Competition Is None!
Time To Take Out The Competition!
Skin care spas are really expensive to open and run properly. That's a fact of life.
When we invest in creating a really awesome space to care for our customers we either tie-up our own capital or are left with substantial loans to pay off.
Skin care spa operations have to create enough revenue to overcome a ton of obstacles, including:
*covering direct operating costs such as rent;
*paying our staff;
*making debt and interest payments;
*and yes, producing a real profit.
And all this must happen before we can think about buying new equipment to replace the stuff that will be wearing out assuming we have a decent number of customers.
When you look at it this way, you begin to see just how expensive this business model is.
If you love what you are doing, charge a healthy price, and your customers love what they get so much that they pay for it over and over, running a spa can be very lucrative. This profitability is one of the main reasons new competitors continue to enter the industry.
However, there are now new types of competition starting to appear, that try to take advantage of the consumer demand while avoiding shelling out all that dough for capital expenses.
If you search for "have a spa day," you will likely see articles featuring how to do a spa day like this: "Take a break-- top 15 ways for Mom to have a spa day."
It looks like it could be an article promoting day spas, but when you dive in, you will notice that only one of the locations they are blathering on about are a real spa. The rest might be a weird group of alternatives to an actual spa. It will likely be a list of spaces that someone made up by extending the definition of "spa".
There might be hotels providing wellness retreats that also bring in expertly made cuisine, a place listing speakers on inspiring topics, or venues offering relaxing activities like hiking, cooking lessons, or lectures on increasing your wellness.
Others might be doing boot camp day spa activities with fitness instructors and mobile therapists who give sports massage. To the average consumer, this combined with Groupon like pricing can make it an appealing list of options.
The common denominator of each of these ideas is that they all have a low-cost asset base that is not a fixed, recurring cost.
These businesses are asking 'how can we develop a 'spa' experience without needing to invest huge amounts of money needed to develop a proper spa and without permanently utilizing spa staff?'.
So, as strange as this may seem to us experts, the average customer out there will literally see this as just as good an alternative to what we provide.
What do you need to do in your local area to combat this competition trying to take future customers away from you?
We need to effectively communicate the value of what we provide. Always work hard to express the beauty and serenity that customers get when they're in a proper spa treatment environment when we are doing our marketing.
There's no need to diminish competitive alternatives that appear on the scene. But you should stress the value inherent in visiting your establishment, getting to know your business, and how having a long-term relationship will improve the outcomes of each and every visit.
Leave a Reply.
Lilly Cook is a seasoned Accountant, Licensed Esthetician and owners of two Spa & Wellness Illinois businesses.