Spa-Business

Hair no more….

Regis to close 160 salons in effort to shave operating costs

Edina MN-based Regis Corp. said Wednesday it will close about 160 underperforming salons in the United States, Canada and United Kingdom in the next six months as it tries to cut costs. Four of the stores will be in Minnesota, though a company official declined to offer specific locations.

The stores make up less than 2 percent of the chain’s 8,500 company-owned salons, which operate under the names Regis Salons, MasterCuts, Cost Cutters, Supercuts and Trade Secret, among others.
The closings come in addition to the 200 or so low-performers that Regis typically shuts down each year when leases run out, Regis CEO Paul Finkelstein said. The company said it would offer employees jobs in nearby salons.

“Every store that opens isn’t a home run,” said Stan Pohmer, a Twin Cities retail consultant. “At some point you have to identify your chances of turning them around. … It’s just good business management to go in and cut out the low-hanging fruit that’s sucking all your resources out. It’s not something that hints at problems endemic with the company.”

Regis expects to shutter 100 stores at regional malls, 40 at strip malls and 20 in the United Kingdom. About a third of the closings will come from the struggling Trade Secret stores, the rest from a “myriad of brands,” Finkelstein said. Many of the stores were located in malls that were struggling or in strip centers that had lost major tenants.

None of the 2,178 SmartStyle salons that operate in Wal-Mart SuperCenters will be closed, Finkelstein said.
Regis expects to record a pretax charge of $20 million to $25 million to close the stores before the end of their lease terms, a cost Finkelstein said will ultimately boost profits by reducing the drain on time and resources.

Regis said it will write down $4.5 million, or 6 to 7 cents a share, in the fourth quarter, which ended June 30. The remainder of the charges will be recorded in the first half of the fiscal year.
Shares on Wednesday closed at $26.81, down almost 2 percent, in a day most of the market’s major indexes closed down by a similar amount.

Regis has spent the past 18 months focusing on internal efforts to reduce costs, including consolidating contracts for janitorial services and office supply vendors and reducing the number of small parcel posts.
Combined with price increases across nearly 6,000 locations, Finkelstein said, the measures helped boost third-quarter net income.

Meanwhile, Regis is pushing forward with new concepts despite cutting its new-store construction in half as consumers make fewer visits to the salon for haircuts, products and other services.
On Aug. 8, Regis plans to open what Finkelstein describes as a “quality, high-end barbershop” called Raze, located off of Hwy. 62 and Shady Oak Road in Minnetonka. Haircuts will run $25 to $30, and come complete with hot towels, Internet access, bottled water and other amenities.
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Recession Proof Your Medical Spa

Industry Experts Agree: Medspas Must Alter Their Business Strategies To Find Success In Today’s Economy.

Fortunately for medspa owners, current economic conditions have impacted their industry less than many other business sectors. Still, many medspas have seen their revenues dip by 10-20% during the last 12 months and others have had even worse results. Med Spa Closings Despite the industry figures, a number of medspas across the country are flourishing, increasing revenues and their bottom line. The successes mark a trend in the industry…the ‘cookie cutter’ approach is not working the way it did when the economy was stronger, but there is still great success to be had if companies make some strategic changes.

“It’s a matter of structuring your business in a way that responds to current market conditions”, says Dee Deluca-Mattos, President of the Medical Spa Society, a not-for-profit organization dedicated to the advancement of the medical spa industry. “By making a few key changes, we have seen some medical spas do very well, even doubling their revenues, while other locations that simply ‘stay the course’ are languishing.”

The Medical Spa Society introduces industry expert, Francis X. Acunzo CEO of Acara MedSpas to present a Webinar that focuses on how to manage your business in these changing times, “Recession Proof Your Medical Spa”.

“I have personally and successfully weathered 2 recessions owning and operating Spas and Medical Spas in the US. I look forward to sharing my insight and wisdom on how to recession proof your medical spa.” states Francis X. Acunzo.

About the Medical Spa Society:
The Medical Spa Society is a not-for-profit organization dedicated to raising and upholding the level of professionalism practiced throughout the medical spa industry through professional and consumer education. The Society’s mission is to promote education, communication and standards of excellence for the medical spa profession. They are committed to providing educational forums that allow the industry to stay informed about the latest innovations and cutting-edge developments in the spa and medical fields.

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Core Dimension Training and Corporate Realty Advisors announced an agreement centered on providing national real estate consulting services to physicians offering medical aesthetic services in their respective markets.

 announced an agreement centered on providing national real estate consulting services to physicians offering medical aesthetic services in their respective markets.

