The latest DSA research discovers correlations between company size, growth, gross margins and sales productivity.
UNION CITY, NJ Aug 23, 2003 - The Day Spa Association surveyed organization members to determine benchmarks for the industry as a whole. The questionnaire focused on a number of spa details, including total square footage, individual room footage, services offered and amenities offered. The goal of this research report is to develop a guideline for current and future spa owners, which allows research to provide enough data so that one can make educated, sound decisions that prove beneficial to the spa business.
To date, the research shows two important findings, according to Hannelore Leavy, Executive Director of The Day Spa Association. First, in many spa facilities there appear to be significant scale economies to hair care service productivity. This is due to the fact that most day spas today have been developed from the hair salon concept. On the other hand, day spas that offer hair care in addition to body and facial care, are more profitable. But, many day spas feel that hair care brings down the image of the day spa experience.
Perhaps more interestingly, however, was an unexpected second finding. Day Spas with low gross margins have materially higher sales productivity than their high gross margin peers. It appears that day spas which have experienced gross margin erosion must for financial viability - significantly increase sales productivity to remain competitive.
Hannelore Leavy, The Day Spa Association Founder and co-author of the best selling Spa Encyclopedia adds, "The imperative to maintain operating profits while the economy is slow, pricing pressure is increasing, and shrinking margins are forcing day spas to take a hard look at sales productivity. Successful growth companies have become the benchmark for how to set up and run a high yield day spa facility. Among the secrets to high sales productivity are the mix of sales resources (products, service upgrades, referral programs) and the integration of personal training on product knowledge and marketing experience."
The study looks at the latest twelve months of revenues, gross margins, and sales staffing levels. Day Spa Benchmarks: A Blueprint for Success can be obtained by calling 201-865-2065 or online at www.dayspaassociation.com/professionals.
The Day Spa Association (DSA) is the leading organization for the day spa industry. The DSA is committed: to promoting members' businesses through the distribution of THE DAY SPA / MEDICAL SPA DIRECTORY to consumers and the spa industry; to unify, enrich and support the spa industry and its professional through information exchange, networking and educational events; to increase consumer awareness of, and the demand for, spa services and products; to protect the consumer by continuously elevating the standards of professionalism and the quality in the day spa industry; and most importantly to increase consumer awareness of and the demand for spa services and products.
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