Day DaySpa SpaAssociation Association

Day Spa Benchmarks: A Blue Print for Success

"a#le of Contents

4ntro*5ction

3 9

0ac63ro5n* an* /+7ecti8es Scope an* -etho* :;ec5ti8e S5$$ary 5 6

Day Spa Benchmarks: A 22 Blueprint for Success

4n Conc%5sion Appen*i;

Detai%e* in*in3s A+o5t <o5r aci%ity 8 A+o5t <o5r Sta11 13 A+o5t <o5r Sa%es 15 A+o5t <o5r C%ients 18 A+o5t <o5r -ar6etin3 20 A+o5t <o5r C5sto$er Ser8ice an* =5a%ity Ass5rance A+o5t <o5r 5t5re 29 25

What You Need to Run a Competitive and Successful Day Spa

26

The Day Spa Association is proud to be the first to provide a benchmarking report for the Day Spa Industry April 2 !
310 17 th Street Union City, NJ 07087 201-865 -2065 / A!" 201-865-3#61 e$ai%" DaySpaAssn&ao%'co$ (((' spaassociation 'co$

)repare* +y" Dr' ,o+in -' .e%%eher /n 0eha%1 o1" 2he Day Spa Association 2003
Copyri3ht 2003 1 2

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

$ntroduction

2he *ay spa in*5stry is 3ro(in3 $ore rapi*%y than anyone can i$a3ine' 2he n5$+er o1 spas has increase* *ra$atica%%y in recent years, an* the n5$+er o1 spa-3oers contin5es to increase e8ery *ay' Cons5$ers are +e3innin3 to rea%i>e the +ene1its o1 spa ser8ices an* the i$portance o1 1in*in3 a rep5ta+%e 1aci%ity to re%y 5pon' As e;pecte*, cons5$ers are +e3innin3 to e;pect the +est 1or their $oney, (hen it co$es to spa ser8ices' 4n years past, any 3y$, +ea5ty sa%on, nai% or hair care 1aci%ity co5%* c%ai$ the$se%8es as a *ay spa, as %on3 as they o11ere* certain *ay spa ser8ices' 2he increase in pop5%arity, as (e%% as, the a3in3 o1 the +a+y +oo$er pop5%ation, has ca5se* a si3ni1icant interest in this in*5stry' So, (hy create a +ench$ar6in3 report? Day spas, their o(ners, their $an51act5rers, an* their c5sto$ers are in constant co$petition' -any are co$petin3 (ith a n5$+er o1 @pse5*oA *ay spas that arenBt concerne* (ith the phi%osophy o1 2he Day Spa Association, +5t rather ho( to $a6e $ore $oney +y o11erin3 spa ser8ices' 2he iss5es co8ere* in this report (ere i*enti1ie* thro53h a co%%a+oration o1 2he Day Spa Association an* its $e$+ers' 4t (as s5+seC5ent%y researche*, (ritten, an* e*ite* +y the 1o%%o(in3 $e$+ers o1 2he Day Spa AssociationBs pro1essiona% sta11" ,o+in -' .e%%eher, )h'D' Associate )5+%isher Danne%ore ,' Eea8y :;ec5ti8e Director 2his report is part o1 2he Day Spa AssociationBs reco$$en*e* %iterat5re section' A**itiona% research reports inc%5*e" 2he Day Spa 05siness ,eport 2he Day Spa 05siness 0i+%e 2he -ar6etin3 De$o3raphics o1 a Day Spa Foer Ghat *o Day Spas -ost Ha%5e Ghen Consi*erin3 a Ne( )ro*5ct

2he Day Spa Association 310 17th Street Union City, NJ 07087 (((' spaassociation 'co$ :$ai%" DaySpaAssn&ao%'co$ A%% $ateria% present in this *oc5$ent is the property o1 2he Day Spa Association' Copyri3ht 2003'

