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The International Standards of SpaExcellence(SM)2008
The International Standards of SpaExcellence(SM)2010

Managing for the Sustained Success of a Spa - A Quality System Approach
with Guidance and Examples

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*Includes shipping to US and Canada only.
**Electronic file will be sent via email.

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How to Start Your Own Day Spa Seminar at the Learning Annex
Julie Register attended this 6-Hour seminar
on October 17th, 2009 in NYC

Nancy Trent, president of the NYC-based spa and healthy lifestyle public relations firm, Trent & Company, was host and moderator of “How to Start a Day Spa”Wendy Bosalavage, President of American Leisure CorporationMaria Varriano, owner of MariVar Spa BuildersTony Galbo, Director of Business for New World Design BuildersDenise Vitiello, Director of the Spa at the Mandarin Oriental

When Nancy Trent, president of the NYC-based spa and healthy lifestyle public relations firm, Trent & Company, told me she thought I would find the Learning Annex’s “How to Start Your Own Day Spa” interesting, I decided to attend. I've known Nancy for a long time, and I trust her recommendations. She was right. I found the seminar very interesting and packed with useful information. Spa owners, those thinking about opening a spa, potential investors and an internet marketer joined me in the audience. Nancy introduced the speakers and facilitated the seminar.

Wendy Bosalavage, President of American Leisure Corporation, said all that's needed to succeed is the bottom line (profit/loss), and passion (an emotion so powerful that it is intense and compelling). Her company has designed over 500 spas, from 4 to 40 rooms. She provided a 30+-page handout outlining steps that need to be taken to open a spa and consulting services her company provides:

  • Phase I - conceptualization, financial pro forma, and business plan.
  • Phase II - building design, services, retail and merchandising, management systems and information technology, vendor relationships, legal and regulatory, recruitment and training.
  • Phase III ongoing management, administration and operation, financial internal controls, human resources, cleaning, maintenance and energy and sales.

Here are a few of the points Wendy made in her talk:

  • A good spa can gross $200,000 per room.
  • Spas need other spaces such as locker rooms.
  • A spa must have capital to support the business for at least 3 months.
  • When you are stressed financially, you make poor decisions.
  • Don't scrimp on paying your staff. Put them on the payroll, not as independent contractors.
  • You hear retail produces 30-70% profits. The reality is 25%.
  • Reach out for help when you need it.

Maria Varriano, owner of MariVar Spa Builders, discussed standards of customer service. These standards must be articulated and demonstrated. Your employees are also your guests. You must treat them well so they can treat your guests well. Give everyone the same level of attention and they will go out and talk about you (that's a good thing). Good leaders communicate confidence, even in times of uncertainty, and work hard to make their people shine. Here are a few points she made about leadership:

  • You must have passion for what you do.
  • You must have an ability to inspire others and get them to understand your vision.
  • You must have leadership abilities including the ability to motivate and inspire others and have faith in your vision.

Maria ran through some calculations of what a spa could expect to make per treatment room - the peak potential per week. She arrived at a number then said cut it in half. Utilization will be less than you think. She also said not to expect more than 20% on retail. If your clientele is made of loyal, repeat customers, they can only buy so much. One sale should last 3 months. She emphasized the need for consistency from provider to provider. She explained the necessity to establish expectations with providers at orientation (This is how we take care of our guests...). Finally, Maria said to decide on a market discipline - a single point of differentiation such as:

  • Price point - basic, good service at a great price (Massage Envy),
  • Customer service - superlative service that responds to the whims of your guests - requires more staff (Ritz, Nordstrom), and
  • Innovation - deliver the latest, hottest, etc - it will be necessary to educate both staff and guests and will require investment in new equipment.

