Membership-based franchises offer steady revenue, peace-of-mind

Planet Beach Contempo Spa members are regulars, not one-and-done customers

For a business owner, one of the big challenges is working to line up clients. That’s why Planet Beach’s membership-based sales strategy is such a relief: It encourages customers to become regulars rather than infrequent and unpredictable visitors.

CEO Stephen P. Smith knew the value of membership-based businesses from his days as a franchisee for Gold’s Gym, which is famous for its memberships and its ability to transform bodies. With Planet Beach, Smith set out to do the same. He co-founded the business in 1996 with Richard L. Juka, the company’s chief operating officer.

“Knowing that you will have steady income from your regular customers allows you to focus on keeping your current customers happy, instead of constantly having to look for new ones,” says Smith. “And our self-automated services allow our customers to take care of themselves whenever they want, without worrying about spending too much money or having to make appointments.”

It’s a great deal for members. Here’s why it’s a great deal for franchisees, too:

• Steady income: By signing customers up to a yearlong membership, Planet Beach owners guarantee themselves long term revenue from a single membership sale. Contrast that to a typical day spa or salon, where customer bookings — and cash flow — can be unpredictable.

• Manageable labor costs: By having members rather than one-and-done customers, Planet Beach franchises don’t have to devote as much energy and money to sales. That money can be devoted, instead, to serving customers, offering new products and improving the bottom line. Labor costs are also kept low thanks to our self-automated, touch-button services, which allow customers to get a professional-quality spa experience without having to coordinate schedules with a therapist. For customers, it makes the experience hassle-free. It does the same for owners, who don’t have to work to line up therapists, and worry about whether there will be enough customers in a given week or month.

• Making sales pitches easy: Of course, you will still have to make sales, but you will be offering a compelling value. Rather than a typically expensive spa experience that limits the number of visits a customer can afford to make, once a customer becomes a Planet Beach member, they can indulge in many services to their heart’s — and body’s — content. After paying the membership, fee, their only added costs are for the skincare products they might want to use while relaxing at one of the spa stations. That means that customers don’t have to scrimp and save every time they want a massage, or UV therapy. They’ve already paid, so they can come in as many times as they like. The only thing better that a great massage is a great massage that you can get whenever you want.

And the only thing better than pleasing a customer is pleasing one so much that they keep coming back.

Troy Wise - Troy Wise is the Franchise Marketing and PR Director with Planet Beach Franchising Corporation and oversees the Marketing, Public Relations & Social Media departments. Mr. Wise has been in franchising for over eight years with a proven record in developing, implementing and directing comprehensive marketing, communications and business strategies specific to generating and building brand awareness locally and internationally.

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