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June 2006 |
Volume 7, Issue 6, Part 1 |
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.
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, http://www.HandandStoneMassageSpa.com, (732) 449-1700.
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, http://www.greatclips.com, (800)947-1143.
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