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If you’ve attended a tradeshow recently or participated in a networking event, discussion has probably turned to the same topic: the current economic slump. While some spa owners are crippled by the recent downturn, others are relatively unscathed—and even thriving.

Here’s a sampling of where several spa professionals and their businesses stand.

How has the economic downturn impacted your spa?

“It’s been terrible, terrible, terrible. My business has tripled every year up until now. Every month someone goes out of business on Newbury Street.”
—Selena Belisle, owner, Spa Newbury, Boston, Massachusetts

“Things have been slower these past few months. Business has been down about 20%.”
—Tammy Schneider, owner, ZiSpa, Coeur d’Alene, Idaho
 

 
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Trained to Sell
Beauty product basket

If your staff is already working harder to keep appointments booked, should you be encouraging them to sell more retail too? The answer is yes. In fact, retail profits may be what helps to subsidize a slump in other areas. “Retail is the highest profit point for your business,” says Bryan Durocher, president of Durocher Enterprises, a spa coaching and consulting firm based in Austin.

Technicians and therapists have traditionally been taught to hone their crafts, not their retail skills, Durocher says. Fortunately, it’s an easy trend to correct, especially because implementing retail education is a nominal expense that offers a big potential payoff. “The good news is vigilant, consistent training is the least expensive thing you can do to improve retail,” Durocher says.

Here are some tips on how to improve retail sales, which can also be found at durocherenterprises.com.

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Water Safety
Cuccio Naturale Body Butter
Photo courtesy Cuccio Naturalé

When you launch what has become a multi-million dollar beauty product company out of a suitcase in Venice Beach, California, you ought to know a thing or two about perseverance in the industry. Tony Cuccio and his wife, Roby, did exactly that nearly 30 years ago, and their portfolio includes the popular natural skincare line, Cuccio Naturalé. Each product blends the finest natural extracts with hydrating and soothing properties, but Cuccio still doesn’t expect the line to sell itself. That’s why he places a huge emphasis on various forms of retail support.
    Anyone who's acquainted with Cuccio also knows about his passion for education within the industry. We asked him to discuss some of the ways Cuccio Naturalé offers retail support, and how spas can overcome dwindling retail sales.

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Instant Gratification

E-commerce is one of the few sectors that continues to experience growth in an otherwise shaky economic market. Especially now with the price of gas on the rise, more consumers are turning to the Web to save themselves the cost of a trip. While many spas have established themselves online with websites, newsletters and email promotions, the prospect of retailing online can still seem daunting.

There's at least one way to sell your spa’s services online with little effort or technological expertise on your part. SpaBoom is a company that provides instant online gift certificate functionality and management through websites. The Albuquerque, New Mexico-based company is a partner of the spa marketing and media company, SpaFinder. Since its inception in 2005, SpaBoom has facilitated $28 million in gift certificate sales for clients. “Online sales and product purchases have been increasing significantly as people are realizing the convenience it affords them,” says Stephany TomSpa Booman, director of marketing at SpaBoom.

As originally reported in the April issue of DAYSPA, SpaBoom claims that online visibility, 24/7 sales capabilities and instant delivery of gifts are its keys to success. More spas are seeing growing profits as a result of joining SpaBoom, which also generates newsletters and other promotions. “We’ve seen a dramatic increase in online sales during a spa's first year with SpaBoom,” Toman adds. "Some spas who had just signed up with us around Mother’s Day last year experienced a 96.3% increase in sales by Mother’s Day this year.”

For more information, call 800.940.0458, email info@spaboom.com or visit spaboom.com.

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