How to compete with Massage Envy, Part 1
May 24th, 2010 • Posted by Bill Bice • Permalink
Part 1: Massage Envy's Strengths
A Massage Envy has opened down the street from your spa or massage therapy practice. What do you do now?
It's an all-too-common occurrence for SpaBoomers: Massage Envy has 600 some locations including over 100 Massage Envy Spa locations, and another 200 in development. They say they've provided 20 million massages and have 680,000 members.
So, how does your local, independent business compete?
Let's start by looking at the advantages of a Massage Envy franchisee:
- Convenience: As an example, in Phoenix, it's hard to turn around and not trip over a Massage Envy, with 28 locations in the greater area. But it's not just having a Massage Envy close by, it's the ability to get in for a massage just about any time you want.
- Cost: Price is what most people focus on, and Massage Envy's low prices are definitely a draw, particularly when combined with the convenience. I've spoken with many consumers who feel that ME has hit the right price/service point for regular massage.
- National brand: Massage Envy advertises nationally and they're big enough now to enjoy the primary benefit of a franchise: people know who they are and what to expect (at least in theory). You go to Applebee's not because of the amazing culinary experience, but because you know what you're going to get.
In Part 2, we'll talk about Massage Envy's weaknesses, then we'll talk about different tactics to compete.
In the meantime, a little homework: read the comments to our first post in 2007, Massage Envy envy? Consumers, massage therapists, and franchisees have all had their say, and there is a lot to be learned from their perspectives. I recommend following the advice in that post, and going to your local Massage Envy to find out what it's like for yourself.
• Trackback • Posted in Spa Business Management, Spa Marketing
I was in a salon once and the stylist asked me what was the difference between between my massage business and ME. I replied by asking her what was the difference between her hair salon and hair cuttery. She said I get your point. Quality of service is extremely important in my business. It is important to meet the clients needs. I offer bodywork that addresses their aches and pains. I charge the same price for swedish, deep tissue or therapeutic massage, $65 an hour. Essential oil is included with all massage treatments. They get 60 min. of therapy in a very relaxing environment. I have had ex-ME clients come to me because of the service I provide… got to go.
We really don't compete with ME. Actually, their "every massage tastes like a Big Mac approach has been great for my spa's business. With ME's cut-rate pricing, they are lure every Tom, Dick, and Harry in, many of whom would not have otherwise ever gotten a massage. Then when they visit our spa, invariably every person who's ever had an ME massage says, "Wow, so this is what a real massage is supposed to feel like!" …and they always return! When ME opened in Orlando I was a bit intimidated. Today I'm grateful. They make my job easier. I must say, I've been to ME and Hand & Stone (another corporate Big Mac massage est.) and have NEVER felt well-treated. Hey, you get what you pay for!
Jai,
I was wondering that if you were not competing with ME, then where did your "Monthly Wellness Membership" program come from? It seems that you are matching ME price points with your membership plan.
Oh… and my pricing didn't change when ME came along… It has remained the same for 20 years now… I am overdue for a price increase, but the pricing of around $1 per minute is very common in Texas and other parts of the US even before ME… makes it very hard to raise prices without the fountains and marble floors.
The only thing that bothers me is the practice ME and other places are using. They like to call 50 minutes of massage an hour massage. You have to read the fine price for their disclaimers.
ME has been the worry of many massage therapists, but then again there are many who offer just as low or even less than ME. I am not worried at all by them. If anything, many of the praise of the franchise and ones similar to it, is not at all the reality of it. They sell over 3000 appointments a week and find that they are barely making it just to stay open. I have found… the idea of I fix $40 massages working for me very well.
For San Antonio, ME and another similar to it has been glorified and I always tell future clients if price is what you are looking for they are just down the street, if quality is what you are in Knead of then I am the one. I won't compete, I have no reason to.
BTW one closed just as quickly as they opened and I live and practice in a wealthy Neighborhood.
I think Therapist should concern more of who and how they are a therapist then rather one who will take their business away… point of many whose business is loss has nothing to do with someone is less inexpensive but more the touch is not there… so why pay $65 for a bad massage when you can pay $40 for just as bad…. LOL
I am a Massage Therapist, and unfortunately, have had to resort to working a Massage Envy. Because of the economy, the spa I had been working at went out of business. So after months, I bit the bullet and took a job with M.E. I must say, that because of the Economy, Massage Envy, has been doing well, because they now have some very seasoned Therapist. Where I used to work, I would get clients all the time saying, "I usually go to Massage Envy, but, when I need a REAL massage, I come here. It's just that the price at Massage Envy, is much better on my budget." At the location I work at, most of the Therapist have 7, plus, years under their belt, with a couple having over 20 years.
When, the economy turns around, most of them will bail, and go to an upscale spa, then that will leave Massage E. floundering with people just getting out of school, usually, a 2nd or 3rd rate school.
