Spa Site Chat for Spa Professionals with guest host, Caren Thornburgh

Links • Personality Profile of the Spa Industry a Spa Site Guest Article by Caren Thornburgh • Ten Steps to a Successful Spa Launch, a Spa Site Guest Article by Caren Thornburgh • How to Choose a spa / What to Look for in a Spa , a Spa Site Chat with Caren Thornburgh • Virtual Spa • Email Caren Thornburgh • Spa Business Articles

The following is an edited transcript of the Spa Site Chat "How to make an existing spa business more profitable" with Spa Consultant, Caren Thornburgh of Virtual Spa.   

Julie Register (spasADM)
Your Guide to Spas 

spasADM> Welcome to the Spa Site Chat Room! Our guest tonight is spa consultant Caren Thornburgh, founder of Virtual Spa. The topic is "How to make an existing spa business more profitable." The chat will end promptly at 10 pm ET. Feel free to ask Caren one question at a time. I will record the chat. Any questions Caren does not have time to answer during the chat will addressed. The chat and questions and answers that Caren answers after the chat will appear on a future Spa Site Article titled "Transcript of Spa Site Chat with Caren Thornburgh - How to make an existing spa business more profitable."    

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>> Cristin has joined channel #spas

spasADM> Hi Cristin!

[Caren] Welcome

[Caren] Cristin do you have a question to start the night?

[Cristin] Hello, sorry if I'm slow to respond.  I'm holding a squirming newborn.

[Caren] Oh it's the Cristin I know!

[Cristin] Correct!

[Caren] Cristin have you ever participated in a live chat?

[Cristin] Caren, I have not and I am now free of the baby.  My first question is:  What are some good marketing or resources?

>> Joneane has joined channel #spas

 [Caren] Hi Joneane

spasADM> Welcome Joneane

[Joneane] Hello

[Cristin] Caren, I meant marketing resources.

Caren] Cristin, I would start by looking at this great new site: www.dayspamarketing.com  - as well as spa trade publications

>> Jerry has joined channel #spas

 [Caren] Hi Jerry

 [jerry] hi

[Cristin] Great!  Most spas that I speak with need to understand what their target market is and how to utilize that information.

[Caren] If you are setting up a marketing program for a spa joining an existing business (such as a fitness center) you will always want to consider the existing marketing efforts and integrate where possible

[Caren] In regards to the target market, assisting them with a basic feasibility study will help for them to understand their target market

[Cristin] Good sources for feasibility study information (how-to)?

 [Caren] Many consultants will offer this as a consulting service, however there is basic information the client can gather themselves.  Such as, identifying the location of the facility, the density of the population, visiting the Chamber of Commerce to identify if there are any new building permits being pulled, as well as population statistics and household incomes

[Caren] Another good source is the census for gathering information on population.  You would also want to prepare a competition analysis to make sure you are not over saturating the market

 

[jerry] what markets are unsuitable?

 [Caren] An unsuitable market would include too much competition within the identified location as well as possibly being to far from the number of accessible clients to accommodate the number of treatment rooms needed to support the bottom line

[jerry] If you have a properly staffed and run spa should you worry about competition?

[Cristin] I think you always have to be concerned about your competition and what they are doing.

[Caren] Jerry, yes, always worry about your competition.  It's important to always improve and add services as well as identifying your nitch and communicating that to the consumer

[Caren] Jerry, are you concerned about your competition?

 

 

[Joneane] I have a small spa upstart restricted by space constraints for a retail operation as well as impacting my service offering. We are very small although we are located in a busy resort. The resort has both timeshare and hotel, and we are considered an independent entity within the resort. There is also a private community that has not been tapped.  How would you market for this type of operation?

[Caren] Joneane, I would start with identifying the internal as well as external market.  The internal would include the number of time-share individuals at any given time as well as the occupancy of the hotel.  The external would include the number of available day spa guests within the surrounding area (usually 5-10 mile radius)

[jerry] Some spas have customers traveling 50+ miles

[Caren] Jerry, the mile radius will be determined by the type of spa as well as surrounding competition.  Studies show the number one reason consumers visit spas regularly is convenience.

[jerry] I think quality is more important than convenience.

[Caren] Joneane, if you are referring to the length of massage, we have found that if financially possible, customers perceive a 60-minute treatment vs. a 50-minute treatment as reflecting better quality

[Cristin] Jerry, I think convenience is important when it comes to how often a client visits your spa.

[Caren] Jerry, I agree quality is a given

[jerry] Customers will follow a hair stylist across town?

