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

Microdermabrasion

Question From Holly -

I am finally purchasing my first microdermabrasion unit for my salon/spa, though i’m now having problems deciding which one. I know the company who i will buy from but they have two different machines. One is the Skinborn Microderma S-100 which uses crystals, the other is the Dermapeel “Diamond”Microdermabrasion, which uses a diamond tip wand. The diamond peel is 5,900 USD and i read that this is the newest technology. The Skinborn S-100 is 8,300 USD, and i’m not sure why it costs more. Could you explain to me why this machine would be more. Or just let me know which one you would recommend. Thank you so much for your time.

Dear Holly,

Of the two, I would go with the Diamond Tip. For years I have looked for a microderm machine that uses vitamin c crystals instead of aluminum oxide crystals. Call me old fashion, but all of the studies that I have read, indicate that aluminum is correlated to Dementia, Alzheimer’s and other mental disabilities. I would not want to risk my health as a client or my aestheticians health for the sake of beauty.

Over the years I have spoke with many machine representatives, and they tell me that I could use Vitamin C crystals or baking soda (Sodium Bicarbonate) in the machines instead, but they do not know who would supply it as they do not carry it.

If you can find the Vitamin C Crystals or the Sodium Bicarbonate, I would go with that if not select the diamond tip.

Marie Bernat
Spavelous-The Largest US Spa Directory (ranked #1 by Google Search)

Promotional Emails and News

I have been using Microsoft Entourage, basically Outlook for Mac to send out our promotional emails and news, but it only lets me send out 40 at a time, and most of the emails get sorted into our clients junk bins. I am looking for a great email marketing program that organizes my email database, produces great looking email templates and is preferably for Mac, but doesn't have to be, we have PCs too.

Any advice on programs out there?

Did you know that if you sign up for Spavelous. That we will put out your monthly newsletter for you, and send out emails for you when you want them to go out. Professional, Easy and only $500 a year!

You can sign up and review the programs at our marketing area. In addition, we will link to your website in our spa directory, the largest spa directory in the USA and list you in our National Spa Gift Certificate Directory with a link to where you sell your gift certificates at no additional cost. You can take a look at the newsletters that we put out for Spavelous "Now You Are in the Know"

Sign up to receive a copy weekly, here. For a sample of your e-newsletter, and eblast.

For more information, please contact us at Spavelous.

Spa Marketing

Natalia asks -

how to get more clents?
marketing companies charging too much..any prival marketing person in my area with experience looking for job?
thanks,

Natalia


Dear Natalia,

More and more people are looking for and finding their spas on line. It isn’t enough to just have a website. They need to be able to find your website and information about who you are and what you do. This is why I developed Spavelous. www.spavelous.com. We are more then a spa listing service. We are a complete marketing program. We list your spa; send out e-mail blasts (with your logo) to your guests and to our members in your area (whenever you want), and monthly newsletters for you with your company colors and logo. In addition, we will check all critical points of your website to provide you with feedback on how you can improve your web performance. We also will feature you in our weekly Spavelous “Now You Are In The Know” newsletter which goes to our members. We will provide you with monthly consultations as well, all at less then the cost of one service per month. If you didn’t have a website, we would develop and provide you with a 5 page site and host it for you complimentary for the first year. After that you could leave it with us to manage or we would turn it all over to you. As a former Spa Director, I know how hard it is market on a limited budget. It is exactly for this reason that I developed Spavelous. I am passionate about the spa industry and I am passionate about doing what ever I can to help you to be successful. If you would like more information on our program, please contact me. I am happy to assist you any way that I can.

Sincerely Yours
Marie Bernat
COO/Founder Spavelous
www.spavelous.com
888-887-7831 ext. 1818