If spas and salons are interested in dynamic pricing, where should they start?
“I always say start with menu engineering, identifying your most beneficial treatments based on volume and profit margin. I like to name my treatments for this exercise, so I divide it into my stars, costlies, slows and lows.
“My stars are high-demand, high-profit treatments. They’re the probably the ones that are going to be dynamic priced. Then you might have a high demand but a low profit. These are costly so do you really want to sell that or do you take that off the menu? If it brings a lot of people in you may want to keep it.