Ways to increase sales revenue for HR

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All, right? Hello Hello everybody. I'm just getting everything set up here on our live. Super excited to be here with you guys today. And we are talking about ways to increase your revenue per hour per room. It's more specifically three, three ways that we're going to be talking to you about how to increase that very, very important metric. So let me just make sure that I am coming up live here in the Facebook group. I wanna make sure, yep, there we go. Okay, love it. So I'm gonna go ahead and share my slides and we're gonna jump right in to this training. There we go. Nice and big. Okay, love it. Good morning Kara. Okay, perfect. So how to increase your hourly revenue in three simple ways. So, what we're gonna cover specifically today is the KPI revenue per hour per room. That's a really, really important one. There's a lot of KPIs that we can track. There's thousands of KPIs, but we wanna look at what is making the biggest difference to us in our business. And what I'm hearing right now, the kind of comments, concerns, vibe of the industry, if you will, is we need more money, we need more profit, we need more revenue per hour per room. So that was one of the reasons that I wanted to go through this with you today. So, we, what is that? KPI in general? And then we're gonna talk about upgrades. We're gonna talk about timing efficiencies, and we're going to talk about retail sales All, right? So for those of you that are new to our world, my name is Daniela, I'm the Founder and CEO of Addo Aesthetics. We are a coaching and consulting company that specializes in strategy and systems for aesthetic professionals. We are moving into 10 years in auto aesthetics, which is incredible. We're gonna have to do something fun to celebrate that. But in those past 10 years, I have consulted with 11 figure brands. I've created trainings that are now in 80 countries around the world. We have built a seven figure company with a team of 18. Most of those being military spouses or quite a few of those being military spouses, So, we move around quite a bit. We have helped our clients generate millions in revenue, which I'm super, super proud of. I've moved 12 times. I'm a military spouse myself. And so that is, you know, always a fun journey. And I have birthed two babies. So All, right? Hello Megan. Good morning. Okay. We also host a podcast. We've got over 350 episodes. We are in the top 50. We, last year actually hit number 14 out of 11,000 in the marketing category. So that was a really incredible accomplishment. We have a combination of inspiring motivational guest mixed with straight to the point strategy. So check us out anywhere that you listen to your podcast, All, right? So let's go ahead and jump into what is revenue per hour per room. So this KPI is the amount of revenue that each room produces during your hours of operation. So for example, if you're open 10 to six, which is eight hours of operation, and you've got three treatment rooms in your spa and you generated 4,000 in revenue for the day, here's how we would calculate revenue per hour per room. You would take that 4,000 and you would divide it by the eight hours in that workday, which equals 500. Now it's important to note that this calculation is done based on the hours that you're open and available to see clients. So even if you're open 10 to six, you're open those full eight hours, but you only have four of those hours booked. You're still doing the calculation divided by eight, divided by the possible hours that you could get filled. Okay? Now, so now that I know that the spa is doing 500 an hour, well we have three treatment rooms. So the next step is to divide that 500 by three, which is going to give you 1 66, 67. So that is what your actual revenue per hour per room is. When we're using revenue per hour per room to set a goal, I like to increase it by about 20%. So if I were saying, and I'm gonna show you guys the, the sample spreadsheet here in just a minute, or let me actually, because we can look at a way, we can look at these revenue per hour per room as a way to set our goals of what we actually need to hit. And we can also, well, let me just show you what the spreadsheet, it'll be easier when you guys can see a visual. It always, always, always is, especially with numbers All, right? So if I'm looking at, I'm open eight hours a day, five days a week, 50 weeks a year, and I have three treatments or three treatment rooms and I wanna do a million dollars in revenue, my revenue per hour per room is 1 66, 67. That magical number that we were, that we were looking at. So this is a great way to say All, right? What am I actually calculating? So if you have that $4,000 day, what am I actually like? if I did this every day, I would be on track to have a million dollar spa. As long as I'm open five days a week, eight hours a day, I've got my three treatment rooms and we hit that revenue per hour per room. So this really helps you to calculate, oh yeah, someone's saying, can I make it larger? And if you're having trouble with your zoom, I would just hit refresh. Okay? Is that easier to see? Let me look here. I can even make it a little bit bigger. Let's try. I think that should work. Yeah, and I'll just, I think it needs to be, I think it needs to be 1 75 'cause you're not seeing the actual calculation there. Okay? So very good All, right? So over here with this spreadsheet, and if you guys, if you registered for this training, you will have this spreadsheet sent to you. If you don't have this, then just comment below and my team will DM it to you. So over here, this spreadsheet, if you say, well, hey, I'm open 12 hours. 