I am frequently asked, “What type of spa discount or specials should I offer?”
Before I get into best practices, let’s talk about the goals you are trying to achieve from offering a discount. You don’t want to offer a discount to make less money, the goal is to make more sales and money, although it may be at a reduced profit margin.
But what I commonly see is a spa offering a percentage off, such as 20% off and so on. This type of discount is not going to increase your revenue, all its going to do is cause you to make less money. Here are some best practices to offer discounts:
1. Buy one spa treatment at regular price and receive ___________% off on the second: This type of discounting will guarantee an increase of revenue because it requires the consumer to buy something from you at full price to qualify for the discount . It’s still a great deal for the consumer and it’s a much better deal for you.
2. Gift with purchase: Department stores have been doing this for many years, because it works! The great thing about this promotion is to make the gift a retail product. This will introduce the consumer to your retail products, and if they like the product, they will purchase more. You can partner with your vendors for this type of promotion and negotiate a special price. This practice will not cut into your profit margin.
3. Guest check-out and future spa reservation: Many spas hand out a coupon for next visit. That’s a good effort, but who knows when the next visit is going to be? When offering next visit discount, make sure you place a date on it. The practice should be to reserve your next treatment now and receive ____%. You must create urgency and not leave the window of opportunity wide open.
By implementing these types of discount strategies, you will be able to offer spa specials that will increase your revenue without shrinking your bottom line. Try them and give us your feedback, we are always interested in your results! Marketing is the key to your success make sure you include all your specials in your monthly the consumer e-newlsetter. if you dont have one call us we have a great solution for you.