Hotel spas have long been a haven of calm for business travelers seeking to get the kinks out of their backs after a long flight or to unwind before a big meeting. But as the economic downturn hurts the hotel business, the spas are dealing with their own stresses.

According to PKF Consulting, spa revenue rose 5 percent from 2006 to 2007, largely because of higher charges for treatments. But since last fall, hotel spas have been dealing with both reduced occupancy and guests who have sharply curbed their discretionary spending.

PKF’s report on the outlook for hotel spas projected decreased attendance for 2009. To counteract this, hotel spa operators are trying several approaches to increase business and cut costs.

The spas are looking outside their hotels to cultivate a local and regional clientele. “Resort spas in particular are trying to attract more drive-in traffic,” said Lynne McNees, president of the International Spa Association. “We’ve seen a lot of resort and destination spas opening up their doors for day guests.”

Hotels like the Ginn Hammock Beach Resort in Palm Coast, Fla., the MGM Grand Hotel and Casino in Las Vegas and the Fairmont Sonoma Mission Inn in Sonoma, Calif., have all begun to offer incentives to local residents like reduced admission fees or discounts on treatments.

While this strategy may help spas circumvent the challenge of reduced hotel occupancy, it can have undesired effects for business travelers who may find the spa overcrowded or unable to accommodate them. Hotels say they have been trying to avoid spa logjams by being more proactive, contacting guests ahead of time if they anticipate a large volume of local visitors and asking them to book spa treatments in advance.

The hotel spas are also shifting toward shorter, less expensive treatments. Ms. McNees, of the spa association, said that many spas offered quicker or cheaper treatments in the past, but now they are marketing them more aggressively.

“Right now, I think where the spas are focused is trying to maintain the customer visits,” said Jeremy McCarthy, director of spa operations for Starwood Hotels & Resorts. “The spas are trying to see if they can touch as many people as they normally would.” Even if hotel guests spend less per visit, more visitors would help make up the difference.

“What our members have been reporting is there are more people walking in the spa door,” said Ms. McNees of the spa association. “We’re capturing more guests, but when they’re there, they’re spending less.”

Hotels also are trying to increase spa revenue by offering packages in which several services are bundled at a discount, throwing in bonuses like a complimentary manicure when a more expensive service is booked, and issuing credits that guests can use for treatments during their stay.

“We’re seeing a lot of instances of spa packages being used as a way to incentivize guests,” said Bruce Baltin, senior vice president at PKF Consulting, a company that focuses on the hospitality and tourism industries. Mr. Baltin said these kinds of promotions served two purposes. They bring revenue into the spa and they increase bookings of guest rooms without forcing the hotel to lower room rates substantially.

Jane Angelich, an entrepreneur in Marin County, Calif., says she recently received spa vouchers as rewards when booking rooms for business trips, both domestically and overseas. But at one hotel, the credit went unused when she could not find an appealing treatment for an amount close to the voucher’s $100 price tag.

“You really can’t get much of anything in the way of treatments for $100,” she said. “It gets you in the door and using some service where you pay the difference. Of course, the hope is that you will buy products or go back for additional services.”

Spa packages appear to be catching on, though. At the St. Regis Resort, Monarch Beach, in Dana Point, Calif., a discounted massage and facial that was heavily promoted via the social networking site Facebook has been extended twice due to demand.

“Business travelers are traveling more economically but at the same time you also have, I think, because of the fact that they’re feeling more stress, a lot more people recognizing the importance of taking care of yourself,” said Mr. McCarthy of Starwood.

Still, if hotel spas are having difficulty attracting business, travelers may notice more equipment sidelined or out of order for extended periods as properties buy lower-end items that break down more easily and cut back on maintenance to save money, said Kurt Broadhag, president of K Allan Consulting. Mr. Broadhag’s firm focuses on fitness facilities, which are often combined with spas at hotels.

Joe Sokohl says he thinks he has already experienced the down side. As a software designer for PracticeWorks, a company that manufactures dental technology, Mr. Sokohl goes to hotel spas when traveling. In recent weeks, Mr. Sokohl said, he visited two hotels with broken whirlpools that remained out of service for the duration of his stay.

“The problem is from an experience standpoint, it makes a negative experience,” he said. He said he even stopped booking a hotel he previously had used frequently in the past when the whirlpool was down for six weeks. He switched to a competing property nearby. “The new hotel was the same rate. The fact that they had an indoor pool and a whirlpool that worked made enough of a difference.”

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Building Spa Revenue, Spa Business Plan, Spa Professionals, Spa Profits Build Spa Sales, Spa Resort Revenue

It’s become commonplace for dermatologists to try their hand at selling retail skincare products, but few of them will say that your frequent forays to the beauty counter for moisturizer (as the crucial last step in the hallowed wash-tone-moisturize skincare regimen) could have all been for naught, or worse, harmful.

