness: 13%
• Gifts: 5%
• Hair: 16%
• Makeup: 5%
• Nails: 10%
• Skin: 46%

Without becoming too number obsessive (I have a fixation on numbers), you can easily see which departments are performing with retail.  Other numbers that are reviewed on a daily basis include:

• Average Service Ticket ($127) – Above National Average, But Below Our Goal
• Average Retail Ticket ($55) – ($1.00 Above Goal)
• Pre-Book Percentage (34%) – (6% below Goal- we had a bridal party of visitors)
• Retail to Total Service: (28%) – (5% above target)
• Add-Ons & Upgrades: 24 Massage, 5 Skin, 4, Nails, 4 Hair (Look at those Massage Therapists!)

For a Saturday, not a bad performance.  So this begs the questions, which numbers do you look at and why?  Which numbers should you look at?  At the end of the day, should it just be the profit for the day, or are the indicators above the drive for profit.  The drive for profit should have started from day one of doors opening…just like you build a car for speed, you need to build your spa for profit.  The key indicators above are your road map to success–do you have your goals in place?  Do you check your numbers?

 

Hear the Drumbeats or Beat the Drums

Every Tuesday all the managers and I meet for lunch.  It started out many years ago as a way to stay up to date with everyone.  Now, it is a critical path.  Not one week should go by without hearing the drumbeats of your spa.  What does that mean?  It means that we cannot know what is going on in every department without hearing from the managers.  They know.

Sometimes, it might be who is pregnant (again)–I  think there is something in the water.  Other times, it is–we had a great training today, and we are ready to add the new treatment to the menu.  Or, you know our retail is double in the department over last month, because of the new promotion.  Another discussion yesterday, was summer series promotions for local clients—and you know you get better results and more drumbeats with more brains.  It is something about beating on the drums.  You actually get answers.

Weekly meetings give us a chance to hear the drumbeats or beat the drums.  You decide, but it is a must for motivation and management.

Good, Bad, and the Ugly Spa Experience

When a client walks in the door to experience the spa, what do you think you are offering as the service?  Do you think, build a spa and they will come?  Do you think, create a monument and they will visit?  or Do you  think, let me create the best anti-aging treatments in the world and they will flock to the spa?  Do you think, we have the most known spa name in the business, we can be okay and still make a profit?  Or are you hitting on the low part of the industry setting yourself up as a spa, but you are really a McDonald’s in disguise.  Yes, McDonald’s could get away serving food that was not really edible for a long time, but will you be able to continue giving okay “spa” massages at a discount without the experience?

As we are startng to see, everyone will not come.  As our spa industry grows, so does the education of spa goers.  They know great spa experiences, they know great services, and they know when it is not so great.  You see, it is one thing to think you can sneak past an okay massage therapist in a 4 star spa, and you might get away with it for now, but very soon, just like a 4 star restaurant with demanding clients, spa goers will be demanding high standards.  It with much pleasure that I applaud spa critics.  You deserve to have a great spa experience, and not only should it be good, it should be great.

Who Wants to Steal Your Spa Robe?

Many years ago, I sat at a Knowledge Network and listened to several spa directors and owners talk about how their robes kept walking out the door.   I asked them what kind of spa robes they had and of course, the brands varied.  One spa director said that her robes were wrinkled and scratchy and they still were taken, while the other spa director said that her robes were the top of the line.  Of course, I totally understood the latter being taken…people.

Well, after visiting hundreds of spas in the last fifteen years, I think there may be an easy way to judge a great spa robe.  If you want to buy it or steal it, it is a great robe.  And, we have found just the robe–It is by Kashwere and it is their new microfiber robe that is lined with terrycloth–and it is gorgeous.  Right now, we have them just for the men, and men are actually buying them.  You have to see and feel this robe…yes, I like fuzzy, but this robe is perfect in spas.  It washes well, it hangs well, it dries fast (you spend less on laundry), and the length is perfect.

Check them out.

 

 

What did Your Spa Experience Feel Like?

When the client walks in, when the client is greeted, when the client has spa services—what is it about?  It is about the experience.  Whether they are alone, or with a group, it is all about the experience.  People go out to dinner and yes, it is about the food, but you will hear them say…well the food was great, but the service was terrible.  And yes, you hear the same thing about the spa.  How was the spa?  Well, the massage therapist was fabulous, but the front desk was rude.

The spa experience must be consistent from beginning to end…from start to finish.  This is very critical to your success.  You can have a beautiful spa filled with talented therapists, and without great service at the front, the spa will slowly sink.  It is about the experience.  The same feelings you get when you get a cup of coffee at Starbucks, you must create the experience at your spa.

After many years in the spa business, of course, I have gone to many spas.  Your expectations are always high, especially with the highly rated spas.  You walk in, you expect the world, and suddenly you either receive it or it falls flat.  You don’t want to fall flat…so spend your management hours walking from the front of the spa to the back of the spa..

1. What did I feel here? 
2. What did I feel there? 
3. Did they assist me here or ignore me?
4. Was it easy for me or did I struggle?
5. Did I feel abandoned? 
6. Was I alone? 
7. Were people friendly or snobby?
8. Were they helpful?
9. Did I feel welcomed?
10. Did I feel like you were glad to see me?
11. Did you THANK ME?

As the spa industry grows, changes, morphs, and moves, it is all about the experience…the spa experience.

How a Massage Therapist and The Grinch Stole Christmas

Maybe they should have called me Pollyanna, or Dorothy from the Wizard of Oz, or maybe Cinderella–I like to believe that we will live happily ever after in a perfect spa world.

Hey wakeup…reality check! 

We started a “Spa Dollars” program in July for those that did great on their numbers with pre-booking, client retention, and retail to service.   We also gave out spa dollars for great teamwork, pitching in to help re-stock, and extraordinary service to clients.  It was a huge morale booster, especially for the shy therapists, who might not be the best performers, but they are always there for the team.

You could use your spa dollars for services or retail.  There was no expiration and everyone was excited about receiving services.  It was like having monopoly money.  No, it was like having monopoly “funny” money.

It’s all fun and games, until the Grinch steals.  You see, we had a massage therapist who was just a little dishonest (is there such a thing as a little dishonest?).  She was taking the spa dollars to Kinko’s and copying them.  She was then passing them off to the controller as the real thing.

How did she get caught?  You’ll love this.  She brought her mother in for a day of services at the spa.  She paid for the whole thing with bogus spa dollars.  We started to calculate how many spa dollars she had received (she was a $12,000 a month massage therapist), versus how many she had redeemed.  Bingo, Grinch is stealing Christmas.

It was such an eye opener.  How can a great employee steal?  What makes a person a thief?  Very sadly, we had to pull the program and re-vamp.  Now we give out gift cards, a little boring, not too spontaneous, but they are numbered and not easily copied.