[QUOTE=Rascalaa;2844719]With the spas cropping up in every corner of the city with each streets having multiple SPAs, I was just wondering the demand supply of this. Just a back of the napkin calculation. Is this right?
Number of Visitors: 5-6 on weekdays and 20 on weekends.
Service Cost (Entry Fee): 1200.
Extras Cost (Avg): 1500.
Percentage Paying for Extras: 80%.
Lease Cost: 40,000 to 50,000.
Number of Therapists: 5.
Weekdays in a Month: 22.
Weekends in a Month: 8.
Calculations:
Weekday Revenue for Spa: (5. 5 average visitors * 1200) = 6,600 INR per weekday.
Weekend Revenue for Spa: (20 visitors * 1200) = 24,000 INR per weekend day.
Total Monthly Revenue for Spa: (6,600 * 22 weekdays) + (24,000 * 8 weekends) = 145,200 + 192,000 = 337,200 INR.
LE Cost: 40,000 to 50,000 INR.
Total Monthly Profit for Owner: Total Monthly Revenue for Spa. Lease Cost = 337,200 - 40,000 to 50,000 = 287,200 to 297, 200 INR (Sounds too high?
Extras Earnings for Therapists: (5. 5 * 1500 * 80% * 22 weekdays) + (20 * 1500 * 80% * 8 weekends) = 132,000 + 192,000 = 324,000 INR.
Extras Earnings per Therapist: Extras Earnings for Therapists / Number of Therapists = 324,000 / 5 = 64,800 INR. Sounds too less?[/QUOTE]You have to account for Electricity, water bill, other miscellaneous expenses as well. Also some SPA's pays salaries to certain therapists. So Owner profit will be on lesser side.
Cheers.
OCLTR.
