Ep. 17 - The Five Biggest Money Mistakes Spa Owners Make And How to Fix Them
Running a spa is expensive, but some financial mistakes will cost you more than others.
In this episode, we're covering the five biggest money mistakes spa owners make and how to fix them before they hurt your bottom line so you can take home more money.
It's really easy to focus on getting more clients and growing revenue. But if your finances aren't managed properly, you'll never see real profit and be able to pay yourself more.
Why Do These Money Mistakes Matter?
You can be fully booked and still be broke if your finances are not managed correctly.
So many spa owners focus on revenue instead of profit. But it's not about what you make—it's about what you keep. It's about that profit.
Fixing these mistakes will help you pay yourself more and build a financially stable business.
Avoid thinking that more clients mean more profit. If expenses are out of control, your earnings are not going to grow.
Mistake #1: Not Knowing Your Numbers
How do you even know if this is happening if you don't track your numbers?
Many spa owners have no idea how much it actually costs to run their business. If you don't track your finances, you're making decisions based on guesswork.
How to fix it:
Track monthly revenue, expenses, and profit margins
Use a simple spreadsheet or accounting software to track cash flow
Set financial goals so you always know where your money is going
Avoid ignoring your finances because it feels overwhelming. But if you don't know your numbers, you don't really know your business. And that's what being in business is about.
Mistake #2: Underpricing Your Services (And Not Charging for Your Time)
If your prices are too low, you're working harder and making less money. Not just you, but your team as well. They aren't even able to get paid more because the business is not getting paid.
Many spa owners set prices based on what might "feel good" or what competitors are doing instead of actually looking at their business costs.
How to fix it:
Calculate the cost per service
Figure out the correct profit margin for the service
Raise your prices strategically
Avoid setting your prices based on competitors. Your costs are different from theirs and you need to price your services accordingly.
Mistake #3: Ignoring Your Retail Sales
This is a number I'm always asking my clients about: What is your retail-to-service ratio?
Many spa owners don't sell products consistently and their team doesn't sell products consistently.
Clients need home care products to maintain results at home. And if they're not buying from you, they're buying from somewhere else.
How to fix it:
Talk about products during the service, not just at checkout
Create bundles or post-care treatment kits
Make a skincare prescription pad (they get to take it home, tape it to their mirror, they're so excited, it's a really fun experience, and it gets their skin where it needs to be AND gets revenue in your pocket)
Don't assume clients will ask about products. They won't unless you guide them.
Mistake #4: Overspending on the Wrong Things
Make sure you're not overspending on unnecessary expenses instead of focusing on profit-generating investments.
You need to be tracking what you're spending so you're not losing thousands of dollars every year.
How to fix it:
Do a monthly expense audit
Cut any subscriptions, software, or services you don't use
Invest in things that will actually grow your revenue—like marketing, retail, education, coaching
But they only work if you apply what you're learning. Information does not equal implementation.
Focus on that return on investment. Smart spending means investing in what makes you money, not just for the sake of spending because it looks and feels good.
Mistake #5: Not Paying Yourself
If you're burnt out and you're not paying yourself, what is the point of having a business?
Many spa owners pay everyone else first and hope there's money left over for them.
You deserve to pay yourself a consistent salary, not just what's left over at the end of each month.
How to fix it:
Set a minimum salary
Pay yourself like a real business expense
Adjust the pricing of other things so you can afford to pay yourself first
Separate your business and personal finances to avoid mixing expenses
Don't wait to become "successful" before paying yourself. Your paycheck should be your priority.
If you don't pay yourself first, you're treating your spa like a hobby and not a business. And that is not how we make money.
Your Next Step
Apply what you learn. Remember: information is not implementation.
Review your pricing for your services. Do an expense audit of your bank account and see if you're making these mistakes. Choose one area you're going to improve this month.
Choose just one. Start there. You've got this.
Ready to fix these money mistakes and finally pay yourself what you deserve?
Fill out this intake form to book a discovery call with me. Let's create a financial strategy that actually works for your spa.