Copyri3ht 2003

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Back%round and &#'ectives

As a *ay spa pro1essiona%, yo5 $ay thin6 yo5 ha8e a pretty 3oo* i*ea o1 (here yo5r co$pany has +een' 05t, *o yo5 ha8e any i*ea o1 (here it is 3oin3? 2his +ench$ar6in3 report can he%p yo5r spa 3ro( 1aster +y pro8i*in3 insi3ht into s5ccess15% *ay spasI (hat ser8ices they pro8i*e, their 1inancia% o5t%oo6, their c%ient pro1i%e an* $ore' Da8in3 this in1or$ation at yo5r 1in3ertips (i%% a%%o( yo5 to ha8e insi*e in1or$ation 1or +etter p%annin3, $ar6etin3 an* p5rchasin3 *ecisions' A s5r8ey o1 $e$+ers o1 2he Day Spa Association (as con*5cte* in 2002' 2hro53h this research, yo5 (i%% ha8e insi*e in1or$ation on ser8ices, trainin3, c%ient in1or$ation, $ar6etin3 e11orts an* an o5t%ine o1 re8en5es ' Spa o(ners nee* to 6no( (hat potentia% c5sto$ers are thin6in3, (hat ne( pro*5cts are +ein3 5se* an* *e8e%ope* an* ho( to $a6e a pro1it' -any corporations ha8e *e*icate* sta11 to s5r1 (e+ porta%s an* chat roo$s to 3et the %atest in*5stry statistics, tren*s an* e8en 3ossip' As a *ay spa/sa%on o(ner, $ost o1 yo5r ti$e is *e*icate* to yo5r c%ients, not sittin3 +ehin* a co$p5ter' :8en tho53h the *ay spa in*5stry is a peop%e-oriente* +5siness, spa o(ners sti%% nee* research, $an51act5rin3 an* $ar6etin3 in1 or$ation' 0ench$ar6in3 can +e the reason $any *ay spas/sa%ons are sti%% in e;istence to*ay' -ost o(ners are thin6in3 a+o5t s5ccess strate3ies 1or to$orro(, ne;t (ee6 an* the rest o1 the year' As state* in a recent artic%e, @S5ccess actorA, +y -ar6 -eh%er, @one (ay to 1i35re o5t the short roa* ahea* is thro53h +ench$ar6in3 J (hich is a syste$atic proce*5re 1or co$parin3 the per1or$ance o1 an or3ani>ation, 15nction or process a3ainst that o1 another co$pany or co$panies' 2rans%ation" Do( *oes yo5r co$pa ny stac6 5p a3ainst the other 35ys? -any e;perts thin6 the process is an essentia% s6i%% 1or any %ar3e or s$a%% +5siness'A 2his so5n*s 3reat, +5t ho( *oes a spa pro1essiona% 1in* the ti$e to a** a research co$ponent into the +5sy *ay-to-*ay operations o1 the spa in*5stry? <o5 *onBt ha8e to' 2he Day Spa Association an* researcher, ,o+in -' .e%%eher, )h'D', ha8e s5r8eye* a poo% o1 *ay spas/sa%ons across the (or%* in an e11ort o1 +ench$ar6in3 *ay spa 6ey per1or$ance in*icators' 2he res5%ts 1o5n* in this report (i%% he%p any spa o(ner, in*5stry $an51act5rer an* re%ate* pro1essiona%s +etter 5n*erstan* the spa in*5stry 1ro$ the insi*e-o5t'

Copyri3ht 2003

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Scope and (ethod

A t(o-pa3e se%1-a*$inistere* C5estionnaire (as e$ai%e* to spa $e$+ers o1 2he Day Spa Association' 2he e$ai% inc%5*e* an in8itation to 5p*ate their pro1i%e an* the spa C5estionnaire' or any $e$+er that an e$ai% a**ress (as not a8ai%a+%e, copies o1 the pro1i%e 1or$ an* the C5estionnaire (ere 1a;e* to their attention' =5estion areas 1oc5se* on c5rrent an* 15t5re *ay spa 1aci%ity speci1ications, a$enities, sta11in3, sa%es, c%iente%e, $ar6etin3, c5sto$er ser8ice, C5a%ity ass5rance an* 15t5re p%ans' 2he C5estionnaires (ere $ai%e* in %ate A535st 2002' =5estionnaires contin5e* to +e ret5rne* into /cto+er 2002' 2ota% Eist Si>e K 335 2ota% ,espon*ents K 72 ,esponse ,ate K 21L M Since this (as the 1irst ti$e to s5r8ey spa $e$+ers o1 2he Day Spa Association, there (as no e;pecte* response rate' A%% s5r8eys (ere ta%%ie* an* r5n thro53h S)SS, a statistics pro3ra$, to *eter$ine 1reC5encies an* 8a%i* percenta3es'

A copy o1 the C5estionnaire is appen*e* to this report'

Copyri3ht 2003

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

)*ecutive Summary
0ase* on res5%ts o+taine* in this st5*y, the 1o%%o(in3 hi3h%i3hts are characteristics o1 @a pro1i%e o1 a s5ccess15% *ay spaA' Si+e M M M 2he a8era3e spa is %ess than 5000 sC5are 1eet' N70L reporte* +ein3 5000 sC5are 1eet or 1e(erO' 2he a8era3e spa has 10 or 1e(er tota% treat$ent roo$s' /1 these treat$ent roo$s, 9 or 1e(er are *e*icate* so%e%y to $assa3e an* 9 or 1e(er are *e*icate* so%e%y to esthetics' A 1e( spas reporte* ha8in3 speci1ic hy*rotherapy or (et roo$s' 4n a**ition, $ost spas report ha8in3 $anic5re an* pe*ic5re stations' -ost spas ha8e pri8ate treat$ent roo$s, e%i$inatin3 se$i-pri8ate or partitione* roo$s' 2he a8era3e treat$ent roo$ is +et(een 100-150 sC5are 1eet' :i3hty percent o1 spas reporte* ha8in3 a sho(er an* chan3in3 area an* 69L reporte* ha8in3 a %o5n3e/re%a;ation roo$' -any a%so pro8i*e a +o5tiC5e, con1erence or $eetin3 1aci%ity an* separate $enBs an* (o$enBs %oc6er 1aci%ities' 2he typica% spa is a stan*-a%one 1aci%ity' /1 those reportin3 to +e part o1 another 1aci%ity, the $a7ority are (ith $e*ica% 1aci%ities, p%astic s5r3eons, 1itness centers or hote%s'

