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Starting a Spa During a Recession


A question submitted to Spas2b:

Obviously, starting any business during good economic times is a tough proposition. But with the global economic slowdown, and everyone tightening their purse-strings, I’m wondering what advice one would give to someone planning on (or in the process of!) starting a spa now.


Our Response:

If you are in the midst of opening a spa now, the most important thing for you to do is (re)survey your target market.

Find out if they’re planning on frequenting your spa; how often; what they might purchase; how often they might purchase; what their spa budget is; will they refer your business to their friends, and so on. Do this through focus groups; one on ones; survey drops; email and internet campaigs, etc.

You will also need to take a careful look at yield management strategies. This is learning how to sell the most profitable services and products at the best times, for the highest yield. This includes such things as early to mid-week incentives; even hour of the day incentives. Get creative and develop new possibilities for revenue streams (other than services and retail).

Develop programs with staff – set goals and reward achievements, etc. Watch your opening expenses, including capital expenditures. Be sure not to overstock in your inventory, or staff.

Market through word of mouth aggressively, avoid high cost marketing such as magazines, but get going early (pre-opening) and generate excitement with demonstrations; luncheon talks; mail drops and so on.

Good luck – do your homeword – layout your floorplan and menu to suit your market, answer to their demands and continue that strategy – hire like-minded staff and you will be fine, all working hard together. Leslie Lyon

About Leslie

Spas2b Inc. is a full service Spa Development company, specializing in Online Spa Management Distance Learning Courses, Spa Business Manual Instant Downloads & Resources, and Spa Consulting Services.
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