Discounting spa services today will create a future spa goer to be like our now "gift with purchase" client from the retail industry. Department store clients have been hopping for years, thanks to Mrs Estee Lauder herself, from one Macy's to a Bloomies looking for the best "gift" and not the product or service. We need clients to be faithful to our establishements, services and staff but that, takes a lot of work, passion and comittement from all parties. Discounting is the easy way out and will cost of all of us in the spa industry in a few years.

We view Groupon and social networking sites as advertising. It's the only form of advertising that guarantees that patrons will walk through the door. It is then our job to provide a service that clients feel they can't get anywhere else. We have been successful turning the deal seekers into loyal returning clients because we give them over the top service. We let them know that we value their business. We have not given up on the luxury of the spa experience because they received a deal. If anything we pour it on thick. When they leave and go on to their next "deal", they will see the difference. Those that value it will be back, those who don't, shouldn't.

When we discounted our services, I never liked what walked in my door. Unless, the person was already a client of ours, we saw little to no respect from these clients looking for their next bargain. It was a free for all, scoop up all the granola bars, hock the tea bags, ask for more samples, and they never had any intention of coming back unless we ran the discount again.

Discounting is fine if you are a new spa and you need to stretch your legs and see how many clients your organization can comfortably service. But we've had clients come up to the desk to pay for their massage during spa week and ask when the next spa week is so they can make their appointment now for it. That really wasn't the point of spa week. It was to introduce spa services to the masses at a fraction of the cost.

Our prices are already some of the most reasonable prices in our area, i.e. $80 for a 60 minute massage or facial. Yet we still get calls that ask if we have any deals for first time clients. We say no and remind then that our prices are very reasonable. They hang up and are still searching for the lowest possible price around.

Yelp.com has revealed what consumers really think of Groupon, BuyWithMe, Living Social. Rarely do I see a satisfied client come away from a spa having used a professional discounting service to land deals. They all say things on yelp.com like, "Thank goodness I had a Groupon because the service was below average and I would never visit this place and pay the full price." I read this over and over again.

If it sounds to good to be true, then it probably is. Groupon will teach consumers to keep hoping for that great experience at the lowest possible price. But from I can see, the spas who are using Groupon, haven't figured out how to land clients and convince them that the services are worth the money they are charging.

Maybe that's what the problem is with the spa industry. The overhead is high, so we charge alot and treatments are underwhelming. Hence the success of Groupon.

Nancy, I agree with the idea that the consumer will skip the upscale surroundings in favor of a humble environment with a good treatment.

There are so many valid points to your article and so many good comments- it seems that this is near and dear to everyone's mind these days! I agree with the comment that groupon and daily deal sites are a valid form of advertising- an albeit expensive one- but keep in mind that with other outbound marketing forms like print ads and direct mail, the ROI is sometimes scant and only a small percentage take advantage. At least with groupon, you know how much each and every new client costs. We have done groupon several times and each time we have signed up roughly 25% of the groupon holders to our membership program, which pays us back tenfold. You HAVE to wow them- i think they are all used to getting average service "oh, you have a groupon....actually, we are full saturday" and are almost afraid to mention they have one. We have done our best to roll out the red carpet and give each guest superior service, like we do with all of our guests. But, the "mass market" exposure is good for all of us. The more these people become accustomed to frequenting the spa, the more savvy they will become in their hunt for good services. Another thing, the splits on these daily deal sites can be negotiated down to a 30%- or even less- rev share. If they want you badly enough, they will come down off the 50/50 split. Also, consider a re-booking at point of service with a 20% discount. For many guests, getting familiar (over time) with a specific spa is the best way to keep them for years- it doesn't always happen in one visit.

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