What does SpaQuality LLC see as the biggest barriers to improving
spa profitability?
The number one barrier that we see could be called an immature business
model. In the early stages, many spa owners and directors view other
spas as competitors rather than coworkers in an evolving industry. As
a result of the immature thinking, they focus their efforts on distancing
themselves from the other spas. The result of the distancing is that
all then work alone. Distancing is different than differentiation. Spas
specialize to appeal to and address different clients and different
needs. The more differentiation, perhaps the less competition. One size
does not fit all clients, but there is a spa for every client.
As the thinking of spa owners and directors evolves and their businesses
mature, they come to realize that the real competitors are not other
spas but the preconceived ideas and past experiences of their clients
and potential clients. Many of us meet people and have friends who have
never gone to a spa or have never had a spa service. They have heard
stories that create fear and may not understand that the problems are
local issues. They believe the risks are universal and pose a threat
to them and their personal safety and health.
Mature business thinkers recognize that when they adopt an attitude
of cooperation, everyone benefits. In a local area, we can imagine spas
doing what we have seen demonstrated in other industries. In a model
of cooperation, spas could create citywide spa events or work together
to participate in a spa promotion such as Spa Week. Of course, this
would require spas agreeing on common goals and having reliable systems
so that problems are prevented.
Compared to the population, the number of people who frequent spas
is extremely low. Perhaps spas could participate in cooperative education
events to try to reach the part of the public not currently going to
spas and raise the general population's opinions of the spa industry.
As long as a spa owner or director believes that the other spas are
competitors, that total number is not likely to change, and thus, spas
will continue to “fight” for that handful of experienced clients.
Another type of cooperation could be spas sharing the cost of education
events for their personnel and staff.
The result of cooperation is that all benefit and the out-of-pocket
costs to each is much lower thus higher profits for all. Cooperation
wins over competition every time.
Any tips for improving a spa’s reputation?
A spa’s reputation is a valuable resource and as with almost all
resources, once it's damaged or lost, recovery takes time. Recovery
begins with attitude. Decide that no matter how awful the reputation
is or how bad it makes us feel to hear negative comments, it is better
that we know it. We need to gather immediate feedback from clients.
Listening to people - really listening - to collect and savor every
thought is enlightening. If a spa wants to know what clients think,
increasing the time we listen to simply understand (as opposed to defend)
is one of the fastest ways to learn what the reputation’s actually
is. Prepared with specific information, the spa owner or director can
then take meaningful action that will address the specific issues to
improve the spa's reputation and ultimately the profits.
Do you have questions for Linda?
Email them to info@spaquality.com.
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