Non-profitable treatments and KPIs

Dear all,

We CANNOT afford doing treatments that are NOT profitable.

We agreed in the management meeting that all should be earning at least 4 times than their HOURLY RATE.

So if someone is on £10 an hour then minimum hourly earning for the company should be £40 an hour. Some employees are paid more than what they are earning on treatments like express pedicure and taking 1.5 – 2 hrs.

If someone’s hourly rate is £10 and she takes 1.5 hours to do the treatment that is priced at £37 then we are actually losing money on doing it. Because, £36 means after 20% VAT deduction it is £28.8 left. 

So it is just £19.2 earned per hour – £10 hr paid the employee (plus NI + pension) = merely £9.20 /hour left for the business – which is TOTALY unacceptable.

This is not sustainable and not acceptable

Not only we loosing out, this also impacts your commission earning.

We will be adding £10 surcharge every 15 minute of treatment time added to the treatment due to client’s requirement. e..g if for 1 hr treatment that is priced at £32 if you add 30 mins extra then the treatment cost will be £52 and so on.

I have attached example treatments that are NON-PROFITABLE.

If we cannot make non-profitable treatments profitable then we will stop serving these treatments. e.g Nails or pedicure.

I would like to remind you that the targets that we agreed are:

a) Rebooking 4 out 5 (i.e. 80% however for commission, minimum rebooking target is 60%).

b) Selling min. of 1 retail product a day

c) Booking of 1 patch test a day

d) Booking 1 machine consultation a day

e) Revenue target per HOUR is 4 times of your HOURLY salary.  For day it is HOURLY revenue multiplied by  7. So example, if your pay is £10 then hourly revenue target is £40 and daily is £280.

It is your responsibility to fill up your diary. We cannot bring the new clients all the times.

In addition to above, I expect that at least ONE machine (CACI/Laser) course is sold from a branch per day irrespective of having offer or not.

You must include variety of services we offer and machine treatments in your 50:50 talk with the clients.

All managers are responsible and accountable to the performance of their respective branches.

Best regards,

Raj Raj Deokar


Anita’s Beauty Centre“Helping you look good” 01908 520600