| Every month a high percentage (%) of your profits is | | | | Receptionists - are they earning their keep? - do your |
| spent on staff. We would all like to reduce our payroll | | | | reception team contribute positively to revenue |
| bill at the end of every month, so how do you know if | | | | generation via re-bookings, products sales and |
| you are over spending in this area or actually getting | | | | maximizing your occupancy? |
| great value for money from your team? | | | | Opening hours - are you open too many hours or the |
| This is where we can apply some science (more | | | | right hours to suit your business? For example if you |
| precisely use a calculator) and calculate your payroll to | | | | are located near a business area, are you open early |
| sales %. This will accurately show you what % of your | | | | evening to catch commuters on their way home, do |
| total sales is spent on staff, so for example your | | | | you have enough staff on at lunchtime to meet |
| payroll bill is $3,900 and your total net revenue is | | | | demand? |
| $10,000 then your payroll to sales % is 39%. | | | | Increasing overall revenue |
| However if your payroll bill is $3,900 and your total net | | | | The least painful way of improving your payroll to |
| revenue is $5,500 then your payroll to sales % is 71%. | | | | sales is to increase revenue, not always as easy as it |
| The lower your payroll to sales % the more profitable | | | | sounds however here are a couple of things to |
| your business, if your spa is operating at over 50% | | | | consider: If you change your staff rotas to match |
| payroll to sales then I would suggest a full review to | | | | customer demand you should see increased revenue - |
| see how this can be improved - this will be achieved in | | | | e.g. put 9 therapists in on a Saturday and you should |
| one of two ways: | | | | see full occupancy, have 9 in on a Monday and you |
| 1. Reducing your staff costs | | | | will more than likely struggle for full occupancy. |
| 2. Increasing your overall revenue | | | | Limit promotions to your quiet days, for example run a |
| Reducing staff costs | | | | local advertising campaign with a special offer only |
| Review staff rotas against customer demand - are | | | | available Monday to Wednesday 9am to 5pm thereby |
| your staff in at the same time that your customers | | | | driving more business into your quiet times. Make sure |
| are requiring their treatments? | | | | your receptionists are contributing to revenue |
| Review your staffing structure - is this top heavy with | | | | generation and fully managing your appointment book |
| too many supervisors? Full time v part time - too many | | | | to drive business into the quiet times. If you can |
| full timers makes your rota more inflexible, part timers | | | | improve your payroll to sales % by just 5% on an |
| can do more hours if required and give you more | | | | annual turnover of $200,000 you will save $10,000 a |
| flexibility. | | | | year and that's a result! |