Core Dimension Training is one of the nation’s leading aesthetic practice management companies. James Finnegan, Bruce Vermeulen and Paul Herchman are the Managing Partners and have extensive experience in the med-spa industry as owners, investors, managers, financiers, vender’s and consultants. They have been involved in hundreds of aesthetic businesses in the US and have an in-depth understanding of the economics and key business drivers of aesthetic businesses. Corporate Realty Advisors’ unique expertise and consulting platform in working with physicians in the development of aesthetic centers located in multi or single tenant real estate developments has enabled Corporate Realty Advisors to become one of the nation’s most respected commercial real estate consulting services company.

Paul Herchman said, “Today’s economic and aesthetic environment is changing. Now more than ever physicians must understand the details of revenue enhancement programs and the legal/operational aspects of their business. We have worked with Corporate Realty Advisors on numerous occasions in the past and we are confident that they will continue to provide our customers with the most accurate market knowledge, generating the best real estate course of action, facilitating the most favorable terms, and mitigating the physician’s exposure.”

Jay Rigelsky and Clint Dansby stated, “Corporate Realty Advisors is extremely excited to be working with Paul and Core Dimension Training.

Like Core Dimension Training, Corporate Realty Advisors strives to continually place client’s immediate needs at the forefront, while providing forward thinking strategies facilitating the client’s long term objectives. Our Medical Services Consulting Group has developed an individual services platform that generates unmatched negotiating leverage while successfully reducing exposure for the individual doctor or physician group. We are dedicated to exceeding the needs of the Core Dimension Training customer.”

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8 Salon and Spa Marketing Tips That Will Attract A Surge Of New Clients

Salon and spa marketing strategies for in-house and new client acquisition bring customers in like clockwork when there is a systematized approach in place. Here’s how to get started.

Brian and Angie Maroevich, salon owners and marketing consultants, just completed a new marketing ‘mini course’ for salon and spa owners called, “8 Salon And Spa Marketing Tips Guaranteed To Attract A Stampede Of New Clients.” This free marketing course  helps salon and spa owners discover new ways of looking at their current marketing strategies and improve upon current ones to achieve measurable results in client acquisition.

Studies show that if clients and prospective clients are not contacted at least once per month they will either forget about the business they originally frequented or choose another competitor. For every month you do not contact a current customer or prospect you lost 10% of your influence over them. Over the course of one year without contact you become the equivalent of a complete stranger.

What is the solution?

The answer is to put a spa marketing system in place.
A marketing system is basically where a salon or spa owner plans ahead and puts a procedure in place for various promotions to be implemented on specific dates. This way they know what marketing piece and/or promotion is going out on what date, and they have it planned out at least 6 months in advance. This way the salon and spa owner is not playing catch-up all the time.

It is recommended that a salon and spa owner use a combination of media when communicating with customers and prospects. For example, communication through e-mail blasts, direct mail, newsletters, internet marketing and the telephone are just three ways to get a salon or spa name in front of prospective clients.

However, sticking with one form of communication will dilute ones marketing efforts, especially if e-mail is used. E-mail is not as personal as direct mail and telephone contact, and spam filters will only allow a certain percentage of the messages to get through.
Most salon ans spa owners are too busy working in their salon to begin and maintain a marketing system, but it’s one of the most important parts of growing a business.

Here’s how to solve that problem. Create a marketing calendar that lists all of the marketing strategies that need to be implemented and set a deadline date. In addition, create small goals each day or week to build upon each marketing strategy so that it is ready to launch on the deadline date that is set.

A systematized approach to salon and spa marketing will produce measurable results. The bottom line is if a salon or spa owner does not ‘touch’ a client or prospective client frequently they will spend their money and send their referrals elsewhere.

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Today many clients are locating their spas deals online.  If your spa is not listed with several spa directories, you need to sign up now.  Having a website is not enough, people have to be directed to your website.   

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Relationship Marketing: How It Can Help In Today’s Economy
 
Can a bad economy put a dent in your sales? A colleague of mine thought so as she watched her sales decline during the last six months. Like most of us, she has heard the news reports suggesting that we are in a recession and wondered if that is the reason her sales are down. I was not so sure, and asked if she had recently cut back on her advertising and marketing. Her response? Yes—as a means of limiting expenses. I then asked if she was meeting new people and developing relationships. She said no. To me, that indicated these two things could be a large part of the problem.