Dr. Zein E. Obagi, who made his mark with prescription skincare systems in 1988, doesn’t mince words when he’s bringing out his first over-the-counter anti-aging collection, dubbed ZO Skin Health, the usage of which is an encouraging “as you please” manner, probably to counter all the “you must have it!” messages floating about.

The deal is, the customer decides what exactly it is that needs improvement in her (or his) skin, and the ZO collection will have the solution, no pressure about completing the entire line.

The new “Rx-based formulations” are cleansers, sun protection and acne pore treatment (Offects), renewal/recovery cremes (Ommerse), eye repair (Olluminate) and cellular stimulants (Ossential) – Daily Power Defense “encourages DNA repair mechanisms to self-correct,” Radical Night Repair with 1% concentrated retinol (10 times the industry average) repairs “age-related damage,” and Growth Factor Serum triggers overall skin improvement.

First launched in Hong Kong, Malaysia, and Singapore, this past month, it will be available in the Philippines starting this month, then on to Australia, New Zealand, Japan, South Korea, the UK and US.

“You get what you need, not what Dr. Obagi thinks you need. Most women are addicted to moisturizer, but a recent article in the Dermatology Times indicates that an overuse of moisturizer can lead to skin cancer, and an upcoming article in the Financial Times titled ’Death By Moisturizers,’ quotes Dr. Obagi extensively in that a simple moisturizer, which is no more than lipids and water, is actually harmful,” said Jue Wong, Executive Vice-President of Global Sales and Business Development for Zo Skin Health, at a media preview last week.

“If I give you a product that has collagen 1, 2, 3 in it. You put collagen in your skin, what do you think is going to happen to it? It sends a signal to your skin to stop producing collagen. That’s marketing. If I give you a product that is a heavy moisturizer, it will tell your skin to stop producing moisture. What Dr. Obaji is saying, ’I don’t want your skin to stop functioning. I want your skin to function at it’s best.’ Most products are doing you more harm than good, because you stop producing what you need. You don’t need another skincare brand. But what this brand is doing, it wakes up your skin cells so that your skin cells will do what it needs to make your skin healthy,” said Ms. Wong.

Skin-Awakening is the new slogan

The parameters of healthy skin, said Ms. Wong, are provided by “seven signs” — namely that it’s smooth, hydrated, firm and tight, even-toned, tolerant and free of disease. The guarantee that the ZO Skin Health line is giving, is that skin will show improvement in these specific areas should one use the corresponding product in the collection. The timeframe is six to eight weeks. The shared ingredient in most of the products (exempting cleansers, polish and a full-spectrum sunscreen with zinc oxide and a titanium dioxide as active ingredients) would be retinol, as effectiveness is pegged at 0.2% up.

“It’s a saturation program enough retinol in your skin to keep it awake and to constantly give nourishment to the skin. Retinol is really the fountain of youth, but it does not have a very good reputation, it makes the skin dry, sensitive and [prone to] breakout. Most of the retinol products have water and when you have water it breaks down; our products don’t have water or it’s encapsulated,” said Ms. Wong.

Acne treatment is recommended for 11-year-olds at the earliest. But given that 80% of skin damage is primarily because of sun exposure, Ms. Wong ventured that the products to build on would be the sunscreen and scrub (to get rid of the buildup of dead skin cells).

If clients insist, they may mix and match the products with those outside the ZO Skin Health line (although Ms. Wong qualifies that Dr. Obagi would probably advise against it, realistically women like to experiment); however, mixing two retinol products is strongly discouraged.

Nevertheless, it should be noted that the Kligman clinical trials on the Oessential Growth Factor Serum (P12,500/30ml) reportedly showed 10% reduction in wrinkles and fine lines after one week of usage, up to 30% after eight weeks; 28% improvement on skin texture and 25% improved elasticity after eight weeks; with the 20 participants listing 80% reduction in wrinkles and 60% reduction in oiliness and age spots.

Another independent clinical study provided by Ms. Wong on the Oessential Radical Night Repair (P18,200/30 ml/1fl.oz.) noted 75% decrease in fine lines and wrinkles, 75% noticeable visible improvement of fineness, 79% improvement in overall skin appearance, and 92% improvement in skin tone and radiance.

Ultimately, the customer decides what works and doesn’t work, but Ms. Wong assured, “You will be able to see how the seven signs have improved. If you were rough, before you will be smoother. But you will never again completely to the level where you were like a baby. So it’s the best condition you possibly can [have] without any medical treatment, but after that if you still want more, you go see a doctor.”

