Did you see the 2007 ISPA findings?
http://spas.about.com/od/spaprofessional/a...?once=true&
I was most surprised to see the overall drop in day spa revenues from 2005 to 2006. With all the expansion and new spas, why is there LESS demand from clients?
What do you think?
Full Version: Spa Industry Report
it looks like market saturation in that the number of clients is fairly static but the number of facilities has risen.
The drop off in sales in day spa's is an indicator of the slow down in the US economy, increasing interest rates and higher overall prices eating into any spare money so the luxuries go.
Interestingly the one off big spend trips like destination and resort are up, so people are still spending on holiday.
The drop off in sales in day spa's is an indicator of the slow down in the US economy, increasing interest rates and higher overall prices eating into any spare money so the luxuries go.
Interestingly the one off big spend trips like destination and resort are up, so people are still spending on holiday.
ISPA called our spa with a survey a couple of months ago ....I suspect it might have been data gathering for the survey referenced in this topic. If so, I think some of the perceived data flaws might originate from clueless questions delivered by people for whom understanding english was a bit of a struggle. I quit after around 20 minutes of what felt a lot like flogging a dead horse. (I mean, why verify my fax number twice in one question/answer session? ... to see if I'm telling the truth??) 
I can just see a respondents terminating the conversation 1/2 way through out of frustration and the data gathers checking $0 in the revenue box! (Or just guessing because they were paid per completed survey!)
valM
I can just see a respondents terminating the conversation 1/2 way through out of frustration and the data gathers checking $0 in the revenue box! (Or just guessing because they were paid per completed survey!)
valM
I was listening to a talk radio show (ok, I know I'm a nerd) the other day and the topic was vacationing habits of Americans. I was shocked at how many people called in and said that they don't even take the vacation time they have earned because it makes them look bad when it comes to promotions etc.
To me, that was just plain sad, but it made me think about destination spas and the fact that if people were only going to take 2-3 days off, rather than the week or two they really need to recharge, would they head to a great spa?
The other thing that this survey doesn't take into account are all the people that spend their money with solos. The majority of my personal friends in this business are solo. If you added up all the money they're bringing in I'm sure it would be significant. So, it's possible that the money is still being spent, just in places that this survey isn't hitting.
To me, that was just plain sad, but it made me think about destination spas and the fact that if people were only going to take 2-3 days off, rather than the week or two they really need to recharge, would they head to a great spa?
The other thing that this survey doesn't take into account are all the people that spend their money with solos. The majority of my personal friends in this business are solo. If you added up all the money they're bringing in I'm sure it would be significant. So, it's possible that the money is still being spent, just in places that this survey isn't hitting.
Honestly after looking at the numbers it appears that there is a shift from pure pleasure based treatments to more medical based treatments.
I know in this neck of the woods esthetics is taking a severe downturn with regard to the basic facial. Botox, Laser and various types of medical based facial services are the way most in this area turn. Most family docs treat acne with antibiotics and retin A so I don't even do alot of teen facials anymore.
I'm lucky enough that I am 90% waxing and still sell retail but if I had to make my money doing facials I'd be broke. My next door neighbor is in her 3rd year of trying to make it doing facials only and she has high end equipment as well as a tie in with a physician. She told me last week she's not making it and is probably going to get out soon. The physician services are in demand but her facials are not.
I'm not sure if this is true nation-wide but in my neck of the woods it is *very* true.
I do wonder if the influx of medical based facial treatments and the increased effectiveness of home care treatments are part of the reason for the drop in esthetics. I'd love to see specific numbers on that.
As for me, I'm hoping to move to Vermont in the next year and I am looking forward to starting my business again as a Waxologist. Thanks to all the great advice from the Preston Group over the years I'm very excited about the opportunity for a business do-over and have some pretty steep goals. It's going to be a really fun ride!
AnnaMarie
www.princessofpink.net
I know in this neck of the woods esthetics is taking a severe downturn with regard to the basic facial. Botox, Laser and various types of medical based facial services are the way most in this area turn. Most family docs treat acne with antibiotics and retin A so I don't even do alot of teen facials anymore.
I'm lucky enough that I am 90% waxing and still sell retail but if I had to make my money doing facials I'd be broke. My next door neighbor is in her 3rd year of trying to make it doing facials only and she has high end equipment as well as a tie in with a physician. She told me last week she's not making it and is probably going to get out soon. The physician services are in demand but her facials are not.
I'm not sure if this is true nation-wide but in my neck of the woods it is *very* true.
I do wonder if the influx of medical based facial treatments and the increased effectiveness of home care treatments are part of the reason for the drop in esthetics. I'd love to see specific numbers on that.
