Massage Envy envy?
April 26th, 2007 • Posted by SpaBoom Staff • Permalink
I'm on the board of directors for the New Mexico Spa Association and at our past few conferences, Massage Envy has been mentioned or brought up. In every conversation there are basically two points of view about Massage Envy. The first relates to some level of anxiety and concern about their business model, and how that might erode already modest (if any) profits. The second relates to how Massage Envy isn't a threat, because they don't want customers who shop by price anyway, and prefer the customers who are paying for the experience.
After obtaining a massage from Massage Envy, I don't believe either position is quite right.
Let me explain.
As a vendor to spas and salons, I do my best to visit and pay for services from those spas and salons who are SpaBoom clients. I'm located in Albuquerque, and have visited quite a few of our clients located here (and there's still many more to visit). Every experience has been enjoyable, but different.
I visited Massage Envy last week, and have to say the experience was also enjoyable — who doesn't like to receive a massage — but different.
What this means is, Massage Envy has successfully created a niche for themselves, by offering low-cost, moderate-quality massage for the non-discriminating client. If a spa has a Massage Envy in its neck of the woods, and they don't have a strong, obvious differentiator, I do believe they will need to compete on price to remain competitive against Massage Envy.
You may disagree with me, but do yourself a favor: Go clandestine and pay the $39 introductory price for a massage at Massage Envy.
Then, go back to your spa. Really think about the type of clients you have, your differentiators, your quality of service, and the availability of potential clients in your region that your differentiators appeal to. Do you have a winning mix? If not, reformulate. Work harder at marketing. Provide incentives for client referrals.
Make it clear what your differentiators are. This is tough. Unlike the car business, your prospects cannot "kick the tires" of a massage. So, if your differentiator is experiential based, come up with methods that allow potential customers to experience your difference. Here's a suggestion: Have a "free massage" day, once a month or once a quarter. Or, make some PR for yourself, and invite the local police and fire departments to come in for a free massage.
Don't suffer "Massage Envy envy." Don't become anxious and give up. But… don't sit on your laurels and pretend that everything is the same, either.
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Larry,
You are so right on with this information, and if you were wrong then Mercedes, BMW, and other high end companies would have never been able to compete against the Toyotas of the world.
It is interesting to note however that the niche that Massage Envy has is one that caters to 60%-70% of our population, and they have that market pretty much to themselves, while the other 11,000 Day Spas in the country are competing for the smaller 30%-40% of the marketplace.
My research for the Day Spa Association shows that Folks in the lower middle incomes have a huge interest in going to Spas, but have heavy price resistance. In the 8 years I have been compiling this consumer information, the price resistance factor is becoming larger every year.
We as an industry MUST learn how to deliver services to this market if we expect to continue to grow at the rates we've enjoyed over the last 10 years or so. Compensation then becomes an even bigger question in the minds of Spa Owners as they look to expand their business.
Let me be the first to go on the record by predicting here and now that "Value Oriented Spas" are the future of our industry. That is not to say that the Luxury Spa will go away, instead I am saying that they have or soon will max out their small demographic of the population and therefore the huge opportunity that is left for everyone is growing the Value Proposition business.
Massage Envy has been a pioneer, leading the way to showing us all in the industry that money can be made. And if they can make money at $39 & $49 per massage then the rest of us should be ashamed that we have difficulty making money at $85-$95 price points.
Best Wishes & Healthy Profits
Skip Williams – Resources & Development
I had a Massage Envy less than a block away from my old location. I went there for a massage once on a slow day, and I did not have an enjoyable massage experience. The room was cold, and the therapist did not address my needs for the massage and the fact that I said I was cold. In addition, I didn't like the sales pressure to buy one of their packages. I think they have a niche. But day spas and independent massage therapists can compete based on quality of the experience, including customer service, lack of sales pressure, and skill. Just my two cents…
Christy, if what you say is true, and your ME session was lacking because they are new and have newer MT's, then what will happen in 10 years from now? ME may be new in many areas of the US, but they have been around for 6 or 7 years in Arizona and surrounding states. Do these 7 year old ME's keep turning over MT's or do the MT's in these established ME's hold on to their MT's?
Comparing a ME with a Day Spa is comparing apples to oranges. ME is just a place to go and get a massage. They are built to maximize massage space, not for people to lounge around in a robe. When I get a massage in a day spa I enjoy a nice steam, sip a cocoa in front of the fire, get a massage, take a shower, get dressed, and then go home 2 or 3 hours later. At a ME you strip, get a massage, get dressed, and you are out the door in 50 minutes. When you do the math, dollar for dollar ME cost just about as much as a day spa and sometimes more. $39 for a 50 minute session at a ME or $60 for the trip to a day spa. Do the math.
Christine, that is exactly my point. There isn't a comparison in terms of the "spa experience." ME is going after an entirely different demographic than the typical "day spa." As Skip pointed out above, this is a very large segment of the population. However, I believe there is always room at the top for those spas who provide outstanding customer service and innovative treatments that exceed clients' expectations, even in a highly competitive industry such as ours.
My guess is that ME has a fairly high turnover rate with its massage therapists due to the physical demands of the job. From what I've read, the attrition rate in this profession is very high in the first five years. At ME, the therapists are doing a lot of massage, and just massage. Based on this, I would think the attrition rate would be higher than average. Also, I would be interested to find out how ME compensates their massage therapists. Experienced massage therapists may leave for higher end day spas where the compensation is higher.
ME's business model is interesting. I agree with Skip that it is beneficial for the spa industry in general to look closely at how to do business more efficiently and on a more cost-effective basis. Another issue to think about is ME's balance sheet. Similar to GC sales, I would think one of the issues with this business model would be carrying the liability of unused packages. I'm not familiar enough with their business to know if they set an expiration date on packages. I'll leave that to the accountants…
Christine, I am not trying to slam ME. Their growth is strong evidence of their appeal to the average american population. Just because I had a bad personal experience at one ME, doesn't mean that the experience will be the same for everyone at every ME. Several have opened up in the Denver area over the last couple of years. If they weren't successful, they wouldn't be expanding so rapidly. And, they wouldn't be causing so much angst and heated discussion in the industry.
My friend and I opened a spa in May of last year, both of us left very exclusive clubs in Pittsburgh to start our business. We felt our clients were being treated wrong, massages were booked one after another, the client had no chance to relax. We hired therapist that are interested in CEU's and enhancing their skills with a variety of massage techniques. As we all know massage classes are not cheap, massage is labor intensive and a labor of love, therefore therapist should be rewarded with a good pay!
I was approached by Massage Envy three years ago to buy the franchise for the Pittsburgh region, the concept sounded great until I found out the rate of pay Massage Envy gives their Therapist. Massage Envy opened a mile from us, I believe the competition is healthy. They have money for advertising which creates massage awareness.
My problem is several, on the home page of their website I believe it's insulting to other Therapist to state "why pay $80 for a massage,etc". We promote health and wellness in our clients, doctors and chiropractors are worth this money are we not? My other concern is about over working therapist that take their jobs, most have emerged from school and eager to work, places such as this take advantage of their therapist, long hours & little pay. Many great therapist have quit because of these conditions.
I agree that massage places, spas and individual therapist must find a way to differ themselves from Massage Envy but not everyone has that type of budget for advertising. To conclude I believe that if you believe in yourself and your massage is about the caring of your clients you will succeed in the end. It's a big world out there and plenty of people who have not been touched, there are plenty to go around!!!
Angel Baney
Centre Ave. Massage and Spa
There is room in the world for both the Walmart and the Bloomingdales. I am not sure what you mean by Massage Therapists need to be rewarded with good pay. But if you are looking at this from any perspective than the consumer then you are looking at it wrong.
If Milton Friedman taught us anything it is that business is a three sided equation, there is the Owner’s or business’s side, there is the employee or labor side, and there is the consumer or customer side. When a business caters to the needs of either of the first two they are guaranteeing the eventual death of the business as well as the employment opportunity. The only side of this equation that matters is what the consumer will pay for and how much value they feel they are receiving.
In the famous words of Lee Iacocca, when Chrysler was in trouble, we have jobs for everyone at $19 an hour we have jobs for no one at $22 and hour. Meaning the marketplace dictates what we can afford and what we should offer and to go beyond the point of what the consumer will pay or desire means we will surly perish.
So I submit to you, first look at what your customer will pay and what they demand. Set your services and your prices accordingly, then and only then will you know what you can afford to pay, and then find the staff that will perform to your business’s needs and within the budget available. If that takes hiring them with less experience and doing additional training then so be it.
Further the lower price advantage that ME advertises is their competitive advantage, while it might insult you (and may be meant to), it is appropriate for them to use in order to attract their customers. You on the other hand have a different set of competitive advantages and you should be bragging about them in order to secure your market niche.
Best Wishes & Healthy Profits
Skip
What is "massage envy"? Is this a chain of low priced spas offering massages only? I can understand the profit potential in this setup but how can that be compared with a luxury spa that offers facials, manicures and pedicures with 5 hour packages? Do you really think it is a fair comparison?
Last week, The Purple Flower, my spa in Denver, participated in "Spa Week," which was held in about 20 different US cities. Each participating spa selected 2-3 treatments to offer for $50 each. The premise is to introduce the spa lifestyle to people who are interested but think spa treatments are too expensive for them. C&R Media, the PR firm that sponsors the event, did a national and local publicity push, providing much more media exposure for my spa than I am able to afford on my own. I was fully booked with a waiting list the week of Spa Week, so I extended my $50 specials through the end of this week. I was fully booked this week with a waiting list, as well. The point is, this event got a lot of people through my door who otherwise would not have visited due to price resistance and lack of awareness The Purple Flower exists. I am throwing it out here as an opportunity for spas concerned about the impact of the MEs of the world on their business to cater to this demographic and educate them about the benefits of regular massage and other spa treatments.
ME or old school it really has to do with business savvy. For the past 8 years I have watched the trends and come up with a solid business & marketing plan.
We have an ME within walking distance from our day spa. At least once a week we get new clients that have been disappointed by the experience and quality of service providers at ME. In addition, ME was scrambling to find licensed therapists in our city. Offering $100 incentives but the pay was $20 per hour and the therapists were not on call. The point being a mill is a mill. Good service providers will search for a location that respects them and realizes they are not in sales.
Our therapists kept me posted on ME's persistence in between our returning, referring clients.
Take care and no worries…
I have to agree with Skip and Larry; Massage Envy has a smart business model. As Skip pointed out, "Massage Envy caters to 60%-70% of our population, and they have that market pretty much to themselves, while the other 11,000 Day Spas in the country are competing for the smaller 30%-40% of the marketplace."
I don't think a comparison is important of the different types of spas; there are luxury day spas and then there's the quick, reasonably priced Massage Envy. (Oh and by the way there are Two New Franchises using the same Model as Massage Envy) Could Massage Envy be doing it better? I think we would all agree there's some room for improvement. But, most importantly I suggest looking at the business model its self. I think it is brilliant! More spa owners need to work to get a slice of the price conscious client pie.
Who cares what other spa/massage places do. There is plenty of business to go around. People are attracted to many different types of places including yours. Just like any place, you may get the best massage ever, or you may get the worst massage ever. It's not the name of the place, it's who works there. I am proud of ME, because they have a system that works. It encourages me to have a great system that works for my business, to help my business grow and thrive. As with anything, find what makes your business different, and promote, promote, promote!
Great discussion! I've been struggling with whether or not I should be moving my day spa's massage business to a ME business model.
I recently ran a $39.95, 1st time client 1 hr. Swedish massage ad using Google's Adword's for over 45 days. I found that received allot of click troughs but my book to look ratio was extremely low. Overall I felt that the campaign was a failure.
My main demographic are Women age 30-60 with an average household income over $75K.
I've concluded one of two possibilities: 1) Customers in my area are not price sensitive, or; 2) A Majority of ME's clientele are men who are not interested in visiting a Day Spa geared towards women.
The massage envy is located about 2 miles down the highway from me and their area's average household income is around $60K.
I'm leaning towards #1.
I love the post. It's great how one company can rattle the industry like that.
It's been very telling to hear some people on here use the auto business metaphorically when describing the massage profession. Is that really what massage has been reduced to? Being comparable to the used car business? "Massage Envy" is dishonest and demeaning to the credibility of the massage profession. Their CEO says he created it to make massage available to the masses. How altruistic! Too bad it's misleading. He is using the business model of large corporations like "Starbucks" to maximize profits for himself and a select few and turning trained professionals into wage slaves for his empire. This is disgusting. Massage is a highly specialized business and has always thrived on being unique. Massage Envy charges less because their service is bottom of the barrel. You pay more in a nice spa because you have steam rooms, saunas, jacuzzis and really great MT's who create a unique personality for each spa. Consider that and you will find that the cheap price they offer isn't really much of a value.
People may be taken by the initial allure of "cheap" services at Massage Envy but people don't usually think "cheap" when pampering themselves. According to a recent article in Forbes Magazine Massage Envy is already facing the real problems of overselling franchises. In the article I read people who have franchises in Houston are now competing with the dozen new Massage Envy's in their own area making staffing and filling their locations even more difficult. This was bound to happen. Too much growth too soon. It seems Massage Envy's greedy business planners forgot the key rule about growth, "pigs get fat but hogs get slaughtered."
The real thing for MT's to do then is to do like I have done. Have an incredible outcall business. And for spa owners just hang tight, Massage Envy's aggressive push will have a counter wave soon enough. What goes up must come down. Just ask the dot.com people.
I am a consumer. I have been to several different types of massages, my chiropractor, the salon, at home mass massage and I could pay anywhere from 60$ to 80$ but there is no guarentee that I will get a good massage at any from any of these locations. Much less that I could afford to get one once a month. Which any therapist I have I ever seen as said I should try to get them more often. I have gone to ME and purchased a yearly package because for one I can afford it and two the therapist do not seem any different to no matter what I pay. So if you want to have a healthy competition in this industry you might want to seriously rethink your stratigies.
Tracy- I wish you good luck with your health. I have been in the massage business for 25 years and the thought of "healthy competition" in the massage industry is anathema to me. We in the massage business have for the most part been above the fray when it comes to debasing our integrity to follow the mass consumer model. I have seen companies like ME pop up from time to time promising cheap service and they always make a splash and then die out as soon as the novelty wears off. I am actually hearing that this is already happening to ME as they are overselling franchises and still only get the bottom of the barrel in terms of talent in our field with a very high turnover. Speaking as a massage therapist I hope you can understand that we train and work hard at what we do and one of the things that motivates people like me is to be in a business that is above such things as prioritizing profit over service. Therefore I have a difficult time seeing a company with a "WalMart-Starbucks" attitude coming into this special field and basically "dumbing down" the industry.
I have encountered many ex-employees of ME who are bitter and burned out and are speaking out against the ME model. As an advocate of my profession I take these reports seriously as I care more for my profession then I do about some guy who wants to get rich off the backs of hard working MT's. You may be happy with your experience at ME and I hope you benefit from it but watch as your favorite MT's disappear every month or so and you have yet another stranger work on you. It will get old fast. The more you experience massage the more your awareness of what a good session will be and you will want to have really good people work on you. I doubt you will find them at ME.
If you really like massage your best bet is to find a local professional that works independent of places like ME. This is always where the best in the profession exist because they don't need to split their profits with anyone else. They are out there. Contact any governing massage body for a listing in your area. You'll find that for an extra 15 or 20 bucks you'll get considerably better service and results. And don't forget, you're worth it.
As for rethinking our strategies I just say to anyone in the business, do a good job at what you do and people will come to you. ME has already peaked and are on the way down. But someone else will appear in another couple of years doing the same thing. Don't panic, just keep doing good work and do what ME could never do, keep making the massage experience special and unique for you and your clients.
From a customer's point of view: I get massages on a regular basis – depending on my work load, travel schedule, etc., and have been doing so for years. I also work in the resort sector so I have access to spas. I can't tell you how many times I have paid $80 or more for a massage and have been disappointed. Finding a good massage therapist is right up there with finding a good hair stylist and an ob/gyn you can trust. You value them and recommend the good ones to everyone you know. The last massage I had at my own company's spa was such a huge disappointment (even though I get them for half price), I am actively seeking another location. I have resisted going to Massage Envy. However, a coworker told me about her experience there and I am going to check it out this weekend. There are times when I REALLY need a massage, but good luck getting an appointment with the massage therapist of my dreams. So maybe being able to slip into an appointment (the hours seem too good to be true) when it is convenient for me might be a good trade-off. And maybe I can try different therapists there until I find someone I like. Then I will follow that person anywhere and pay their fee. As a sales & marketing professional, the comments on this board have been extremely enlightening.
I am an average customer, and I have been to both high end day spas, including the ones in very high end hotels such as Ritz Carlton, Four Season etc, as well as several different Massage Envy places. Honestly, just like what Tracy said, going to a spa, regardless of the price, does not guarantee you a good massage. And getting massages is not a new thing for me, i've been doing it for years, I know what a good massage feels like. I'm not saying that at message envy you will get a good masseuse for sure, that goes with every where else you go. I have no comment on their business model, but I've been to several different ME locations, and I found a couple masseuse that I really like and I try to stick with them. Everyone's need is different, I don't need to sit around in a robe to sip coffee or exotic tea, and look at all the zen stuff in the waiting room. All i need is very simple, a good, basic massage. For me to justify getting 1 or 2 every month, I need to go with the cheaper alternatives. There is no guarantee wherever you go anyways, it's the matter of finding the right masseuse!
I certainly agree with the sentiments expressed by many posters here that going to an expensive spa does not guarantee a satisfying experience (although chances are you will find a better level of massage therapist there, I work in this business and that's just a fact) which is why I reiterate that the best massage therapists don't work for anyone but themselves. Why? They don't have to. At ME they get around 15 bucks an hour. Why would a really good massage therapist work for that? Also if you check around at forums like bodyworkonline.com and read what actual massage therapists have to say about the working environment and conditions at ME's you'll find that they don't exactly create a lot of goodwill with their own employees.
If getting a cheap massage makes people happy then check out ME. It's like the people who shop at Wal-Mart because price is an issue. But don't expect quality at an ME and look for turnover to be very high. Ethically their business model is not geared towards "quality", it's geared towards volume. If it works for you fine. But just wait until the novelty of "cheap" service wears off. Then make an effort to find and support someone that has a passion for their work, pay the extra 15 or 20 bucks and experience the difference. You'll be happier and it will be a better choice all around as supporting small business's and communities is truly what America needs right now.
But you may not even have to wait. Like the Forbes article I mentioned in an earlier post, they are already seeing their own franchisees complain about overselling the market and being unable to staff their own stores.
Thank you Chris! As a private Practice MT, I can tell you that Spa's do hire better Therapists. You have to audition, meet and maintain the requirements of the Spa. I know of several MT's who moonlight at Spa's or decide to stay based on location and business practices. ME scouts Massage schools and almost 98% of the Therapists are graduating students who are there to make ends meet, and get some experience in a real world environment. And, you may not realize that almost every reputable Massage School requires "X" number of hours of on the job experience to graduate, (that's unpaid for the MT BTW) so ME rakes in 100%. See it for what it is and know up front that your not getting an experienced Therapist. The hope of every student is that if they are good enough, their clients will follow them.
Massage is a very physically demanding job. Passion for the work and an undeniable desire to help those people who live with chronic pain is what makes a Great Therapist. I don't see ME offering incentives to this population. ME is centered around making a profit off of Free labor (for the most part).
If your suffering and really needing relief and improvement in your condition, ME is not going to meet your needs, consistently. If you just want to experience what Massage is, in a generic way, go to ME. If you just want a day of ahhhhhhh, and it's pampering day, check out the spa. If you need/want progress and improvement in an existing condition, recovery from an injury, or a Therapist who specializes and has the gift of healing, go Private practice. If price is the issue, most, if not all Private Practice Therapist operate on a sliding scale… just ask. ME doesn't offer that.
I am a consumer and have to get a massage on a monthly basis due to back problems. I too have paid upwards of $80 for a massage, just to walk away unsatisfied. I recently joined ME because of the price and hours of availability. While at times it may not be perfect, but it isn't a day spa. Tech Schools advertise the benefits to being a MT, and I truly appreciate your profession. I understand how it feels when someone feels better because of you. However, the down side of working in a Salon is that you are on call and sometimes have hours open with no pay coming in. What about the single mom, who paid for her training while she was working a different job and now is trying to make a career of MT. Being on call and not promised a full booking can be detrimental to some people. Places like ME offer a different option. That's all it is. An option. I love Face and Body Works, my local spa, and will continue to treat myself to a half day of treatments when I would like to.
The great thing is that people are starting to recognize the benefits of massage and there is more demand for qualified professionals. I also know that when I first started my job I wasn't perfect, as a matter of fact I'm still not. No one is and I'm glad my first class gave me the opportunity to learn and grow. We are all here, on Earth, to learn and become better people. Sounds like some of you could stand a dose of your own medicine. "GET A MASSAGE, AND CHILL OUT, MAN!" Besides, the cream always rises to the top.
Don't kid yourself about ME going away. They are here to stay like it or not. I know the VP of marketing and they are looking into expanding into the Medical Massage area. This is very preliminary, but it is in the works. There is a big part of the medical massage market out there, that won't bill insurance directly because we can't afford to wait 2-3 years for reimbursement. ME has the financial backing to do just that. They are currently working on the PR campaign to get in to the Physician's office to get referral programs established. ME, like it or not, is going to force us, a practitioners to focus our energies and business savvy to compete. I am concerned, since 85% of my practice is working with auto accident or work comp patients. ME has the presence to go directly to insurance companies and become the preferred provider.
We need to heed this ripple in the industry and stand firm on our beliefs and services. I think the key resides in education of our referral sources and our customer base. They need to know and understand why we are different, what our expanded education is, our skill and experience level and why we are a better choice. I hate to think of ME's inexperienced therapists working on clients with soft tissue damage or post-op. They can definitely cause more harm than good. Time will tell, but remember. There are millions of people out there who are an untapped market, who have never received massage. You might be the therapist they have been looking for. I know from experience, that my regulars are looking for how I treat them as a person, that I care for them and I always have their best interest in mind. They trust me. They aren't price shoppers. Price shoppers will never be regular clients. My clientele is loyal because they know I will go above and beyond for them, I want them to experience a netter quality of life and do it without chronic pain. The one thing ME or any other company can never duplicate is YOU.
What a great discussion, clearly a few keen minds and a few emotionally biased opinions as well. I have been a private equity investor and investment banker for about 7 years and focused heavily on the growing health/wellness market. The good news is that rising tides raise all ships and ME is growing market awareness for something the majority of people have a high affinity for.
With the CAGR of MTs going to school unless some of the altruistic spa owners have mass schedules of positions for new MTs entering the workforce, then there should be no complaining. There is an invisible hand at work and a new MT will 1) find a rare position somewhere at a high end spa 2) join Massage Envy to launch their career 3) try to go solo and either wither on client acquisition or subsidize through full/part time work elsewhere.
From a consumer vantage that 60-70% is more like 75-85% and anyone doubting the pervasive successes of a perceived luxury item/service made affordable and available to the masses should go back to grad school. It is a classic module. What I love is that ME doesn't have diverse service and product offerings (and the associated CAPEX and fixed costs accordingly). There will always be a customer segment that wants the full steam, relaxing half day at a spa. ME will never own that customer, but there are a lot fewer of those customers than there are full service Med Spas. Additionally, unless these spas truly can differentiate themselves, in reality or ostensibly then ME will gain further adoption of many existing spa clients, or at a minimum lower the frequency of visitation to med spas.
With current management at ME, the industry should view them as healthy competition. I am continually not impressed with vision or execution from ME corporate, however, with such a simple business module you don't have to be Jack Welch to turn a profit. I would worry if some private equity/MBA types start paying attention and come by out ME and really take things up a few levels, I am tempted to do it myself but I am not in the cat herding business.
I am a MT and I work at ME. I graduated in November of 2006 and have been with ME for 6 weeks. I can tell you first hand that people of all walks of life come there. People in ever economic and ethnic back ground. The come there because they either feel bad due to body aches and pain or they are stress out and want to be made to feel better. No matter where anyone goes they may have both good and bad experience depending on the therapist that is neither a ME or Spa issue that is life in general. I think the original writer Larry Donahue is dead on and on the right track. Spas better pay attention and act accordingly.
Actually for anyone paying attention here's the truth about the number of graduates coming out of massage schools. "Chris" you might want to take note since you base your speculations on such figures and accuracy is important. Every year, ABMP conducts an enrollment survey of massage therapy programs in the States. The results of the last survey were published and communicated to schools last month. After several years of growth in terms of total enrollment, there has been a drop in the past two years – that is, a drop in the *total* number of students enrolling in massage therapy. I do not recall the exact numbers but I believe it was between 7% and 12% since 2004.
From the time of the previous survey to the last one, 52 massage therapy programs (out of 1,300 or so, if I recall correctly) were no longer in existence.
To me this would indicate that the tide has risen and is now receding somewhat. Most of those who went to massage schools were probably expecting a better paying gig than ME offers. That was always the allure for so long, great gig, great pay. Not so much anymore with places like ME around. The decline is predicted to continue with some long established schools like The Massage School of Santa Monica closing it's main campus this year and barely getting by on a trickle of students in it's Valley Glen campus. If you're into reading tea leaves these spell a shift in the business that a few years ago would have been difficult to predict.
And as far a ME "launching" anybody's career I'd have to say that there is no evidence that has ever happened or ever will. Those who work there most likely didn't "launch" a career in the first place and so they settled for working there with beginners that didn't know any better. BTW- ME's tight non competition contract would actually make leaving there and "launching" a career difficult if not impossible to do legally.
And again I will reiterate the focus of the recent Forbes article that said that ME franchisees were complaining about overselling the market and having difficulty staffing their stores and getting people in the door because they were competing with the 12 other ME's nearby. So much for their marketing "geniuses."
Don't believe the hype, check the facts and deal with the reality.
Chris K, you're very upset about all this. Perhaps you need a massage.
I'm actually wondering where you get your "facts" from. A lot of it seems like your speculation more than facts.
I work at one of your dreaded Massage Envy's… ooh… scary.
You said "And as far a ME 'launching' anybody's career I'd have to say that there is no evidence that has ever happened or ever will. Those who work there most likely didn't "launch" a career in the first place and so they settled for working there with beginners that didn't know any better."
Pretty insulting to the therapists that work at Massage Envy, don't you think? Considering they're the largest employer of Massage Therapists in the country, that's a lot of people you're trash talking about.
Plenty of therapists have gotten their start here. Where else can you work full time doing massage when you're right out of school? Where else can you be busy on a Monday afternoon or a Tuesday morning? Spas which are so highly touted on this board are mainly busy Saturday and Sunday. A single Massage Envy can do 80 massages on a Wednesday. Some really great therapists have "day jobs" that they also love and they come here on a Thursday after work for three hours.
Some really great therapists became great therapists after getting to hone their craft on the repeat clientele that Massage Envy provides their therapists. I can give you their names and numbers if you want to contact me, you can call them yourself.
And in terms of the ABMP research you "cited"… if you read the article, you'd see that the ABMP doesn't think that the decline in students enrolling is negative. "It would not be surprising to see a further reduction in the number of massage training programs during the next few years. The landscape has become more competitive. Those with quality instruction, passion for the field, and effective student recruitment and support are more likely to thrive.”
Additionally, there is still a continuing growth of consumer demand for massage.
Finally, the Forbes article focus isn't about how ME is having trouble getting people in the door. It's about growing so quickly and having a high consumer demand that it's hard to keep up with the growth. Read it. You'll see that ME is offering health insurance to therapists. Direct Deposit. 401K plans. Continuing Education. Paid time off. Tell me which spas you've worked at that offered all of those.
Doreen–It's clearly you that is upset, you are being condescending, that's always a dead giveaway. If you read the Forbes article you will see that the Houston couple mentioned were relating their experience of having too much competition from other ME's within their own area. These aren't "growing pains," this is overkill and they're feeling the pinch. The rest of the article stated growing pains in general but I cited that part to make a point and I did. no needs to obfuscate.
I don't think ME's are "scary", I just think they are worth critiquing. If you're happy there why be so defensive about. Clearly plenty are not happy and that's worth considering.
Please tell me how someone "builds" a clientele working for someone else? Contractually you cannot "steal" their clients. And if you are stating that people get "experience" there then you are making my point for me that they are usually fresh out of school. Thank you for verifying that.
Have you checked out their "health insurance" package? Check it out and get back to me. You might actually find it less enticing than it sounds. Direct deposit? Big deal. How hard is it to deposit your own paycheck. 401k plans for full time only. Continuing education, every MT should do it and some states require it. Paid time off for full time only which comprises only a portion of their staff.
Unlike you I am not impressed with the numbers of MT's they employ or the hours they work. That means very little, massage is about quality.
And since you asked, I have never had to work for a spa or anyone else for that matter. I have been self employed in Hollywood for over 20 years and done over 25,000 sessions. For the record I make $150.00 to $200.00 per session. My personal experience informs the rationale for my point of view.
While I respect your choice to work there I don't mean to personally insult you or anyone. But the fact of the matter is, no high end MT would work for 15 bucks an hour. They should never have to.
I wish you much success.
p.s.–The numbers of students are declining as are the number of schools and that's a fact supported by the report, no speculation involved. Anyone can speculate as to why that is though and I have my opinion. I believe it is because a job that used to promise 60 to 80 bucks an hour upon graduation now promises less than half of that. Young MT's starting out can thank places like ME for that. Lower pay expectations will more than likely translate into fewer people seeking out the profession. How can anyone argue with that?
Also, as to the matter of people who have been unable to "launch" a successful independent career in massage who wind up working there, doesn't logic dictate that if someone is successful on their own and making 80 to 100 dollars an hour that they wouldn't seek employment in a place making 1/4th of that? This is not speculation it is common sense. So I stand by my earlier statement that ME's are comprised by individuals either fresh out of training (which Doreen backed up) and those who have perhaps been unsuccessful in building their own private practice. This in in way implies that they aren't competent, just a statement of fact as to their professional status.
Well this company has sure stirred an uproar! I currently work at a ME and enjoy it greatly. You have to look at the whole picture. You have to love the place you work the environment . You also cannot judge every clinic the same . They are all owned independently. My owners offer additional insurance, and are great people. I also would like to say we have people working here who have been in the massage industry for over 10 years so no they are not all fresh out of school. I work as a manager and also a therapist. I will admit I was sketchy at first but it helps make a health benefit available to people who cannot afford the foofoo frills attached to a spa price.
That's nice Shera, you sound happy there and I think that's great.
I hardly think there is an "uproar," more like a discussion as to the merits of such a business model. My question is why would someone who has been in the massage business for over 10 years take a job at a place where they weren't making a lot of money? Just to be altruistic for the benefit of the community? Then why not do it for free?