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Recession Hits Luxury Spa Business Across Countries

Like most other industries, the spa business is being affected by the downturn in the global economy. Susan Harmsworth, chief executive of Espa, a company based in Britain, reports that since October, 20 of her company’s spa projects had been either postponed or canceled.

On a recent visit to Manhattan, Ms. Harmsworth discussed the spa business and its prospects.

Q. How long have you been in the spa industry?

A. I’ve been in the spa business since 1970. I started a design consultancy to five-star hotels in 1988. I launched Espa, the brand, in 1993.

Q. How big is your operation?

A. We’re working in 55 countries, we have 45 projects under construction, we have about 20 gone on hold in this climate, we have about 70 spas we manage globally now, and we have about 200 spas that we supply products, treatments, training to.

Our revenues are probably around £20 million for the year ending April 1, 2009. That’s product and services, fees for management, design and recruitment. This doesn’t include revenue from each spa individually.

Q. Which hotel brands do you work with and what is your business arrangement with them?

A. We do all the One & Only hotels and all the Leela hotels in India. We do most Peninsulas, a lot of Ritz-Carltons, we work with Mandarin Oriental, Four Seasons, Bulgari. We have an operating contract for a period of usually about 15 years, and we get a base fee and a percentage on turnover and profit.

Q. Why did you sell 40 percent of Espa to Istithmar World Capital, a private equity arm of Dubai World, last year?

A. The spa industry isn’t as profitable as people think, and to manufacture very high-quality products is also expensive. It’s not like mass toiletries. So we built the infrastructure of our company and our team and our global presence very slowly and very solidly. When Istithmar approached us, we felt that the opportunity to maximize that a little bit quicker would make it much easier.

Q. How is the recession affecting Espa’s business?

A. We decided to go out and see all our clients, because our clients are huge international developers. We wanted to work out which sites were literally happening. The sites that were in planning that are on hold while they refinance are Kazakhstan, Costa Rica, Dubai, Macao, Las Vegas.

The recession is the worst I’ve ever seen because it’s so totally global. There’s not a market that hasn’t been affected. I don’t have a client that’s not affected.

Clever developers are doing the design phases of everything, of the whole resort, and then they’re waiting because they think all bids from construction companies will go down. They may wait for another year or two. Projects have been canceled altogether because they can’t be financed or the company’s gone down. We have 10 projects that are on hold temporarily, there are probably 10 that have gone permanently, but then we gained others in December, in London, Marrakesh, Paris and another in Las Vegas. And 11 spas are opening in 2009.

Q. What are the trends now in the spa business?

A. More people are going to spas in groups. There’s an increase in male treatments, a lot of our city spas are 45 percent men. We’re seeing the medi-spa. In the States, it does noninvasive procedures including fillers, microdermabrasion, Botox. We’re seeing a big increase in spa cuisine.

Q. What treatment do you recommend for stressed-out Americans?

A. What I recommend is they don’t do this thing of running in for a 50-minute massage and then running out back to the office, which does them no good whatsoever. What we’ve found in the United States is that once somebody has felt the physiological advantage of using a steam room or heated jet pool, having a little sleep with an herbal tea, having a massage and having another little sleep, they just feel so totally different that they start then to think in a different way. You’ve got to try and slow people down and ground them.

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Spa Business, Spa Professionals, Spa Profits, Spa Trends all natural beauty products, body lotion, massage therapy products, natural skincare products, relaxation items, Spa Products, spa supplies, wellness products

Starting in the 1990s, you couldn’t swing a plush white towel without hit ting a client in a “day spa” that had once been known simply as a salon.

Spas picked up way more steam in the late 1990s and beyond, when treating herself to a facial, massage and manicure/pedicure (now simply known as a mani/pedi) was simply what a woman did.

People worked hard and soon seemed to consider pampering mandatory as a reward. Facials, once something you only got on vacation or on a cruise, became, for some, a monthly must.

Consider this: According to Ohio’s Board of Cosmetology, the number of licensed estheticians in Ohio (they are permitted to do facials, skin treatments and waxing) grew from 453 in 1998 to 3,204 in 2008, a jump of 607 percent.

But just as analysts expect 2009 to bring retail store closings, some local day-spa owners expect their industry to shake out as well, with smaller spas either closing or salons cutting back on the spa services they offer and going back to their bread-and-butter haircut and color services.

Reps from beauty-supply houses are telling their customers – salon owners – that their sales to salon/day spas are dipping, noticeably, especially for nonhair-related products.

Like many working women, Tara Templeman, an events planner who lives in South Euclid, is considering financial priorities.

