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Issue link: https://dayspamagazine.epubxp.com/i/104329
EDITOR'S PAGE Luxury Redux The recession didn't have many gifts to offer—but perhaps the shift toward "practical luxury" is one of them. I n the board game Monopoly, there's a square called Luxury Tax. Land on it, and you're obliged to pay the bank $75. Even back in the 1970s when I played the game as a child, I remember the family jokes: "$75? Couldn't have been much of a luxury!" To my parents and siblings, $75 wasn't much, but to my 12-year-old mind, it was a fortune. Everything is relative. In today's post-recessionary, slowly recovering economy, there are millions of Americans for whom a $75 mini-facial is indeed a luxury, to say nothing of a $125 hot stone massage or a $400 treatment package. And no one knows this better than spa owners who have relied on middle-class consumers, the ones among the hardest hit when the bottom fell out in 2008, to be their spa's bread and butter. These clients, who may have once been regulars, perhaps now only show up twice a year. And if they were only occasional clients, they've likely stopped coming altogether. Even the high-end resort and destination spas that cater largely to wealthy clients have experienced the hit. It isn't that their well-heeled clients no longer have the money to enjoy spa luxury; most of them still do. But the recession seems to have led these consumers to redefine the luxury concept. According to a 2012 study by market research publisher IBISWorld, today's wealthy Americans seek a more practical type of luxury—the kind, in fact, that can be found at the average day spa. Linda Kossoff "Instead of dedicating a large portion of their discretionary incomes Executive Editor to a traditional destination spa experience, consumers have increasingly turned to local day spas and nail salons as a way to pamper themselves on a budget," the study says. Practical luxury doesn't only translate to spending less on things, however; it also means re-evaluating priorities and spending more on things that provide lasting value. For instance, according to the study, luxury consumers are spending more of their money on organic foods, eco-friendly products and health club memberships. If the IBISWorld study is correct, it would seem that day spa owners could capitalize on this shift in two major ways: 1) Marketing themselves to the former "resort crowd" with high-end services that emulate the resort experience at a day spa price; and 2) Offering wellness-oriented services and products that help clients achieve higher levels of health and well-being, thus providing more "bang for their buck." This month's issue is packed with ideas on how give your clients more for less, whether it's the best skin care for their money ("The Many Modes of Moisturizing," page 60) or the latest youth-preserving cosmetics for their face ("Mix It Up," page 48). Also, be sure to check out Profit Center on page 88, where experts reveal how to entice budget-conscious clients—and yield healthy revenue—with nailcare services. As a business owner, you've always had to watch your bottom line. Now, even the wealthiest spa clients are doing the same. And as it turns out, that's not such a bad thing. ➥ P.S. How has your spa made the most of our post-recession economy? Share your thoughts at lkossoff@creativeage.com or post them to our Facebook page at facebook.com/dayspamagazine. 12 DAYSPA | FEBRUARY 2013