RSVP BeautyWorldME RM4Salons 20130529

7/28/2019 RSVP BeautyWorldME RM4Salons 20130529

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RevenueManagementTheBusinessOpportuni5esintheSalonIndustry

Dubai,29/0/2013

RomainSaadaFounder-ProfitTherapyPrograms+(971)0893011Blog:hp://upyourmargin.blogspot.comWeb:hp://www.rsvp-hospitality.comEmail:[email protected]


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Agenda

1. WhatistheNail,Spa&BeautySalonIndustry?2. WhatisRevenueManagementforSalonandSpaIndustry?3. Iden5fythebusinessopportuni5estodefineSpaceandTime.4. Todiscountornottodiscount?. AnalyzeyourperformanceandKPI

2 BeautyWorldMiddleEastSummitBusinessOpportuni5esintheSalonIndustryConfiden5al


3/18

1.WhatistheBeauty&NailSalonsIndustry?

3

NailBarIndustry SpaIndustry BeautySalonIndustry

Manicures, Pedicures, Acrylic, Fiberglass,

Gelpolish, NailArt, Othertreatments,

BodyMassages, BalineseMassages, ThaiMassages, SwedishMassages,

AromatherapyMassages, Deep5ssueMassages, HotStone, Others

Manicures/Pedicures, NailSta5ons, HairSta5ons, FacialandSkincareSta5ons,

Massages, Moroccanbath, MakeUp, Waxing, Eyelash,Eyebrows,Tin5ng

IndustryPrac7ce:PricesforBeautySalonaredefinedbytheserviceandmaterialconsumed.The

costsheetfeaturemainlycostoflaborandproducts.

Generallypricesarenotdefinedbyspacenor5me.Amanicure/pedicuremay

havethesamepriceswhetherbeinginaresiden5alorcommercialareainthe

city.

BeautyWorldMiddleEastSummitBusinessOpportuni5esintheSalonIndustryConfiden5al


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2.WhatisRevenueManagementforSalon&Spa

Industry?

4

Highfixcosts Lowvariablecosts Perishableinventory Easinessofthecontroldura5on(Hours/Min.) Variabledemand Fixedcapacity Mul5-pricingcapability



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RevenueManagement:ArtorScience?

6

Ithinkweshould Vs.

Weneedto



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RevenueManagement:Anotherwaytoputthis

7

Demandcrea7onis Marke7ng

Demandcaptureis Sales DemandManagementis RevenueManagement



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RevenueorYieldManagementInsights

Makingavailabletherightproduct... Totherightcustomer... Attherightprice... Attheright5me.



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3.DefineSpaceandTimeforyourBusinessUnit

Sellingspaceexplicitlyorimplicitly?MostoftheNail,Spa(Male/Female)andBeautySalonsaresellingspacebased

oncompe5torprices.

Prac7cestodefineSpaceandothersolu7ons:- Defineyourinventory/areasinslotsandfocusonimproverevenueper

slots(revenueperhairsalonseat,revenuepernailsta5onseat),

- Defineyourinventory/areasinsquarefeetanddefinetheperformancemetricasrevenuepersquarefeet,

- Thespacealloca5onshouldbebalancedbetweenthefunc5onalityandtheprofitability.



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3.DefineSpaceandTimeforyourBusinessUnit

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Sta7on

Occupancy

Profitability

Approach



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3.BusinessOpportuni5esHistoricalData

Collec7on

Historicaldatacollec7on:- Collecttherightdata(bestway

throughcomputerizedsystems),

- Configurethedatathatworksforyourbusinessunit:breakdownofyourrevenues,averagesalesperclientper

areas,averagesalesperclientperday,

salonu5liza5onra5os,retailsales

percentage(%),

- Compareyearonyearprogressiononanexcelsheet,

- Drawgraphsorpie,toreflectgrowth,11 BeautyWorldMiddleEastSummitBusinessOpportuni5esintheSalonIndustryConfiden5al


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3.BusinessOpportuni5esSta7on

Occupancy(%)

CalculateyourSta7onoccupancies:- YoucanfigureoutyourSta5onOccupancy(K.P.I)by

dividinghoursbookedbyhoursscheduled.

i.e:1Therapistworks6daysaweek,8hoursperday:

MaximumNumberofWorkHours=48Hours

Averagetreatmentbookedhours=34Hours

Thetherapisthasa34-48ra5o

Sta7onOccupancy: 70%

Ifthattechnicianisfullybookedmorethan8%ofthe

5me,youcanraiseherprices.Sta5onareaillustra5oncanbereplacedbyHairSeat,ManicureSeat,FacialRoom,WaxingCabins,SlimmingMachineCabins,MoroccanBathRoomoranytypeofmeasurablemetric.



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3.BusinessOpportuni5esMeasureProfitsby

7me

MeasureyourProfitabilitybyTime:- Youmuststartcollec5nglotsofdata,- Revenueperhalfhour,- Revenueperhour,- Revenueperhourperareas,- Revenuebydaysoftheweek,- Reviewreserva5onsvs.walkinclients,- Revenueperloyalclients,- Revenuepernewclients,13 BeautyWorldMiddleEastSummitBusinessOpportuni5esintheSalonIndustryConfiden5al


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4.Todiscountornottodiscount?

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Apriceisaprice:- Discountshouldbebasedonvolume(08/

12treatments),

- Givevaluesratherthanmoneydiscount,- 20%offpriceor20%moretreatment,- Ratefences(advance,prepaid,lastminute,

socialgroupsites)

- Controlleddiscoun5ng,- Controlledavailability,- Setupapricingpolicyisthewayforward



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4.Todiscountornottodiscount?

1

Strategicpackaging:- Whendoyouwanttopackage?(slow

5mes)?

- Whoareyoutarge5ng?Why?- Howwillyoupromotethepackage?

Facebook,Website,3rdpartysites

- Historicalsta5s5csofpackaging?Doesitwork?

- Useanydatatomakeyourdecisions,



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.Analysisofyourperformanceamustdo

Demandanalysis, Analyzingmargin, Sta5s5calRepor5ngongraphs, An5cipatedemand, ProfitandLossStatement,

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Notes:

Itssuperimportanttoinvest2daysamonthtoanalyzeyourperformance,and

notonlyyourProfit&Loss(P&L).



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FurtherEnhancements

Contribu5onAnalysisReview, AnalyzingofyourProduc5vity

Management,

StrategicDevelopment, PricingandProductDevelopment, AncillaryRevenuesEnhancement, Analy5calTools,



18/18

RSVPWorldwideYourpartnerinprofittherapy

18

RSVP Worldwide FZ LLC United Arab Emirates

"RSVP Worldwide FZ LLC United Arab Emirates"Emirati | Tower B | 6th Floor | Office 3E"PO Box 32191| Ras Al Khaimah | UAE"Phone +971 50 589 3011"

Contacts:

"Romain Saada"Founder & CEO""

www.rsvp-worldwide.com

RSVP BeautyWorldME RM4Salons 20130529

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