“I consider the economy, and my spending, and there’s some shakiness,” she says. “I definitely still make the same number of haircut and brow-wax appointments, but I’ve cut back on facials, manis and pedis.”

Frank Alvarez, of the Markfrank salon chain, has been in the business for 50 years, so he knows something about economic ups and downs.

He remembers the days when the “spas” were Helen Milner on Cleveland’s Shaker Square and Dominic’s in Beachwood – places patronized by wealthier women – and considers the more recent past, when every corner seemed to have a day spa.

He predicts a shakeout this year.

“I’ll tell you, this is the first time I’ve really seen the beauty business affected,” says Alvarez, who, along with his family, owns the two Markfrank salons in eastern suburbs.

Hair salons have long been dubbed recession-proof. People, especially women, likely will always want to have their hair cut and usually colored, too.

But in the past couple of decades, beauty salons began offering facials, waxing, massages, body wraps/exfoliation, pedicures and manicures. They had to add space to provide most of these services, which didn’t have as quick a turnaround as a small haircut station.

That meant less income per square foot.

Yet “it was a big trend, and people didn’t want to be the last ones to get on the boat,” says John DiJulius, owner of four John Roberts salons, two of which also have spas (Mayfield Heights and Solon).

An explosion of spa additions ensued, with supply fueling more demand.

Consider Charles Scott Salon and Spa, with salon-day spa locations in Rocky River and Westlake. In 1996, the Rocky River location had -in addition to a staff of hairstylists – three estheticians, one massotherapist, four nail technicians, one electrologist and a spa manager, says owner Chaz Henline. Today, it’s got six estheticians, five massotherapists, eight nail technicians, the same electrologist and the spa manager.

Henline opened a Westlake location as a full-service salon in 1993. “We had one esthetician, three nail techs, no massotherapists and no spa manager,” he says.

That location also evolved into a day spa in 2004 and now employs four estheticians, four massotherapists and five nail techs.

Henline took the new kind of business seriously, building dedicated areas to create the sanctuary environment such services require.

One area in which spas likely won’t see a big drop is waxing. Until the 1990s, salons used to do a little brow and upper lip waxing, sure, but bikini waxes were an exotic oddity. Now, every spa will vouch for how that portion of their business has grown – which is why there are so many licensed estheticians in Ohio now.

Nicole Flesher, spa director at John Roberts, says: “Waxing has skyrocketed. The numbers continue to go up still, every year. People never used to get Brazilians, and now I might do six or eight a day – maybe 10 a day in summer.”

Kelli Hosso, spa manager for Charles Scott, concurs. “Body and face waxing is very steady. People are not willing to give that up,” she says.

Some spas are using creative means to try to head off dips in other services, including massages. Many businesses, such as Charles Scott and the Five Seasons day spa in Westlake, have created “massage clubs,” which give people discounts if they commit to several appointments.

Still, in dire times, people do cut back on things that aren’t necessities.

Plus, says Alvarez, “You have so many day spas now. The spa thing is overplayed, it’s saturated.”

Still, he and DiJulius say the spa/salon industry’s ace in the hole is the personal relationships people develop with their hairstylists – and estheticians, manicurists or massotherapists.

“So many things that used to provide human contact – going to the bank, or the video store – you can do online now,” says DiJulius. “We’re one of the last legal ways to pay someone to touch you – someone you trust.”

As Alvarez says, “You continue to give the best service you can, you’re nice to people.

“And you wait it out.”

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Spa, Spa Business, Spa Business Plan, Spa Professionals, Spa Profits

Starting in the 1990s, you couldn’t swing a plush white towel without hitting a client in a “day spa” that had once been known simply as a salon.

Spas picked up way more steam in the late 1990s and beyond, when treating herself to a facial, massage and manicure/pedicure (now simply known as a mani/pedi) was simply what a woman did.

People worked hard and soon seemed to consider pampering mandatory as a reward. Facials, once something you only got on vacation or on a cruise, became, for some, a monthly must.

 

Consider this: According to Ohio’s Board of Cosmetology, the number of licensed estheticians in Ohio (they are permitted to do facials, skin treatments and waxing) grew from 453 in 1998 to 3,204 in 2008, a jump of 607 percent.

But just as analysts expect 2009 to bring retail store closings, some local day-spa owners expect their industry to shake out as well, with smaller spas either closing or salons cutting back on the spa services they offer and going back to their bread-and-butter haircut and color services.

Reps from beauty-supply houses are telling their customers — salon owners — that their sales to salon/day spas are dipping, noticeably, especially for nonhair-related products.

Like many working women, Tara Templeman, an events planner who lives in South Euclid, is considering financial priorities.