The economy may have something to do with fewer people spending money, but there is nothing you can do about that. What you can do is practice relationship marketing with people in your sphere of influence to increase your business sales. Think about this:

Joe Girard was listed in The Guinness Book Of World Records as the “World’s Greatest Retail Salesman” for 12 consecutive years. Girard wasn’t born with a silver spoon in his mouth; rather, he was abused by his father as a child, lost multiple jobs as an adult and eventually went bankrupt. Finally, he landed a job at a Chevrolet dealership and did very well—in fact, he personally sold more cars than most dealerships. People stood in line to buy a car from Girard—but why? Because he practiced relationship marketing.

Every year, Girard sent 13 handwritten cards to each of his clients and prospects: one card per month and an extra card at Christmas. These mailings were cards of appreciation, tips and giveaways—never about special sales, discounts or promotions. Over the course of 15 years, Girard sent 13,000 handwritten cards. Each of Girard’s recipients began to anticipate a card from him every month and he was always the first person on their minds when they were ready to buy a car.

So, how can you implement relationship marketing in your business? Try these strategic objectives (which also will help your businesses to better withstand the impact of economic downswing):

Develop Strong Relationships
People do business with people they know, like and trust. It’s your job to make this connection happen. To do that, you must go beyond the superficial and become genuinely interested in your customers and prospects. For instance, you can meet clients at a coffee shop and get to know them personally, without the usual business discussions. I often do that. I make mental notes on what is going on in their lives, so I can refer to it the next time we connect. Then I nurture my relationships by consistently staying in touch.

Consistency Is The Key
You can stay connected with your contacts by sending heartfelt cards like Girard did, or through phone calls, e-mails and newsletters. You lose 10 percent of your influence every month you do not have contact with our clients, but just a five-percent increase in customer loyalty could add 20 percent to 80 percent to your bottom line.

Form A Strategic Objective To Stay In Touch
One way to do this is to set up campaign postcards to go out once a month. Also, find or develop a system for remembering birthdays. In addition, you can think of something unique to your salon clientele or the tanning industry. For example, some real estate agents record closing dates and send anniversary cards, while some veterinarians record the birthdays of client’s pets and send birthday cards. I have found that a simple and sincere card can make a huge impression on someone, especially if they are having a bad day. Sometimes, I include a gift card or small gift with a thank-you card.

Understand & Use The Law Of Attraction
When you express appreciation, recognition or encouragement, you are focused on giving and abundance instead of scarcity. Every human being wants to feel acknowledged, loved and appreciated—and when you send love and thanks out into the world, you get it back tenfold. This is the Law of Attraction, where what you focus on expands. The opposite also is true, however, meaning that if you are focused on your lack of money, you will continue to have a lack of money. Instead, try to inspire yourself by visualizing what you want in your life—those good feelings will bring good things to your business.

Use The Rule Of 250 To Build A Referral Network
As a small-business owner and entrepreneur, you probably know at least 250 people. In fact, you may know many more than that. And each one of those 250 knows another 250, and so on. See where this is going? When you make a commitment to stay in touch with people you know—and remember they each have hundreds of contacts—you have the potential to reach thousands. Additionally, you can build your network by joining local and online business-networking groups. Referred customers usually are already sold on us through the testimonial of the person who referred you.

Ultimately, when you build strong networks and nurture meaningful relationships with the people you serve, you will garner unlimited referrals and be less affected by economic down cycles. Start making relationship marketing part of your business today and watch your business grow.

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Spa Marketing

Can You afford twenty cents a day?  The Basic Marketing solution to bring leads to your spa $75 a year.

Can you afford $2 a day…Truth is you can’t afford not to.  The Enhanced Spa Listing

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This is why Spavelous informs all people to only purchase Spavelous  VISA Spa  Gift Cards, you will never have to worry about the company going out of business. 

When it comes to medical treatments pay as you have the work performed NOT in advance. 

Asheville – Bouche, a dental spa-studio on Biltmore Avenue operated by Dr. Kathryn Philpott-Hill, has temporarily closed.

A phone message said the office has temporarily closed due to doctor’s illness and advised patients to seek care from another dentist or at the emergency room. A sign on the door said the office was closed due to illness and more information will be available as soon as possible.

Karen Weihs has been a patient of Philpott-Hill for seven years and found out that the office was closed when she came to Asheville for her appointment Tuesday morning. Weihs has four temporary crowns and had already paid $10,000 for permanent crowns.

Weihs has been told that the office is trying to get another dentist to fill in for Philpott-Hill.

“She’s been a very good dentist for me but this is very upsetting,” Weihs said. “My lawyer is telling me that I am out $10,000 and to see a new dentist and I am very upset.”

