New Massage Franchise in this Area?

[sniper007]

It seems there is a new massage franchise moving into our area. I have never heard of Hand and Stone Massage Spa before. Anybody know anything about them? :undecided:

It looks like they are pushing hot stone massages which the Massage Envys in this area don't do. More competition, oh well. . .

 

[Chipmaker]

We have them here in AZ. Talked with a girl who works for one. Said it's on the same board as Massage Envy.

 

[equine_business]

Oh No! Not another one! It has been tough trying to start up a new business in these times. Most of the therapists in my area who have been established here for 10 years or so are able to keep most of their regular clientele but seem to be having a tough time attracting new clients (as I am). But a 2year old day spa relented and started offering $39 massage in order to compete with the Massage Envy that recently opened and they said the bookings have been great, but repeat bookings aren't what they expected.

I have since wondered if this is the route that I should take. I also have to reluctant to go that low. But now another one?

How do you think these franchises have affected private practices and day spas in your area?

ps - I don't want to hijack this thread...let me know if I should post this question elsewhere

 

[Fail Whale]

Competing on Price is only a valid strategy if you also have the lowest costs. And even then, it is a strategy best suited for mass produced products, not for services. You can only do X massages in a day, but WalMart can sell 1 or 10 truckloads of Tide with no additional effort.

You may win the "race to the bottom" but you will regret doing so.

That being said, it may work for the spa to offer $39 massages IF, and only if, they use it as the gateway to other services and product sales. I would be fine with that pricing if I knew, on average, each of those customers would buy $150 of other full-priced services or products I sell.

But as you pointed out, repeat bookings are few. When you compete on price, you get the "tire kickers" of society who bounce from deal to deal. They loyalty is to their savings.

 

[corinthians]

That is what I thought and felt too, R&R. Once you put your rates that low, it is hard to pick them back up. The thing that caught me was that there were bookings, which could compete with the commission rates of the spas. They certainly may not be the clients that would become regulars, but they would help pay the rent.

Thanks for the valuable response. I know that if I succumbed to the temptation, it would be damaging to future growth, so I will ride out the storm.