M M M

M M

Business (i* M 2he a8era3e spa has 5 or %ess technicians/spa therapists on sta11' Hery 1e( spas ha8e $ore than ten' Near%y 75L o1 sta11 are e$p%oyees, (hi%e 25L are in*epen*ent contractors' A%$ost ha%1 o1 the spas reporte* o11erin3 a +ene1its pro3ra$ to sta11'

M M

,roducts Sold M M -ost spas N#2LO 3enerate a+o5t 60L o1 3ross sa%es 1ro$ ser8ices' ,esponses (ere 8irt5a%%y e8en%y *istri+5te* +et(een 20L an* 60L o1 sa%es +ein3 1ro$ esthetic ser8ices' /8er 25L 3enerate 50L or $ore 1ro$ +o*y therapy ser8ices' Near%y 75L 3enerate %ess than 30L o1 their sa%es 1ro$ retai% sa%es' -ore than one-in-three spas rea%i>e %ess than 10L o1 sa%es 1ro$ nai% ser8ices' 15L o1 spas reporte* that o8er ha%1 o1 sa%es co$e 1ro$ hair ser8ices (hi%e the +a%ance o1 saps 1a%% +et(een 10-3#L' -ore than ha%1 o1 respon*ents N60LO 3enerate +et(een 70-#0L o1 3ross sa%es 1ro$ ser8ices' 6

M M M M

Copyri3ht 2003

Day Spa Association M M

Day Spa Benchmarks: A Blue Print for Success

A%$ost 90L o1 spas reporte* that 80L or $ore o1 their ser8ices are ren*ere* a %a carte' A%$ost one-C5arter o1 respon*ents *e%i8er 50L or $ore o1 their ser8ices as a pac6a3e *ea%'

Customers M -ost spas reporte* that $a%es represent 10-20L o1 their c%iente%e, (ith an a8era3e +et(een 31 an* 90' Near%y 50L o1 respon*ents reporte* the a8era3e a3e o1 their 1e$a%e c%ients is o8er 90' A$on3 the top si; pro*5cts retai%e* +y spas, Der$a%o3ica is the top %ine N29LO p5rchase* +y c5sto$ers'

M M

,romotional (i* M M 4ncenti8e pricin3 appears to +e a pop5%ar $ar6etin3 techniC5e to increase +5siness' 2ra*itiona% a*8ertisin3 $e*i5$s o1 ne(spaper, print Ninc%5*in3 tra*e $a3a>inesO, ra*io/2H, an* ye%%o( pa3e a*s *o$inate spa pro$otions' Spas are +e3innin3 to ha8e reciproca% re1erra% re%ationships (ith other pro1essiona%s' )%astic s5r3eons share the hi3hest reciproca% re1erra% re%ationship (ith 37L' Der$ato%o3ist an* Chiropractors are c%ose +ehin* (ith 39L an* 33L respecti8e%y'

Business (i*-.uture ,lans M M M M Eess than ha%1 o1 spas o11er a 35arantee 1or their ser8ices' e(er 3i8e c5sto$er e8a%5ations N38LO or the $ystery shopper pro3ra$ N32LO' -any spas are not a(are o1 the trainin3 their technica% sta11 recei8es N91LO' /5tsi*e this 5n6no(n area, $ost spas o11er +et(een 26-50 ho5rs o1 trainin3 1or their technica% sta11' 2hirty percent o11ers trainin3 1or their s5pport sta11' -any spas p%an to e;pan* their 1aci%ity (ithin the ne;t year N99LO'

M M

Copyri3ht 2003

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Detailed .indin%s A#out Your .acility

Ghether yo5 are a**in3 to an e;istin3 1aci%ity or 75st 3ettin3 startin3 in the spa in*5stry, the $ost i$portant thin3 1or any spa pro1essiona% is to research an* p%an yo5r 1aci%ity 1ro$ a%% an3%es' 4n 3enera% $ost treat$ents co5%* +e per1or$e* in a *ry roo$ e;cept hy*rotherapy treat$ents, sa%t 3%o(s or +o*y po%ishes an* $5* $as6s' 05*3et an* space (i%% *eter$ine to a 3reat *e3ree the n5$+er an* 8ariety o1 roo$s an* eC5ip$ent' 2he 1i35res +e%o( sho( yo5 the a8era3es o1 spa 1aci%ities' What is the s/uare foota%e of your day spa facility0 2here appears to +e 1air%y e8en *istri+5tion o1 *ay spas +y si>e o 33L o1 respon*ents operate* *ay spas o1 2000 sC5are 1eet or %ess o 37L reporte* *ays spas +et(een 2001-5000 sC5are 1eet o A%$ost 30L operate %ar3e, 5000P sC5are 1eet 1aci%ities

