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

Director,

Anita’s Beauty Centre“Helping you look good” 01908 520600 www.anitasbeautycentre.co.uk

SOME EXAMPLES OF NON-PROFITABLE TREATMENTS ARE: