Dayspa

APR 2014

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80 DAYSPA | APRIL 2014 A PERFECT STORM However, like many things in life, with the good comes the bad, and with Metropolis' rapid success and expan- sion came some turbulent times. One of the facility's fi rst major setbacks was the 2008 economic recession, during which the spa experienced a dip in revenue, as loyal clients began cutting back on their regular visits. "In that economy, guests were much more aware of how their money was being spent; instead of coming in for a cut and color every four weeks, they'd stretch it to eight," explains Carr. "There was a lot of mistrust and much more competition in the area, so we had to change the way we did business or go out of business." To add insult to injury, some staff members, nervous that Carr would sell or close the business, jumped ship. Carr took a pay cut and hired a business consultant who could help her spa and salon survive. She stayed afl oat by targeting her remaining client base and of- fering referral incentives. Every month, Carr and her consultant would look at which service was experienc- ing a decline in bookings and run a special on it the following month. Email blasts offered last-minute, daily specials, especially on sluggish weeks. "We never had to run discounts before the recession hit," notes Carr. "But by offering these promotions, we'd have 10 call-ins the next morning—and providing discounted services is better than having an empty spa." MOTHER NATURE CALLS Although Metropolis managed to remain in business during the recession, nothing could have prepared Carr for the next obstacle. In August 2011, Hurricane Irene approached the Garden State while Carr was vacationing in Florida with her daughter. Initially, she didn't see the storm as a threat to her business, as it wasn't in the path of the storm. However, she soon received word that heavy rain in the area had caused a power outage, which debilitated the sump pumps in the spa's rear hallway. Water backed up, and the resulting pressure blew out the drains throughout the facility. Nine inches of water fl ooded the salon. Carr quickly fl ew home to tend to her (liter- ally) drowning business. The scene was heartbreaking: fl oors and walls were demolished, requiring replace- ment. Carr's brand-new electric beds were destroyed. Bedding, cabinetry, computers and inventory (includ- ing retail and back bar) were all beyond repair. The damage was so extensive, in fact, that not a single piece of furniture or equipment could be salvaged. It would cost an estimated $35,000 just to remove all the damaged materials. "We knew this would consti- tute a legitimate insurance claim, but we had no idea how long it would take for us to receive our money to rebuild," recalls Carr. Then came another huge blow. Given the too-low maximum payout provided by the insurance company, every cost beyond removing the damage would not be covered. "The 40% of my business revenue that the spa generated was gone, and no bank would give me a loan," Carr recalls. "We had to use the money we made each day from clients just to pay the bills. And when you lose a client for four months, what are the chances of getting her back? We lost a lot of business." Though devastated, Carr wasted no time in picking up the pieces. She obtained loans from friends and secured a space nearby to house her business in the interim. The makeshift facility made use of donated furniture and fl ower arrangements, and black fabric was draped from fl oor to ceiling to create semi-private treatment rooms. Despite Metropolis' limited business capacity, some of its regular clients continued their patronage. Because Carr's landlord wouldn't allow her to fi le a claim on his insurance, she stopped paying rent Metropolis' retail space recently expanded to include jewelry, hair care and candles. PHOTO COURTESY METROPOLIS SPA SALON P r o f i l e 4 1 4 . i n d d 8 0 Profile 414.indd 80 3 / 7 / 1 4 9 : 4 5 A M 3/7/14 9:45 AM

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