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Report on the 2009 NY IECSC / IBS Conference
& Expo in New York, New York
by Julie Register
Entrance
to the 2009 IBS (International Beauty Show) |
Registration
for he 2009 IECSC (International Esthetics, Cosmetics and Spa Conference)
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On Monday April 27, I attended the 2009 IECSC (International
Esthetics, Cosmetics and Spa Conference) and IBS ((International Beauty Show)
at the Jacob Javitts Convention Center. The shows were open from the 26th to the
28th. It was the first time I went to the IBS, and I fount the expo huge - over
400 hair (color, extensions, tools, furniture, etc.), nails and makeup suppliers.
I must have walked miles up and down the aisles. I also spent an hour or two in
the IECSC expo, but most of my time was at the conference.
I listened to presentations on: the New York Spa Trail,
how spas can survive this economy from Wynne Business, the
New York Spa Alliance (a panel discussion), best practices
from the Ritz-Carlton, and Ask the Experts - a panel
discussion of spa consultants. They were all excellent. A brief summary of
each is below. The complete PowerPoint presentations will eventually be posted
at http://www.spatrade.com/iecsc.phtml
(not the panel discussions, though). The
New York Spa Alliance: History, Mission and Vision  I
was very excited to listen to this presentation by Les Moore ND, LAC, MSOM and
Charlotte Wytias RN, MS, FNP, NYSPA Board Member - both from Clifton
Springs Hospital, The Springs Integrative Medicine Center and both founders
of NYSPA, The New York Spa Alliance.
Dr.
Moore reviewed the 200 year history of natural medicine in New York - Thomsonian
Herbalism, Hydropathy/Hydrotherapy/Balneology, Homeopathy (I have Kent's Repertory
of the Homeopathic Materia Medica and never realized he was from New York),
Integrative Medicine, Naturopathy, Physical Culture/Education and Natural Medicine
Education. He then gave a history of the mineral springs spas in the state of
New York in the 19th and 20th centuries. At one time, there were 140 mineral springs
in the state of NY where people would come to take the waters just like in Europe.
They would stay for long periods of time to improve their health. Dr. Moore compared
the current spa industries in Europe and the US. He talked about complementary
and alternative medicine in the US today. He also talked about the history of
medical hydrology and the science of balneology. Bathing in mineral springs
increases the temperature of the body, killing germs and viruses increases
hydrostatic pressure on the body which increases blood circulation and cell oxygenation
and helps dissolve and eliminate toxins from the body allows
trace amounts of minerals (carbon dioxide, sulfur, calcium, magnesium, lithium)
to be absorbed transdermally by the body, which provide healing effects such as
stimulation of the immune system, the production of endorphins and normalized
gland function
Balnetherapy
can help chronic rheumatic diseases, central and peripheral neuroparalysis, metabolic
diseases (especially diabetes, obesity and gout), gastrointestinal diseases, respiratory
diseases and skin diseases. Dr. Moore referenced a number of recent studies that
point to the benefits of soaking in mineral springs (balneology). He
talked about the specific minerals found in Clifton Springs. He and Charlotte
then talked about the current state of the mineral springs in New York and the
creation of the New York Spa Alliance. Unfortuantely, May Anne
Krupsak Esq, a former Lieutenant Governor of NY and also a founder of NYSPA was
not able to attend. She was responsible for the 
tourism campaign and the NY Wine Trail. She is now helping NYSPA to develop the
NY Spa Trail as an economic driver and source of health for the people of New
York and their tourism visitors. As I mentioned, I find this
project very exciting. New York has unique natural spa resources, and are making
plans to re-develop them. I can't wait!
Wynne
Business Recession Survival Kit  Peggy
Wynne Borgman, Executive Consultant and Lisa Starr, Senior Consultant for Wynne
Business Spa Consulting spoke about using the current state of the economy
as an opportunity to fix business issues that many spas experience. Its necessary
and easier to do it in times like these. It's time to establish effective and
affordable compensation plans, bolster employee morale with the right communication
and leadership skills, and reduce overhead without damaging the guest experience.
