How spas and massage therapists are surviving in a slow economy

SUMMIT COUNTY — With local business facing the rigors of a down economy, luxury services like massages are unquestionably taking a hit. Residents and visitors are cutting daily frills, but locals in the spa industry share how they’re making it — with positive attitudes, creative advertising and extra legwork.
Erik Ulstad and Ro Irwin-Mayberry, owners of Breck Massage in Breckenridge, consciously strive to reach new customers with volunteer activities and networking.

“As poor as the economy is, this year is better than last year,” Ulstad said. “With Ro and I working and doing community outreach efforts, we’re doing pretty well. It’s not as abundant as it could be, but we’re going to make it through the shoulder seasons.”

They’ve participated in seven volunteer chair massage activities this winter, including holiday parties and Nordic ski races. They’ve also worked at D’Vine Wine chair massage nights.

“A lot of times people view massages as a luxury,” Ulstad said. “But if you take care of your body before it breaks down, you’re going to be better off.”

Being loyal to locals, being proactive and treating them well is Breck Massage’s mantra.

“They are the heart and soul of our business,” Ulstad said.

According to Irwin-Mayberry, Breck Massage offers a “local love” package, offering deep discounts on massages for Summit County residents.

And they’re reaching out to the community by providing a chair-massage service.

“A lot of times people can still afford a chair massage for $1 minute,” Ulstad said. “They’re still able to unwind at less cost.”

Both massage therapists are letting their hands speak for themselves, and it’s working.

“Not on a scale that would represent what the economy was three years ago,” Ulstad said, “but we are seeing people coming in because of our outreach. … Like one in 10.”

Breck Massage is reaching out to the destination skier market as well. Ulstad said the business services locals and visitors equally.

To draw out-of-town customers, they’re trying to drive more traffic to their website .

“The thing that we’re doing is keeping our eye on the long term,” Ulstad said. “ … We’re having to work a lot smarter to get the bottom line, squeezing the most out of every opportunity. We’re making lemonade, if you will.”

Laura Eilers, massage therapist, esthetician and nail tech
Silverthorne massage therapist Laura Eilers is “making hay while the sun shines,” and if that means being available every day or night, that’s what she does. Eilers works six to seven days a week, traveling between spas in Vail and Keystone, and to private homes with her own business, ArohaYoga.com.

Locals definitely get breaks on services, especially if they’re looking to do long-term massage and Eilers travels to clients or provides services in her own home.

“It might be slow, but the focal point is on customer service because you can get customers to return,” Eilers said. “I’m doing everything — massage, nails and skin care.”

Eilers is currently employed at Cascade Resort’s Aria Spa in Vail and the Keystone Lodge and Spa. She’s also working on her yoga and Ashiatsu certifications, striving to be multi-faceted and thus more employable.

Staying positive and putting out a good vibe is important to business, and Eilers is focusing on being smart with her income and resources that are coming in.

“Reality may prove that I need to find an hourly position, especially when mud season begins, to supplement income,” she said and she’s looking at employment ads and networking for springtime jobs.

Karen Mapes, owner of Blue Sage Spa
Karen Mapes, owner of Blue Sage Spa in Breckenridge, guards her secrets to solvency well, but she did divulge this: “If you’re mediocre, you won’t survive. If you excel at customer service, if you’re excellent at what you do, you’ll survive.”

Mapes concedes that for lots of massage therapists, business is slower. But Blue Sage Spa is hanging tough and taking every opportunity to bolster business.

“I think some of my staff is getting creative with second jobs, and they’re really eager to work,” she said. “ … One thing I’ve learned this winter is that you can’t compare last year’s numbers to this year’s. It’s just not realistic.”

Mapes is also always on the lookout for free advertising. She even got involved with the Ullr Parade this winter because she knew the Travel Channel was coming.

“This is not the time to pull back on your advertising,” she said. “We’re hanging on, spending less and making smarter choices when we do spend.”

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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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For many, the new year has taken some expected—and unexpected—turns, challenging most to approach the workday a bit more creatively and to think twice before making any uncalculated decisions.

