Reading the news about how Subtle Senses is the latest spa to go under brings the following thoughts:

• thank goodness I didn't sign up any package with Wax in the City
• thank goodness I used up most of my True Spa package before it was taken over by Subtle Senses
• thank goodness my mum used up the base True Spa package before Subtle Sense went under
• Subtle Senses took on more than it could chew - all those 'free' members from Wax in the City and True Spa
• the business model of all these spas are not profitable in the long term

Regarding the last point, most spas make you buy huge packages worth more than $3,000 while throwing in 'freebies' like an extra treatment and free credit.  Well, how long can your $3,000 package last? A pretty long time if each massage only costs about $70/session and if each mani/ pedi is about $40/session.  To maintain a certain sales margin, spas ought to target smaller packages to maintain a steady stream of customers which they will renew/ top up more frequently.  In addition, allow walk-ins and have lunch specials like Kenko's $10 for 10min shoulder massages.  Having computerised system or some sort of system which the customer can see the outstanding value of his/her package after visit is also very essential. 

Encourage the sharing of packages so that clients will use up their packages faster AND you spread the name and reputation of your spa because more people are using your services.  What better advertising than spreading via word-of-mouth?  In addition, spas ought to sell products like facial cleansers, moisturisers, essential oils, aromatherapy thingamajigs, nail polishes etc. That's why most nail parlours are still doing well - they have cheap packages, allow walk-ins and sell nail-related products.

Most importantly - DO NOT HARD SELL!!  Customers hate that.  Want to win a loyal customer base with excellent reputation? Look at Spa Espirit!

Ok...enough of ranting from me. I am exhausted.  I need a foot massage...and facial...and shoulder massage...