The question comes up in almost every marketing class or seminar I teach. “What do you think about Groupon?” So here we go.

Marketing Brilliance

As a marketing company I can appreciate the brilliant business model that Groupon has created and grown. In fact, it is the fastest company in the history of the planet to have a billion dollar valuation. Yup, that’s right.  No technology stalwart–including Ebay, Amazon.com , Yahoo , AOL and Google–grew that big that fast. At just 17 months old in April 2010, Groupon boasted a $1.35 billion valuation.

What does that mean? They are great at what they do. They have secured massive databases around North America where they offer “coupon” deals to large “groups”.

How Does it Work?
The deal for the merchant is typically offering 50% off of their service to have the chance to secure these customers. Out the 50% value remaining, Groupon typically receives 50%, and the merchant 50%. This translates into the merchant (spa/salon) receiving 25% of their normal price for the service.

What is The Issue?
This is where it gets challenging. I speak with some owners who suggest that they can cover the cost of their service with this amount so it is a great way to “market” to these people who have signed up with Groupon to receive these special offers.

Let’s talk about the basics and do a business case analysis.

Average Price of a Facial: $80
Discount at 50% $40
Groupon Payment at 50% $20
Cost of Staff at $15/hour plus benefits $16.50
Cost of Product at 7% $5.60
Net to operation -$2.20

NOTE: IF you are considering doing a Groupon, please do this math!

I have been reasonable with the costs, but this does not take into cost for reception or even opportunity cost of having a full price customer take this service.

Assuming you are doing this because you need to fill more space, we can disregard the opportunity cost and take a best case scenario whereby you can break even, which is better than my projection above.

This means there must be some other benefit to the business for you to “give away” a treatment whereby the business gets nothing or takes a loss.

Will They Come Back?
This is a big question. In my discussions with Groupon they enjoy high rates of return. My experience with clients is another story. Our experience is that Groupon clients are constantly looking for a new Groupon deal rather than return to a spa/salon more than once. Statistically speaking, we see a return of 3-4%.

This means 3-4 people out of 100 will come back. Considering you gave away the service, this would be considered a bad investment.

NOTE: Some businesses have gone out of business because they did not properly estimate the cost. Imagine if that facial really cost $10 each and you sold 1000. Could you afford to spend $10,000 and only have 30 people come back?

Will They Buy Retail?
Given they came in at a very low price a lot of spas/salons will try to sell them retail. Once again we see very low purchase rates (lower than 5%) with this client base. It seems that many Groupon purchases are so used to the 50% off or more, they are hesitant to buy anything at full price.

What About My Brand?
Because Groupon is a discount service your brand can now be painted with that same brush. Given your position in your market this may or may not be a concern to you.

Can It Work at All?
In our experience very select controlled offers can the spa/salon make money and benefit.

Our Advice: Be very careful before ever making an offer.

1. Include valuable “Add Ons” that do not cost you much, to raise your overall price and revenue.
2. Have “upsells” ready to supplement the Groupon. Increase the value of the visit before they arrive.
3. Offer 2nd and 3rd visit deals to entice a return.
4. Set a limit to how many you sell.
5. Be careful with what staff you offer as your best staff has a superior chance to have them come back, but they are usually more expensive also.
6. Use it to launch a new product or service that you have a high profit margin on.

Most often we say MOVE ON instead of GROUPON.

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Early planning is the key to optimizing holiday sales. For more great planning ideas, download our Holiday Prep 101 Guide!

Happy holiday planning!

The post The Holiday Rush is Just Around the Corner. Is Your Spa Ready? appeared first on Esthetique Spa International.

Most spas view the shower as purely utilitarian. But both the individual shower station attached to each treatment room, as well as the multi-stall shower area which is part of the facility, need to be viewed as more than simply a place to rinse off a scrub or herbal wrap solution. When a shower system like Essio Aromatherapy is introduced to your treatments, the shower becomes a menu upgrade and a unique selling proposition, distinguishing your offering from those of competitors. Offered in six original blends, both energizing and relaxing, Essio transforms those few moments in the shower into the thematic culmination of your customer’s spa experience, versus just a quick rinse and out the door. Spa-owners know that the longer the client lingers in the spa, the higher the likelihood of a prompt rebooking.

Essio is a new system of products, incorporating exclusively 100% USDA certified organic essential oils. These innovative products, developed by a young West coast entrepreneur, contain no irritating artificial perfumes or colors, which are common in pretender-aromatherapy products. Essio aromatherapy for the shower contains no phthalates, parabens or other petrochemicals, and is manufactured without the carrier oils which are frequently used in genuine aromatherapy products. Essio products are blended only with the intense, pristine essential oils which have been prized for centuries in many cultures for their enhancement of well-being through aromatherapy.

Essio’s method of product distribution is unique, and will appeal to customers not only for the lushness of the aromatherapy fragrance, but also for the chic eye-appeal of its design. Essio aromatherapy blends are contained in brightly colored, recyclable plastic pods which pop into an elegantly simple pod arm. The arm is designed around universal shower-pipe measurements, and clicks onto the shower-pipe in about as much time as it takes to turn on the water.