It’s inspiring to hear about some of the creative solutions spa owners, managers and estheticians are implementing to keep businesses thriving in spite of what is happening in most communities—companies closing, massive layoffs and home foreclosures. What has been seen in our own ranks is the spa industry standing unified and standing strong.
Avoid becoming a statistic

An article on Washingtonpost.com states that, according to Carl A. Boger Jr., associate dean of academic programs at the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston in Texas, 5–7% of spas nationwide won’t make it through the coming year. Don’t let your spa become part of this unpleasant statistic. Folllowing are a few suggestions to consider:

* Think value-added. What small, personalized touches can you include with your services without adding to your bottom line? Donovan’s Serenity & Wellness Spa in Alpena, Michigan, offers free LED hand treatments during facials, which doesn’t cost the spa extra because it already owns the equipment, but it introduces clients to a new element of hand care, and gives them something above and beyond the cost of the service.
* Help clients ward off their stress. Not everyone can afford to get away on vacation this year, so promote your spa as a mini-escape, as Nusta Spa in downtown Washington, D.C., has done successfully.
* Place an emphasis on staying healthy. The InterContinental San Francisco’s I-Spa recently implemented a membership program that is similar to that of a gym—with a more holistic approach.
* Consider cutting back on operating hours. The Ritz-Carlton, Tysons Corner in McLean, Virginia, recently trimmed back its hours to a six-day spa week, closing on Mondays.

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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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2009 International SPA Association Spa Trends

From customizing your style, to customizing your car – we all want services tailor made to our busy lifestyles. This is why, as the voice of the spa industry, the International SPA Association is forecasting customization as one of the hottest trends of 2009.

“In this economy, people are watching their money, plain and simple. Spa professionals are listening to the needs of customers and creating specialized treatments. Whether it’s a 30-minute pick-me-up massage on a lunch hour, or soothing those worked-to-the-bone Wi-Fi fingers, it’s all about meeting the demands of consumers,” says ISPA President Lynne McNees.

– Customized Treatments: In addition to 30-minute facials and massages, spas are listening to the demands and desires of their customers. So whether you’re looking to combine a series of treatments or have one tailored to fit your needs (i.e., Wi-Fi massage), talk to your spa about how it can best fit into your lifestyle.

– Mind, Body & Spirit: Consumers are looking to spas to recharge not only their body, but their spirit and mind as well. Many spas are increasing self-discovery services like ropes courses, art classes and other learning activities that help consumers to stop, be still and focus on themselves.

– Family-friendly Resort Spas: In an era where we’re all moving at warp speed, more and more people are looking for spas that cater to families. These spas are responding to the need for families to communicate and spend time together, whether it’s flying through the air on a trapeze or attending family yoga.

– Organic Spas: More spas than ever before are offering environmentally friendly products and services, but that’s not all. Many feature outdoor treatments and eco-friendly facilities, as well as treatments that highlight indigenous plants and the environment in which the spa is located (i.e., seashell body treatment and blueberry body wrap).

– Spa Credits: In this economy, the smart traveler is the one who de-stresses at the hotel spa after a long flight. Hotels are looking to entice travelers and increase bookings by offering free treatments or spa credits when booking a room.

– Spa Memberships: Similar to a gym membership, it allows spa-goers to experience spas at a lower cost. A 12-month membership could include unlimited use of the facility, a treatment a month and discounts on additional monthly services.

– Half-day Spa Vacations: With people watching every penny, many are canceling their expensive vacations and instead turning to spas. Transform your morning or afternoon into a full-blown escape with a massage, facial and pedicure.

– Dental Spas: Your annual cleaning just got more relaxing. The American Dental Association says about 50 percent of U.S. dentists are providing spa amenities at no additional charge. With hand massages, paraffin wax dips and reflexology, you’ll never dread the drill again.

– Tried & True: Consumers are moving away from the trendy and seeking treatments with proven and tangible results. They’re getting back to basics, focusing on core spa services like deep tissue massage and clarifying facials.

– Increased Spa Amenities: Turn a 60-minute service into an entire afternoon of rejuvenation by taking advantage of the spa’s amenities. After your hot stone massage, take a plunge in the pool, sit in the sauna or cool down in an ice room; today’s spas encourage loitering.

ISPA represents 3,200 members, both spas and product companies, in 83 countries

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Gyms, spas stress value of fighting stress in hard times

As cash-strapped customers cut spending, spas and gyms are doing all they can to keep a place in people’s budgets.

Beyond deep discounts, some are adopting a recession spin: touting services as stress reducers, not indulgences, and highlighting the economic benefits of “wellness.”

A Gold’s Gym program — deemed “Fat-O-Nomics” — centers on money people can save by shedding excess weight. One stat: Being 50 pounds overweight burns nine extra gallons of gasoline per year.