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Dental Spa Closes Permanently (07/18/08)

A local dentist office closes for good, because of financial issues and the doctor’s illness. The staff at Bouche, Dr. Kathryn Philpott-Hill’s studio for asethetic dentistry, released a statement Friday afternoon, saying they’re working to get patients’ records to them. Many of them paid upfront for services; now they want to know if they’ll get their money back.

Some told us they signed on with the GE CareCredit program. A financial provider that worked with Philpott-Hill. A CareCredit spokeswoman told

News 13 that in some cases, patients will pay CareCredit in installments while CareCredit pays the doctor in full.

The company terminated its services with Philpott-Hill in March because of an increase in disputes. The spokeswoman says they do not want patients to have to pay for services not performed. Dr. Philpott-Hill’s attorney could not comment on whether patients will get any refunds.

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Small Biz Bite: Bianucci Salon & Spa
 

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Looking good and feeling confident is what every woman desires, according to April Bianucci, owner of Bianucci Salon & Spa. It is the subtleties that count, she said.
“As women we deal with a lot of day-to-day issues,” she said. “We give facials to improve confidence.”
The salon offers special treatments for aging skin or acne problems.
“Acne facial treatments can help control breakouts and eliminate the problem,” Bianucci said.
Eye lash and eyebrow tinting is also another subtlety that can be done to brighten up a woman’s face.
“It frames your eyes and gives them that extra pop,” she said.
In Charge: April Bianucci is the owner and a licensed cosmetologist. Ashlea Heavner is also a licensed cosmetologist. Paige Jen is the esthetician.
 
Location: 4003 S. New Hope Road, Gastonia, NC.
Phone: 704-824-1050.
Hours: 9 a.m. to 6 p.m. Tuesdays through Fridays and 9 a.m. to 3 p.m. on Saturdays.
Offers: They offer haircuts and color for women, men and children. A variety of facials are offered such as hydrating, anti-aging, firming and acne treatments. Lash tinting, eyebrow tinting and waxing are also available.
The Boss Says: “I like to make people feel pretty and feel good about themselves on a day-to-day basis,” Bianucci said.
Business Fun Fact: Bianucci has been practicing for 12 years and is a licensed cosmetologist in three states. She opened her salon and spa this month because of her passion for her career.

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Body & soul in St. Charles
Beauty isn’t only skin deep at newly expanded day spa

In 2000, aesthetician Beverly Miller opened a tiny day spa with 100 clients and a passion for skin care.
Since then, the spa business has been expanded twice and not only offers outer beauty regimens, but inner ones, too.

Tranquility Skin & Body Care Center
• Address: 113 N. Second Ave., St. Charles
• Phone: (630) 762-9864
• Owner: Beverly Miller
• Business: Day spa and wellness center
• Hours: 10 a.m. to 7 p.m. Mondays; 10 a.m. to 5:30 p.m. Tuesdays; 10 a.m. to 9 p.m. Wednesdays and Thursdays; 10 a.m. to 5 p.m. Fridays; and 9 a.m. to 3 p.m. Saturdays. Closed on Sunday.

• Payment: Cash, check and all major credit cards
Tranquility Skin & Body Care Center at 113 N. Second Ave. in the Century Corners shopping complex in downtown St. Charles, treats the skin and the spirit with its combined spa and wellness center offerings.

The spa first was located on Cedar Street, kitty-corner from its current address. Miller, who lives in St. Charles, made the move in 2003 for added space, picking up partner Loreta Lescelius in the process.
Soon after, natural nail services were added, staying away from artificial nails to keep in line with their holistic approach.

“Even our nail area is vegan, with no formaldehyde in any of our products,” Miller said. “That was in line with our true vision … to mold into a wellness center.”
Their vision came to life last fall in the form of a full wellness center — offering clients a variety of health and well-being options through alternative therapies — which opened on the spa’s newly renovated second floor.

“We have just remodeled the second floor with additional treatment rooms, and feature an infrared sauna and steam shower,” Miller said. “In addition to the existing skin-care treatments, body massage and nail care services, new offerings include nutritional counseling, life changes counseling, acupuncture therapy and permanent makeup.”

The spa now has a sprawling 4,000 square feet of treatment space, but a tranquil and cozy feeling still envelopes patrons when they walk in, Miller said.

“Once you hit the door, you immediately begin to relax,” she said.
Despite recent expansions and added services, facials always have been the spa’s featured service. Miller says the focus always is centered on the client.

“Our facials are more customer-oriented. We take a person and individually determine what their needs are,” Miller said. “We are very results-oriented. We want to see a change in your skin.”
Facials run $85 to $105 and last 75 minutes to 90 minutes. According to Miller, appointments are not booked consecutively. That way, a little time is left after one appointment ends so the client isn’t rushed.