Massage Envy has gotten so full of themselves, that in November, they will be raising their rates. So for a membership, for a 1 hour (50 Min. hands on), it will now be $59/month, with additional massages for that month, $49/massage. So I am sure the Therapist again will loose, because, 1- there has been no word yet if they will see any raise, and 2- there goes that little tip we used to get! Also, they are now going to try to upgrade client to Aroma Therapy which adds $10 to their massage or Pro Heat which adds a $12 to their massage! Again, no mention of more money to the therapist, and I am sure if people upgrade, no tip!!!
Massage envy likes to say that a Therapist at Massage Envy can make$30,000 to $45,000 plus a year. But, they fail to mention that is not all Salary, that includes their tip. At the spa I used to work at, I earned double per massage plus tip….
I worked for Hand & Stone Massage (similar to Massage Envy) for several months and I can honestly say that I would never work at such a place again. Some days I would be booked with more services than I could physically handle, other days I would have to sit there all day with no work and no pay. I did not give my all there, why should I break my back for a meesley $15? That income isn't going to pay off all the student loans. Now I work full time in a resort spa. I'm not forced to give the same ol' cookie cutter service, I can use the skills that I have learned, and I can feel good about giving our guests the best service that I can provide. You get what you pay for and I tell that to anyone who insists any massage over $50 isn't worth it. If someone is looking for an inexpensive massage I will send them to a school before ME, or H&S or any chain.
The positives to a large franchise such as ME is that it makes massage therapy more mainstream to the general public through it's advertising and allows those who would otherwise not be able to afford a massage a chance to receive bodywork at a low rate. The down side is that not all sessions are high quality and often cookie cutter, so consumers are left with a less than average impression of what a massage is all about. Another negative is that new graduates are recruited to work in these establishments because they simply want to gain experience and are paid so little for their hard work. This bugs me more than anything. ME is definitely all about the bottom line and not about the love of massage therapy. As mentioned above, the good news is that most therapists move on from these rubbing factories and their careers flourish in places where their true value is known. Many of my clients have also remarked that they were unsatisfied with their experience at ME, and would rather pay a little more for a quality session. This gives small businesses and new massage therapists hope.
I have worked at one of these "chain" massage factories myself and have walked away from it into a lovely day spa atmosphere with multiple choices for every clients needs and wants, unlike the "cookie cutter" massage establishments of today. Each franchise company is different and only good for "newbie" massage therapists. Hence when entering these businesses, YOU GET WHAT YOU PAID FOR!!! Seasoned clients to massage know the difference between a $35 massage and a $80 massage… in this instance quality rather then quantity rules and leaves factory massage franchises in the dust!
I've been a frequent massage user for years from independent spa's to luxury resorts to cruise ships and now most frequently hand and stone. I have been to hand and stone about 8 times now and the therapists I have seen have been on par with many of the other Spa's I have been to, they just lack in the decor and post treatment areas. Great massage at a fraction of the cost. (As always depends on the therapist)
I work at Massage Envy in St. Louis, MO. I received my massage education from Western States Chiropractic College. I work at ME because it offers the general public an opportunity who otherwise would not get a massage because of pricing. I offer a great customized deep tissue and MFR massage to all my clients. To say I am cookie cutter is certainly silly. I assess the clients condition and movement or strain pattern and employ muscle energy techniques, MFR, positional release, neuromuscular therapy clinically tied to the outcomes and goals that client is seeking that day and long term and progress from that. Massage therapists in private practice in the area see me and joined ME because I offer a great massage at unbeatable price. So it is exactly like Mike said above, it DEPENDS COMPLETELY ON THE THERAPIST. Some of my co-workers are good therapists, they don't know how to do outcome based massage like I do, however, they offer a good introduction to massage for people who have never had one. There are a few who are cookie cutter and they don't have a consistent client base at all. To generalize Massage Envy into a comparison with McDonald's or Fast Food is erroneous! However, it is much more accurate to use the generalizations this way, "Some therapists at Massage Envy are like a five star hotel and others are a dump, it is a hit or miss and the same goes for therapists in private practice."
In our practice we tend to focus on massage as part of a treatment plan, often for an injury, and so our clients have come to expect something a bit different from us. I don't want to overgeneralize but I think we have been successful in marketing and branding ourselves different from ME. At a certain level I welcome ME into the competitive landscape as they are breaking down the barrier of acceptance to massage therapy for the masses which ultimately helps others to think more openly, and seriously, about us.
If you can't beat them join them! I offer my clients our own membership club. $69 a month for a facial or massage and the additional services up to 4 are only $59. I have about 60-70 members which generates an automatic $4500 in revenue on day 1. It's not too many that we can't ever get them in. We've been doing it for about 3 years and most people only do the one service. Some come weekly and some book 2 services in the same day. My next goal is how to get the membership people in to enjoy more of what we have to offer! BTW my regular massage is $85 and facial is $75.