Peggy explained what steps she had to take at her own spa including reducing the
pay scale, renegotiating ironclad contracts, encouraging the use of debit cards
over credit cards, streamlining retail lines and the service menu and outsourcing
HR activities. They also gave great examples of things not to cut back on (replace
frayed robes, keep the spa in good repair, don't cut hours, don't discount, etc.).
For more detail, you can see a copy of this PowerPoint presentation on the Wynne
Business web site.
The
New York Spa Alliance Panel Discussion  Moderator:
Peter Anderson, Principal - Anderson
& Associates
Panelists: Les Moore ND, LAC, MSOM, Clifton
Springs Hospital, The Springs Integrative Medicine Center; Charlottoe Wytias
RN, MS, FNP and Program Manager - Clifton
Springs Hospital, The Springs Integrative Medicine Center; Karen Watson, Spa
Director - The Sagamore
Resort. This discussion went into a bit more of the history and goals of the
New York Spa Alliance.
The
New York Spa Alliance (NYSPA) was formed to create awareness of and to provide
support to New York State's vibrant and vital Spa business community. NYSPA's
mission is twofold: to reestablish New York State as the premier location in the
country for Spa and related wellness businesses; and to serve as a resource for
information, education, advocacy, action and assistance to the New York Spa Businesses
and the communities they support. Peter discussed the importance
of economic development and how the NY Spa Trail would create a critical mass
for the regional economy with money being spent on the spa, lodging, food and
other activities. It would lead to increased employment. Each
panelist was asked what they would like to see done with $120 million currently
available to develop upstate New York. Karen
would like to see the area around The Sagamore developed into a four season resort.
Karen encourages spa directors to network and share best practices. Charlotte
would like to see it used to develop and promote mineral springs. She sees the
potential of these to do so much good. She and NYSPA are active in helping spas
find sources of funding through grants. Dr. Moore
would like the state to take the lead as researchers of spa medicine and to create
a center of excellence for nutraceutical and cosmeceutical supplements and spa
therapies. He noted that Clifton Springs, while an excellent hospital and spa,
does not currently have adequate lodging (aside from a couple of B&Bs) to
become a spa destination for large numbers of spa guests.
In
15 years, they would like NYSPA to help draw people to spas, help spas in NY be
an economic driver, network with other states and the use of spas as key to prevention. The
5th Annual New York Spa Alliance Symposium will be held at the Rye Town Hilton
in Rye, New York on May 8-9, 2009. Best
Practices from The Ritz Carlton  Suzanne
Holbrook, Executive Spa Director at The
Ritz-Carlton Orlando Grande Lakes described how Ritz-Carlton focuses on instilling
a service-oriented culture (the employee promise, motto, credo, hiring the right
people) She discussed training plans, development, recognition, performance incentives,
service protocols, STEP using AAA criteria, daily lineup, monthly meetings. She
talked about the use of tools to measure customer satisfaction to create a superior
guest experience (comment cards, Gallup guest satisfaction surveys, financial
performance, employee engagement, and secret shops). She highly recommends delegating
work since spa directors don't have enough time and having others input engages
them. She talked about the Family First program where employees are cross-trained.
If someone leaves, other employees can fill in or pick up extra hours. She shared
some ideas for hotel spas to more effectively market - have spa collateral in
each guest room, use a spa turn down card and small spa amenity, and put a spa
promotion in the key packet. Cross market to hotels that have no spa or a small
spa. Build relationships with concierges and sales managers. Market events such
as girlfriend getaways and mother/daughter days. She talked about the success
she has had with trunk shows where spa vendors set up booths and do mini treatments.
If they use a Woods lamp, retail sales of anti-aging products soar in the spa.
Suzanne shared information on her spa's membership and loyalty programs (spa longer
- free add-on for longer service, happy hour on Tuesdays), as well as PR hooks
(tea bar, roof garden and hammock massage) and trends. Suzanne says spas must
set themselves apart.
ASK THE
EXPERTS: An Open Forum with Top Spa Consultants  Moderator:
Nancy Griffin, Director of Content - Questex
Media Group, Inc. Panelists: Peter Anderson, Principal - Anderson
& Associates;
Ann Emich-Patton, CEO - Savvy
Spa Consulting, LLC; Kim Matheson-Shedrick, President and Owner - Natural
Resources Spa Consulting, Inc.; Lisa Starr, Senior Consultant - Wynne
Business Spa Consulting.
