How Profitable Is Your Services Menu?

How Profitable Is Your Services Menu?

One of the many hidden gems in Zenoti's (formerly ManageMySpa) reports infrastructure is the profitability report. With this report, quickly assess how each of your services, service categories, products or product categories are working to drive profitability for your business.

What You See In The Report

The Services Profitability Report shows you:

  • Number of services sold by service category
  • Revenue from each service category
  • Cost of professional products used
  • Cost of staff time for the service, room time, etc.
  • Profit margin (which is a percentage) and actual profit (which is a dollar value) for each service category

As with all our reports, use filters to drill down, change date ranges and get other views of your data. It’s easy to identify the revenue, cost and profits for individual services, compare sum total values between date ranges, and so on.Similarly, you can assess revenue, cost and profitability for every retail product.

4 Actions To Take Based On Your Profitability Report Data

  1. Identify your highest profit margin service(s) or retail product(s). Design a marketing email that promotes these specific service(s) or product(s).
  2. Ensure you’re not giving away too much in discounts. To do this, look at the actual Profit value for any service(s) or product(s) – your discount should not exceed this amount!
  3. Often times, your highest selling services are meant to bring in customers that then add on additional services. However, you may have a revenue opportunity by increasing these high volume, low profit-margin services. Test a slight increase in the pricing of these services. (It’s easy to test pricing if you’ve taken your services menu digital with Zenoti!)
  4. Identify retail products that are have very low sales volume and low profit values. These products may be risky for if they hit expiration dates and you cannot return inventory to your vendor. Consider dropping these products from your shelves!

Keep in mind that the profitability reports tell you how profitable your services menu and retail offerings are based on actual revenue and sales data. Keep your inventory pilferage and wastage down to ensure you’re not adding to costs. And keep employee staff utilization up to optimize on staff salary!Zenotiusers can find the profitability reports at the Center level under Admin > Sales > Profitability.If you’re currently evaluating operational software for your spa, salon or medi-spa,request a demotolearn more about Zenoti.

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Emily Martin

Copywriter, Zenoti

A self-confessed bookworm with a passion for languages and weaving together words. Happiest when immersed in nature, either on horseback or skis, or curled up with a good thriller. Emily's writing focuses on sharing trends and insights impacting the beauty and wellness industry.

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