As for me, I'm hoping to move to Vermont in the next year and I am looking forward to starting my business again as a Waxologist. Thanks to all the great advice from the Preston Group over the years I'm very excited about the opportunity for a business do-over and have some pretty steep goals. It's going to be a really fun ride!
AnnaMarie
www.princessofpink.net
AnnaMarie,
That is good insight. And good for you for maintaining revenues with the shift you are seeing in your region.
I like that title "Waxologist" cute and descriptive. I'm seeing the trend for independent estheticians to focus/specialist more on waxing and end of doing facials as an aside. Will you be doing the same? Or not doing any facials at all? I'm intrigued at the idea of a wax only business plan...
Heather
That is good insight. And good for you for maintaining revenues with the shift you are seeing in your region.
I like that title "Waxologist" cute and descriptive. I'm seeing the trend for independent estheticians to focus/specialist more on waxing and end of doing facials as an aside. Will you be doing the same? Or not doing any facials at all? I'm intrigued at the idea of a wax only business plan...
Heather
Heather I think that focusing on waxing is something that made good fiscal sense to me so I ran with it. A Facial in this neck of the woods is around $65 for an hour and if you have one of the expensive machines like Microderm or Light therapy you might be ble to push it to $125 an hour (however, factor in the cost of the machine and it's still really only $65).
I average $100 per hour waxing and have had $200 hours at times. My equipment needed is a wax trolly, a light and the triple wax pot I use. My laundry is negligible since I use a doctor style approach. Bare table covered with paper that I throw out and then spray sanitize the table. Lap drape which I make out of cotton and since I have about 50 of them I only do 1-2 loads of laundry at the end of each week. Supplies are the wax, tongue depressors (about 50 per client at a penny each), a bit of topical stuff and that's it.
There is definitely a way to make a wax only business work strictly from a financial point of few and it has worked for me quite well.
As for doing facials I have not completely decided whether or not I'll continue to do these or not. The upside of doing facials is selling retail but I've been able to sell retail to waxing clients fairly easily just doing a skin analysis without a facial. The Preston products work so well and are so effective my clients who are faithful to my skin care line remain so without the need for facials.
Where this leads esthetics, I don't know however for me I'll continue on this path as long as it pays the bills.
AnnaMarie
I average $100 per hour waxing and have had $200 hours at times. My equipment needed is a wax trolly, a light and the triple wax pot I use. My laundry is negligible since I use a doctor style approach. Bare table covered with paper that I throw out and then spray sanitize the table. Lap drape which I make out of cotton and since I have about 50 of them I only do 1-2 loads of laundry at the end of each week. Supplies are the wax, tongue depressors (about 50 per client at a penny each), a bit of topical stuff and that's it.
There is definitely a way to make a wax only business work strictly from a financial point of few and it has worked for me quite well.
As for doing facials I have not completely decided whether or not I'll continue to do these or not. The upside of doing facials is selling retail but I've been able to sell retail to waxing clients fairly easily just doing a skin analysis without a facial. The Preston products work so well and are so effective my clients who are faithful to my skin care line remain so without the need for facials.
Where this leads esthetics, I don't know however for me I'll continue on this path as long as it pays the bills.
AnnaMarie
AnnaMarie, Good for you. You sound like you have thought through many aspects of your business and figured out which makes the most sense. Best of Luck in Vermont: I almost went to college there, and then I would have gotten hooked on their green mountains instead of moving out West to get hooked on the Rockies. I bet VT's gorgeous. Best to you.
About the report, I'm with Michelle and Val. Who knows what those surveys represent? Without all the details, you can't just a report by its results.
In past discussions, perhaps past board forums, we talked about the trend for people calling their business a "day spa". So, if everyone salon now calls themselves a day spa, then it's no wonder the $$ isn't as good per place. In Aspen, one "day spa" does nails and waxing: no massage, no body treatments. (Hey, I don't even perfectly fit into the Day Spa category by some organization's standards: I don't have a locker room or showers, or steam or sauna).
Happy Off-Season to all who practice in resort areas!
Nina
About the report, I'm with Michelle and Val. Who knows what those surveys represent? Without all the details, you can't just a report by its results.
In past discussions, perhaps past board forums, we talked about the trend for people calling their business a "day spa". So, if everyone salon now calls themselves a day spa, then it's no wonder the $$ isn't as good per place. In Aspen, one "day spa" does nails and waxing: no massage, no body treatments. (Hey, I don't even perfectly fit into the Day Spa category by some organization's standards: I don't have a locker room or showers, or steam or sauna).
Happy Off-Season to all who practice in resort areas!
Nina
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