If they were really good could they not have built a successful practice on their own charging the same as ME prices or more but getting to keep all of the profits? I just don't understand the initiative behind surrendering free will so that others may profit more from your labor than yourself. It just doesn't make any sense. Unless of course they were in fact unable to build a successful practice on their own and felt that ME was the best they could do. I'm fine with that. There is a place for everyone out there. ME aggressively scouts massage schools so they do hire a lot of people fresh out of school. Nothing wrong with that. I'm just not convinced that startng there translates into a successful independent career regardless of what others may say about that. I'm sure it happens but I bet it's exception to the norm.
And as far as offering a health benefits to people that can't afford expensive spas I say why not seek out independent MT's who charge the same as ME's? They are out there. I'd much rather support an independent MT than a retail chain. In case you haven't noticed there are now copycat ME's popping up undercutting even ME's prices. it was boudn to happen. When it's all about price guess who loses out in the end? The MT's who keep getting less and less for their services. I now see places offering massages for 35 dollars and paying MT's 10 bucks an hour. Everyone cool with that? You can thank places like ME for standardizing the lowballing of rates.
I don't like Massage Envy. I've worked for them for over two years. It pays some bills while building my own practice and learning what not to do. When you only make $15 per massage it makes your LMTs not like massage. People are buying these franchises when they know nothing about massage therapy. As for the owner of the location I work for, and I quote, "Massage is better than ice cream, Hell, massage is better than sex!" This right after he lectured us for about an hour on keeping all conversations appropriate. His business philosophy is, "Pay people enough to just get by." Massage Envy also has been getting bad press for LMTs crossing major boundaries. Massage Envy is the devil of the massage industry. They have been called names such as Slave Envy, etc. I don't understand why you would put one of the 7 deadly sins in the same title as the most beautiful thing in the world. Massage. Shame on them.
A very interesting discussion. Since when should massage therapists consider themselves "above the fray" when it comes to marketing, competition, etc.? If you want to compare us to another industry (and not the car industry), take attorneys–there are those at the top who charge $1000′s for an hour, then there are the ambulance chasers. Massage therapists also run the gamut. Not knowing Massage Envy, I wouldn't know where to place them on the continuum, but surely they are above those massage parlors who trade in sex, even hiring LMTs to do this work. Economic reality can be harsh. Secondly, many individuals aren't suited (by personality or financial need) to working independently, so even though an LMT is experienced, she may prefer to align herself with a franchise. Ideally, our clients should be able to afford competent therapists at a fai, not inflated price and if ME or other locations can offer this, than great!
Hi Y'all,
I am a LMT for 15 yrs. I am licensed in FL, LA & work in Minnesota. I had formulated a Massage Franchise business plan 8 yrs ago. Everyone told me I was nuts. WELL… I wish I had gone through with my plan because I see ME's popping up all over the place and I'm sure the only one making big bucks is the CEO. I wish it were me. Of course, my plan was more for the benefit of the therapists that would work for me. Retirement Plan, Health Benefits, Continuing Education, etc. OH WELL!
Back on topic. I have had long conversations with my local ME owner and he seems very disillusioned. He complained about corporate not helping out and also about keeping staff. Also, who says ME is cheap?!? OK, your first massage is $39 but they hound you to tip at least $10. So now you are paying $49 for a 50 min. massage. AND, if you become a member, the rate is $49 plus your $10 tip. That's how ME gets away with paying their therapists only $15 per massage.
I bet Justin could tell us that he was told that he would make $25 per massage. That's what my local ME owner tells all his new hires. What a racket.
Hey, anyone out there want to partner up with me and start a new Massage Franchise? Massage Envy has opened the door for us guys. CHEERS!
I am a therapist at a Massage Envy in Florida. The concept is good. I believe that everyone should experience the benefits of massage. However, from a therapist perspective the pay is horrible. At my clinic you are lucky to get 5 clients a day. The sad thing is that you don't get paid if you don't have a client for that hour. For example, if you work a seven hour day, and you only have 3 clients for that day, you only get paid for those 3 clients plus your tips. So, you spend 4 hours sitting around and you don't get paid. On Wednesday, I didn't have a client until the end of my day. I asked the clinic administrator if I could leave and she replied no! So I had to stay for six hours doing nothing. So I wasted 6 hours of my day! If you are a therapist and are thinking about working for a Massage Envy, please give it a lot of thought! If they tell you that you get $7.50 when you are not working then that is a lie!
Lola iam sorry to hear you dont get the 7.50 at your clinic but at my clinic you do. Also I do understand how therapists would want to make more money elsewhere , cause you can alone , or possibley others spas. Some people like the convienance of having taxes taken out health benifits, ect.. depending on your owner it will be a good place or horrible as it is for some of you . I work manager duties as well as massage and enjoy it. And our clinic will soon be offereing CEUS I think it all depends on the whole picture , and for some its not a fit
After seeing all this chatter about Massage Envy being a threat to the upscale spas, it appears no one has noticed the appearance of a new and fast growing franchise called Massage Heights. It's based out of San Antonio, TX and it appears to be copying but improving ME's business model. Entrepreneur magazine has given this franchise very high marks comparable to that of ME. I would be very much interested interested in investing in the new Massage Heights franchsie because it appears cheaper than ME but I'm a little weary of it because I can't find much information on it, except for the company's website and Entrepreneur.com. So can anyone tell me anything they know about Massage Heights? Any advice is appreciated!
I would be wary. Massage Envy has capitalized on the glut of massage therapists who were pursuing massage as a career when it was advertised as a much more lucrative job. Now with Massage Envy lowering the pay expectations attendance in schools is down and schools are actually closing or scaling down. My guess is that in near future there will be a much smaller pool of MT's to chose from, Massage Envy franchisees are already complaining about this happening. If you can't staff your stores you won't be able to service your clientele.
Can anyone tell me anything about Massage Heights? All I know about MH is its website at http://www.massageheights.com and http://www.entrepreneur.com but nowhere else. It appears to be a good franchise opportunity that can compete with ME but there doesn't seem to be much info about MH since it's so new. Any info will be appreciated!