[Cristin] To expand on my last response, Nemacolin Resort in PA is one of my favorites, however, because it is so far away, I will probably never return.

 

>> Mel has joined channel #spas

[Caren] In fact, let's talk about quality (hi Mel)

[jerry] ok

[Caren] In regards to quality control, I suggest having a formal quality control list, which you offer to someone to professionally shop your spa monthly

[Cristin] Customer Service training is as important as training for the treatments themselves.

[Caren] The professional shoppers report should include all areas of your spa.  Such as, scheduling an appointment, checking in, locker rooms, treatments, cleanliness, check-out procedures, retail selection and so on.

[jerry] Cristin if you were in Philadelphia, you would have a choice of convenient day spas.

[jerry] would you pick the best?

Cristin] Jerry, I guess what I am trying to say is that they are equally important.  The best spa must be convenient as well as have excellent quality to maintain its customer base.

[jerry] I agree with you Cristin

spasADM> Do any of you that have spas currently have a quality program like Caren mentioned - checklists, shoppers, etc.?

[Joneane] no

[Caren] Does anyone have a quality control system in place?

[Cristin] Caren, I have recently done a customer service seminar emphasizing a great deal on instituting a QC plan.

[Cristin] Included in the QC plan would be checklists, appointing a staff member to supervise it, and customer service survey.

 

 

[Caren] How about a multiple choice question?

[Caren] What % of your total revenue should reflect your retail sales?

[Caren] A. 75%

[Caren] B. 60%

[Caren] C: 25%

[Caren] Jerry what was your answer

[jerry] at least 50%

[Caren] Cristin?  Joneane?  What would you say?

[Cristin] Caren, I want to say 75%

[Joneane] we have no space for a retail operation so I am looking at bringing them in on a service offering

[jerry] Retail should pay the rent

[Caren] Last year, statistics show that retail revenue should be at least 25%, however, with a good program in place, you could generate more retail sales than treatment sales

[Caren] To increase retail sales, many spas are also investigating e-commerce sales to enhance retail sales.  Is anyone utilizing e-commerce?

 

 

[Caren] Mel do you have a question?

[Mel] I am interested in buying a spa. I am trying to educate my self . I want a spa for a family of four. I beleive we would be happy w/ an 8 man spa. Whats the best value ? Lets start w/# of jets.. a lounger..for outdoot use..etc

[Joneane] wrong kind of spa Mel   lol

[Joneane] we are talking Spa as in massages, facials.... that kind of spa

[Caren] Mel, there are some fantastic hydro-therapy tubs for indoors

[Mel] Poor assumption on my part, although R&R sounds good too,, Im a newbe on the net, sorry!

[Caren] Mel, congratulations for joining a chat room

[Mel] Bye!

spasADM> Mel - there will be a chat for spa consumers on Wed night. Bye

 

>> ChezCashet has joined channel #spas

[Caren] Hello Chez

[ChezCashet] Hello

 [ChezCashet] Pardon my interruption - was there supposed to be a "special event"?  Am I in the right place?  It was supposed to start at 9pm.

spasADM> This chat started at 9 pm Eastern. It is for spa businesses.

[ChezCashet] Thank you - I'm in the right place.

 

 

>> tangles has joined channel #spas

spasADM> Welcome Tangles

[tangles] Hello!

[Caren] Welcome Tangles

[tangles] Glad I didn't miss the conference!  I thought I was going to be too late!

[Caren] Tangles, do you have a question for me?

[tangles] Yes... just a sec while I type it in

[tangles] We are an upscale salon in Oregon, and we have been thinking about, and having MANY of our clients tell us we should become a day spa, although I know that it will be more like a salonspa, so my question is this:  I have heard that profitability for Spa services is not as great as hair/color services, etc.

[Caren] Correct

[tangles] and when I saw that you were doing a talk about making your spa more profitable, I was interested. Could you tell me, coming from a salon background, how to "think" in a spa way, etc..

[jerry] A dayspa is a full service salon

[Caren] Thinking in a spa way, the first consideration would be design. Adding a spa to a salon atmosphere can be accomplished by providing a separation between the two (i.e. frosted doors, etc).

[tangles] We have about 2400 Sq. Ft. right now -- conservative estimates could give between 800-950 to dedicated Spa space - is that enough?

[Caren] It is also important to consider your financial allocations, such as staffing, which is much higher in a spa

[jerry] What services do you offer now?

[tangles] do we offer now?