“The cost of a lot of goods has gone up,” spokesman Dave Reiseman says. “We’re aware that there are stories out there asking, ‘Is the gym membership worth it?’ ”

The Westin New York in Times Square has turned layoffs into sales opportunity. A “pink slip pick-me-up” spa promotion gives 20% off a facial from 10 a.m. to 2 p.m. daily.

“If you’re unemployed, you need a pick-me-up — and you need to look good on your interviews,” spa director Nicole Morris says.

As spa owners “feel the pinch” of consumer cutbacks, they’re also all aggressively touting good, old-fashioned discounts via e-mail blasts and website updates, says Larry Oskin, spokesman for the Day Spa Association.

Businesses listed on websites are slashing prices. The number of discount deals offered is up 25% to 30% vs. a year ago.

Spa and health club sales for 2008 aren’t in yet. But on the gym front, signs of trouble started last year. Membership dropped in 2007 for the first time in more than a decade to 41.5 million from 42.7 million in 2006, says the International Health Racquet & Sportsclub Association.

Debbie Goldman of Manhasset Hills, N.Y., is keeping up her gym routine, but saving. She was an off-and-on-again member of upscale gym chain Equinox for more than 10 years, but when she got her $1,500 yearly renewal bill in September, she decided it was “too extravagant in these times.” She opted for an LA Fitness chain offer of two years for $1,200.

To cater to current clients — and lure new ones — Equinox is one of the gyms playing up “mind-body balance” in stressful times.

Equinox has run full-page newspaper ads and updated its website to promote “mind over madness.” Say the promotions: “In these changing times, make a renewed commitment to yourself to lead a healthy life.” Each has a list of healthy endeavors — such as meditating and eating well. Of course, exercise tops the list.

Recent ads from rival gym chain Town Sports International proclaim “Protect your most important asset. Your health.” They also touted an initiation fee cut to $59 from $149.

Says Town Sports marketing chief Sean O’Hearen: “We’re trying to encourage our current and potential customers to focus on things they can control. Your health is one of them.”

Botox providers are also doing all they can to keep their bottom lines looking good.

To lure cash-strapped clients, plastic surgeons and dermatologists have rolled out promotions for the wrinkle-reducer, including a recent “Boootox” special for Halloween.

Botox injections typically cost about $500 per site — such as between the eyebrows — according to the American Society of Plastic Surgeons. It says demand is firm but vulnerable. Botox-maker Allergan reported third-quarter sales up 7% to $318 million, but short of analysts’ expectations.

The economy was a hot topic this month at the American Society for Dermatologic Surgery convention in Orlando, says Jeanine Downie, director of Image Dermatology in Montclair, N.J.

What some docs are doing:

•Image Dermatology hosted a successful “Boootox” Halloween special with discounted injections. Now Downie is looking at a Thanksgiving event. “I’m going to say something like, ‘Don’t let wrinkles gobble up your face.’ ”

•On Nov. 1, Scottsdale, Ariz., dermatologist Susan Van Dyke hosted a Botox for Beginners event with free consultations, samples of skin care products and deep Botox discounts. “The economy is hitting everybody,” she says.

•Beverly Hills facial plastic surgeon Behrooz Torkian now hosts a Beauty Day on Fridays that includes discounts on Botox and other services, says his office director Marcy Parco.

Beauty Day clients get extra pampering such as hand massages, makeup tips and free skin care samples. Many people now can’t afford long family vacations or a “girls’ weekend” at a spa, so these Beauty Days — where customers can spend $500 to $800 for a bundle of treatments — are a way to “feel good” in the downturn, she says.

It’s also good for business: “It was a creative way to get the ladies in here,” she says.

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El Pasoans Spend More On Needs, Less On Wants

EL PASO, Texas — At Foliage Hair Salon And Day Spa a spa in West El Paso, you can get your hair done, manicures, pedicures and massages to relieve your stress. Lately, the stress has been not just on the customers, but also on the business.

Massage therapist Danny Venzor walks into his massage room for another day of work at Foliage. Instead of doing what he loves, he will sit and read a book. His two customers for the day both canceled.

“People that I’ve known for years that come by more often, tend to come by much less often then they used to,” said Venzor.

Venzor told KFOX the customers are not only coming by less, but spending less when they get here.

“A lot of things that people consider to be luxuries, they tend to forgo those first,” said Venzor.

