A spa, usually referred to as day spa, is a business that provides a variety of services for the purpose of improving health, beauty and relaxation through personal care treatments such as hair care, massages and facials, and can sometimes include nail care.

Day spas serve multiple purposes that focus on addressing the aesthetic needs of individuals. Facials and massages are some of the very common services spas offer, alongside with total skin care and relaxation. As with other known salon businesses, day spa owners must retain customers and gain new ones if they want to keep their businesses running optimally.

Thus, how much a day spa earns at a particular time is inconsistent and can depend heavily upon marketing and quality of service. Salary may be affected by such factors as the spa’s location (city versus country location), treatment costs and how much customers pay for a service.

Day spa owners with more than one spa can earn higher income, well in the six-figure range, while those with just one location earn just average. No formal education is required for day spa owners, and they do not have to attend cosmetology schools.

What a day spa owner brings home in pay can be adversely affected by the expenses necessary to run the spa. These expenses may include salaries and benefits to employees, commissions to spa service providers and marketing and equipment costs. While reducing expenses may be an option for owners to increase their earnings, paying for expenses such as vacation, health insurance and paid education can help separate their spas from the competition.

How Much Profit Does a Spa Make in Houston?

Spa business profit margins vary tremendously; they depend on which Business model you have and how you run the business. It’s different for resort spas, medical spas, and day spas. In resort spas, the spa normally has no major expenses.

The hotel or resort operates the spa and, in most cases, it is not a standalone business model. Therefore, the spa does not pay rent, laundry, electricity, maintenance, etc. The main cost the resort spa has to bear is product cost and human capital payroll.

The reality is that it’s easy to earn 40 percent in profit when you don’t have to pay for major operating expenses. Medical spas connected to a dermatology center or operated by plastic surgeons are in a similar situation as with resorts. Again, in most cases, the practice pays the bills, so the profit margin should be around 40 to 50 percent.

Med-spas and day spas that operate as stand-alone businesses are responsible for all operational expenses, compensation, product cost, and marketing. Therefore, the profit margin is significantly smaller. Depending on your spa’s operating expenses, payroll rate, and overhead, an acceptable profit margin is 10 to 15 percent.

While the Bureau of Labor Statistics does not list how much day spas make in the united states, it gives an indication as to what they might earn in a typical year, especially since some often work as technicians. The Bureau states that the average hourly salary of skin care specialists, which includes day spa workers, is $13.81 as of 2008.

This figure includes tips. Earnings can be higher for those with experience, while those working in larger, well-known salons can earn higher salaries. Tree.com states the average yearly salary of day spa owners is between $35,000 and $120,000. In comparison, small day spa owners may earn between $80,000 and $100,000, compared to more than $100,000 for large resort spa owners.

A small day spa is typically more similar to a salon in structure while large spa resort has a different ownership structure where each location is managed by a Spa director who also earns the highest salary from the specific spa location.

Ejike Cynthia