[jerry] yes

[tangles] We focus mainly on Color services, color correction and other chemical services for profitability - but we also offer nails, and "SpaManicure" and "SpaPedicures".

[tangles] We are getting into Makeup, and then we want to get into facials, etc. which is why we have been considering taking the Day Spa plunge

[Caren] Tangles, I suggest looking at your demographics and identifying the number of women between the ages of 40-60 yrs with an annual income of $50-75,000

[Caren] Tangles, this will help you identify the number of treatment rooms needed to support your build-out

[tangles] Ok - I can do that - we live in a town with HP nearby, and there are a lot of professional women (spouses) of the engineers that work there.. then there is the Oregon State University which employees 2500 or so as well, so I think the number of professional women and wives of professionals will be pretty high

[tangles] What is the "formula" for number of rooms to number of women in that bracket?

[Caren] Tangles, your target range for your room utilization rate is 70%.  To figure out your room utilization, calculate the total number of hours the spa is open times the number of treatment rooms, this will be your 100% room utilization

[tangles] And since we're running out of time -- do you have a web site or email address or phone number I could contact you at after the chat is finished?

spasADM> That was a good segway (sp?), tangles. Caren’s website is www.virtualspa.com.  I see that it is 10 pm and time for our chat to end. I want to thank Caren and look forward to her chat for spa consumers on Wednesday – same time, same place.  This chat room is always open. If you want to continue to chat, please feel free. Before we go, would any of you be interested in another scheduled chat? If so, what topic would you like to discuss?

[tangles] I'd like to see a discussion on implementing a QC system like Caren was beginning to talk about.

[Caren] I would love to talk with you further regarding your specifics; I can be reached at caren@virtualspa.com

[tangles] thanks!  Sorry I came so late!!!  I'll be in touch.

>> jerry has left channel #spas

[Caren] Thank you for participating, it has been a pleasure!

[Cristin] Thank you Caren!

spasADM> Thanks for joining us, Caren!

[Joneane] Yes thank you Caren.

[tangles] Also, since I was late - where do I get a "copy" or transcript of the chat that I missed?

spasADM> I will post a transcript on the Spa Site Welcome Page (http://spas.about.com) later this evening

[Cristin] You answered my question!

 

*Most of the following conversation occurred after 10 pm after Caren had left the chat room*

[Joneane] you guys just wouldn’t believe my situation

[jerry] ?

[Joneane] where and how we operate

[Joneane] its different from what you guys are doing I think

[Joneane] my problem is that I don’t even know what to ask   lol

[Cristin] anything that comes to mind!

[Cristin] even if it seems trivial

[Joneane] Christin where are you located ?

[Cristin] Medford, MA.

[Joneane] I’m in VA.

[Joneane] see I’m a massage therapist trying to get a spa going in a resort that is very constrictive

[Joneane] we have no water in our space

[Joneane] its down the hall

[Cristin] Why is the resort constrictive?  What type of resort?

[Joneane] we have 2  11' 7" massage rooms and a 18'  24' room where we have 2 tables for couples massage

[Cristin] No water is a problem!

[Joneane] yeah it is

[Joneane] we cart it in a bucket or pitchers

[Joneane] cart it out the same way

[Joneane] its ridiculous

[Joneane] we have done all we can with the space and water constraints that we can. We offer massage (of course)  Belavi Facial Massage, - LaStone, and manicures and pedicures

[Joneane] so I don’t know what else to do

[Joneane] we operate under the resort recreation

[Cristin] That is good for that kind of constraints.

>> ChezCashet has left channel #spas

[Cristin] I need to go for now.  Caren is a wonderful source of information and help.  You can e-mail me too if you have questions.  I'll try to help!

[Joneane] thanks!

[Cristin] You’re welcome and good luck.!

>> Cristin has left channel #spas

[tangles] Bye all!  I'll look for the transcript later -- and be checking for more "Spa Professional" chats like this one in the future!  Thanks for hosting it tonight!

[Joneane] thanks for the chuckle Mel    online is fun!  take care and  good nite

spasADM> You're welcome! Please feel free to use this chat room any time you want to.

>> tangles has left channel #spas

>> Mel has left channel #spas

>> Joneane has left channel #spas

Caren Thornburgh,  founder of Virtual Spa, Inc. (www.virtualspa.net ), a Web gateway site serving the needs of spa owners and managers with consulting, training programs, and spa career services. She can be reached at (978) 356-0824 or caren@virtualspa.net.

 
photo and graphics courtesy of Caren Thornburgh

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