REVENUE MANAGEMENT ( CONTINUED FROM PAGE 20 )
The likelihood is that if you ’ re full , you ’ re probably underpriced . You ’ ve left some money on the table . And on Monday , if you ’ re empty , and you ’ re not selling space , that means you ’ re probably overpriced .
“ Coming up with variable pricing is about having a conversation with the team , understanding what their business flow looks like , making some recommendations on how to price differently by day , and then letting it run . Regroup a few weeks later to see : How did it look ? Did our results change ? Did we increase our revenue ? Were we successful ? Was there pushback from the guest ? So , when I say the spa revenue is going to go up by four percent . I may not be not raising every price by four percent . I ’ m raising weekend pricing by five percent .”
STAGE TWO : Dynamic Pricing “ So now you ’ ve decided you ’ re going to price higher on Saturdays ,” Hayashi continues .“ But as you get closer to the date , you get to the point where you have fewer spots available , this would be your opportunity to make slight pricing tweaks to yield up . There is last-minute demand , and people will pay more for it . Dynamic pricing acknowledges that your pricing follows demand .”
most profit . When I implement dynamic availability , I want to limit the less profitable items during my busy periods and only focus on the high profit items . So , if I look at how much I make from a 45-minute massage or a 90-minute massage , I need to take the price and break it down and find out how much I am actually making per minute , for that room , that treatment , that therapist . If I ’ m making less money on a longer massage , I ’ m going to limit those . I ’ m only going to have a 45- or 60-minute treatment so I can make sure I ’ m really getting the best money I can on those days .” n
“ When you ’ re adopting a revenue management culture ... getting your frontline staff to buy into what you ’ re doing is important .”
— ADAM HAYASHI
STAGE THREE : Dynamic Availability Hayashi ’ s third stage of increased yield requires analyzing your spa ’ s historic data : “ Now that you have tweaked your pricing , you should look at what people are buying and what is yielding you the
As the profiled expert in this month ' s JobWise column ( page 36 ), Adam Hayashi shares insights into spa revenue management .
FOUND MONEY
IN A REVENUE MANAGEMENT CULTURE , all spa team members are encouraged to help drive revenue through ancillary sales . Using incentives creates a “ win-win ” situation and it ’ s like found money .
“ My honeymoon was at an incredible spa in Sonoma ,” Hayashi shares .“ Every year , I continue to spend hundreds and hundreds of dollars on their signature scents for my wife . It started with my coming back to the desk with my wife after the massage and saying , that ’ s such a beautiful scent , and the receptionist saying , you know , you can buy it . And 17 years later , I ’ m still buying it .”
22 PULSE n OCTOBER 2023