This page contains a Flash digital edition of a book.
Letters
write to reply
Do you have a strong opinion, or disagree with somebody else’s point of view on
topics related to the spa industry? If so, Spa Business would love to hear from you.
Email your letters, thoughts and suggestions to theteam@spabusiness.com
Spa memberships aren’t always necessarily a good thing
Hirokazu Iida, president, Shuei UpGrades Co Ltd, Japan
I
was interested to read the article on those who come infre-

spa memberships in the last issue of quently, a higher monthly
Spa Business (SBzero.fittednine.fitted/three.fitted ptwo.fittedzero.fitted). I run a pri- due with a complimentary
vate tennis club and yoga studio in Tokyo, service is ideal.
which both operate under a membership T_h e third problem that
scheme. Memberships are popular in the I see relates to ‘member-
f_i tness and wellness markets in Japan, ship rights’. A common
but I can see four critical issues with this reason for customers to
business model. purchase membership is
Firstly, though memberships guarantee for the exclusive privilege
a periodical cash inf_l ow, more investment of using a facility. How-
is required for customer retention. For ever, members sometimes
example, if an annual due is applied, gim- expect to receive benef_i ts
micks – gif_t s, coupons, points, retention beyond what’s on of_f er:
calls – are needed to avoid attrition. Data helping themselves to
mining is regarded as the most ef_f ective give away amenity items for home use, cheap, but extra costs are involved in man-
tool to minimise attrition, however, it for example. Additionally, those who aging billing data and collecting charges
requires considerable cost for data visit extremely frequently, expect to be from customers whose direct debits have
analysis: over USdollar.fittedfive.fitted,zero.fittedzero.fittedzero.fitted (Euro.fittedthree.fitted,five.fittedfive.fittedzero.fitted, sterling.fittedthree.fitted,zero.fittedfive.fittedzero.fitted) favoured over other members who don’t failed. If a customer base is more than
for sof_t ware or over USdollar.fittedthree.fittedzero.fitted,zero.fittedzero.fittedzero.fitted (Euro.fittedtwo.fittedone.fitted,two.fittedfive.fittedzero.fitted, come so of_t en. one.fitted,zero.fittedzero.fittedzero.fitted, a full-time employee may even be
sterling.fittedone.fittedeight.fitted,two.fittedfive.fittedzero.fitted) to outsource the work. T_h e f_i nal issue I see is the administration required to deal with this.
Secondly, I feel that prices should be costs involved in dealing with direct debits, I believe membership does not merely
based on frequency of visit. Members which is the common way for members mean easy acquisition of repeaters. It
who visit a facility frequently should have to pay their monthly dues. In Japan the requires in-depth customer analysis and a
a lower monthly due and entrance fee. For handling fee for a direct debit is relatively well organised approach.
Proposed ‘pleasure service’ tax could have severe repercussions
Felicia Brown, owner, Spalutions, North Carolina, US
T
he spa industry needs to be aware such as chiropractors, physicians and just be passed on to the consumer but
of the push by some of North Caro- physical therapists – to be taxed, just rather absorbed by the business owners.
lina’s legislators to add a sales tax because the service they provide is enjoy- Adding a tax to personal services will
to personal services, especially ‘pleasure able. T_h is is especially true since massage hurt these businesses.
services’ such as massage therapy, facials, therapy is not covered by insurance, but So what is the global impact of such a
hair cuts and pedicures. paid for entirely by the consumer. tax being passed? In the US, it opens
At the moment licensed massage Unfortunately, other personal serv- the doors to other states following suit,
therapists have been exempted from the ices are still included in the proposed potentially creating an even stronger
proposed sales tax (although this could tax. Many spa, salon and other service decline in the personal services industry.
change) because they are classif_i ed as businesses that will be af_f ected by it Across the globe, I believe it will create a
licensed healthcare professionals in North have already seen a drop in revenue. As stronger impression with the public that
Carolina’s General Statutes. personal care services are of_t en the f_i rst spa services are once again out of reach
Obviously, no group should be singled thing to drop out of people’s budgets, I of the average consumer and this, in turn,
out from other healthcare providers – suspect the tax – if approved – will not will decrease business for us all.
1412 Read Spa Business online spabusiness.comm // digital SpSPa BuA BUSINESS 4 2009SineSS 4 2009
©
ccyyberertreekk 200099
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68
Produced with Yudu - www.yudu.com