Avera%e S/uare .oota%e

90L 35L 30L 25L 20L 15L 10L 5L 0L
500-1 000 1001- 150 0 1501- 2000 2001- 5000 5001 -10 000 10000P

!12

342

322 62

342 352

7o8 many treatment rooms does your spa operate0 A%$ost 80L o1 respon*ents operate 10 or 1e(er treat$ent roo$s /ne-1i1th operate 1e(er than 5 /n%y 13L operate $ore than 15

Avera%e Num#er of "reatment Rooms

70L 60L 50L 90L 30L 20L 10L 0L 1-9 5-10 11-15 16-20 20P

492

232 :2 42 92

Copyri3ht 2003

Day Spa Association 7o8 many of your treatment rooms are massa%e specific rooms0 /ne-C5arter o1 respon*ents operate 2 or 1e(er $assa3e roo$s A%$ost ha%1 operate +et(een 3 an* 9 Eess than one-in-ten operate $ore than 6 $assa3e roo$s

Day Spa Benchmarks: A Blue Print for Success

Avera%e Num#er of (assa%e Specific Rooms

50L 90L 30L 20L 10L 0L 1-2 3-9 5-6 7-10

552 242 242 62

7o8 many of your treatment rooms are esthetic specific rooms0 S%i3ht%y $ore than 30L o1 respon*ents operate 1 or 2 esthetic roo$s A%$ost ha%1 operate 3-9 (hi%e o8er 20L operate 5-6 No respon*ents operate se8en or $ore roo$s

Avera%e Num#er of )sthetic Specific Rooms

50L 90L 30L 20L 10L 0L 1-2 3-9 5-6 7-10

562 !32 2!2

Are your treatment rooms private0 Hirt5a%%y a%% respon*ents in*icate* that their treat$ent roo$s (ere pri8ate

Are treatment rooms private0

No <es

32 ::2

Copyri3ht 2003

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Are spa treatment areas completely separated from salon areas0 Hirt5a%%y a%% respon*ents in*icate* that their spa treat$ent roo$s are separate 1ro$ sa%on (or6 areas

Are spa treatment areas completely separated from salon areas

No <es

!2 :12

What is the appro*imate si+e of your avera%e treatment room0 2he $a7ority N68LO o1 respon*entsB treat$ent roo$s are +et(een 100-19# sC5are 1eet Ne'3', 10B;19BO Hery 1e( treat$ent roo$s N19LO are s$a%%er than 10B;10B Appro;i$ate 10L o1 roo$s are +et(een 150-200 sC5are 1eet Ne'3', 12B;19BO (hi%e %ess than 10L are o8er 200 sC' 1t' Ne'3', 19B;16BO

Appro*imate avera%e dimensions of treatment rooms

80L 70L 60L 50L 90L 30L 20L 10L 0L Q100 100-19# 150-200 200P

692

352

332 12

Copyri3ht 2003

10

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Which of the follo8in% amenities does your spa provide0 A $a7ority o1 spas o11er +oth sho(er/chan3in3 areas N80LO an* %o5n3e/reception roo$s N69LO Separate %oc6er 1aci%ities, con1erence/$eetin3 roo$s, an* a +o5tiC5e (ere the on%y a**itiona% a$enities o11ere* +y $ore than 30L o1 spas e( spas NQ15LO o11er (ater a$enities s5ch as +aths, (hir%poo%s, or poo%s

Amenities provided #y your spa

S ho(e r an* Ch an3i n3 A r ea Eo5n3 e/, e%a; at io n ,o o$ 0 o5t i C5e Con1 er enc e or - ee ti n3 ac i% it ies

S epar at e - enRs an* Go$ e nRs % oc 6 er 1 ac i% it ies D ini n3 ,oo $ / 5t *oor r e%a; a tio n a r ea -e *it at ion ,o o$ Co$ p%e te 0 at hho5 se 1 ac i% it ies G hir %p oo% )o o %

392 362 352 3!2 :2

!62 !22 292

562

652

9 2

0 L 1 0L 2 0L 30 L 90 L 50 L 60L 7 0 L 8 0 L # 0 L

2 of Respondents

$s your spa part of another facility0 S%i3ht%y %ess than one-in-1i8e respon*ents N17LO in*icate* that they (ere a part o1 another 1aci%ity /8er 80L, ho(e8er, operate in*epen*ent%y

Are you part of another facility0

No <es

312

9!2

Copyri3ht 2003

11

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

$f your spa is part of another facility; 8ith 8hich type of facility is it affiliated0 /1 the 17L o1 respon*ents that in*icate* that they (ere a part o1 another 1aci%ity, there (as a *i8erse response to (hich type o1 1aci%ity 50L are a11i%iate* (ith $e*ica% 1aci%ities Ne'3', )%astic S5r3eon, Der$ato%o3ist, Chiropractic C%inic, or 3enera% -e*ica% aci%ityO

Are you part of another facility0

(edical .acility 342 ,lastic Sur%eon 342 Dermatolo%is t 92 .itness Center 342 &ther 92

