BULK ORDER DISCOUNTING FOR VOLUME B
ecause spas are a fi xed-cost business they constantly need to be selling serv- ices and boosting occupancy to ensure
success. While some spas are already dropping prices to reach more clients, the phenomenon of online and mobile group deals will fuel this trend even more in 2011. Discounting for volume isn’t suitable for all
spas, especially high-end, luxury operators. But for others – if they get the ratio between price and volume right and take into consid- eration the cost of consumerables along the way – it will be an eff ective yield management tool. And there are a number of options avail- able for operators to choose from. Group-buying websites have a prolific
online presence and consumer traction. Busi- nesses can create promotions and discounts for these deal sites to send to their followers
Wahanda’s MobDeals require a set number of people to sign up before the promotion is activated
via email and text messages. T e host site then takes a certain percentage of revenue from any deal sold. One of the earliest and most suc- cessful deal site companies is GroupOn, where around 20 per cent of off ers are spa-related, but there are also industry-specifi c sites too, such as SpaRahRah. Location-based marketing (see opposite) is another avenue to explore. T en there are
ROOM FOR IMPROVEMENT TREATMENT ROOM SIZE
G We’ll see more sensible sized treatment rooms
www.spahandbook.com
one are the days when big is better and the size of a spa – especially its treatment rooms – is an indication of
quality and opulence. Newly built spas coming to fruition in 2011 and beyond will have more modest sized treatment rooms. T e rooms will be big enough to give the therapist and cus- tomer suffi cient space to move about in, but not so extravagant that they’ll waste valuable, revenue generating space. A large, echo-fi lled treatment room doesn’t
necessarily create the best experience: it can leave guests feeling intimated and far from comfortable. Neither does it make good busi- ness sense. When costing up a spa, architects
mobile phone deals. Health and beauty website Wahanda launched its MobDeals last year. It negotiates special volume discounts with spas, salons and gyms for shoppers. Once a mini- mum number of sales has been reached, the deal offi cially goes live. Shoppers are encour- aged to spread the word to their family and friends, because if there aren’t enough takers then the deal doesn’t go ahead.
and designers typically measure spas on the amount you pay per square foot or square metre (sq m). T ese guidelines are also used in research and in general to defi ne an operation
– with a us$100 per sq m spa being far less elaborate than a us$1,000 per sq m one. By this standard, you’re eff ectively buying spas by the sq m and the more space you put into the treatment rooms, the more return you have to get through trading to pay back the capi- tal and see a return on investment. In times of austerity, operators will become
more practical about the space that is allo- cated to treatment rooms in a new build. In existing structures, large treatment rooms will be broken up – by something as simple as a curtain – or reconfi gured, as owners realise that they need to make the most out of their money-generating areas.
spa business handbook 2011 27
THE SCARLET, UK, PHOTOS BY CHRIS CYPERT
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