The pure, complex and expertly crafted blends leave the pod slowly in a microveil of ultrafine aroma, issuing out through the porous tip of the pod which resembles the writing nib of a magic marker. This method is far more effective than gels, which rinse off instantly, or cake-style aromatherapy “bombs” which can only treat a few square inches of the shower. Pods tilt down to dispense the essential oils and their aroma, releasing the blend in to the moving shower flow. Then tilt the pod back when not in use. Every pod contains enough essential oil for several showers.

Customers who are not familiar with the science and healing art of aromatherapy will initially comment simply on the exhilarating fragrance imparted by Essio for the shower. Even more intruiguingly, aromatherapy has been demonstrated to have a beneficial impact stress levels, including blood pressure and blood sugar-levels. This realization will reach your client hours, even days after her treatment, creating a perfect opportunity for a follow-up call from the team. Essio also offers retail Starter Kits and essential oil refills which may be sold in your spa boutique, so that your clients may continue their spa treatment experience in the privacy and convenience of their home shower.

The post How to Make Your Spa Shower Amazing appeared first on Esthetique Spa International.

Last week ESI Pro Educator and CEO of Miraval, Michael Tompkins, met with the owners of Timeless Day Spa in Sierra Vista, AZ.  Timeless offers a combined therapeutic and true day spa experience.  Michael first met the owners at his ESI class in Las Vegas.  This past weekend he visited for a tour of their beautiful spa!

Join us at ESI next year for a chance to meet top industry leaders like Michael, enjoy networking with spa professionals, and receive the highest quality of education at the most affordable price in the industry.

The post ESI Spa Show Provides a Platform to Meet Top Industry Leaders appeared first on Esthetique Spa International.

LashesMD® is a clinically proven advanced eyelash and eyebrow conditioner that contains best-in-class ingredients for excellent results and safety.  LashesMD is the first professional grade eyelash enhancer available without a prescription. Eyelashes are fortified to appear longer, thicker, fuller and more youthful looking. LashesMD is available at professional environments and online at LashesMD.com.

LashesMD is applied as a serum eyeliner on the upper and lower eyelid on the base of the eyelashes and/or eyebrow once a day, at bedtime.

LashesMd is excited to premier at the ESI show in Las Vegas! We will be demonstrating LashesMD and providing complimentary eye makeup applications.  Please book a treatment online or visit us at booth #307.  We will be offering special promotions available only at the show.

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For the 2nd year running, ESI Las Vegas has partnered with GOMOBILENOW and developed an interactive mobile app allowing you to register, see up to the minute show schedule and speaker list, floor plan, list of exhibitors and much more.  Welcome and see you at the Show!

Platforms include:   iPhone / Android / Windows Smartphones

ESI Las Vegas Mobile APP 2013 features include:

• Show Giveaways exclusively via Mobile APP
• GPS Directions to Venue and Local Establishments
• Social Media Links- FaceBook, YouTube, LinkedIn
• Exhibitor List
• Floor Plan
• Show Schedule and Profesional Speaker Bios
• QR Reader

What’s New in this Version 2.0? New schedule of events, speakers, local restaurants and things to do in the area, ESI Vegas Spa Show Giveaways and more.  Download the app today! Go to your apps store and search ESI Las Vegas

*If you previously downloaded the app, please reinstall to view the latest updates.

The post The ESI Mobile App for Android and iPhone is Here! appeared first on Esthetique Spa International.

“DermacyclingTM” is a revolutionary protocol to cycle the skin between a “Trauma” and a “Healing & Nourishing” phase every four weeks.

The procedure is done using Microdermabrasion techniques and Microcurrent/LED Light machines with Glycolic Acid cream to remove the top layers of living cell tissue which triggers the body’s stem cell formation to grow new skin.

Afterwards, you allow the skin to heal and nourish for the next four weeks before you start another “Trauma” phase. Microcurrents are used to re-educate the underlying muscle to tone, lift and shape the face for a non-surgical facelift and to treat; lines, wrinkles, large pores, scars, discolorations, acne and rosacea with LED lights and serums.

These are the DermacyclingTM principles also called the “scientific manipulation of the skin” …

1. First principle: Trauma vs. Healing.  Trauma = triggers the healing response for increased formation of collagen & elastin. It speeds up the skin renewal process to grow new skin.    Healing & Nourishing = feeds and builds new collagen & elastin to beautify the skin.
2. Second principle: Sebaceous Glands Balancing.  Correct Oily Skin with Oils = Normalization     Correct Dry Skin with Drying of the Skin = Normalization

If you remove the sebum from the skin surface, you stimulate the sebaceous glands to produce more oil. This is exactly what you do if you use a skin care line designed for oily skin.

If you add oil and/or moisture to the skin, you shut down the sebaceous glands and they stop producing sebum. This is exactly what you do if you use a skin care line designed for dry skin. In other words, under all the oil and moisture, your skin is getting drier and drier. If you constantly remove the oils, you get increasingly oilier. You get premature aging of the skin just by over-stimulating or under-stimulating the sebaceous glands.