12 hours a day, I do nine to nine, I do split shift, then I can change this. And it's going to automatically calculate, well, if you're open 12 hours a day, then your revenue per hour per room only needs to be 1 11 11. Which for those of you that are into numerology, that's a magic number right there. And then you can play around with, you know, what is my goal? You may know, hey, I wanna do 1.5 million and so I wanna understand what my, let's see, is that 1.5? Yes. So if I wanted to do 1.5 and I'm open that many, that brings it right back up to that 1 66, 67. So a lot of ways that you can play around with this, but when we're looking at KPIs and we're talking about how do you, you know what you can't, what you don't measure, you can't manage, right? So we've got to make sure that we are measuring this on a daily basis. And I also think it's really challenging to say, you know, could, if I were saying to a spa CEO, could you do 1.5 in a year? That might feel big and heavy and overwhelming. But if I said to a spa, CEO, could you do an average of 1 66, 67 revenue per hour per room? You'd have to look at, you know, what are the prices of my services? But can I do that in, and this is in combination with retail as well, okay? So really important to keep that in mind. All, right? I'm gonna go back to my slides and let's go back to present here. 'cause that makes it nice and big for you guys. There we go. All, right? So the spreadsheet is a really great tool to help you have a revenue benchmark for each room in your spa. But if you're not hitting that revenue per hour, per room metric that you want, you first have to figure out what that is. We're gonna talk about three ways right now that you can actually increase that number. The first is upgrades. Now how many of you guys here, we've got few guys, few of you guys here on the live, which is great, how many of you guys here are regularly offering upgrades to your clients and patients? It's, it's something that even an upgrade of five to $10 can make a huge difference. Now what are examples of upgrades? This can be aromatherapy, this can be cupping, this can be masks, this can be dermaplaning, this can be wax or tint, this can be eye masks, LED cryotherapy. Think about all of these different pieces that we can incorporate into increasing that revenue per hour, per room. We're not gonna be increasing time, but we're going to increase the dollar amount that that room is going to produce. So let's see, on average you're seeing five clients per day, five days per week, 50 weeks per year. If each day you just had two of those clients do a $30 upgrade, that would add $15,000 in revenue to your business without adding any extra work. And the great thing is that a lot of those upgrades, especially if you're doing LED or cryo or anything like that, there's not a consumable cost. So that 15,000 of additional revenue is pure profit for you. Okay? So again, that's without extending hours, without hiring additional employees or without any additional marketing cost. So it's really a benefit. we wanna make sure that we are optimizing every single patient when they are in our rooms on our table. How can we optimize and really increase that revenue per hour per room that they are there? Now when do you actually make the ask? And for me, in my opinion, it's always in the beginning before you're really experiencing a service. And the question that I really, really love is asking that patient, how would you like to experience your service? And you know, there's obviously, there's the small talk when you're walking them to the room when you're, you know, reiterating, you know, here's the service that I have you booked for, let me know your concerns. Does this still sound great? Yes, you're booked for the right service. you know, going through the whole, like confirming that they have the right thing on the books, I would then as you're cleansing or as you're consulting with them before you really let them get into the zone, how would you like to experience your service today? Do you want me to explain everything as I'm going step by step or would you like to zone out and I can give you my observations or my recommendations at the end of the service? I don't know about you, but I am somebody who really likes to just zone out. That is my time. I don't wanna talk to anybody. I want to really experience and go inward and practice self-care when I am receiving a service. It's not that I don't adore the person or individuals that are working on me, it's just that is my time. And so if someone's talking to me the whole time, I am not going to experience the service in the way that I want to. So in doing that mini consult, that can take three minutes, right? To reiterate that they're getting the right service. You can also let them know, you know, perhaps when they're cleansing, here's the additional things that I think would really benefit and help you reach your goals. Would you like me to add any of those on today? Really popular one. People always do stuff for eyes and lips. So if you have some sort of eye mask or lip mask or anything like that, that's a great upgrade. People also, I think especially around holidays, love those really bougie algae masks and stuff like that. It's a fun experience. I think in holiday time. We do get a lot of individuals who perhaps wouldn't treat themselves to a spa day, but they're really splurging a little bit more than they would before. Good. I'm seeing some people saying, yes, I love the upgrades All, right? Okay, so your action item, I want you to identify your three upgrades and your top three upgrades and I want you to offer one or some, some combination of them to every single client who comes in the door for the next two weeks. Now I want you to track how many clients actually take you up on it and use that number to estimate the amount of additional revenue that you can bring into your practice over the next year. A goal would be that you have a minimum of a 25% conversion rate, meaning that if you