Developing Spa Business Plan

Question From Latoya -

I am in the process of developing my business plan to open my own day spa. I wanted to find out how I conduct a market analysis and determine who my target market is? Any suggestions on where to go to get industry population, average pricing, age range of spa goers?

Also how do I determine how much to charge for my services?

Thanks
Dear Latoya,


Here are some simplified answers to your questions. However, based on the questions you asked, you may want to hire a spa consultant to assist you so you have a better understanding of what you are getting into and set yourself up for success. You have not indicated where you are located, so I have based this on the USA.

Market analysis of the demographics: First you need to know the demographics of the city that you want to build your spa in. You can go to your city's website to pull up the latest population demographics, or you can get a rough estimate on line form the AP site for Census Data. You will first select the state and then using the pull down menu select the city. The numbers in blue you can click on for greater detail. An even easier and more specific way if you are in a shopping center is to get the information form the commercial realtor for your shopping center they can give specifics broken down to radius miles around your specific site. This information will be the most accurate.

What is the demographics of the Spa Client: I recommend that you become an ISPA member. They have several publications that will assist you. The 2006 Spa-goer study will give you general demographics. Your demographics may be different, so I recommend that you situate yourself outside your competitors and do random counts during peak periods.

For the question What should you charge. You want to be competitive in your market, but you also want to make sure that your services are priced to be profitable. This means you need to know what product line you will carry and what services you will offer. Start by doing a Google search with the name of your city and the word spa. In this link I did "Scottsdale, AZ Spa"

A map will come up with the spas in that area. If the spas near you have a web site go online to their website and pull up their spa menu. Start a spread sheet so you can Spa name, chart services, cost, and facility information, product line. You can also go to my website http://www.spavelous.com we have the largest database of spas in the USA in one location. We are still growing, so we hope that all spas will sign up for their free listing so people can find them. This will also tell you who your competition is.

After you let your fingers do the walking to view the menus, services and facilities, book some spa appointments. Nothing can replace a first hand experience. This will help you view the spa as your guests will view you.

Good Luck, if you need any other information, please call. Spavelous is here to support the success of the spa industry. Don't forget to sign up with Spavelous before you open, we can even help develop your spa website and a year of our services for $500.


Sincerely Yours

Marie Bernat

Spavelous - The Largest US Spa Directory