Lisa led off by saying that the
spa industry suffers from a low barrier to entry. A recession is a chance to regroup
and make changes to compensation and tighten up operations. Kim
suggests it's a time for developing value and relationships with customers and
vendors and create strategic alliances as well as getting rid of dead wood. Peter
noted that during down economic times is a good time to get rid of chaff. Stronger
businesses will flourish. Ann suggested getting good at negotiation
- both internal (staff) and external. Vendors and clients are all looking for
deals. She also recommended revisiting your vision statement. It's the how and
why of doing business and where you're going. Here are a few
of the questions the audience asked along with the panel's answers: Are
there any statistics on spas closing:
Lisa: No reports are out but she
sees about 2/week in the news. It happens because expenses outweighed income.
What led to failure?
Kim: Hotel spas are not closing and are looking
for other options either from vendors or labor.
Peter: Resort spas will
never close. He noted a recent PKF study was a little misleading.
Ann:
Resort spas have 17-25% profit. Day spas have 10% if they are lucky. Spas have
to know their break even point. Forecast your trends so you know what you have
to do. As of last August, spa profitability was down 35%. - What advice
do you have for a new start-up day spa?
Lisa: There are great opportunities
to take over existing spas. Density is a problem. You need money - operating capitol
for 6-9 months when you open.
Kim: Do the numbers, do the ROI. It takes
20 years to develop a business.
Peter: You must do research, SWAT analysis.
Ann:
Resort spas have 17-25% profit. Day spas have 10% if they are lucky. Spas have
to know their break even point. Forecast your trends so you know what you have
to do. As of last August, spa profitability was down 35%. - What advice
do you have on compensation?
Lisa: It should be 30-32% of service. That
way you can provide benefits - vacation, health insurance, 401K. Base it on annual
earnings - just like a real job. i.e. 35K plus benefits. Make compensation performance
based. Compensation goes up as the business grows. Measure and reward success.
Kim:
Talk about what you do provide - insurance, a nice place to work, etc
Peter:
When it's based on percentage, they get an automatic raise every time prices are
increased. There is not such thing as grandfathered. If there is a new owner,
technically, the have to be re-hired.
Ann: Do the numbers. 50% becomes
70% when you are providing product and laundry. You can afford to be in business
that way. Base compensation on performance. If compensation has to be adjusted,
bring something else to the table - let them buy products at cost, treatment exchange,
etc. No staff member will argue with the spa needing to be successful. - What's
working in retail?
Lisa: Know the historic performance. Sell retail
with a margin that allows a profit. Use incentives and training. Hire people who
love to use products. Ask them what they use at home in the hiring interview.
Use private label.
Kim: Have goal setting sessions and make expectations
clear. Encourage clients to live spa not just go to a spa. Use refill program.
Use team bonuses. Use ecommerce.
Peter: Therapists come from a different
place than customers. Remind the therapists that they are the best people to tell
customers what to use and to help them. Have them spend time with the customer
after the treatment (prime selling time) and have someone else flip the room.
Ann:
Anything the guest sees, smells, touches and hears should be available to take
home. Vendors should help. If staff does a $100 treatment, they should sell $40
of retail. When deciding on a private label manufacturer, ask to see their manufacturing
plant. If they won't show you, don't use them.
Here
are a few of the booths at the IECSC expo: |
http://click.linksynergy.com/fs-bin/click?id=*EJTVpauQ/0&offerid=61746.10000013&subid=0&type=4
Lantana Spa at JW Marriott San Antonio
Farm to Treatment Table Lavender Experience
This package is available Saturdays only, May 12 – July 14 (excluding June 8), must be booked one week in advance and requires 48 hours notice for cancellation.
Includes
Hill Country Lavender Farm tour,
a bottle of organic lavender massage oil made at the farm,
lunch at Replenish Spa Café with items featuring lavender, and a lavender-based spa treatment featuring the organic lavender massage oil from the Hill Country Lavender farm.
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I'm a believer.
~ Julie
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