7otel 342

Resort 322 Chiropractic Clinic 322

Copyri3ht 2003

12

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your Staff

Spa sta11in3 re$ains +y 1ar the $ost *i11ic5%t responsi+i%ity 1acin3 spa o(ners to*ay' Gith *ra$atic chan3es ta6in3 p%ace in the spa in*5stry, o(ners are 1in*in3 the$se%8es 1acin3 $ore *i11ic5%t an* co$p%e; sit5ations e8ery *ay' 0y 3atherin3 in1or$ation on ho( other spas operate, the s5ccess15% spa o(ner can $a6e $ore e*5cate* an* pro1ita+%e *ecisions' 2here are no short c5ts or $a3ic 1or$5%as to creatin3 the per1ect sta11 or +ene1its pro3ra$, +5t there are so$e pro8en co$+inations o1 15%%-ti$e, part-ti$e an* contractors that pro8e 5se15%' <o5r sta11 (i%% consist o1 $any e$p%oyees an* contractors o8er the years' 2here are +oo6s that can he%p yo5 hire, inter8ie(, enco5ra3e tea$(or6 an* create po%icies 1or the sta11' 2his research can he%p yo5 $a6e so5n* +5siness *ecisions a+o5t the n5$+er o1 sta11, (hether they sho5%* +e 15%%-ti$e or partti$e, on-ca%%, a*$inistrati8e sta11 or s5pport sta11'

7o8 many technicians-spa therapists <full=time> do you have0 A c%ear $a7ority o1 respon*ents 5ti%i>e 5 or 1e(er 15%%-ti$e, part-ti$e, or on-ca%% technicians/spa therapists #5L o1 respon*ents e$p%oy 10 or 1e(er part-ti$e technicians/spa therapists

Num#er of technicians-spa therapists on staff

100L 80L 60L 90L 20L 0L 1-5 6-10 11-15 16-20 21P

5%%-ti$e )art-ti$e /n-ca%% S5pport Sta11 A*$in Sta11

Num#er of Staff

What is the #reakdo8n of your staff0 79L o1 sta11 are e$p%oyees o1 their spa/sa%on, (hi%e 25L o1 sta11 are in*epen*ent contractors A $ini$a% n5$+er a$o5nt o1 sta11 is renters accor*in3 to respon*ents Staff Breakdo8n 32 242 4n*epen*ent Contractors ,enters 152 :$p%oyees

Copyri3ht 2003

13

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

7o8 many employees do you have0 Eess than ha%1 o1 respon*ents N92LO report ha8in3 +et(een 1-5 e$p%oyees S%i3ht%y $ore than 25L ha8e +et(een 6-20 e$p%oyees A%$ost one-thir* e$p%oy $ore than 21 sta11 $e$+ers Avera%e Num#er of )mployees
50L 90L 30L 20L 10L 0L 1-5 6-10 11-15 16-20 21P

522 !22

3 2 3!2 !2

7o8 many independent contractors do you have0 2hree-C5arters o1 spas 5se 5 or 1e(er in*epen*ent contractors A%% respon*ents N100LO e$p%oy 15 or 1e(er in*epen*ent contractors Avera%e Num#er of $ndependent Contractors 142
80L 70L 60L 50L 90L 30L 20L 10L 0L 1-5 6-10 11-15 16-20 21P

342

3 2 2

Do you have a #enefits pro%ram0 A%$ost ha%1 N97LO o11er a +ene1its pro3ra$ to sta11

Do you 7ave a Benefits ,ro%ram0

No Ans8er 2:2

Yes 512

No 252

Copyri3ht 2003

19

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your Sales

4n the spa +5siness, yo5 ha8e to (ear $any hats an* *ea% (ith $any *i11erent types o1 c%ients' <o5 (i%% +e ca%%e* 5pon to +e psychiatrist, hea%er, teacher an* che$ist' C%ients see6 appearance chan3es in their %i1e 1ro$ the o5tsi*e in or the insi*e o5t' C%ients $ay 1ee% an;io5s or stresse* a+o5t $a6in3 chan3e' S5ch an;iety is not +ene1icia% i1 yo5 (ant to se%% the$ $ore pro*5cts an* ser8ices' 4t is critica% to +e sensiti8e to yo5r c%ientBs nee*s, as this (i%% set the sta3e 1or e11ecti8e an* pro1ita+%e retai%in3' A 3reat (ay to 3enerate ne( i*eas an* sa%es is to see (hat other spas are *oin3' 2his report (i%% he%p yo5 achie8e this 3oa% thro53h the research that has +een co$p%ete* on spas aro5n* the (or%*' 2he 6ey to 3ettin3 c%ients to spen* their har*-earne* $oney in yo5r spa is not on%y to $eet their nee*s an* *esires +5t +y creatin3 an en8iron$ent that o11ers the pro*5cts an* ser8ices to enrich their %i8es' What percenta%e of your %ross sales comes from services 0 60L o1 respon*ents 3enerate +et(een 70-#0L o1 sa%es 1ro$ ser8ices (hi%e #2L 3enerate 60L or $ore o1 their sa%es 1ro$ ser8ices 27L 3enerate %ess than 70L o1 3ross sa%es 1ro$ ser8ices /n%y 13L respon*e* that o8er #0L o1 sa%es are 1ro$ ser8ices