Nevertheless, you should only use products and regimens that are designed to neither stimulate nor shutdown the sebaceous glands but rather designed to balance sebum formation the way nature intended.

Why is sebum so important?    It is the best moisturizer and conditioner!     Sebum is released from the bottom of the pores to help evacuate/clean the pores by pushing the impurities, bacteria, fungus and dead skin cells out. Provides an acid mantel on the surface of the skin to prevent bacteria and fungus from entering into the skin and blood stream.

3. Third principle: Oxygenation vs. Moisturization.  Day time regimen = Trauma or Healing and Moisturization. Night time regimen = Oxygenation and Balancing of the Skin.

Therefore, you should only use a moisturizer on the skin during the daytime to protect, feed and add moisture. You should not use any moisturizer during the nighttime in order to balance the sebaceous glands for proper sebum release, and to allow the skin to breath. Moisturization is a cosmetic, not a treatment. It will only give a temporary reduction in lines and wrinkles. It may even increase lines and wrinkles if used excessively. Oxygen is by far the most important nourishment for skin health.

See videos and learn more at www.knutekpro.com

The post Dermacycling: A Revolutionary Facial Protocol appeared first on Esthetique Spa International.

Why is this important? When a customer in your city searches online for a local day spa, you want your spa coming up at the top of the list to increase the likelihood of their search converting into a visit to your spa.

Take a minute to think about your own internet searches. How many times do you go onto a search engine seeking out information? According to a PEW Internet study, as of 2012, the percentage of Internet users who use search engines rose to a new high of 91%. While these numbers may just barely pique the interest of a casual observer, spa owners’ eyes should light up as they realize what this can mean for their business. In a Burke 2011 report, 76% of respondents used search engines to find information about local businesses, including spas.

Good news! You can easily implement SEO tactics, and it’s free. In fact, ensuring that your business shows up in local searches can dramatically impact the number of potential customers locating and coming to your business. The first basic way you can do this is by adding your business’ physical address and phone number to every page of your website.

You might be thinking, “Where should I add this information without impacting my website design?” That’s easy too. A consistent and clean area to add location details to is the footer or header of each website page.  Pineapple Day Spa, a spa located in upstate New York, takes advantage of this tactic to help improve their position in local searches. They added their address and phone number to the footer of every page on their website. As you can see in search results when you type “Pine Bush NY day spa” into Google, this helps them land in the top 3 results spots on that page.

Taking the time to add your physical address and phone number to your website pages helps improve your chance of converting a search into a sale in multiple ways. You improve the likelihood of having your business appear in local search results, as well as make it easier for potential customers to find where you’re located when they look at your website. So take a few minutes to add your address and phone number to your website, it could really pay off!

To learn more about taking advantage of online marketing for your spa, visit the SpaBooker blog

The post Simple SEO for Spas: The Power of Your Address appeared first on Esthetique Spa International.

Today’s spa client wants head-to-toe services in a New York minute. Your clients do not want to hop around from hair salon – to spa – to nail salon; they want a one-stop shop for all of their beauty needs. To cater to these I-need-it-now clients, spa and salon owners are expanding their businesses into departmentalized beauty meccas! Clients get all the services they are looking for and salon owners see the financial benefits of offering full service, it’s a win-win situation! It is truly a very exciting time to be in the beauty business.

But we are missing an element; we were missing the bridge between the hair and the skin. We need to bring the hair and skin categories together so that consumers can get the most out of their time spent in the salon or spa. Instead of shuffling your client from department to department, allow your customers to stay in one place and bring the services to them creating a time efficient and truly relaxing atmosphere. Provide a hair, skin and hand treatment in just 30 minutes so clients don’t have to choose hair or skin, they can have it all and they can have it fast.

With the “30 Minutes to Beauty” concept, you will be able to accommodate your clients with simultaneous services. That means, less time spent with the client but more money in your register. While a hair mask is working, allow your clients to experience a rejuvenating facial and hand treatment at what I call “The Facial Bar.” The “Facial Bar” is an essential piece to “30 Minutes to Beauty”. The Facial Bar is an appetizer – a chance for your clients to try your wonderful skin services and experience stunning results – sitting upright in a chair, without having to disrobe. All you need are chairs with headrests, a bar-like area for your express facial treatments and voila! You are in the “Facial Bar” business.

By incorporating the 30 Minutes to Beauty Concept, you can now provide an entire array of hair and skin services simultaneously, providing your time-crunched customers with amazing results in just half an hour. It is the perfect complement to the Facial Bar concept as it allows you to bridge the gap between hair and skin services. For continued benefits at-home, be sure that your client leaves with the appropriate hair and skin regime. Your clients will love their healthy, glowing skin and radiant, youthful looking hair. And you will love the way “30 Minutes to Beauty” will grow your business!

To learn more about Repêchage® Vita Cura® 5 Phase Firming,  join us is Las Vegas!

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