Tony Galbo, Director of Business for New World Design Builders, talked about the necessity of having a concept and vision, using the right architect, having the right location and having a good contractor. He recommended using a contractor that experience with spas and not to pay for their learning curve. He said spas need enough capital for 6 months of expenses and costs. A high-end spa will cost $250+ / square foot including everything. He provided some other cost figures:

  • Architecture and Interior Design: $20-$25 / square foot (10-20% of the total budget)
  • Engineering: $5-$7 / square foot
  • Construction with water services: $150 - $250 / square foot
  • Equipment $40-$70 / square foot

Tony showed slides of some of the work his company has done:

  • Town House Spa in New York, NY
  • Elements Spa in Vernon, NY
  • Maximus SoHo in New York, NY (now closed)
  • Depasquales in New Jersey

Sergio Mercado, Creative Director at Clodagh, talked about the use of natural materials, feng shui, biogeometry and the location of a structure as it relates to astronomy in design. He said the project designs itself and depends on its location. He said they use the five elements in their designs and involve local artisans which become talking points for staff and guests. Some of the projects he shared were Nemacolin Woodlands in Pennsylvania, Miraval (rammed earth walls, baskets for floor lighting), Yogaworks in SoHo and Sasanqual Spa on Kiawah, South Carolina.

Nancy Trent ( Trent & Company) talked about how important it is to turn your spa into a PR machine. If no one knows about it, it won't succeed. Media publicity:

  • Brings new business
  • Allows you to charge more for your services
  • Pre-sells you to your customers
  • Minimizes the sales cycle
  • Helps your customers sell your spa
  • Makes the spa more available

She explained the three "B"s of PR vs. Advertizing:

  • Budget - one ad can cost more than 1 year of PR services
  • Believability - Articles are more credible than ads because they offer 3rd party endorsement of a trusted journalist.
  • Buzz - Articles are more likely to get others to talk about you.

Nancy listed what you will need:

  • Target Media - media that influences your customers and those that refer them. Who is your target audience? What do they read, watch and listen to? What do you want them saying about you?
  • Message Development - An interview is not a conversation. Use language that clients and journalists will understand. Know what you want them to quote you on. Be prepared. Have sound bites in mind.
  • Media Training - practice giving reporters quotable quotes and news they can use. Be prepared to cite compelling statistics, anecdotes and personal experiences when possible.
  • Informative Press Kit - with statistics, case studies, before and after photos, fact sheets, press releases, profiles, area of expertise, talking points, interview topics, spa menu.
  • B-roll - video of services in your spa. It will get you more local TV coverage.
  • Be accessible.
  • Cultivate relationships.
  • Network. Join associations, be on advisory boards.
  • Treat editors like rock stars.
  • Set a realistic time frame. It takes 6 months - 1 year to get the full benefits of publicity.
  • Publicity begets publicity.

Nancy said no one is making a phone call to your spa because of national media coverage. National media is for branding. Local media will create phone calls from clients.

Denise Vitiello, Director of the Spa at the Mandarin Oriental, New York, spoke about operating a spa committed to standards of excellence. She said that customer service is the key to how your feel in a spa. Spas are about energy. Create positive energy. You can have a great facility, but customer service is what's important - staying true to our philosophy and vision and making sure your staff is trained that way. She noted:

  • It costs 5 times more to get a new customer than keep one.
  • The average customer that has a bad experience tells 9 others. They only tell 3 if it's good.
  • If a complaint is resolved, 70% will return. If it is resolved quickly, 90% will return.

Denise discussed what can hinder our ability to offer excellent customer services:

  • Telephone skills - energy, communication, flexibility, follow up, well spoken, helpful, empower your staff to serve your guests.
  • Welcome - approach, take ownership of the customer, treat every customer with respect, under promise and over deliver, follow up, keep in touch (handwritten thank you notes).

Denise reviewed the requirements for the Mobil 5 star rating and noted that it doesn't cost that much to train your staff to do the right thing. Teach your staff to listen with the intent to understand, not with the intent to reply. Denise advises to hire people for a good heart and train them for skill.

Unfortunately, I could not stay for the last two presentations. Courtney Power of Trent & Company has provided a summary of them below:

Lorraine Massey and Candida Molina, Owner and Director of the Deva Spa at the Devachan Salon in SoHo, agreed with Vitiello’s stance on customer service. Massey and Molina also discussed different strategies to attract clients, such as the customer-friendly “no tip” policy. Their unique approach to business has helped The Deva Spa flourish, despite opening its doors mid-recession.

Closing out the presentation were the knowledgeable Isabel Anton and Anna Antal, co-owners of the celebrity favorite Advanced Skin Care Day Spa. Anton and Antal focused on the often-overlooked basics of operating a spa business, such as payment options and accounting decisions. As women who began their spa business in America before they could speak English, Anton and Antal demonstrated that, with determination and skill, spa industry hopefuls can achieve anything.

~ Julie
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