Avera%e ,ercenta%e of ?ross Sales ?enerated #y Services

35L 30L 25L 20L 15L 10L 5L 0L Q60L 60-6#L 70-7#L 80-8#L #0LP

2:2 !32 3:2 92 3!2

What percenta%e of your %ross sales comes from retail sales0 72L o1 respon*ents 3enerate %ess than 30L o1 their sa%es 1ro$ retai% sa%es 2(o o5t o1 three spas rea%i>e +et(een 10-2#L o1 sa%es 1ro$ retai% pro*5cts

Avera%e ,ercenta%e of ?ross Sales ?enerated #y Retail Sales

90L

!12 2:2

30L 20L 10L 0L Q10L 10-1#L 20-2#L 30-3#L 90-9#L 50LP

342 62 3 2 52

Copyri3ht 2003

15

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

What percenta%e of %ross sales comes from esthetic services0 2here (as hi3h *i8ersity o1 responses re3ar*in3 esthetic sa%es as a percent o1 tota% sa%es ,esponses (ere 8irt5a%%y e8en%y *istri+5te* +et(een 20L an* 60L o1 sa%es? ,ercenta%e of ?ross Sales from )sthetic Services
25L 20L 15L 10L 5L 0L Q20L 20-2#L 30-3#L 90-9#L 50-5#L 60LP

392 392 3!2 3!2

392 2 2

What percenta%e of %ross sales comes from #ody therapy services0 /ne thir* o1 respon*in3 spas 3enerate %ess than 20L o1 sa%es 1ro$ +o*y therapy ser8ices /8er 25L, ho(e8er, 3enerate 50L or $ore 1ro$ +o*y therapy ser8ices A%$ost 60L o1 respon*ent 1a%% +et(een 20L an* 50L o1 sa%es 1ro$ +o*y therapy ser8ices

,ercenta%e of ?ross Sales from Body "herapy Services

35L 30L 25L 20L 15L 10L 5L 0L Q20L 20-2#L 30-3#L 90-9#L 50-5#L 60LP

!!2 2 2 3!2 12 :2

392

What percenta%e of %ross sales comes from nail care services0 A%$ost 80L o1 respon*ents 3enerate %ess than 20L o1 sa%es 1ro$ nai% ser8ices 4n 1act, $ore than one-in-three spas rea%i>e %ess than 10L o1 sa%es 1ro$ nai% ser8ices /n%y 11L see 30L or $ore o1 sa%es 1ro$ nai% ser8ices ,ercenta%e of ?ross Sales from Nail Care Services
50L 90L 30L 20L 10L 0L Q10L 10-1#L 20-2#L 30LP

!62 522

332 332

Copyri3ht 2003

16

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

What percenta%e of %ross sales comes from hair care services0 /8er ha%1 o1 respon*ents rea%i>e no hair care sa%es in their spa 15L reporte* that o8er ha%1 o1 sa%es co$e 1ro$ hair ser8ices (hi%e the +a%ance o1 spas 1a%% +et(een 10-3#L

,ercenta%e of ?ross Sales from 7air Care Services

70L 60L 50L 90L 30L 20L 10L 0L 0L 10-1#L 20-2#L 30-3#L 90-9#L 50LP

492

322 322

342 !2

What percenta%e of services is rendered a la carte 0 A%$ost 90L o1 spas reporte* that 80L or $ore o1 their ser8ices are ren*ere* a %a carte 22L, ho(e8er, in*icate* that %ess than 90L o1 their ser8ices (ere a %a carte, s533estin3 re%iance on pac6a3e *ea%s

,ercenta%e of Services Rendered a la carte

90L 35L 30L 25L 20L 15L 10L 5L 0L Q90L 90-5#L 60-7#L 80-100L

!92

222 252 362

What percenta%e of services is rendered as a packa%e0 A%$ost one-C5arter o1 respon*ents *e%i8er 50L or $ore o1 their ser8ices as a pac6a3e *ea% /ne-ha%1 o1 spas, ho(e8er, ren*er %ess than 30L o1 ser8ices 8ia pac6a3es

,ercenta%e of Services Rendered as a ,acka%e Deals

35L 30L 25L 20L 15L 10L 5L 0L Q10L 10-1#L 20-2#L 30-3#L 90-9#L 50LP

! 2 2 2 342 92 92 2!2

Copyri3ht 2003

17

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your Clients

A *ay spa c%ient is typica%%y so$eone see6in3 to ta6e +etter care o1 hi$se%1 or herse%1' 4n a**ition, the a3in3 pop5%ation is %oo6in3 to i$pro8e appearance an* preser8e their hea%th' .no(in3 yo5r c%ient pro1i%e (i%% enhance yo5r ser8ice o11erin3s an* $ar6etin3 e11orts' What percenta%e of your clientele is male0 -ost spas reporte* that $a%es represent 10-20L o1 their c%iente%e Eess than one-in-1i8e spas report $ore than 30L o1 their +5siness as $a%e c%iente%e
,ercenta%e of Clientele that is (ale
50L 90L 30L 20L 10L 0L Eess than 10L 10-20L 21-30L 31-50L 50LP

