3-Tier Operational Hybrid Model

This chart describes a 3-tier revenue hybrid model I have formulated to increase operational efficiency, lower staffing risks, and increase performance tracking. These components are broken down into three groups to diversify sales, service types and revenue.

Tier 1: Manual Treatments and Services

Manual Services traditionally represent 80% to 90% of a spas gross revenue. Associated challenges include an influx of staffing and turnover, expense payroll and employee hierarchy.

Tier 2: Automated Services

Automated Services are a less common revenue generator. This segment includes a wider variety of treatments and services as demand increases. Services like these include “Salt Rooms”, digital sleeping programs, and self-directed, diagnostic services.

Tier 3: Technology and Sales

Spa and Wellness retail is often perceived as an add-on commodity. However, the retail component of a spa can generate significant revenue and sometimes facilitate over 30% of the annual gross revenue. Software, advances in technology, and new customer APPS are strengthening this segment as well.

To read more about ways this model specifically applies to operations and revenue, click here. 

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