Embed Size (px)
Citation preview
Shayne Kohn, M.S.President
Successfully Integrating Spa Services Into your Fitness Facility
Shayne Kohn, M.S.
What You Need to Know Before You Do
www.spachitects.com
www.spachitects.com
Shayne Kohn, MS, MES, CPTPresident, SPÄCHITECTS, Inc.
Spa & Fitness Consulting for Private Clubs, Residential Communities & Resorts
Spa & Fitness Director Raymond Floyd’s Old Palm Golf Club (WCI Community)
Founding Member & 1st Vice PresidentClub Spa & Fitness Association
www.spachitects.com
Agenda
Spa IndustrySpa GoerQuestions to Ask Yourself
Market, Consumer, Competition, Current MembersServices, Equipment, Space & Logistics, Sales & Marketing, Staffing
ResourcesFinancial Feasibility
www.spachitects.com
Spas are the 4th largest revenue producers in the leisure industry behind golf, health clubs and cruises.
The Spa Market
www.spachitects.com
Know the Industry
49 Million215,20010,128
109 Million$7 Billion
2003
1%49.9 MillionSquare Footage (Sq. Ft)11%267,400Employees16%13,757Locations9%131 MillionSpa Visits18%$9.7 BillionRevenue
Annual Growth2006
Source: 2006 Consumer Trends Report, ISPA
www.spachitects.com
Spas are becoming more mainstream in all markets:
Country Club CommunitiesCanyon Ranch LivingBaby boomers- more health consciousHair & Nail Salons in low socio-economic markets
The Spa Market
www.spachitects.com
Distribution of Spa Types
Day Spas – 80%
Resort/Hotel Spa – 9%
Medical Spa – 7%
Club Spa – 4%
Mineral Springs Spa – 0.6%
Destination Spa – 0.5%
Source: 2007 Consumer Trends Report, ISPA
Total = 14,615
www.spachitects.com
Spa Goer StatisticsMore than ¼ of US adults (approx 57 million) have visited a spa in their lifetime.31% are MaleSlightly more than 1/10 of spa goers treat spa going as part of a larger health & wellness lifestyle rather than an indulgent habitSlightly more than 1/3 of spa goers treat spa experiences as escapes and indulgent exercisesThe majority of spa goers treat spa experiences as a mix of interests that run the gamut from indulgence to healing work
www.spachitects.com
Why Do Spa Goers Visit Spas
<1%Recuperation from Cancer4%Lose Weight5%Recovery from Injury8%Opportunity to Socialize19%Overall Wellness22%Improve My Appearance28%Mental/Emotional Health31%Feel Better About Myself38%Soothe Sore Joints/Muscles46%Reduce Stress47%Relieve Stress
PercentageReason For Spa Visit
Source: 2006 Consumer Trends Report, ISPA
www.spachitects.com
The Average ♂ & ♀ Spa-Goers
Full Body MassageFull Body MassageMost Common Treatment2-3 times/12 months2-3 times/12 monthsVisit Frequency3-5 years3-8 yearsSpa History
Relieve Stress, Reduce Stress, Sore Muscles
Reduce Stress, Sore Muscles, Relieve Stress
Reasons for Visits
Relaxed, Calmed, Time for meRelaxed, Calmed, RefreshedTop Benefits$50k - $149k$75k - $149kEarningsCollege GraduatedCollege GraduatedEducationMarriedMarriedMarital Status25-5435 - 54Age69%31%% Spa-GoersWOMENMEN
Source: 2006 Consumer Trends Report, ISPA
www.spachitects.com
♀ Comparisons ♂Look at differences in Age and IncomeWomen understand the benefits and believe in it moreMore common and more accepted for women Women more apt to try new and different things31% of Spa Goers are male – growing trend in grooming
www.spachitects.com
Female-Only Health Clubs
Growing trend in early 2000Curves
Lady of America
Lady Wellness
Ladies Workout Express
www.spachitects.com
US Club Membership by Gender42.7 Million Members
Source: 2005, IHRSA
Male47%Female
53%
2007 IHRSA
www.spachitects.com
Male-Only SpasGrowing spa trend
Nikel – NYCMens Space & SIRSpa – Ft. Lauderdale & ChicagoGentleman’s Quarters – Alexandria, Denver, Ft. LauderdaleThe Men’s Power Spa – OntarioThe Refinery - London
www.spachitects.com
Within the same spa:Separate entrances & exitsSeparate lounge, waiting room, locker roomsSeparate steam rooms and saunas
Together, But Separate
www.spachitects.com
Do Your Homework
Know your:
Market
Consumer
Competition
Current Members
www.spachitects.com
Know Your Market
Geographical Target Area
Size of Target Area
Location
Mix of Area Businesses
Foot Traffic
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Know Your Consumer
Local DemographicsAverage AgeGenderEducationOccupationAverage IncomeNationality
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Know Your Competition
Length of Business
Size of Business
Market Share
Facility Facts
Strengths & Weaknesses
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Experience The Competition
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
They are your most valuable asset!
Know Your Current Members!
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Your Current Members Are they open to new programs?
