Good Health and Beauty - Always in Style The business of making our bodies look and feel good has never been healthier. The hair care industry alone rings up over $55 billion a year in the U.S. And while the massage industry isn't that big yet, the field has exploded over the last few years, rising to $6 billion annually so far. According to the American Massage Therapy Association (AMTA), getting a massage has become a mainstream practice - consumers last year visited licensed massage practitioners 114 million times. In this issue we talk to John Marco of Hand and Stone Massage Spa and Raymond Barton of Great Clips to learn why their franchises shine.
Massage on demand is no longer a luxury The Hand and Stone Massage Spa concept is a simple one: provide high quality therapeutic massage services at a low cost, seven days a week. It might not have been so simple to launch this concept 10 years ago. Until recently, getting a massage was considered a luxury. But according to Hand and Stone CEO, John Marco, times have changed. "It's a huge industry today." When asked if the industry is growing, he pointed to the annual surveys conducted by the American Massage Therapy Association. "The latest survey found that 2 million more people received a massage this year than the year before. Now consider that less than 20% of the population have ever received a massage. That means about 80% of the market are still massage virgins. So, absolutely, there is a lot of room to grow," states Marco.
Marco has been a physical therapist for the last 23 years. He observed and studied the growth of the massage industry before coming up with the idea for his franchised massage spa. What makes it unique? "It's a membership-based massage spa, specializing in the hot stone massage. We offer an introductory price for the therapeutic massage or what's known as a Swedish massage for $39 or the hot stone massage for $59. That brings customers in for the first time. They receive a 50-minute service and afterwards we offer them a monthly membership. The membership provides them one massage per month at a reduced price and they can get additional massages at even lower rates," according to Marco.
Although the low prices are certainly an incentive, Hand and Stone customers are not simply bargain hunters. "They are people who appreciate value, quality, and personal attention. About 70% are women and 30% are men. They range in age from 20 to 60+ so it's a wide demographic," says Marco.
Branding is key to beating the competition Hand and Stone Spas compete with day spas and individual practitioners through branding. Marco explains, "We are all about branding. When you come to Hand and Stone you know what to expect. Our spas are conveniently located and the unisex layout is very sharp. There is a stone waterfall wall in the lobby and the rooms are all nicely appointed. The tables are top notch and there is dim lighting and individual sound control for every room. You can also expect a high quality of service that you can get right away. The concept is based on being available and affordable and that's what we accomplish that others don't. People can pick up the phone and get in the same day and get a massage - that is unusual in this industry. Each spa has 10 rooms and 22 licensed therapists on staff. They're not all out there all the time, but there are enough therapists to handle the demand throughout the week."
"Basically," says Marco, "it's about coming in and trying us out at a low price. Most people come out saying they loved it to which we say 'let me show you how you can get a massage every month and save money.' We sign them up at membership rates that are significantly less than the usual $80-$100 prices in most spas. And again, quality is not compromised. Customer satisfaction and repeat business is what we're all about."
Contact Information: Hand and Stone Massage Spa, John Marco, CEO, www.HandandStoneMassageSpa.com (732) 449-1700.
Great Clips, the hair care industry leader Established in 1982, Great Clips is the largest brand in the hair care industry. Great Clips salons are conveniently located in strip malls in 138 markets throughout the U.S. and Canada. No appointments are necessary for men, women, and children to get haircuts and perms at competitive prices. The services are provided by professional licensed stylists with advanced training from one of 70 Great Clips area training centers.
Great Clips CEO, Raymond Barton, says the concept combines three elements: convenience, value, and quality. "Convenience means there is no appointment needed. We're open evenings and on weekends, and we're ready when the customers walk in. Our target market consists of middle class, middle-income families who value their time and are looking for a great haircut at a reasonable price. We think they should feel like they've got the freedom to come in whenever they want and not have to wait a long time. Our typical waits are less than 10 or 15 minutes. People value their time today; they are very convenience oriented. When they go out to run an errand, they have four other places they want to be so it's important that we accommodate them. We value their time and we want to honor that for them," says Barton.
The high quality of service is the result of proprietary training. Franchisees hire licensed stylists who attend advanced training in a company-operated training center. "We first teach the stylists our system so they understand what it is that our customers expect when they come in to our salons and then how to deliver that to them. In addition, we want to keep them up to date on trends so there is trend training. And then we want to make sure they are very proficient at giving great hair cuts so there's technical training," explains Barton.
Great Clips also pays attention to making customers feel at ease. "The experience should be very comfortable for them," says Barton. Each franchise location features a nautical motif environment designed for customer comfort and privacy. "They should expect to get a warm friendly greeting and feel that our people are happy to see them. We are grateful that they chose us as a place to get a hair cut because there is a lot of competition out there. We want them to feel like 'this is a place where I fit in, where I can relax and just be myself.' They should also expect that we are going to listen to them and understand what they want their hair to look like when we're all done."
