Ms. Olsen

Spas, Health & Fitness

What You Should be Aware of Before You Build a Spa

By Casey Olsen, Owner, Spa Sources

The inclusion of a health spa within your project is almost always a great idea and will definitely offer your property a competitive entity. Certainly, in today's resorts a spa is a must. The business traveler, as well as the vacation or weekend guest now insists on having the ability to experience spa amenities. There have been so many spas built in the past 10 to 15 years, and many have done it well, however, far too many have made costly design errors. I can walk into a spa facility and design errors emanate immediately. The number one issue that is continually overlooked by the architects of record on these projects is flow. It seems that if an architect has not experienced numerous spas first hand, and by experienced, I mean actually have been a guest and used the spa services often, they do not possess the necessary experience that will provide them with all the nuances of what makes a health spa facility a success, from both an aesthetic view and an operational view.

This is why so many developers have contacted our consulting firm for guidance and direction. They understand that spending a few dollars initially on getting a review of drawings from those who have actually run large and successful spas is money well spent. They understand that to do the homework prior to construction may avoid costly design errors in the future.

So, your first step is to find a greatly experienced consultant that has operated and run spas. Personally, I have been brought in on projects following the design process and recommended drastic changes to the drawings so that the owner/developer does not have concentrated operational concerns, as well as, liability issues after opening the facility.

A fast growing arena in the spa realm is the high rise condo market. Most of the newly planned facilities have realized the need to provide a spa for their residents, however, many have underestimated both the size of the facility and the potential to create a unique experience for their property owners. Once again, contacting that consultant that has years of development experience will provide these projects with the appropriate information that applies to this kind of development.

Once the layout of the spa is finalized, your immediate next phase is to acquire FF&E bids from your consultant. Since this industry took off, there have been tremendous advances in all areas of spa equipment, product and amenities, however, buyer beware. Having an assistant in your office go to a trade show and acquire vendor information, is not the best path towards achieving a cost efficient equipping process. From the procurement of linen, uniforms, skin care product, staff uniforms, treatment product and equipment to the pens, pencils, computer scheduling systems, and on and on, there is a wisdom of the industry needed at this phase. And also, there are some consultants, I am sad to say, that take advantage of the developer that is unaware of these costs. In every industry these individuals exist and unfortunately, this is true as well with some spa consultants.

It is advised that the developer have their support staff review and check all pricing recommended by any advisor they may have on the project. Calling the vendors provided by the consultant directly and obtaining their price lists is a good practice and the competent and reliable consultant should welcome this.

Your advisor/consultant should provide to you a binder full of vendor lists with product or equipment recommended and when choosing that consultant initially, no matter what the size of your spa project, they should have established vendor relationships over the years that will bring discounted product along with complimentary maintenance and service contracts. If you find that you're paying extra for these services, then your consultant is not necessarily looking out for your best interest, or has not established the proper relationships within the industry.

During the local approvals process and once the spa design has been fine tuned, a financial projection should be created. This is where so many projects have been lead astray. There are those that are not privy to accurate spa profit and loss strategy and if they do not have the knowledge of what income and costs are typical in this industry, the projections may prove to be completely useless. In the area of income, there is a well established formula that has been proven over time that adequately addresses projected income. And this applies to costs, as well. A rationale for how the "numbers" are reached should also be provided and not just blindly trusted to the "typical".

Now, the numbers coming from a spa vary from facility to facility, and what deems a successful spa from an unsuccessful one is of course, the bottom line. The operation determines costs such as payroll of the spa staff and if the spa manager is experienced and knowledgeable on how to properly staff your spa, them you should see a departmental profit of 40 - 50% annually. If your spa is operating at a much less profit margin, then there is something amiss in the operation.

When looking forward to the opening of your new spa facility, the operational structure needs to be determined at the very earliest stages of development so that you have the most advantageous opportunity to achieve the "healthiest" of bottom lines. Salaries and monthly costs need to be budgeted as in all areas of the new project and knowledge of the local market is helpful.

Once you have reached this stage of your project, a concentrated focus needs to be on your marketing efforts and budget. Often, having a spa will set you apart from many local properties and since either most hotel guests or the condo purchaser enjoy the use of spa services, it is vital that the menu of services be extensive and appropriate, as well as, priced to show value. Getting the word out about your project should include a focus on the spa and its amenities due to the "sexiness" and attractive features a spa lends. Everyone wants to know what the spa will be all about and leaving out this amenity is not ever recommended.

So, before you break ground, there is a lot of research and dedication needed to determine the best road to take in the development of your new health spa. My recommendations, to sum this article up, is to visit your near by spas, contact an expert who has years of experience both with developing new projects and with actually operated successful spas so that they can help guide you through the design process and then offer FF&E assistance. Your consultant should provide your project with accurate revenue projections and staffing guidelines to help that operation achieve a great income and profit.

This process seems, at first blush, a bit overwhelming, however, surround yourself with knowledgeable experts that can help guarantee you and your costly spa investment the best possible results, from start to finish.

Casey Olsen is the principal owner of Spa Sources, a comprehensive health spa consulting firm. With 23 years of Spa Design and Review, Management, Staffing, Marketing, Budgets and Forecasts, Complete Spa Operation Set-up, Liability Guidance, Accounting, Equipment and Product Identification, Spa Sources provides comprehensive assistance in the creation of new, and the renewal of existing spa facilities. As one of the industry's foremost health spa consultants, Ms. Olsen provides invaluable guidance to developers planning their luxury resorts that include a health spa facility. Ms. Olsen can be contacted at 760 341-3311 or spasources@earthlink.net Extended Bio...

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