“I consider the economy, and my spending, and there’s some shakiness,” she says. “I definitely still make the same number of haircut and brow-wax appointments, but I’ve cut back on facials, manis and pedis.”

Frank Alvarez, of the Markfrank salon chain, has been in the business for 50 years, so he knows something about economic ups and downs.

He remembers the days when the “spas” were Helen Milner on Cleveland’s Shaker Square and Dominic’s in Beachwood — places patronized by wealthier women — and considers the more recent past, when every corner seemed to have a day spa.

He predicts a shakeout this year.

“I’ll tell you, this is the first time I’ve really see the beauty business affected,” says Alvarez, who, along with his family, owns the two Markfrank salons in eastern suburbs.

Hair salons have long been dubbed recession-proof. People, especially women, likely will always want to have their hair cut and usually colored, too.

But in the past couple of decades, beauty salons began offering facials, waxing, massages, body wraps/exfoliation, pedicures and manicures. They had to add space to provide most of these services, which didn’t have as quick a turnaround as a small haircut station.

That meant less income per square foot.

Yet “it was a big trend, and people didn’t want to be the last ones to get on the boat,” says John DiJulius, owner of four John Roberts salons, two of which also have spas (Mayfield Heights and Solon).

An explosion of spa additions ensued, with supply fueling more demand.

Consider Charles Scott Salon and Spa, with salon-day spa locations in Rocky River and Westlake. In 1996, the Rocky River location had –in addition to a staff of hairstylists — three estheticians, one massotherapist, four nail technicians, one electrologist and a spa manager, says owner Chaz Henline. Today, it’s got six estheticians, five massotherapists, eight nail technicians, the same electrologist and the spa manager.

Henline opened a Westlake location as a full-service salon in 1993. “We had one esthetician, three nail techs, no massotherapists and no spa manager,” he says.

That location also evolved into a day spa in 2004 and now employs four estheticians, four massotherapists and five nail techs.

Henline took the new kind of business seriously, building dedicated areas to create the sanctuary-environment such services require.

One area in which spas likely won’t see a big drop is waxing. Until the 1990s, salons used to do a little brow and upper lip waxing, sure, but bikini waxes were an exotic oddity. Now, every spa will vouch for how that portion of their business has grown — which is why there are so many licensed estheticians in Ohio now.

Nicole Flesher, spa director at John Roberts, says: “Waxing has skyrocketed. The numbers continue to go up still, every year. People never used to get Brazilians, and now I might do six or eight a day – maybe 10 a day in summer.”

Kelli Hosso, spa manager for Charles Scott, concurs. “Body and face waxing is very steady. People are not willing to give that up,” she says.

Some spas are using creative means to try to head off dips in other services, including massages. Many businesses, such as Charles Scott and the Five Seasons day spa in Westlake, have created “massage clubs,” which give people discounts if they commit to several appointments.

Still, in dire times, people do cut back on things that aren’t necessities, and they reconsider what necessities are.

Plus, says Alvarez, “You have so many day spas now. The spa thing is overplayed, it’s saturated.”

Still, he and DiJulius say the spa/salon industry’s ace in the hole is the personal relationships people develop with their hairstylists — and estheticians, manicurists or massotherapists.

“So many things that used to provide human contact — going to the bank, or the video store — you can do online now,” says DiJulius. “We’re one of the last legal ways to pay someone to touch you — someone you trust.”

As Alvarez says, “You continue to give the best service you can, you’re nice to people.

“And you wait it out.”  

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The spa industry has been stressed by the recession—which is great news for your aching wallet.

It took ten straight days of shoveling snow and the resulting back spasms for Hyde Park resident Elizabeth Lockwood to finally decide enough was enough: She got online and found a spa she could visit for a massage while seeing relatives over the holidays. For Old Town resident Kate Bongiovanni, it took a brutally active autumn of competing in endurance events—an Ironman and two marathons—to admit her battered body needed a sports massage, recession or no recession. “I’m not going for relaxation but for working out the kinks in my shoulders, hips and legs from athletic overuse,” she says. “It was really all about my body breaking down and having to limp from one place to another that prompted me to go.”

What these women—and many other Chicagoans—have in common is that in these difficult economic times they need a compelling reason to spend money at a spa. “Instead of deciding to treat themselves, it’s more of a ‘I can’t move my neck because I can’t sleep because I’m so stressed out’–necessity,” says Stacy Levy, spa director at exhale in the Gold Coast.