That seems to be the the trend in all departments at Foliage.
“Our clients are scheduling farther apart, instead of every six weeks, they might be coming in every eight weeks instead,” said Joemily Prieto with Foliage.

Many economic experts say what’s happening here at Foliage is happening to a lot of companies, and that many businesses are now feeling the heat.
“A lot of people will put off buying major household appliances, they’ll put off purchasing large-scale furniture, they’ll also delay automobile purchases,” said Tom Fullerton, a professor of Economics at UTEP.

So at Foliage the music remains off, the candles remain unlit, and Venzor must wait for gas prices to drop, and the economy to turn around.
“Well, it makes me worry about how I’m going to pay the rent, and how I am going to come up with certain funds for certain basic costs,” said Venzor.

Out of all the reasons why people are spending less money at places like Foliage, the number one reason people told KFOX was gas prices.

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Find your balance with the new Chakra Balancing Massage

Grounded in Ayurveda—the Ancient healing art of India, this innovative treatment focuses on the centering of the chakras using a variety of massage techniques. They include deep tissue massage on the back and spinal muscles, chakra reflexology massage for the feet, and energy work for each of the chakras.

• Massage is the most requested and profitable service in the Spa
• As proven through the Aveda ABC technology, the new Chakra Balancing Massage combined with the Chakra Balancing Blends will help restore energy flow throughout the body
• Spa goers are increasingly looking for a physical and spiritual holistic wellness experience that goes beyond the traditional pampering to find their inner balance
• Through the practice of yoga the general audience is becoming more and more familiar with the healing powers of Ayurvedic medicine (”Ayurveda in America” by Francis C Assisi)

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JASPER, Ala. — After years of extensive research, BEKS Incorporated, a product and development company and worldwide provider of non-invasive medical and aesthetic devises, has developed BriteWhite Teeth Whitening System(R). BriteWhite is the first chair-side professional teeth whitening system made available to spas and med spas. “Now, you can get your teeth whitened while visiting your favorite spa for a manicure or facial,” says Joyce Osborn, President and CEO of BEKS Incorporated, and inventor of the BriteWhite Teeth Whitening System(R).

Unlike laser, plasma light, halogen and ultraviolet, this exciting technology utilizes cool Blue Light Emitting Diodes to activate the custom blend gel; attacking discolorations without effecting the pulp or softening the enamel. Ms. Osborn had used LEDs in her wellness spa for years to treat certain skin conditions and theorized that LEDs would be effective in teeth whitening. She consulted with a scientist friend who worked with LEDs for NASA and the friend confirmed her theories. Ms. Osborn followed the advice of her friend to patent the process and now holds the worldwide rights, FDA clearance and pending patent.

BriteWhite Teeth Whitening System(R) treats the entire front and back teeth by inserting the mouth plate directly inside the mouth during the treatment time, without the aide of cheek retractors, rubber dams, or goggles. Other methods of teeth whitening can dehydrate the teeth causing sensitivity. The proprietary activating gel used with the BriteWhite Teeth Whitening System(R) is near PH balancing and contains no fluoride or alcohol; keeping the teeth hydrated while whitening treatments are completed. Up to eleven shades of increased whiteness has been achieved on aged teeth. Routinely, a minimum of 4 – 6 shades is achieved in 10 minutes. Results have proven to be positive for hard to whiten teeth like Tetracycline. The Blue LED also kills black bacteria that cause periodontal disease, making it a new tool for the dentist as well. Although treatment is not recommended for everyone, especially those who are pregnant, BriteWhite is safe enough to be used by patients receiving chemotherapy and radiation if approved by their oncologist with written consent.

BriteWhite is a sophisticated product manufactured in the USA, designed with the cosmetic industry in mind and engineered for utility, efficacy and durability. The device is lightweight and portable and can accommodate up to 4 mouth pieces to treat 4 clients in one sitting without the purchase of multiple machines.

In addition to inventing the BriteWhite Teeth Whitening System(R), Joyce Osborn is the author of “Take a Walk through Life with LED Light” and recently organized the Council for Cosmetic Teeth Whitening (CCTW), an organization for the benefit of providing teeth whitening outside the dental industry. “I feel that teeth whitening should be added to the esthetic industry as it is safe, affordable and quick,” says Ms. Osborn.

BEKS will soon introduce BriteWhite Medical for the dental industry utilizing Red and Blue LED for both teeth whitening and after surgery healing.

 

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