Wayne
Hey. Herm in Minnesota. Interested in starting a Massage Excellence franchise? We would match the ME first time $39 intro and $49/hr massage rate. However, every subsequent massage would be $49, NOT the $39 like ME. I am betting it wouldn't make a difference to our customers because they would not be experiencing the turnover ME has and receiving massage from a therapist is paid a professiona rate ($25/hr) that reflects their experience. Tips would be appreciated, but not expected.
Anyone think Mr. Skip Wilson owns stock in Massage Envy? Sounds like a paid lobbyist to me. I can't believe Massage Envy has done so well but as they say, some businesses just take on a life of their own regardless of bad customer service, poorly trained staff and owners who thought it would be "neat-o" to own their own business. I've been to Massage Envy on more than one occasion. My mistake believing that maybe it was just an isolated bad experience. My first massage was by a man who was down-right creepy and didn't listen to anything I said. My second massage I requested someone new and it went from bad to worse. Why bother giving the details but the word traumatized comes to mind. To top it off I got pressure from the staff every time I walked in the door and when I had to cancel my "membership agreement" (note to the wise, read the fine, fine print) I was out $150 dollars because it stated I had to take all pre-paid massages before I cancelled. I'm still trying to figure out that one. Since you have to give 30 days notice and within that 30 days they will charge your credit card again. How exactly do you take the massage the day you cancel when your card will be charged in a week? On the same day I was in, another woman walked out right behind me and was upset over the very same thing. She was furious and stormed out. Their business model, will catch up with them. At best they will need to make some changes before it affects their bottom line. Regardless of who's payroll Mr. Skip Wilson is on, these are the facts as I know them. Let's see if this gets posted. The truth rarely does.
I thought this might be interesting to this continuing discussion. I'm a customer. I like massages. I'm a simple 35-year-old guy with a good career at an engineering firm in CA. Here are some of my preferences that lead to becoming a ME member:
These are just my preferences — I know there is also the Mercedes-level spa person with the means to pay high prices for more customization and/or specialization. But as estimated on this blog, that's the smaller proportion of people. I'm glad to be affluent enough to live in one of the most expensive areas of the nation and still afford a luxury like massages — many people can't.
My only advice to this group is to resist trying to find the one-answer business strategy that fits all (or even 5). I seriously doubt a ME 50 miles north of here would be as successful as the one I go to — too many cultural, economic, transportation, and demographic differences.
I find this a very interesting discussion. I am a ME customer. I've been getting massages for over 15 years. I've received them in Chiropractor offices, independent locations, individuals and high end spas. No matter where you go or how much you spend there is always the chance of receiving a bad massage.
Frankly I don't need all the extras that come with the high end spa, and I've had more BAD experiences in this arena then any other. These types of spas are for a special day (or hours) and the therapists very rarely see the same customer twice. I go to a wonderful place for my facials & eyelash tint every 6 weeks. I've tried to use them for massage, but none of the therapists were any good, period.
The independent locations have such a high turnover that once I found someone I liked they eventually couldn't afford to continue and I was never able to get a straight answer as to where they went in order to follow.
Since I try to get massages every couple of weeks the ME concept was perfect for me. Massages for the masses. They are open when allot of other places are closed. (Sunday and Monday and any Holiday seem to be the normal closed days for spas and independents). I can normally call a few days ahead of time or even the day of and get in for a massage.
I've also spoken to the therapists. Full time is 20-25 hours a week. They typically see 4 to 6 customers a day. They can set their own schedule, receive 401k's, health benefits and continuing education. Most of them are recent grads, and appreciate the opportunity to get started right away. But several have been therapists for years and since they know the local market or attempted businesses themselves, and understand the model.
I don't think in anyway that ME is degrading for the therapist or consumer. The business model is popular for a reason. Maybe spas need to look internally at their business models and see why they don't garner such a large market share. Anyway I look at it, I refuse to pay 75, 80 or 150 dollars for a massage, just for the ambiance when I get the level of service I expect for 49 per month, in a nice, clean relaxing environment.
If a client wants to pay for a cheap massage, let them. Eventually they’ll learn that “you get what you pay for.” Don’t compare yourself to a hamburger joint of you’re a steakhouse. The steakhouses have waiting lines.
Also, its time for the “new therapist” and their massage school teachers to learn how to read employment contracts. Shame on them for signing such debilitating non-compete contracts. If they took the time to research a little more they wouldn’t be in the position their in. It's time EVERYONE took responsibility for their own actions and quit blaming others.
As a massage center owner I am always interested in knowing all about any competition. I have researched the "Massage Envy" experience and follow the trend of the franchise openings and its success. Without question the Massage Envy locations are offering an inferior product to my facility or practically any other privately owned massage center.. The staff at a Massage Envy is always going to of the lowest skill level for an MT and the turn over rate will ensure that the consumer will always be getting what they pay for: a sub par massage. Sometimes this may be enough it seems because the franchises are making it long term in their locations. To get their best price you sign a contract and your credit card is charged monthly for a year. Your massage last only 45-50 minutes. For a few dollars more you can get full hour massages by highly skilled well compensated Certified Massage Therapists at Balance Therapeutic Massage in Virginia Beach.
What I love about blogs such as this? If you look at the page rank of ME, it was unrated about 6 months ago. Now it is a 5, which means it receives high ranking on the search engines. Why is it ranked so high? BECAUSE EVERYONE IS TALKING ABOUT THEM! and all these blogs lead back to their name and website. Anyone who understands anything at all about Internet Marketing knows that blogs, articles, etc., all lead to greater website optimization and everyone talking about THEM You should be talking about yourselves, your sites, your services, your personal blogs, and worrying about how you can best serve your clients so as to get RETURN business and not have to worry so much about what other massage entities are doing, or not doing for their clients. FOCUS on your client and improving your service and your appointment book will be full, as is ours. No disrespect intended, but lets talk about what WE do best and leave ME to pay for their own advertising!
Hi, Tim!
Good point about page rank. The more people talk about an organization or website, the more "popular" they become and therefore page rank increases. This blog, in particular, allows folks to include their web address, which helps increase their own page ranks as they post comments.
I looked at your website, http://www.akossage.com, and wanted to ask you why you weren't a SpaBoom customer yet??!?
You might want to ask your web developer to reduce your image sizes to their correct size, which will dramatically increase your page load times! Just a thought…
Larry.