522 292 342 352 22

What is the avera%e a%e of your male clients0 A $a7ority o1 spas report $a%e c%ients o1 31-90 years o%* A%$ost 85L o1 $a%e c%ients are o8er 30 years o%*
Avera%e A%e of (ale Clientele
60L 50L 90L 30L 20L 10L 0L 10-20 21-30 31-90 91-50 50P

432 ! 2 362 22 22

What is the avera%e a%e of your female clients0 A $a7ority o1 spas report 1e$a%e c%ients o1 31-90 years o%* A%$ost 50L o1 $a%e c%ients are o8er 90 years o%*

Avera%e A%e of .emale Clients

50L 90L 30L 20L 10L 0L 10-20 21-30 31-90 91-50 50P Un6no(n

542

242 312 92 2 42

Copyri3ht 2003

18

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

What type of products do you retail0 A$on3 the 2op 6 pro*5cts retai%e* +y spas, Der$a%o3ica is the top %ine N29LO <on6a N17LO, -5ra* N17LO, an* A8e*a N16LO appear to +e so%* in eC5a% a$o5nts a1ter Der$a%o3ica )e8onia an* )hyto$er ro5n* o5t the top si; pro*5ct %ines an* are so%* in re%ati8e%y eC5a% a$o5nts N13L eachO

"he "op Si* ,roducts Retailed #y Spas

Der$a%o3ica 29L )e8onia

13L

<on6a 17L

)hyto$er 13L

-5ra* 17L

A8e*a 16L

Copyri3ht 2003

1#

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your (arketin%

-ar6etin3 is the $ost i$portant 1actor a spa o(ner (i%% 1ace i1 the +5siness (i%% +e s5ccess15% an* prosper' -ar6etin3 *ri8es +5siness' 4t steers yo5r spa in the ri3ht *irection an* 6eeps the spa 1ro$ 3ettin3 o11 trac6' A spa o(ner cannot *o +5siness an* s5r8i8e in to*ayBs $ar6etp%ace 5n%ess it practices 3oo* $ar6etin3 e11orts an* princip%es' -ar6etin3 is not a concept on%y 1or +i3 +5siness, +5t is a%so 8ita% to the s$a%%, one-person spa o(ner' <o5r $ar6etin3 p%an (i%% inc%5*e 3oa%s an* o+7ecti8es, (hich can +e *eri8e* 1ro$ the o8era%% +5siness p%an' As a spa o(ner or spa $ana3er, $ar6etin3 is yo5r responsi+i%ity' -ar6etin3 co$$5nications are those *e8ices that 15rther yo5r $ar6etin3 o+7ecti8es +y pro8i*in3 in1or$ation to yo5r c5sto$ers an* prospects' <o5r $ar6etin3 co$$5nications are (hat yo5r c5sto$ers see 1irst J there1ore it is e;tre$e%y 5se15% to see (hat (or6s 1or other spas'

Do you offer incentive pricin% on purchases0 4ncenti8e pricin3 appears to +e a pop5%ar $ar6etin3 techniC5e to increase +5siness 72L o1 spas/sa%ons o11er incenti8e pricin3 1or treat$ent series' S%i3ht%y %ess, +5t sti%% a si3ni1icant a$o5nt N68LO o11er incenti8e pricin3 1or spa pac6a3es

$ncentive ,ricin% for "reatment Series

No Y es 122 !2

@ nkno 8 n 242

$ncentive ,ricin% for Spa ,acka%es

No Y es 6 92 !2

@ n kn o8n 2:2

Copyri3ht 2003

20

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

What types of advertisin% and promotion do you use0 2ra*itiona% a*8ertisin3 $e*i5$s o1 ne(spaper, print Ninc%5*in3 tra*e $a3a>inesO, ra*io/2H a*s, an* ye%%o( pa3e a*s *o$inate spa pro$otions o 76L o1 $ar6etin3 occ5rs thro53h these $e*i5$s 29L o1 a*8ertisin3 an* pro$otions are sp%it 1air%y e8en%y a$on3 a%% other $e*i5$s

What "ype of Advertisin% and ,romotion Do You @se0

<e%%o( )a3es 6L Ge+site 3L 2ra*e -a3a>ines 6L ,a*io/Ca+%e 2H #L

5n*raisin3 3L

0roch5res 3L

4nternet 6L Net(or6in3 6L Ne(s%etter 3L Ne(spaper 2#L

)rint 26L Do you have reciprocal referral relationships0 Spas/sa%ons are +e3innin3 to ha8e reciproca% re1erra% re%ationships (ith other pro1essiona%s 2hese percenta3es (i%% $ost %i6e%y 3ro( as the spa/sa%on in*5stry +eco$es a $ore pop5%ar a%ternati8e treat$ent 1or $any in*i8i*5a%s )%astic s5r3eons share the hi3hest reciproca% re1erra% re%ationship (ith 37L' Der$ato%o3ist an* Chiropractors are c%ose +ehin* (ith 39L an* 33L respecti8e%y