Miller says her spa includes extras not readily found at most spas.
“Our signature treatment is the Tranquility Facial. We add a lot more than what other spas do … with a neck, shoulder, hand and foot massage,” Miller said. “Also, we don’t book hour by hour. That way, if (a client) needs something else, they don’t have to make another appointment.”
Gift certificates are available, and there’s a frequent-customer card, where points are accumulated based on dollars spent. Points can be redeemed for services.

In a downward economy, there’s always a concern that luxury spending will decrease. However, Miller said she hasn’t seen that happen yet. That could be due to the strength of fellow Century Corners businesses.
“We are a very strong group of business owners, and we get together regularly and work together to keep everyone busy,” Miller said. “We have a fabulous relationship.”

Miller’s business also remains strong due to the many clients who have become hooked on her spa services.

“I really have grown, and it’s all from referrals,” Miller said. “Our customers spread the word for us. We started with 100 names and have grown into a database with 7,000 people in it.”

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Spas in Missouri

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Teaching Managers How to Give Critical Feedback to Staff

Most managers and supervisors would rather run a mile… But senior management are tired of managers who don’t handle simple discipline. And because a supervisor won’t deal with incompetence, you may lose yet another good worker who says ‘enough!’ The ability to give honest, critical feedback is a key skill for good leaders.
How to make giving criticism less difficult and more effective:

Don’t start with an apology. When it’s time for the ‘big talk’, don’t hide your nerves by saying sorry. If you were really sorry, you wouldn’t be having the conversation! The offender usually knows there’s a problem, and a wishy-washy start will lose you respect.

Create a productive conversation. Ask the staff member to listen, then when they speak, make sure you really listen. Take turns speaking and listening with arms unfolded, concentration, and privacy. It may not come easily…and silences are OK.

It’s what they did, not who they are. Better to say ‘you used the wrong margarita recipe, which caused us to lose $400 worth of product’ than say ‘you’re a stupid idiot and a loser - don’t you ever do anything right?’ But we know which expression is the most commonly used! The first one shows you’re in control, and the second statement shows that both people have a problem.

Make use of Checklists: compare performance against a Job Description, the Code of Conduct, an operating procedure, logbook records, the POS printout or a profit statement. Shades of grey become black and white when there are words and numbers describing the issue.

Be specific about what needs to change. Telling me to ‘lose the bad attitude’ is just a rant. Explaining I need to greet fellow workers on arrival, smile at customers even when it hurts and be 5 minutes early every shift gives me a clear roadmap of how to make the team and the boss happy.

What’s not done is also important. Sometimes the ’sins of omission’ (things that aren’t done) are harder to criticize than things done badly. A safety induction is forgotten and there’s an injury. A salary review was repeatedly delayed and the worker is poached by a competitor. Dinner service is fast and efficient but the atmosphere is unfriendly.

Separate praise from criticism. When praise comes first, everyone’s waiting for a giant BUT, and then they forget any good points that have been made. Offer positive feedback after the tough stuff has been dealt with. Sometimes the withdrawal of praise may be a strong rebuke: a teacher colleague says it’s one of her most effective weapons. Her young students receive a lot of praise, and if the tap’s turned off, they feel it acutely. If your work culture revolves around criticism, staff will be deaf to most of what you say and concentrate on survival. For some managers, giving praise is quite difficult.

The conversation may sound like parents and children. You know many of the responses: ‘it’s not fair’, false promises, lies, blaming, denial, stony faces and tears. Some nervous managers even use a version of ‘I’ll tell your father when he gets home’! When you raise the conversation to ‘adult-with-adult’, there’s the possibility of breakthough and a fresh start. At school, young people are taught about their rights, and their outspokenness may surprise you - it’s not an attack, just how it is now.

They may think they are doing it right. Or that there way is better - sometimes the misconduct or errors is quite logical to the offender - check where they’re coming from.

Have the conversation in private. Never in front of others, or you can expect a walk-out or a no-show at the next shift. Rarely useful.

Some issues will need senior management. Cases of harassment, suspicion about stealing and questions of honesty need guidance and action from the top. These ones can’t be delegated.

Practice handling tough situations: a young supervisor giving feedback to an older worker, a female manager disciplining a male worker, a non-native speaker correcting a local, or a new manager dealing with staff who’ve been around for years. Practice and rehearse the right responses with the managers - chances are you’ve heard every excuse and justification.

As senior management, your responsibility is to ensure managers have the confidence and skills to give criticism promptly, fairly and accurately. It’s character-forming for everyone!
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