At exhale, sales are about 20 percent below projections, and the hardest-hit services are the ones clients consider indulgences, such as body scrubs and facials. But maintenance treatments—like waxing, manicures and pedicures—are down, too. “Our regulars are waiting longer between appointments,” says Stephanie Gerard, publicity coordinator for Bliss Spa. “Somebody who used to come for a monthly facial now comes every two months. For nail care, if they used to come every two weeks, now they do it once a month.” Lynne McNees, president of the International Spa Association (ISPA), which certifies spas and tracks industry trends, says, “People are still going to spas—but instead of a 90-minute service, they get one that’s 60 or 30 minutes.” (The org will release industry sales numbers for late 2008 and early 2009 later this month.) “It’s similar to right after 9/11, when we all held our breath and wondered what would happen,” McNees says.

To extend the time between treatments, clients are channeling their inner aesthetician and attempting to perform their own treatments at home. “I’ve forgone my usual brow wax in favor of plucking myself, though I’m less happy about those results,” says Stacey Finkelstein, a University of Chicago graduate student. If there’s a bright side to former clients DIYing spa services, Gerard says, it’s that people often buy the products used in their favorite treatments at venues like Bliss for at-home use. So customers may be spending less on services, but they’re dropping more on products.

Some clients are forgoing other splurges—new shoes, eating out—so they can continue spa-ing, according to Kelly Mack, a facialist at Lakeview’s Absolute Precision Skin Care. “I’m surviving,” she says. “I still have some clients cancel because they need to make ends meet. But I have a wait list, so if someone does cancel, I can usually fill it.”

Others are holding off on booking spa treatments until they can get a discount. “I’ve been hoping that treatments go on sale,” says Alexia Koelling, who works in the Loop. “I really want a facial, but I don’t want to pay $100!” Koelling shouldn’t have much trouble finding a good deal right now, says ISPA’s McNees. To stay afloat and keep clients walking through their doors during this challenging fiscal time, spas are rolling out scores of discounts and promotions on a weekly, daily, even hourly basis. For example, at the Four Seasons, Swedish massages are $30 off Monday through Thursday; at exhale, facials and massages are 50 percent off at 8am, seven days a week; and at Bliss, the “Farewell to Bush” special offers 20 percent off Brazilian waxing through February 12. So if you’re smart about when and where you go, there’s no need to wait until a back spasm to book a massage.

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In these penny-pinching times, it’s hard to believe that San Diego ladies are still dishing out the dough every month to remove unwanted hair through the painful process of waxing — but they are.

The Pretty Kitty, a wax and skin care service specializing in the Brazilian bikini wax in Pacific Beach and Chula Vista, sees 30 to 50 women a day at its P.B. salon and upwards of 60 to 70 at the combined locations, says owner Tricia Hetherington.

“A Brazilian is such a popular way of life,” said Hetherington. “We see everyone from college girls to grandmothers.”

Individual waxing services at The Pretty Kitty range in price from $10 to $60, with the Brazilian costing $45. Other services offered include eyelash and eyebrow tinting, and facials, which are only offered at the Chula Vista location.

A key to the salon’s success: Keeping prices low compared to day spas and other multiservice salons to attract regular monthly clients.

“A high price tag means they don’t do a lot of them,” said Hetherington. “If our price tag was $50 or $60 (for a Brazilian) it would make it very difficult for a person to come in every month.”

A Boost In Business

Sarah Hetzler, owner of Le Wax Boutique in North Park, which opened last October, retained clientele from her previous salon, but typically sees three new clients a day. With St. Valentine’s Day approaching, her customer numbers have about tripled.

“I just started advertising with Yelp and it’s unbelievable,” Hetzler said. “With that and the San Diego Reader I do really, really well.”

At Le Wax, a Brazilian is $40 and prices for individual waxing services range from an $8 lip wax to a $65 male Brazilian; facials are $50 to $160.

In contrast, business at The Undercarriage in Bankers Hill, which owners Malinda Turner and Kirsten Prunty opened in January 2006, is fluctuating due to the downturn.

“Definitely the economy has hit us, but we are still staying afloat because of our regulars,” said Turner. “And we still continue to get new business because we advertise.”

February is the beginning of the seven-month waxing season, which slows down with the start of school in September. But in these two weeks prior to Valentine’s Day the salon typically sees a 25 percent to 35 percent increase in clientele. The Undercarriage’s most popular service, the $50 Brazilian, amounts to 90 percent of its business.

The Pretty Kitty

Hetherington, an aesthetician for six years, originally focused on skin care and facials before realizing that the profit return was in the removal of unwanted hair. She thanks Sarah Jessica Parker’s character, Carrie, on television’s “Sex and the City” for getting a Brazilian wax on the show and influencing American women to do the same.

In June 2006, only three months after deciding to open her own business, Hetherington and her partner opened The Pretty Kitty in Pacific Beach and broke even in the first month.

