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 real number, and that’s an opportunity.
How is ASP calculated?
Calculate: Total revenue/sales from all spray tan session ‘$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 take a portion of the UV EFT membership sales and allocate it to spray revenue.
Therefore, the value of the spray business to the salon is under-stated.
In short, the spray business is contributing more than you might think.
Knowing the ASP for spray will help you decide what the ideal price for a single spray session, multi-session packages and EFT.
If you’d like to properly calculate ASP and discuss ideas to build a bigger and more profitable spray tan business – connect with your Mystic Tan representative at 888-974-9977.