offer it to four different patients, at least one of them will take you up on that upgrade. Okay? That for me is a winning goal. We obviously wanna get it more than that, but in at a starting point, at a baseline, that's the first number that we should be hitting is we want at least 25% of our patients that we are making this upgrade recommendation to, to take us up on that. Okay, All, right? So let's move into scheduling efficiencies. And this is really eye-opening as well if we're wanting to increase that revenue per hour per room. So a lot of times what I see with, especially with solos or solos who maybe have one other provider, they don't have a front desk yet. They're scheduling sometimes 30 minutes in between clients to check them out to you know, chart to whatever they need to do to turn over the room. I wanna show you what a drastic, whoops, what a drastic change timing can make on the spa capacity calculator. Okay? This is one of our favorite spreadsheets. This one is inside of Growth Factor®. This is not one that we gift for free, but I wanna show you what this actually, what information this gives you. And specifically I want you to really pay attention to the timing. So what we're looking at here is if you're open eight hours a day, if you take a 30 minute lunch break or a 0.5, you know, half hour lunch break, you have three rooms available, you work five days a week, you're open 50 weeks a year, you can do a facial, it's 60 minutes. This includes, this would technically be a 50 minute facial with a 10 minute turnover time. So we're including that turnover time as well. Okay? Oops. Then our retail price is $109, the consumable cost is $7 and then your payroll cost is $18. This is assuming that we're paying our provider $18 per hour and So there, this is an hour service, so they're gonna get $18. So this is saying that if we were to only do facials for the entire year for all available appointments, the maximum amount of treatments that we could do is this. The maximum amount, amount of revenue that we could make is this. And the maximum amount of profit we could make just from these services. This is obviously not set in stone. This is something that you're gonna sell retail, you're gonna have a combination of other services. But just to make sure that we're comparing apples to apples, if we were to go all in with facials or all in with specialty or all in with enzyme or all in with microneedling, look at the differences in these profits. Okay? So microneedling is clearly triple the profit and the big winner facials max profit you're making is 4 72. Specialty facial is five 40, enzyme peel is 5 0 4. And this is the one I really wanna highlight because look at the time here, this can be, you can look at this and say, well an enzyme peels 2 99 and the consumable cost is 30. So wow, that should be what I should really focus on because it has a lower consumable cost than the specialty facial and the price is significantly lower. 1 59 to 2 99. However the enzyme peel, the difference is the enzyme peel takes two hours. The specialty facial takes 60 minutes. So if I am looking at over here, if I'm looking at what am I gonna focus on, I'm gonna make potentially $36,000 less doing a service that costs more, you know, more than a hundred dollars than this one and has a lower consumable. This is why we need to look at the data to make database decisions. Same thing over here. If I'm looking at the enzyme peel compared to microneedling, these two have the same retail cost and microneedling actually costs $20 more than the enzyme peel. However, the profit is three times as much. And that all goes down to the timing, the scheduling efficiencies a difference in 1.7 million compared to 5 0 4. It all comes down to the timing. So very, very important to really understand what it's costing you to have that, those extra, those extra breaks, additional breaks in your, in your timing All, right? Let me take a look here, make sure I'm seeing all of the comments. Very good, very good. All, right? So now I am gonna go back to our slides. Let me open, let me present this All, right? So as you can see, as long as you have a steady lead flow, shortening the timing and bring it on a front desk can really help you to get ahead. And that is something that the way that that increases revenue per hour per room, you clearly by shortening the timing in between services, you have the ability to add additional services to generate additional revenue that will not only pay for you to have a front desk, but will also again increase the overall revenue that you're bringing into the practice, the overall capacity that you have to bring into the practice. Okay, so for action items here, review the timings of your services offered. Where do you need to tighten it up? So really looking at if I'm doing a 60 minute service, can I make that 50 minutes and have a 10 minute turnover? If I'm doing, you know, an 80 minute service, can I, you know, just block out 90 minutes and do it actually as 80 minutes? And again, having that 10 minute turnover, our it we really like, there are front desks that can help with checkout, you can hire support to help turn over the rooms and help sanitize the rooms. We really wanna make sure that we are paying attention to scheduling efficiencies in our services All, right? And last but not least, retail sales. This is probably the lowest hanging fruit, one of the easiest ways to increase revenue per hour per room. So let's say that your goal is 200 per hour per room and your average service is 1 49. You literally only need to sell one product to push you over that line. Okay? So I am personally, I'm a big believer in making the entire home care recommendation for a patient. I find it really salesy to recommend something new every time that someone comes in. And so for me it's a patient will come in, they haven't purchased