Massage Therapy: Luxe Bucks

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Tanning customers are looking for comfort, to be pampered, to feel better about themselves and to relax. As much as UV light exposure and lotion works toward this goal, they’re not the only means. Massage therapy—whether it comes from a hydromassage machine or a strong-handed masseuse—appeals to many relaxation-seekers, and it can work in conjunction with or separate from a tanning-salon business.

According to the 2007 American Massage Therapy Association Consumer Survey, almost a quarter of all adult Americans (24 percent) had a massage at least once in the last 12 months and 34 percent of adult Americans received a massage within the last five years. And its statistics like those that inspired Todd Beckman to take the risk of investing in massage services.

Beckman is known first and foremost as the owner of The Tan Company franchise, which has grown to more than 70 locations in 12 states since it was founded in 1994. In 2007, Beckman had a mediocre experience as a massage customer, and he had the same thought that inspired him to get into the tanning industry as a franchisor. “I thought we could do massages so much better,” Beckman recalls. “It was the same thing I thought about before getting into the tanning industry 14 years ago. Recognizing the fragmented nature of the massage-therapy industry, I saw a great opportunity to bring premier massage services to markets all across the country.”

So, in April 2008, Beckman developed MassageLuxe, a massage-therapy spa that offers affordable yet high-quality massages in an upscale environment. Beckman started the first MassageLuxe in Rock Spring, Mo., and introduced the business model to his current franchisees. As he says, “tanning and massage are a perfect fit because they attract the same type of audience.”

The company now expects to have 10 percent of The Tan Company franchisees adding MassageLuxe, contributing toward a goal of 400 MassageLuxe locations either open or in development nationwide by the end of 2012.

Katie Burland Gross, a franchisee for The Tan Company, is currently in lease negotiations to open her first MassageLuxe in Brentwood, Mo., just west of St. Louis. Gross, who had been a tanning franchisee for several years, explains that the strategic similarities between The Tan Company and MassageLuxe drew her to the concept. “The fact that MassageLuxe would be membership-based, customer service-oriented and have comparable marketing strategies to that of The Tan Company increased my comfort level even more. After learning of the multiple health-related benefits and the staggering increase in the massage-therapy industry, I was positive this was the right move.”

Gross will use the years of marketing momentum from The Tan Company in the St. Louis area to promote MassageLuxe, although all of her MassageLuxe locations will be separate from the tanning salons.

Beckman does note that the two concepts could be operated side-by-side if a franchisee so chose. “It gives salon owners a lot of opportunity to cross-reference leads and advertising dollars, and it's another reason why we think we'll be able to catch up fast to the competition.”

MassageLuxe will offer a monthly membership program with no contracts and no commitments, as well as multiple levels of massage-therapy services. Among the services will be the traditional Swedish, deep-tissue, prenatal and reflexology massages, as well as sports and couples massage therapy. “Clients can choose from three different levels of massage therapists to fit their specific needs—whether they are simply interested in getting some much needed relaxation, looking to relieve chronically tight or painful muscles, or recovering from a sports injury or illness,” Beckman explains.

The franchisor describes the MassageLuxe atmosphere as similar to a spa retreat and very upscale, but he assures that the membership packages are affordable for the average person. As a result, MassageLuxe will market to the general population through direct mailing. In St. Louis, the company will partner with local magazines and St. Louis Fashion Week to get the word out.

As with any expansion, there are risks involved, and those risks can seem sizeable in a struggling economy. Beckman takes a different view, though. He is confident that diversifying is a very intelligent move to reach customers in the recession because MassageLuxe franchisees will inherit a proven business model enhanced by membership revenue. The model makes for a secure investment with a large potential for growth, he adds.

“I don’t believe massage therapy is discretionary spending,” he asserts. “It’s something people do not want to do without because it makes them feel so much better. And people are seeking out affordable stress reducers now more than ever.”

The estimated initial investment for a MassageLuxe location ranges from $181,000 to $422,250. For more information, visit www.massageluxe.com.

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The Tan Company’s Todd Beckman Expands With Massage Franchises

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