Reciprocal Referral Relationships !52

Der$ato%o3ists )%astic S5r3eons Chiropractors )ersona% 2rainers N5tritionist 0L 10L 20L 30L 90L

!12 !!2 292 232

Copyri3ht 2003

21

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your Customer Service and Auality Assurance

A%tho53h $ar6etin3 has a stron3 1oc5s on pro*5cts an* sa%es, the c5sto$er is seen as the $ost i$portant part o1 the +5siness' No %on3er sho5%* a pro*5ct +e 1orce* to 1it the c5sto$er' ,ather, the process consists o1 *eter$inin3 the c5sto$erBs nee*s an* then sc5%ptin3 the pro*5ct $i; to $eet their partic5%ar nee*s' :8ery aspect o1 the +5siness is 8ie(e* thro53h the eyes o1 the c5sto$er' Spas sho5%* ha8e an e$phasis on C5a%ity an* on%y the c5sto$er *eter$ines this' /n%y the c5sto$er can *eci*e (hether he or she has recei8e* 8a%5e 1or their $oney' As a spa o(ner or $ana3er, yo5 can 6no( (hat yo5r c5sto$erBs (ants an* nee*s are si$p%y +y as6in3' What type of customer satisfaction tools do you employ0 Eess than ha%1 o1 spas/sa%ons o11er a 35arantee 1or their ser8ices e(er 3i8e c5sto$er e8a%5ations N38LO or the $ystery shopper pro3ra$ N32LO

F5arantees

5!2 !92 !22 322

0L 10L 20L 30L 90L 50L

C5sto$er :8a%5ations -ystery Shopper )ro3ra$ /ther

What is the appro*imate num#er of hours of trainin% provided to staff mem#ers per year0 -any spas/sa%ons are not a(are o1 the trainin3 their technica% sta11 recei8es N91LO /5tsi*e this 5n6no(n area, $ost spas/sa%ons o11er +et(een 26-50 ho5rs o1 trainin3 1or their technica% sta11

"rainin% of "echnical Staff

50L 90L 30L 20L 10L 0L 10-25 26-50 51-75 76-100 100P Un6no(n

532

2 2 222 332 !2 52

Copyri3ht 2003

22

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

-any spas/sa%ons are not a(are o1 the trainin3 their s5pport sta11 recei8es N90LO As e;pecte*, a hi3her percenta3e N30LO is o11ere* trainin3 1or their s5pport sta11

"rainin% of Support Staff

50L 90L 30L 20L 10L 0L 10-25 26-50 51-75 76-100 100P Un6no(n

5 2 ! 2

322 !2 42

332

Copyri3ht 2003

23

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

A#out Your .uture

2he 15t5re o1 any spa *epen*s on a n5$+er o1 e;terna% 1actors' 2he state o1 the econo$y p%ays a %ar3e part in *eter$inin3 (hether yo5r prospects (i%% +e (i%%in3 to part (ith the s5$s o1 $oney yo5 char3e 1or yo5r ser8ices' 4n a**ition, tren*s in 1ashion an* a*8ances in techno%o3y a%so p%ay $a7or ro%es' 4t is necessary to +e a(are o1 the 8ario5s e11orts an* 3ro(th p%ans o1 other spas in yo5r area J this (i%% he%p yo5 re$ain co$petiti8e' 2hese are the 1orces that shape yo5r a+i%ity to re$ain ahea* an* s5ccess15%'

Do you have plans to e*pand your facility in the ne*t year0 -any spas/sa%ons p%an to e;pan* their 1aci%ity (ithin the ne;t year N99LO

Are you ,lannin% to )*pand your .acility in the Ne*t Year0

@nkno8n 2 2

Yes 552

No !62

Copyri3ht 2003

29

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

$n Conclusion
Githo5t a *o5+t, the s5ccess15% *ay spa (i%% +e a 1aci%ity (here on3oin3 trainin3, acti8ity, 3ro(th, pro*5ct e;pansion an* testin3 an* e$p%oyee concern are constant%y ta6in3 p%ace' 2he spa $ay str533%e in the 1irst 1e( years, +5t (i%% e;cee* e;pectations as it 3ets to 6no( its c%ients an* its e$p%oyees' Constant attention, in8entory contro%, $ar6etin3 an* e$p%oyee satis1action (i%% increase the %i6e%ihoo* o1 a pro1ita+%e an* en7oya+%e +5siness 8ent5re' <o5r +5siness $5st ha8e a sta+%e, (e%%-p%anne* +ase 1ro$ (hich to 3ro(' :*5cation o1 yo5r sta11 is on3oin3 an* 6ey to $aintainin3 $o$ent5$' 2his contin5o5s e*5cation e11ort (i%% 6eep e$p%oyees at the top o1 their 1ie%* an* (i%% enco5ra3e the sa$e care that yo5 insist on 1or yo5r c%ients'

Copyri3ht 2003

25

Day Spa Association

Day Spa Benchmarks: A Blue Print for Success

Appendi*

Copyri3ht 2003

26