any products from us, I'm gonna entire, I'm gonna recommend an entire regimen and that might be a five, six, $700 sale depending on the product line that I'm carrying. I mean, I've had product sales that were $1,200, right? When we're really getting into some specialty products and all of that, that that is a really important, that $1,200 or $500 or whatever the, the home care regimen cost is, is going to spread out over the entire day. So if we're, if we look at like our average is 1 49 of our service, but then we have two people that we had incredible retail sales with, that's really going to boost and remember that is not taking any additional time, that's just increasing that revenue per hour per room. Okay? So really, really important. And the other piece there too is once you get people on home care regimens and then they do repeat purchases, you will have people, especially if you have e-comm available to them, that makes it a lot easier. Or if you have your providers actually following up and you know, anticipating their needs before their products actually run out, those retail sales can come in even when you don't have a patient coming in to get a service. And that can be something also that really helps pull you through when you have a cancellation or you have a gap in the schedule or something where you are like, wow, it's gonna be a challenge. It's possible, it's always possible, but it's gonna be a challenge to hit our daily goals. That's when you get on the phone and you start making those retail sales, you start doing the calls for your patients that haven't been in, maybe you have quarterly patients that come in, but they're obviously gonna run out of their product before, you know, the three month timeline, get them to purchase a product, offer them free shipping, really get strategic in how you're making sure that every day, no matter what you are hitting that specific revenue per hour per room goal. Okay, I think that I addressed this. So this doesn't mean that you'll have some patients purchase large home care packages, but the next patient may not purchase anything that's normal. That's okay. I think with home care in general, having a philosophy that you can follow can help in making the recommendation. So if any of you're familiar with Skin Medica is Grass Theory. This came out years and years ago and they, grass theory stands for growth factors, retinoids, antioxidants, specialty products, and sunscreen. And so it really helps you to have a framework to say All, right? Does every patient that I see, do they have a growth factor product? Does every patient that I see have a retinoid? Does every patient that I see have an antioxidant? Do they have a specialty product based on their needs? Do they need extra hydration as we're moving into winter? Do they have pigmentation that they're wanting to get a brightening product? Right? So what is the customization piece in here? And then obviously do they have a sunscreen? That's massively important, but especially as you're building a practice and have multiple providers, you wanna make sure that they're getting the same recommendation regardless of who they see. So that can be something that I think is super important. Let me just see, Kara has a question here. We find out what our product line is going up to in January, so numbers will change, okay? So are you Cara increasing your prices of your product line or the prices getting increased by the company? That would be my question. Okay? in retail sales, ensure you're using the voice of an expert and setting the products in front of them on the counter or in the retail area with step-by-step instructions on how to use. So I actually would take the entire home care regimen. I would say, here's your am. And it would be their toner, their antioxidant, their hydration product, their moisturizer, their sunscreen. And I would literally write on the box AM step one, am step two, am step three, am step four, and go through. And then I would do the same thing for PM so that they can actually have a visual and my voice would be not like, so what do you think? Do you wanna get these today? It would be, these are the products that I want you to use. Here is what I want you to do in the am Here's how you're gonna to use this product. Here's how you apply it. Here's what I want you to do In the PM every other night, I want you to alternate this. I've got all the instructions written out here. I'm gonna be calling you in two days just to check in, see how everything's going. We may need to make a couple little tweaks as you're starting a new home care regimen, but I am gonna be right here beside you, making sure that we're getting this customized exactly to your skin's needs. So it's really leading there and really saying, yes, you're hiring me as the expert, you came to me to understand how to reach your skincare goals and I'm gonna show up and do my part, right? That's the energy that we're bringing to it. Okay? So for the next two weeks, what I wanna challenge you guys to is committing to recommending the entire home care regimen to every single patient that comes in. So make sure that you're doing your research on what products they've purchased in the past and ensure that they are fully stocked. I want you to commit to yourself, guys, you are doing this for yourself, whether you're an employee or an entrepreneur, making the home care recommendations is going to benefit your patient. They're going to get better results. That's just a, that's just a statement of fact. If they're using good quality products, they will get better results. Okay? So thank you guys. I'm gonna look at the question or the comments here in a second. If anybody is interested in learning more about the programs or resources that we offer here at a aesthetics or working with us on a deeper level, I want you to comment growth below