3 BIG Challenges for Spa owners discussed in Vegas

From the Las Vegas Spa show 3 BIG challenges seemed to come up at every management class I hosted.

1-Client visit cycles slowing

Many of the spas at the show reported client visit cycles slowing in the facial and massage departments. Ways that spas at the show are successfully fighting this trend is with increased emphasis on package (series of visit) sales with a short expiration cycle and strong discount or free add on services included. Example: get 5 facials for the price of 4 plus get one complementary upgrade to our new oxygen facial and a free make-up touch up after each visit. Rules: 5 visits must be redeemed within 6 months, no service exchanges, and only good Mon-Thur from 9am to 3pm.

Note - the rules increase visit cycles, don't allow service substitutions, and are only booked during non-prime times. Very smart!

The other big push is toward memberships. This is where the client signs up for a $99 a month membership and the money must be used each month toward service or retail purchases. The client gets credit for up to $120 per month for the $99 and the client credit card is billed automatically (EFT) for the $99. This is BIG and is growing. We have added a module to our software to manage this function and many spas are implementing this new marketing feature. Call your MIKAL consultant for ideas, examples, and details.

2-continued product cost increases

Surprisingly in this slow economy the costs of products used in service continues to rise. Many of our spas are working on buying contracts that will fix costs for 12 months, are shopping products for specific service use replacements, and also working with their vendors to cut waste and manage on hand amounts more efficiently. Call us for information on how to track Inventory TURNS and how to calculate an auto min/max for inventory using your sales history. 800-448-5420.

3-retail sales dropping

At the Vegas show many spas reported retail sales dropping up to 30% in 18 months. Ways to combat this trend include shrink wrapping multiple items (one hot seller with 2 slower moving products) putting up a sales table with 30% off discounts on slow moving items, and giving out SAMPLES again. That is right. Get samples from the manufacturers/distributors and start handing them out. Retail sales follow!

Call MIKAL with your challenges. 513-528-5100 or 800-448-5420