There’s no doubt that your business is going to pick up come October and steadily increase through the end of the year. The question is, will you be ready with the proper quantity of backbar and retail products to keep business running smoothly and avoid leaving money on the table come January? e-Minutes spoke with Linda Mahramnia, retail manager at Spa Gregorie’s, a top spa in Newport Beach, CA, and quickly learned that fourth-quarter planning is only part of a carefully constructed budgeting blueprint. “Ideally, planning for the fourth quarter is done at the beginning of the year when the 12-month budget is established,” Mahramnia explained. “At this time, purchases for resale and professional supplies are determined in accordance with the projected sales and revenue.”

e-M: What factors do you analyze before settling on a budget?
LM: We look at last year’s sales and determine whether there’s a potential increase, then increase wholesale purchases accordingly. We look at the markup percentage we’re aiming for and employee commissions for selling. This is also the time to correct any prior mistakes or capitalize on a previously successful strategy.
e-M: What variables should be considered?
LM: Well, one must know whether items from last year are still viable or were part of a trend or fad. You also have to consider the economy and current business environment, so you can shift accordingly.

e-M: Who is involved with these decisions at Spa Gregorie’s?

LM: The planning process is usually done with the spa management team—and employee sales incentives are always considered.
e-M: Which is worse: ordering too much or not enough?
LM: I think over-ordering can be worse because at that point you’re generally stuck and unable to flex. If a portion of your OTB is available, you might be able to pick up hot merchandise at an advantageous price.
e-M: What retail planning advice would you offer a new spa owner?
LM: Anticipate as much as possible. If you can, set up a “Santa Booth” for gift certificate sales so your retail area doesn’t become too congested to see your merchandise. Look for trends early in the season so you can capitalize on any fast-moving products. Address any “duds” early so they’ll be gone before Christmas. Most importantly, relax and enjoy the ride!

DAYSPAMAG.com

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