ASP stands for Average Selling Price.
As in, what is the ASP for a spray tan in your salon over the last 12 months?
It is the most important piece of data to know about your spray tan business – just as important as total session count.
Most salon owners presume that it is much higher than the actual ASP.
It is critically important the salon owner knows the actual ASP in order to set a price that will drive more spray sessions.
How is ASP calculated?
Calculate: Total revenue/sales from all spray tan sessions ‘$a’
Calculate: Total number of spray tan sessions ‘b’
Divide: ‘a’ into ‘b’
ASP = $c
But, there’s a glitch in that calculation.
Many spray tan sessions are paid for as part of UV EFT membership. Example: $69 includes 1 spray per month.
Most salons do not allocate a portion of the UV EFT membership sales into spray revenue.
Therefore, the value of the spray business to the salon is under-stated, therefore, the average selling price will also be understated.
In short, the spray business is contributing more than you might think.
Most importantly, knowing the ASP for spray will help you decide what the ideal price for a single spray session (click here to learn why and how) and that is critically important to gain new customers and grow spray tan sessions.
If you’d like to properly calculate ASP and discuss ideas to build a bigger and more profitable spray tan business – connect with your VersaSpa representative at 888-974-9977.