Beating the competition Great Clips is thriving in a very competitive marketplace. Barton says, "There is branded competition and then there's the local mom and pop competition. How we set ourselves apart is by making sure we understand what the customer wants and that we're able to give it to them. Our whole organization is focused on making sure the customers get what they're looking for and I think we are just better at executing that." How does the company know what customers want? "Last year we spent a tremendous amount of time and money doing customer research. Then we designed new television and radio commercials and new print materials for our franchisees to use based on what we learned - what the customers told us is important to them. And we refresh that on a regular basis," says Barton.
With over 2,525 units, there is no question that Great Clips is the leader in the hair care industry. Barton says, "We are not only the largest brand in hair care, we are also the fastest growing. We'll open about 200 new salons this year and we're going to continue that pace of growth for the foreseeable future." Barton goes on to point out that Great Clips is poised to benefit from major changes in the industry. "This industry is in the middle of a transition where the major focus will be on the branded salons rather than the mom and pop's. We're the leaders in that transition and we're very excited about the future of the business. There is a lot of room to grow."
Contact Information: Great Clips, Raymond L. Barton, CEO, www.greatclips.com (800)947-1143.
From the Publisher Good Health and Beauty - Always in Style In a recent article in The New York Times, it was reported that an alcoholic drink a day can significantly reduce the risk for heart disease in men while women get the same benefit with only one drink per week. A Danish study suggests that simple alcohol intake for women is protective but for men it is drinking frequently.
That's my tip on this month's focus, Good Health and Beauty. Now that we are in the relaxed summer season, aren't you all happy to hear that I am not encouraging you to exercise more, eat healthier food but simply to drink more alcoholic beverages? So be sure to sip a cold beer, wine cooler or an iced martini while you read about all the new health and beauty franchises being marketed.
Actually, I believe we are under-served with franchised businesses in this sector. Part of the reluctance to franchise, it seems, is that there are often two legal components to the business--franchise regulations and medical restrictions. But, with the proper legal guidance there are ways to comfortably address these two areas and create a successful franchise system.
On the positive side, there has been a proliferation of spa-type franchise systems. Most of these concepts are only a year or two old and, from our network information, seem to be doing quite well. Some of these franchise concepts are: Radiance Medspa, Massage Envy, Medsonix Inc., The Woodhouse Day Spa, and Inaara Medspas. In this issue we spotlight Hand and Stone Massage Spa and in the next issue, Relax Oasis.
Going backwards, I want to bring your attention to Part 2 of last month's newsletter on retail concepts, specifically our interview with Jack Reynolds of Quik Drop, an eBay drop-off store franchise. Because of the constant barrage of information sent to to our in-boxes every day, we often skim over articles. I don't want you to miss Jack Reynold's arresting comments in our e-zine. In the last paragraph of the interview, Jack Reynold's says that trading up via eBay is becoming a trend that is changing the way consumers shop. Click here to read. Think about this and the potential effects on consumer buying behavior.
For example, I might be much more inclined to buy the $1,200 Louis Vuitton special edition handbag if I believe that I can sell it on eBay in a year or two when another fetching model catches my eye. As Mr. Reynolds points out, the concept of equity is not only for houses and businesses, but perhaps for our personal items, including clothing, accessories and others. If ever there was a good argument to buy the luxury good item instead of the one-tenth the price, mundane article --- This is it! Better check out all your credit card maximums.
I think Jack Reynolds gave us all food for thought and transmitted information that I hadn't heard or read in any other publication or media. So, if you haven't been carefully reading all our great interview articles, you could be missing out on an idea which might change your life.
We love to hear all of our reader's comments on this and any other franchise-related topics. Drop me a line at mtomzack@FranchiseHelp.com and enjoy the summer with a refreshing drink in hand.
Mary E. Tomzack is the President and Founder of FranchiseHelp, Inc. She is a noted franchise expert and the author of Tips & Traps When Buying a Franchise (1999, Source Book Publications). Reach her at (914) 347-6735 or at mtomzack@franchisehelp.com or company@franchisehelp.com.
Good Health and Beauty--Always in Style - To learn more about this author, visit Mary Tomzack's Website.
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Mary Tomzack
(Visit Mary's Website)
MARY E. TOMZACK is the President and
Founder of FranchiseHelp, Inc. She is a
noted franchise expert and the author of
Tips & Traps When Buying a Franchise
(First publication,1994,McGraw-Hill; new
and completely updated, revised edition,
1999,Source Book Publications). Ms.
Tomzack is often interviewed for franchise
articles in publications such as The New
York Times, "Franchise World" and
"Entrepreneur Magazine."
Reach her at (914) 347-6735 or at m
tomzack@franchisehelp.com or co
mpany@franchisehelp.com
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