How to Create a Spa Treatment Menu
Menu creation goes beyond coming up with a catchy name or enticing treatment description--in fact, there's more strategy behind it than you may realize. We sat down with Lori Vargas, founder of 360 Wellness Education, to learn all about creating a powerful and revenue-creating spa menu. With an MBA, CPA, and over 20 years of spa experience, Lori is the perfect guide to help you craft a menu that's relevant, competitive, and profitable.
Watch our Full Webinar on Creating a Spa Treatment Menu
The Power of Your Spa Menu
Your menu is more than an online booking form and a list of spa treatments, services, and prices – it's your most powerful sales and marketing tool.
A well-designed menu tells your brand story, attracts your ideal clients, and guides them toward your most lucrative offerings. It's a delicate balance of catering to demand while showcasing your unique skills and vision.
Lead With Your “Why”—Your Inspiration and Your Story
Have you ever thought about why you're in business? What's your driving force, your inspiration? In today's world, it's all about storytelling, and your service menu is your chance to tell your story.
Lori shares her spa’s tagline, "Enjoy the Journey and the Destination," which sums up her mission perfectly. She wanted to create a sanctuary—a place where people could escape, recharge, and achieve their goals with their skin refreshed.
Her spa’s story was about providing more than just relaxation. It was about offering a moment of peace and joy in a hectic world, a journey of self-discovery for her clients.
As you dive into the info we're sharing with you about service menu creation, remember to start with your why. What moves you? Share your story, and let it shine through every aspect of your business.
The Three Pillars of a Successful Spa Menu
According to Lori, there are three critical elements to focus on when building your perfect spa menu: relevance, competitiveness, and profitability.
Relevance
Are you offering services that are truly in demand in your local market? Your passion projects are important, but you also need to tune into what your clients want and your environment.
Competitiveness
How do your services and pricing stack up against the competition? Do they leverage your strengths and passions so they align with your overall vision? You need to differentiate yourself through unique offerings, excellent delivery, and smart positioning.
Profitability
At the end of the day, your menu needs to make financial sense. Understand your costs and pricing strategy to ensure every service contributes to your bottom line. It's also important that you're consistent and confident regarding what you're delivering. A profitable menu allows your business to be viable for years to come.
The Menu Development Process
Creating a winning spa menu with an elegant design is an ongoing process of research, analysis, and refinement. If something isn't working, you don't have to create a totally new spa menu from scratch. Instead, Lori recommends these key steps:
Analyze Demand
Look at your sales data and identify your top-selling and underperforming services. Listen to your clients to detect any gaps you could fill.
Calculate Profitability
Understand the costs and contribution margins for each service. This will guide your pricing strategy and help you identify loss leaders or opportunities to increase prices.
Refine Structure
From creative naming to detailed descriptions, how you present each service matters. Experiment with your spa menu design, including titles and placement to grab attention and set expectations.
Revise Regularly
Your menu should evolve with trends and your business goals. Add new services and remove those that no longer align--perhaps this means replacing some facial treatments with a new energizing scalp massage service. Maybe you can include a full-body body scrub with a wrap. Do what makes sense.
Also be sure to update pricing as needed. Complete these revisions at least once a year, ideally every 6 months.
Staying Competitive
A big part of menu management is keeping a close eye on your competition. Monitor local spas and their online presence to understand how your offerings compare on services and pricing. Are they offering a rejuvenating facial everyone is raving about? Is that a right fit for your spa? Maybe, maybe not. Don't jump to add it just because someone else is doing it, only add if it makes sense.
Should you investigate your competitor's spa menu online and match their pricing? No. Know what they’re charging, but also consider your point of differentiation along with your overhead and the cost of running your business.
At the same time, look for opportunities to differentiate yourself with unique services and customization options. Lori gives the example of the versatile DiamondTome microdermabrasion systems, which allow for targeted body treatments that few other spas offer.
Maximizing Profitability
While delivering an exceptional experience is crucial, your menu always needs to contribute to your spa's financial health. Lori stresses the importance of quantifying the costs and margins for each service to ensure you're pricing strategically.
She also highlights the power of retail sales, which typically offer a 50% margin. "Retail is an easy sell if you're doing all the work in the treatment room," Lori notes. It's extra money without having to work extra time on people.
Get In-Depth Info About Menu Creation From Our Webinar
No matter if you want to provide services that combat free radical damage, use restorative organic ingredients or even traditional eastern acupressure, in this ever-evolving industry the key to long-term success is actively managing your spa menu. Remain relevant by tuning into client demands, stay competitive by monitoring other businesses, and maintain profitability by analyzing your finances.
With Lori Vargas' insightful guidance, you're ready to craft a spa menu that elevates your brand, delights your clients, and contributes to a thriving business.
Want more in-depth info about creating profitable spa menus? Be sure to watch our free DTU webinar, “Elevate Your Spa Business with a Winning, Profitable Spa Menu” featuring guest Lori Vargas, hosted by Adriana Perez-Nakamura, L.E.
This webinar is a wealth of knowledge you don’t want to miss!
