PANEL DISCUSSION :
Pricing Models
SESSION : Innovative Pricing Models & Menu Engineering Strategies that Optimize Revenue
MODERATOR : Jean Kolb
PANEL : Jennifer Fredette Suzanne Holbrook Cherie Rodriguez
THE PANEL EXPLORED INNOVATIVE pricing models and menu engineering strategies essential for spa revenue optimization : l Start with Your Identity — and a Competitive Analysis : Establish your spa ’ s identity to stand out from competitors . Differentiation begins with a clear understanding of who you are as a spa . Conduct a thorough competitive analysis to gauge where your spa stands relative to competitors . Understanding market positioning is crucial for effective menu development . l Menu Development and Strategic Layout : Treat your spa menu as an extension of your identity . It should reflect your brand and offerings distinctly . Optimize menu layout by placing attention-grabbing items in prominent positions . Avoid the common mistake of placing popular but basic services at the top ; instead , entice guests with unique offerings .
l Add-ons : Strategically incorporate add-ons to enhance profitability , but avoid overwhelming guests with too many choices . Test different add-on options to determine guest preferences . l Profitability Analysis : Conduct a thorough analysis of the profitability of each service to inform pricing decisions . Consider both the cost per service and potential net profit . l Pricing Strategies : Explore various pricing strategies such as yield management and dynamic pricing to maximize revenue . Implementing software solutions with these capabilities can streamline the process and boost staff engagement .
The panel concluded with a call-to-action to seek feedback and tailor pricing strategies to the unique characteristics of each spa .
JUNE 2024 n PULSE 27