Ep. 15 - Paying Yourself More As A Spa Owner
If you're a spa owner who works hard but still feels like you're not making enough money, you are not alone.
Most spa owners struggle to pay themselves what they deserve because they focus too much on revenue instead of profit. They think if they just book more clients, they're going to make more money.
That's totally understandable. I can see how you'd think that. But the reality? It's not always true.
I'm going to show you the key mindset shifts and financial strategies that will help you pay yourself more without taking on more clients or working longer hours.
The Biggest Myth About Paying Yourself More
Myth: "If I see more clients, I'll make more money."
While that might make sense, it's not really the way to work smarter, not harder.
Many spa owners believe the only way to increase their income is to book more appointments. But the problem is that more clients = more hours = more burnout.
True financial success comes from profitability, not from staying busy.
I feel like "busy" has become this glorified word recently. I think we're all tired. We're all tired of going a million miles an hour, and we just need something to be easy. That's the whole point of this podcast—to create a bougie but boring business.
Mistakes to avoid:
Measuring your success by how booked you are instead of how much you're taking home
Thinking working more hours is always the answer
Let's dive into the real strategy behind paying yourself more.
Pay Yourself First, Not Last
If you're new to business, you probably never heard of Profit First. And if you're not new to business, I hope you have. It's a wonderful book by Mike Michalowicz.
The very first step I suggest to clients is to pay yourself first, not last.
Now, this isn't always possible, but getting to this point is absolutely possible. And it's the mentality you should have with your business. Because it IS your business.
Many spa owners pay everyone else first—the landlord, suppliers, employees. And then they hope there's money left over for themselves in the end. That is not how we recommend doing things.
Treat your salary like a fixed business expense.
Decide on a monthly salary and commit to paying that every single month. If your business cannot sustain that, you don't have a revenue problem. You have a pricing or an expense problem.
Stop thinking, "Oh, I'll just pay myself later when things improve." You need to build this into your financial mindset right now.
If you don't prioritize your paycheck, nobody else is going to.
Raise Your Prices to Match Your Value
If you're overworked and underpaid, your pricing is likely too low.
You need to make sure that profit margin is in a really good place. You can do this by:
Raising your prices
Decreasing your expenses
Making sure your employees are on the proper pay plan
Focusing on high-ticket services and upsells (this increases overall revenue AND profit margins)
The key to making more money is not working harder. It's working smarter and prioritizing the most profitable services.
Increase Retail Sales Without Feeling Salesy
This is one of the easiest ways to increase revenue without adding extra work.
Clients are already investing in their skin. They should be buying products from you and not anywhere else.
Boost retail sales naturally by:
Recommending and explaining why products will improve their results
Teaching them how to maintain spa results at home
Offering bundles or incentivizing with VIP membership perks
Avoid assuming clients will ask about products. They won't. Some might, but most won't.
A spa owner who prioritizes retail earns more without working more.
Reduce Expenses That Don't Serve Your Profit
If your expenses are too high, it doesn't matter how much you make.
If you have a million-dollar spa and your expenses are $995,000, it doesn't matter how much revenue you're making if the profit margin isn't there.
Cut costs smartly:
Stop over-ordering things or purchasing things because they seem bigger and better
There has to be a reason behind every penny your business spends
There has to be a return on investment for every penny your business spends
For every dollar you put in, you should get a minimum of two out. But we really want to focus on getting three or four out
Renegotiate with suppliers
Eliminate subscriptions or software you don't use
Cut expenses while keeping more of what you earn without sacrificing quality.
And oftentimes, people are overpaying their team without knowing.
It's very easy for us to be people pleasers. But once you prioritize the people you're trying to please—and the first people you should please are yourself and your family—you realize it's a lot easier than you think to say no when you're saying yes to yourself and your family.
Your Next Step
Create a strategy that increases your take-home pay.
Ready to pay yourself what you deserve?
Fill out this intake form to book a discovery call with me. We can create a 90-day plan to help you pay yourself more. That's the number one reason people come to me is, they want to pay themselves more by hiring a team.
And you can absolutely do that, but hiring is not always the way to pay yourself more. You can often start paying yourself more without having to hire at all. And it usually starts by cutting expenses, increasing prices, and making sure you're maximizing your team.