Why are they in the club?Health & WellnessAthletic PerformanceEsthetics
This will help determine what services you offer and how you market them.
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Your Current Members
Do they spend money?Are they currently going somewhere else for spa services?Where?What kind of services?How much do they spend?
KNOW YOUR COMPETITION
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Your Current Members
Do they trust your staff?What kind of rapport do they have with your staff?
Will they accept a referral?
Think ahead- Remember sales & marketing
Know your: Market / Consumer /Competition /Current Members
www.spachitects.com
Services
Equipment
Space
Logistics
Sales & Marketing
Staffing
Market, Consumer, Competition, Members
www.spachitects.com
ServicesAfter looking at your current membership, your
market, consumer and competition…
NOW you can determine what services would be appropriate for you to offer.
May want to start with massage only, or a barber shop.
Services / Equipment / Space / Logistics /Sales &Marketing/Staffing
www.spachitects.com
EquipmentOnce you have decided what services to offer now you can determine what equipment you will need.
For Example: For Massage: Massage bed, sink, linens, lotions & oils
If geared more towards athletic performance & enhancement need hot towel cabbies, hydroculators, etc.
Services / Equipment / Space / Logistics /Sales &Marketing/Staffing
www.spachitects.com
Product LinesWhat lotions & oils to use
Know your consumer/memberChoose products based on demographicsOlder skin vs. younger skinSun Are they “nature” conscious? Organic products?Time – quick vs. process
Services / Equipment / Space / Logistics /Sales &Marketing/Staffing
www.spachitects.com
Space & Logistics
Space is Determined by:Services offeredEquipment neededLaws & Codes – ADA, Federal, State, City
Logistics:Renovate/Expand/Build?Plumbing & ElectricalNoise Factor = conducive to relaxation?Functionality
Services / Equipment / Space / Logistics /Sales &Marketing/Staffing
www.spachitects.com
Sales & MarketingFitness & Spa go hand-in-hand
What would interest your members?
Look betterFeel betterBoth
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Sales & MarketingCross-sell
You have a captive audienceYour Members should already trust you and your staff
Educate your Trainers!They are your BEST sales peopleYour trainers can easily sell the benefits of a spa treatmentThere is a natural flowLet your staff experience the services they are going to be selling
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Sales & MarketingMassage is the easiest to sell
Explain how the benefit would pertain to that individual“A massage can really help loosen up your shoulders and help
improve your golf swing”
Tout the “wellness” aspect of various treatments“A post –workout massage can really help reduce the lactic acid
buildup in the muscles, reducing the amount of soreness you will feel tomorrow”
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Barriers to Spa Going
Men report never having been to a spa because:
Too ExpensiveLimited on timeDo not understand the benefit
Women report never having been to a spa because:
Limited on timeDon’t want to be viewed as over-indulgent
♂ ♀Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Breaking down the Barriers
Limited on timeOffer Express or Combination Treatments
Do not understand the BenefitsEducate your Members, they will buy from people they trust, especially men
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Breaking down the Barriers
Over-IndulgenceTout health & wellness benefits of spa treatments
Too ExpensiveTie Spa Treatments into Fitness ServicesWith every training package include a complimentary 30-minute massage or a massage at a reduced rate
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Breaking down the Barriers
NudityIf they are new to spa-going they will be more receptive to try something new in an already comfortable environment w/clothes on
Introduce massage with a 5-10 minute chair massageCreate gender specific areasOffer clothes as opposed to robes
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Start Small
If you are not sure how Spa Services will be received
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Staffing Requirements
The Biggest Question:
Independent Contractor vs. Employees
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Staffing RequirementsThings To Consider:
Tech/Health Club Split $$Commission Only vs. HourlyOverheadControlConsistencyCustomer Service
Services / Equipment / Space / Logistics /Sales &Marketing /Staffing
www.spachitects.com
Know Your Resources
City & State DOHCity & State Occupational BoardsMassage BoardCosmetology BoardISPADay Spa Association
Know your licensing requirements and city and state codes
www.spachitects.com
Financial Feasibility
Development CostsConstruction and/or RenovationReal Estate or RentArchitecture & Interior DesignPermits & LicensingSpa Consultant
www.spachitects.com
Financial Feasibility
Pre-Opening ExpensesFF&E (Furniture, Fixtures & Equipment)OS&E (Operating Supplies & Equipment)Operational ExpensesMarketing & PRPayroll & TrainingPermits & Licenses
www.spachitects.com
Retail Opportunity
50% Revenue from Treatment Rooms50% Revenue from Retail
You have now opened up a new revenue source for your Club.
www.spachitects.com
Financial Feasibility
Many Spas can quickly yield significant benefits including 15-25% profit margin and increased memberships
Some may take up to 3 years
www.spachitects.com
Conclusion
Be prepared for a lot of work, but it you are willing to do your homework it can be profitable.
Failure to prepare is preparing to fail.
www.spachitects.com
Thank You!
Shayne Kohn, M.S.President
www.spachitects.com561-747-6070
©2009 SPÄCHITECTS, Inc. All Rights Reserved.