They had put their own money into the business, without the help of outside investors, and did the renovation themselves. The result is a “Breakfast at Tiffany’s”-inspired, 430-square-foot boutique salon with two waxing rooms and a staff of four aestheticians and two receptionists.

After securing a trademark and patent for The Pretty Kitty logo in 2007, Hetherington opened the 750-square-foot Chula Vista salon in August 2008 and works there five days a week with one other woman.

“We bring in people as needed,” said Hetherington. “It requires a lot of work on our part, but it’s really the most economical way to do it. I’ve seen a lot of other businesses hire a lot of people before they have the customers, but that’s so much money out the door.”

Hetherington chose Chula Vista because she was seeing a lot of her clients commuting from the South Bay and, despite the area’s growing population, other wax salons were scarce.

“We have no competition for 10 miles in any direction,” said Hetherington.

Despite the rough economy, in its first month of operation the Chula Vista salon brought in twice the revenue the Pacific Beach salon did in its first month, in large part due to more advertising and an already established name brand.

But there are other factors, adds Hetherington.

“We attribute our success to being good at what we do and being nice to people,” she said.

The Pretty Kitty is already looking to expand to another untapped locale — Las Vegas.

“There’s quite a demand there for what we do,” said Hetherington. “Surprisingly, this area hasn’t really been tapped into yet.”

Spa Profits, Waxing

U.S. spas, reeling from the sharp drop in consumer spending, are about to get a lifeline. Wynne Business Spa Consulting is introducing The Spa Director’s Recession Toolkit, a management seminar featuring tactics to rapidly improve their financial health. The seminars are being held February 9, 2009, in New York City, and on February 24, 2009 in the San Francisco Bay Area.

To survive the economic downturn, spas must reduce overhead expenses and costs while protecting the quality of the guest experience, and maximize every sales opportunity without “giving away the spa.” Seminar creator Peggy Wynne Borgman of Wynne Business Spa Consulting, herself a 25-year spa operator, believes with the right guidance, spas can rise to the challenge.

Spas face hidden dangers in cost-cutting, she says. For example, slashing operating hours to lower overhead may result in less convenience for clients, fewer sales and a bigger loss. Reactively laying off employees can have a chilling effect on morale – nd customer service. “If we panic and make the wrong decisions, we’ll lose clients,” notes Borgman. “We have to deliver more value, more convenience, and reposition spa-going as a healing activity- not a luxurious indulgence.”

The seminar helps spa directors create an integrated strategy for survival, while delivering business turnaround “tools” that can be put to use immediately. The curriculum addresses a wide array of issues, including the best way to communicate bad news to employees, revamping a spa’s marketing message to stay relevant to a consumer’s new pared-down lifestyle, creating compelling sales promotions without undermining the perceived value of the spa’s offerings, avoiding the dangers of discounting, and applying “lean” business practices to spa operations.

“Spas can reduce the cost of doing business without degrading their guest experience,” maintains Borgman. “For example, most spas hold far too much inventory, which doesn’t lead to bigger sales but ties up crucial operating cash. We show them how to streamline their retail offerings and even their service menus. We also discuss the most profitable way to reward employees for their performance and contribution.”

Spa Business, Spa Business Plan, Spa Profits

 

 

This article is brought to you by Spavelous.com.

 http://www.spavelous.com

 

There are many new ways to generate spa client leads today, but direct

mail remains one of the most powerful lead-generation tools. If you

are not using this for your Day Spa, Salon or Massage Practice…

you should start!

 

Lots of successful businesses within the Spa and Salon industries

are discovering that direct mail is essential for growth, since

newer spa marketing tactics, especially online via internet spa marketing… such as

SEO, social media blogs, and email marketing, often have limitations

because of the rapidly changing rules and technical issues

involved. And a steep learning curve!

 

While a mailer isn’t as sexy as a viral spa video emailed to one

another and it’s not a hot topic at industry conferences &

tradeshows, it’s the most reliable way to reach people at home or

at work. Its reach is wider and deeper than any other medium’s.

Plus, there are few restrictions on format and no message filtering

headaches that plague email marketing.

 

Isn’t direct mail expensive? It can be. But don’t think that you

have to create big, flashy mailers. In fact, when your goal is to

generate new client leads, simpler, cheaper formats often work

better. That’s because the purpose of a lead-generating mailer is

not to tell the whole story but to say just enough to get people to

ask for more information.

 

Here are five basic direct mail tools that you can use to generate

new client leads quickly and inexpensively.

 

1. Sales Letter

The letter is one of the simplest and most effective direct-mail

tools available. It won’t win any design awards, but if written

well it’s one of the few types of advertising that people will

actually read all the way through. And generate a response!