and my team will reach out to you. We're actually gonna start doing these weekly Business Boost with Daniella with me every single week, every single Wednesday at 11. We've got some really great topics coming up. So every week it's gonna be a more formalized training that we are gonna be going through teaching you about KPIs, teaching you about really specific things in the spa world. So I'm excited to hang out with you, I'm excited to do that with you. And now I'm gonna go over and look at these questions. All, right? So Kara says, Epicurean is upping their prices, so I have to change my price on facials as well. And Kara actually increasing your prices, especially at the end of the year, is just standard practice. I think that every single spa owner should be increasing by two to 5% every single year just to cover inflation. And inflation is exactly this, right? Inflation is exactly every organization, product, companies, whatever, they're gonna be increasing your, their prices. So if they're increasing their prices and you are not, then you are losing profit. So it's a really important piece to make sure that once you have your prices where they should be, and we look at that, we have a resource inside of Growth Factor® called your Cost of Treatment and Profitability Tracker. And this is really letting us know our margins on a service so that we understand what's the consumable cost and then what is the payroll cost. And we have set goals, we want those margins to be somewhere between 60 to 80%, but we really want 'em closer to 80. It's just certain services you can't, like for example, a HydraFacial, great service people love it, incredible name recognition, but it's gonna cost you about 40 bucks to in consumable cost in addition to payroll. And that's just assuming that your providers are gonna be using the proper amount of the serums, right? So there's a rule of 10% where we say we want the consumable cost to never be more than 10% of the service, which would mean that if a, if a HydraFacial is costing you 40 bucks, you would want the retail price to be 400. And that's just not the name of the game. That's just not how it works. And so for those other services that we do tend to have like higher profit margins, dermaplaning, microneedling, things like that, we wanna make sure those services are, you know, even higher than 80 to really kind of cover those lower ones as well. But really using these spreadsheets to help you understand it's, it's making data based decisions rather than emotional decisions. It, it can bring you light years ahead in your business. Okay, so let's see here. Where did my questions go? Christine is saying upgrades take extra time. Sometimes they do, but sometimes they don't. A lot of times you, if you're doing, let's say that you're adding LED, you could add LED during the mask portion, so you're kind of combining and layering them. If you're adding cryo, doing cryo sticks, you could incorporate that into the massage. Aromatherapy can be done throughout. So you wanna really look at how can you shift and adjust to not add extra time. Some of these will add maybe 15 minutes depending on what it is that you're adding. But really again, looking at, at the math of like, if I increase it by this much, what additional revenue is that going to bring in for me? All, right? Happy holidays and perfect. Looking forward to the Wednesday trainings. Christine is saying ideas for obtaining clients to keep the room busy. I mean there's a lot of, there's a lot of marketing strategies that we can do. I would suggest going through the, I would suggest going through some of our podcast episodes. We've got over 350 episodes. There's episodes in there that are talking about our Facebook group strategy that are talking about, you know, behind the scenes. Actually the episode that's up right now is about this gal Sam, who's in Growth Factor. She just joined, she just hit her sixth month this month actually, and she did events. We have a lot of people that have a lot of success with events, whether it's a mini event, like a peel party type of thing or more of an open house. But I would search through our, our 350 episodes and look at, you know, there's numerous strategies in there to help you get more clients in the door. I, I would say the advice that I have is get out there and be the mayor of your town. Get out there and get involved in your community. It's not all gonna happen behind your computer. It's really the value. Like what I see so much right now is people go showing up at Chamber of Commerce, showing up at BNI events showing up at, there's a lot of different holiday parties. Like for instance, our lawyers for our company just had a holiday party a lot of times I don't go to those types of things, but I thought, you know what, this is gonna be a great network networking event. Also great to kind of reiterate and rebuild that relationship with our attorneys who ob have helped us obviously tremendously in the past year with opening the new company at a wellness institute. So it, I'm really trying to push myself to get out there and meet more people and be the mayor of my town. And I wanna encourage you to do the same thing as well because that is how you really get to know other individuals. That's how you build relationships, that's how you meet potential strategic partners. Lots and lots of of potential in, in just getting out there, which is scary. It's outta your comfort zone, but a lot of times that's where the real, real magic happens. All, right? Ira says, looking forward to the Wednesday trainings. Yes, they're at 11 Eastern time or Mary Catherine says, when is the trainings 11 Eastern Time. Perfect. Alright everybody, thank you so, so much. I really appreciate you spending your time here with me and I'll see you next Wednesday. Hope you have a wonderful rest of your day and rest of your week.