Unlocking Profitability

While this might seem like it caters to more people, the reality is that it often leads to inefficiencies, higher costs, and a scattered marketing strategy (“jack of all trades, master of none”).

For new or struggling businesses, this is a recipe for confusion and lower profitability. The more services a spa offers, the more challenging it becomes to perfect any one of them. The key to profitability is not offering every service under the sun—it’s offering the right services that you can execute with excellence and efficiency. 

Step 1: Scaling Back the Offerings 

The first step I take with clients is to scale back their service menu—what I call “trimming the fat.” It’s about cutting out what isn’t working or what isn’t generating revenue. If a particular treatment isn’t making money or doesn’t align with the spa’s brand, it’s time to let it go. This step often brings resistance because spa owners worry that reducing their offerings will limit their customer base. But the truth is, focusing on fewer services allows for better service quality, more streamlined operations, and ultimately, higher profits. 

By scaling back, we’re not just simplifying; we’re sharpening the spa’s focus. Offering 1-3 core service categories allows the spa to optimize those services, improve staff training, and direct marketing efforts toward a more specific target audience. 

Step 2: Review Treatment Costing 

Next, we dive into the numbers. One of the most common issues I encounter is spa owners who don’t fully understand the cost of delivering their treatments. Many have not done a detailed breakdown of each service to see what their profit margins are. 

I work with clients to review treatment costs and profit per service. We factor in product costs, labor, and other deliverable expenses. Once we have a clear picture of each treatment’s profitability, we make any necessary adjustments—whether it’s raising the price, negotiating product costs, or finding ways to reduce treatment time without sacrificing quality. 

Understanding these numbers is crucial for setting prices that actually contribute to the bottom line. 

Step 3: Reposition the Offer to Appeal to the Ideal Client 

Once the service menu has been refined and priced correctly, the next step is to reposition these offers in a way that resonates with the spa’s ideal client. This involves taking a fresh look at marketing, branding, and client communication. 

Craft messaging that speaks directly to their target audience’s needs and desires. It’s not just about what the spa offers; it’s about how those services solve problems, create experiences, or deliver results that the ideal client is looking for. When done correctly, this repositioning can breathe new life into services that previously struggled to generate revenue. 

The Second Phase: Enhancing the Client Experience and Setting Goals 

Once we’ve nailed down the right service offerings, reviewed their costs, and repositioned them in the market, we move on to refining the customer experience and setting clear profitability goals. 

Step 4: Review the Service Protocol 

This step is about enhancing the client journey from start to finish. I work with my clients to review their service protocols, looking for gaps or opportunities to add touchpoints that align with what the ideal client expects. This could be a special consultation process, upgraded product options, or personalized aftercare. These touches elevate the client’s experience, increasing perceived value and allowing for premium pricing. 

Step 5: Create Marketing That Connects 

Once the services and client experience have been optimized, it’s time to reframe the marketing strategy. We create new marketing content that aligns with the refined service menu and resonates with the ideal client. This often includes updating the website, refreshing social media content, and creating promotional offers that highlight the unique style of the spa’s core services. 

At this point, the spa is positioned to attract the right clients—those who value the premium experience and are willing to pay for it. 

Step 6: Set Clear Financial Goals 

The final step I take with my clients is what I call “doing the money math.” We calculate exactly how many services need to be sold at the new price points to break even or achieve profitability. This gives the spa owner clear, actionable targets. Knowing these numbers is empowering because it turns an abstract goal of “making more money” into a concrete plan with measurable steps.  

By setting goals and tracking progress, spa owners can stay focused on what matters most—delivering their core services with excellence and hitting their profitability targets. 

Overcoming the Fear of Change 

Many spa owners fear this process because it requires change—whether it’s cutting services, raising prices, or rethinking how they market their business. But the reality is, clinging to a wide range of services that aren’t profitable keeps the business stuck. It’s only by narrowing the focus and making data-driven decisions that true profitability can be unlocked. 

This process isn’t about doing less for the sake of doing less. It’s about focusing on what works, perfecting it, and building a more profitable, sustainable business. For the spa owners I’ve worked with, this has been a game-changer in turning around struggling businesses and helping them thrive.  

If your spa is struggling with profitability, it’s time to take a step back and evaluate whether your service offerings are too broad. Narrowing your focus, understanding the costs of your services, and refining your marketing to speak directly to your ideal client can unlock profitability in ways you may not have imagined. 

Remember, it’s not about how many services you offer—it’s about how well you offer them. By following these steps, you can create a profitable, streamlined, and sustainable spa business that stands out from the competition and truly serves your ideal client. When you learn and refine this process, you can then add more offers that serve your clients.