REVENUE MANAGEMENT
fixtures and equipment ( FF & Es ) for your facility — like desks , tables , chairs , cabinets and carpentry , fixtures , massage tables , pedicure chairs , steamers , saunas , steam rooms and other large equipment . l Towels , linens and bathrobes : Count on at least “ times three ” par level of all your linen for the first year . This rule varies depending on whether you are going to have a third-party laundry vendor or if you will do it in house . l Uniforms : Base your procurement of uniforms on how many staff you are planning to have during the first year ; the feasibility study you create should include a manning guide . l Operational supplies : Include the cost of disposable items , such as amenities if you have relaxation loungers or heat and water facilities . Also include the product cost of the brands you select to use in treatments . Your P & L should categorize all your operational supplies so you can have a better understanding of your expenses . l Contracts : Include the fees from the design and development teams , your software system , licenses and permits , insurance , training , memberships , maintenance of equipment , credit card fees , marketing and PR investments , website and other contract costs like rent or mortgage , taxes , utilities , internet and phone . l Payroll : For most new spas , payroll accounts for 45 to 60 percent of expenses . Starting a new spa presents unique risks of failure if not planned properly . Building a support system — with a team of experts that can guide you and set you up to win — and creating a realistic financial plan will substantially improve your chances of success . n
Industry Terminology
l “ Competitive set ” or “ comp set ” is the benchmark of a hospitality establishment ’ s most direct competitors — typically , three to six local companies with comparable product offerings or service levels and similar target client demographics .
l “ Par level ” is a process of inventory management . The par level is the minimum stock level of inventory necessary for operations . “ Par ” is an acronym for periodic automatic replacement .
l A “ manning guide ” is an outline of every shift in a hospitality facility ’ s operations . The guide identifies the number of employees necessary for each role and each shift .
“ A pre-opening budget should include a well-detailed breakdown of expenses .”
VIRGINIA LARA is director of spa and salon for Encore Boston Harbor . Born and raised in Madrid , Lara earned a public relations degree before leaving Spain to start her journey in hospitality and wellness . After obtaining certifications in different modalities of Eastern and Western massage therapies , stress management and nutrition and diet theory , Lara became an executive director of spa . She has contributed to five successful opening projects , including achieving Forbes Five-Star rating , and recently has been certified as a health and wellness coach , transformational coach and master in neuro-linguistic programming .
26 PULSE n OCTOBER 2023