Last year, the International SPA Association ISPA conducted the U.S. Spa Industry Study and discovered that the total number of people who visited spas went up to 179 million in 2015 — a historical high.
That year saw a 2.1% increase from 2014’s 174 million, and considering the upward trend since 2009, the report says the industry will see a steady overall revenue growth in the years to come. If you are looking to invest in a spa business, there is no better time than now.
If you are looking to reap the many benefits of a spa franchise, here are the things you need to remember before cutting the ribbons of your own spa:
1. Location is key.
This is a phrase realtors have always been harping about and for a good reason. Just like any other business, the success of a spa is based largely on where it is situated. Ideally, your spa should be located in a high-traffic area that customers can easily access by highway or byway. Choose a location that allows ample parking and with a surrounding environment that’s safe, well-lighted, and attractive. It’s a plus if there are other retail businesses in the vicinity, as these tend to make business for you as they attract customers through their own doors.
Spas typically operate out of freestanding buildings, shopping centers, and storefront properties. Many spa owners choose to operate out of buildings that are freestanding, within the perimeter of a mall. Rent in these areas tends to be lower than that of inside malls, yet they still receive significant amounts of foot traffic, especially on business days.
2. Set appropriate pricing.
When you set your prices too high, you tend to limit the number of clients who can afford them and set it too low, and you may limit your potential for profit which can endanger your business.
Your prices depend on your service area’s demographics. If your company stands in an upscale area occupied with clients with more disposable income, for instance, you can price your treatments and services accordingly and even consider offering high-end spa services. If young working families occupy the surrounding community, on the other hand, concentrate on basic services that you can provide at more affordable prices.
Consider overhead costs, labor and supplies, and profit when setting prices. Labor costs include salary and benefits for your staff members from the massage therapists and receptionists to your manager and even your own. Overhead costs, meanwhile, are all the expenses incurred to operate the business, including lease or mortgage payment and utilities.
3. Decide on your service offerings and market them well.
Day spas usually offer skin and body care, hair removal, nail services, and makeup. Some of the services you may offer include facials and body scrubs or exfoliation, massage, waxing or other hair removal services, eyelash extensions or perming, and eyebrow tinting, among many others.
Look into the services offered by other spas in your location. Observe the services customers love, as well as those that are missing from their list, but you feel clients are likely to patronize if it were available. Make sure you market your services well and highlight how customers can benefit from each of your offerings.
It is also smart to opt for a franchise that doesn’t require much marketing. Trusted brands like Marilyn Monroe Spas Franchise market themselves. As a brand recognized in various locations all over the country, people are likely to pour in, knowing they will receive excellent service. Partnering with such reputable companies also takes a significant amount of burden from your shoulders, as they have in-house experts who can assist you through the process of building and growing your franchise.