I'm a newly graduated CMT who is struggling to get started because I was always more about the holistic side of things but when it came to the business end felt lost. You all have given me some major food for thought here. I live in NJ and they just announced that they were going to open an ME in our local area. I had heard some things about ME while I was still in school and to me personally it sounded like the Supercuts versions of a massage clinic, sort of "thank you, please drive thru… NEXT!" So I was skeptical. Then just recently I had been toying with the idea that maybe I was wrong and could give it a chance. However, now that I've heard a bit more I'm leaning toward my original position to work elsewhere, because for one thing it doesn't sound like it's in line with how I feel about massage in general. For instance, I chose to go to a smaller private school than one of the larger student 'mills' in our area or one of the technical/business schools because I felt I wanted a more serious, personal, and individualized education and that is also how I envision I would like my practice to be.
I think the concept of ME sounds cool in a way in that it is great that it opens up massage to more people, sort of spreading the word on a great way to help with one's wellness to people who might not have tried it, and makes it somewhat affordable to people who would otherwise consider it too much of a "luxury" (since when is wellness a luxury anyway?).
BUT…
I have heard a lot of things that I feel from what I've learned that would translate badly to the client, and let's face it that it's already sometimes a difficult business to be in due to the lack of seriousness many people take it for and also the seedy ends of the business.
Also I don't like the sound of most of the things I've heard about it, such as working full shifts with no pay, low pay, being lied to, etc. Another example: I looked at the ad on their website in they advertise "flexible schedules" being available, but in a posting for one of the jobs I found elsewhere, it says "must be able to work a flexible schedule." Those are two different things. I especially don't like the fact that they are saying that you need to be able to do "consecutive 50-min. massages". Where is the time for appropriate cleanup, set up, and not to mention a possible break between clients? That sounds like a recipe for poor and rushed service and therapists to get burnout and injury. And I could see why there is turnover, because that sounds like a very discouraging environment. I'm sure that there could be ME locations that actually do well for their employees, but how would a person know until AFTER they worked there for some time? Also, I know that business requires marketing, but from the sound of it there's a lot of sales work to get customers (they don't even call them clients?) to buy the packages. If I had wanted to be in sales, that is what I would have gone to school for and not to be a bodywork practitioner.
Thanks but no thanks for now for me. I'll figure out another way to work.
I find this blog to be very interesting. I'm off to ME tonight for my first appointment. I'm very excited about it. While I don't expect it to be a super relaxing, allow me to linger in a super plush robe and enjoy teas for hours experience, I do expect a decent massage done by a competent professional.
What draws me to ME is the price point. Plain and simple. I've always been looking a way to make massage a regular part of my life, and this seems like it will be it. In the past, I’ve gone to massage schools for the price and been happy, but the hours don’t work well for me. To let you know my demographic, I'm a 25 year old married woman and together, my husband and I bring home 120,000 per year, with me bringing home $50K. Our combined hourly income before taxes is $60 per hour. I'm sorry, I respect massage therapists very much and I can just imagine how hard the job is, but I cannot justify spending more an hour than what both my husband and I earn on a regular basis. I have a hard time spending $1.40 per minute for anything regardless of how it makes me feel. As a luxury or as an occasional treat, yes, but regularly? No. I’ve looked into the prices for day spas near my home in Phoenix and they run about $85 an hour. My hour long massage at ME tonight will cost me $40.
The second reason I chose ME is the time limit and hours. My normal day runs about 12-15 hours. I wake up at 6 am to work out or an hour, work an 8 hour day (with an hour lunch break is 9 hours), spend an hour commuting and generally try to hit yoga 3 times a week for an hour and a half. I don’t have the time to spend hours at a salon. Get me in, make me feel better, get me out. I don’t want to linger, I’d rather be at home relaxing with my husband.
In case you were wondering, yes, I do go to SuperCuts or Great Clips. They cut my hair at a reasonable price in a reasonable amount of time. Is it super fabulous? No, but it gets the job done. I also go to Linda’s Nails just down the street (you know, the quickie place in the strip mall). For $35 I get a decent spa pedicure with a flower on my toe and soft feet. I went to a day salon, spent twice the time and $60 bucks and didn’t get a better experience. The shop was quieter, that’s about it.
High end salon owners shouldn’t be concerned, there will always be a place for luxury in the world and there will always be people willing to spend the money. However, ME fills a void in the market for people like me who don’t want the high end, I’m willing to pay less for the lower end experience. As for the “evilness” of the corporation, I frankly don’t care –- I shop at Wal-Mart and probably wear sweatshop clothes. If you don’t want to work there, you don’t have to, but obviously people do. Do I necessarily want to see the same therapist regularly? Maybe, but its not high on the priority list. If I get a different person, maybe my next massage will be better, if it’s worse, I probably won’t have that therapist again. If its really fabulous, I can request the same therapist as long as they work there (and if they’re really good, maybe I’ll follow them wherever they go).
So there you go, that is my opinion, as a consumer, of ME. Granted, I am just one voice, but given the overwhelming success of Wal-Mart and Great Clips in this country, I’m clearly not alone.
Interesting that you write a "review" of a place before you have even had your first appointment there. You aren't really interested in massage as much as you are about being thrifty. Nothing wrong with that. Lowering expectations with price keeps some people happy. At least you know that you're worth it. For the record Wal-Mart has been having some problems lately, look it up if you don't believe me and I for one have never even heard of Great Clips.
I recently experienced my first massage at ME and was quite pleased. After my arrival I was escorted to a more quiet room with soft lighting, a small waterfall, fresh lemon water or hot tea, cookies, mints, and comfortable seating. The ambiance was quite relaxing until other clientele came in and started talking loudly on the cell phone {{sigh}}. The massage therapist had been recommended by a friend and I was extremely pleased with her skills. I will request her as often as she is available, and I tipped her $15. This was my first visit to a "Great Clips or Wal-Mart" type massage location and I will return. Like others who have written before me, I am pressed for time and don't always need the total frills when my ultimate goal is to relieve the pain and tension. Isn't this the goal of massage therapy to help the client? It troubles me, yes, that so many therapists have had such bad experiences with their ME employers. But, are those who are unhappy just more vocal than those who are happy? Anyway, bottom line, this time I had a great experience. In the past I've paid lots of money at spas in different parts of the country to have massages where therapists chanted, chatted, and literally drove me crazy while I was supposed to be relaxing. Perhaps not all MEs do it wrong.