Spa Professionals Guild

Would you prefer 20%, 40% or 50%?????


profit percentage


I have a question for you…

If I offered you a choice of 20%, 40% or 50%, which would you choose?


Well, I guess it depends what I am referring to right?

In this instance I am referring to the retail ratio in your business.

Next question….

What is your current retail ratio? Is it 10%….20%?


The accepted norm in our Industry has always been that 20% is a really good retail ratio, right?

Everyone loves a good story and I happen to have a great one to tell you…

I was at an International Spa Convention two years ago, with spa owners and hotel operators from around the world. We were placed in groups to discuss retail ratios, with the intended goal of finding ways to improve on this area of business within our industry. After all, it’s responsible for determining the long-term security, short-term efficiency and overall profitability of our spas and salons.

So, the chairperson leading the discussion in my group kicked us off by stating that their hotel spa has a very, very high retail ratio, adding how very proud they were of their team. Furthermore, he said he would like the discussion to be about sharing ideas and helping each other improve our respective retail ratios as it obviously improves the bottom line.

My interest was really piqued as I LOVE high retail ratios and the positive impact it has on profit. My excitement got the better of me and I couldn’t wait till the question-and-answer section. I raised my hand and asked him to please share that percentage first, so it could give us all a benchmark. I was honestly expecting the answer to be something like 60% as I had never heard of a retail ratio that high, EVER. I was truly excited in anticipation of learning so much and taking all the information and ideas back to my country! He then responded with a huge smile and great pride, “we have an 11% retail ratio”.

Cue sound of my excitement deflating like a balloon…

My heart sank and I think he sensed it so he asked me, still with great pride in his voice, what our retail ratio is. I shared that I don’t own a spa but I am involved in running and operating many of them. He said that was even better and please could I share the retail ratio of the best spa I have consulted to. I was almost embarrassed because I knew what was coming my way. I said our best spa runs at a 42% retail ratio. This was 2 years ago.

What happened next? Well, the entire session focused on me. The biggest question from everyone… how on earth do we achieve ratios like that? It was an exhausting but completely amazing hour.

I certainly wasn’t expecting all these high end hotel operators and world class spa owners from around the world hanging onto every word and idea I had to share.

I was however very pleased to be in a position to help them all boost their ratios.

The best part about this story?

That I know for a fact YOUR business CAN achieve 40-50% ratios.

IT IS TIME TO CHANGE THIS PATHETIC NORM of 10-20%. No wonder spa owners say they don’t make money. It’s simply because of inadequate retail.

I’m going to share some simple steps and ideas on how to get this ratio in your business.  Compare the ideas with what you are currently doing, or not doing, and then your next step is ……. ACTION. Get busy implementing!

  1. Change your mindset first. Start with yourself as owner or manager. Change all your calculations and forecasts to work with a 40% ratio and then BELIEVE you can achieve it!
  2. Start PLANNING. If you don’t plan a 40% ratio, well, guess what, you won’t achieve it. Set targets based on this ratio and promote it visibly in the business with a visual reference, printed and displayed boldly on a wall where staff but not guests can see it.
  3. Get the team on board. Your whole team, Yes, your WHOLE TEAM! You absolutely need the entire team chasing the same target, otherwise this won’t work. Once everyone is aiming for the same goal, guess what? You WILL eventually shoot the goal!
  4. Measure DAILY. Yes! Measure how you performed every single day, plus where you went wrong. Agree as a team how to correct the course the next day.
  5. Ensure your team has all the TOOLS they need to get to this target. For example, if there is not enough stock on your shelves, not enough variety of stock or there is only stock at one price point, well, then you are not going to achieve the target. You need quantity of stock and variety of stock, it’s a fine balance as you also don’t want too much, but you have to offer a choice. Imagine if you went to a restaurant and they only served vegetable lasagna and nothing else, well, I guess this is an exaggerated example but I think you get the point.

If you would like access to this UNIQUE SALES method, take ACTION NOW, don’t delay! Hurry up and enroll on the Business Management Course!

Whether you’ve been in the business for 2 years or 20 years, our BUSINESS BLUEPRINT is tried and tested and we have testimonials from many students to prove the success they are experiencing after implementing the tips and tools!

It will change your business and improve your bottom line!

Click on the link in the “JOIN” box below to become a member of Spa Professionals Guild and gain access to a connected industry community from 15 different countries! Immerse yourself in our courses containing blueprints, tools, templates and standard operating procedures for every aspect of your business! You won’t ever be tied in and you’re able to pause or cancel any time.

Tell you what, I know everyone loves a great deal, so if you take action and join this week, I’ll gift you a 50% discount on your first months membership fee!! Simply use the coupon code RATIOS at checkout. Offer valid till Tuesday 16 March only.

Start a conversation with me or ask me any question, simply hit reply to this email.

Till next week!


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