How Much Should I Charge For My Spa Services?
The very first thing that a esthetician or potential spa owner has to figure out is their fee schedule for the services to be offered. In this article we will detail what you need to know in order to be able to calculate your treatment cost for all spa services. When creating the schedule, there are some things that you need to consider to ensure all your bases are covered.
Billable Working Hours
Begin by figuring out the number of hours you can comfortably work per day, and then determine from these hours, how many will be billable, and non-billable. Billable hours will be the hours when you are generating income, and this translates to the hours when you are treating clients.
Non-billable hours will be the hours you are operational, but not generating any income. This will include time spent doing administrative work, cleaning up in between clients, and taking care of all other business related tasks.
If you find that your billable hours do not make up a majority of scheduled time, you will need to decrease your non-billable hours. For instance, a spa therapist working eight hours a day needs to have at least six billable hours, as twenty-five percent of time available in a day is spent on non-billable tasks.
Counting Your Business Expenses
The next thing to do is consider your expenses. Ensure you are accurate when figuring out your expenses—if there are product costs that fluctuate from month to month, go with a higher estimate. This way, if the estimates are off, and the product ends up costing less, you will remain with some money, rather than end up going short.
Doing a Break Even Analysis for your Spa
Once the expenses are figured out, you now need to do a break-even analysis. For single client service based businesses, you will need to figure out how much you can charge per hour to cover the expenses you have identified.
What you will basically need to do is divide the total expenses by the total number of scheduled available hours each month. When you figure this out, you can now convert this into the amount you have to charge per session—depending on the percentage used by this service per hour—to help pay your operating cost and break even.
In many instances, a real break-even analysis is focused on only covering business expenses, but as a spa owner, you need to consider how much money you need to make to cover your personal expenses as well.
You need to look at how full your schedule is, because if you work fewer hours, it means that most of your income will go towards covering your expenses.
With that you should be able to start adding up the math to be able to calculate your totals. The best thing to do is always going to be to take the time to write it all down in a special journal that you can keep with you and write down and any notes for improving your spa. Alternatively you can check out our Beauty Entrepreneurs Only! program where we work with new and upcoming estheticians to build their businesses!
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