 

To generate new leads with a letter, you generally want to offer

something free, such as a brochure, sample, treatment,

consultation, or information kit. There’s no need to get fancy when

writing your letter. Keep it simple. Identify a problem, present

your solution, and offer to send your freebie. Doing so allows

interested prospects to identify themselves and gives you a “foot

in the door.”

 

The simplest letter mailing includes a one- or two-page letter and

a reply card in an envelope. You can enclose anything else you

like, but remember that your goal is to get people to ask for more

information, not to close the sale immediately. Less is more.

 

2. Postcard

Yes, simple postcards are a terrific way to generate leads. They’re

easy to print and as cheap as mail gets. If you’re a small

business, you can even print postcards through a variety of online

printers and apply stamps and address labels by hand.

 

To get the cheaper postcard rate, the minimum size of any postcard

you can send in the US mail is 3.5″ x 5″, and the maximum size is

4.25″ x 6″. You can certainly create larger postcards, and many day

spas & salons do. You simply have to pay more postage. Larger sizes

give you more room for your message and photos or graphics. Just be

sure to talk to your printer first to determine the most efficient

size for printing so you get the most for your money.

 

Postcards are particularly good for generating a quick phone call

or for driving people to your Website. Since cards are small and

offer little room for copy, your product or service should be

familiar and easy to understand. Your offer should be simple and

direct. People don’t read postcards as much as they glance at them.

 

Your phone number or Web address should be big and bold so people

can’t miss it. If you’re driving people to your facility, make sure

to give clear directions and a simple map if you have room. Telling

people what you want them to do and how to do it is the best way to

maximize response rate.

 

3. Flyer

You want simple and cheap? Print up a flyer on ordinary paper, fold

it, affix a mailing label and a stamp, and throw it in the mail.

This kind of guerrilla tactic is dirt cheap and can produce

fantastic results for day spas, salons and massage clinics alike.

It’s particularly good for small, local businesses (or businesses

that want to appear small). Unless you’re selling Mercedes sedans

or Rolex watches, no one expects you to do fancy mailings anyway.

In fact, in a pile of over-designed ad mail, a simple flyer from a

local business stands out. People are subjected to so many clever

ads, they develop “ad blindness.” To get people to notice you, just

mail them ugly flyers that don’t look like ordinary advertising.

Ugly gets opened!

 

When you’re mailing a flyer, you should fold it in thirds (called a

“roll fold”) and affix a tab to hold it closed so it can survive

the journey. You will put your main message on the inside with

teasers and your mailing information on the outside. And be sure to

design the flyer so that when you read the address, the folded side

is on the bottom and the tab is on the top. Most printers, even

small ones, should know this…

 

4. Invitation

When you see the word “invitation,” you probably think of small

cards with heavy paper and elegant printing asking you to a wedding

or formal dinner. But invitations can take almost any form. They’re

simply a way of presenting an offer that feels personal and

 

important to your prospective client.

You can certainly go the expensive route if you have an expensive

products or treatments. But you can invite people to an event with

any of the formats above: a letter, postcard, or flyer. Just start

the headline with the words “You are invited to…” then tell

people what the event is.

 

You can invite people to an open house, special sale, party for

your best clients, product demonstration, informational

presentation, or anything that requires getting people to a

particular location. The key is to make people feel that they are

special and not everyone is being invited. Once they get there,

your staff can go to work.

 

5. Special Delivery

FedEx, UPS and other quick delivery services are far more expensive

than regular mail, but this is a technique for a special “wish

list” of your best prospects. If you have 100 key people you want

as customers, spending the money to overnight a brochure or product

samples may well be worth the investment.

 

This mailer is guaranteed to get opened. Who can resist opening a

FedEx package? Inside, you should include a personal letter

explaining who you are and what you are offering. You might send a

sample with a note that says, “Here’s a small sample of our skin

care products. If you’d like to see the real thing, call me and

I’ll have a full size product shipped to you.” Or you could enclose

a disk with a video presentation or an info kit with detailed

information about how others have used your products and treatments

and now look 10 years younger!

 

Once again, don’t try to fancy it up. You are sending a message to

a highly select group of people, so it should look like you’ve done

it personally. This isn’t advertising; it’s a personal contact from

you to them.

 

No matter what direct mail tool you use to generate leads, remember

to follow up quickly once you get the lead. Hot leads cool off

quickly. Ideally, you should respond to people within a week, more

than this is tooo long.

 

Give your leads to the receptionist and make sure they understand

what was offered so they can follow up with a phone call.

 

Almost every day a new marketing technology or technique is

developed. But good-old-fashioned direct mail hasn’t lost any of

its power for generating leads.

Full Article

 

 

Spa Finder, Spa Marketing, Spa Professionals, Spa Profits