MedSpa by wpr1947

VIEWS: 17 PAGES: 3

									What is a
MedSpa?


The answer is it‘s a very hot market you should be aware of! MedSpas are one of the
fastest-growing industries in the nation, blending the pampering surroundings of a spa with
treatments only a licensed medical professional can offer. Though some of these treatments
can be found at a traditional clinic, MedSpas tout themselves for offering extra attention, less
wait time, and luxurious surroundings.

What Types of Services do MedSpas Offer?

      Acne Treatment
      Anti-Aging Treatments
      Body Sculpting (Liposuction)
      Botox
      Cellulite Treatments
      Chemical Peels
      Hair Rejuvenation Treatment
      Hair Removal
      Microdermabrasion
      Photodamaged skin treatments
      Tattoo Removal
      Total Body Exfoliation
      Skin Rejuvenation
      Vein Rejuvenation
      Wrinkle Removal

Some Statistics about the MedSpa Industry:

          In the United States alone, spas are annually a 13-billion-dollar industry.

          Spas continue to be a main component in the development of resorts and shopping
           malls.
          The largest growth segment in the spa industry is towards a more medi-clinical
           approach to services.
          Top non-surgical cosmetic procedures include: botox, microdermabrasion, and
           laser hair removal.

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         MedSpas have grown 133% in the last five years - the highest growth rate of any
          spa type.
         Over 1 million women spend over $1 billion each year on electrolysis and lasers.
          80 million people in the U.S. spend $500 million on shaving, waxing and
          accessories - and 25% are men.
         Only 10 % to 15% of demand for MedSpa services is currently being met.
         MedSpas are an all-cash business.
         Industry reports claim that clients spend 380% more in MedSpas compared with
          traditional day spas.

On average, medical spa service fees for graded beauty enhancement services are:

          Service            Price   # of these procedures performed in U.S. in 2004
       botox injections      $413                       2,837,346
       chemical peels        $831                       1,110,401
     laser hair removal      $423                       1,411,899
    micro-dermabrasion       $201                      1, 098,316

MedSpas Can use the Internet to Secure their Competitive Advantage

The internet is a media that allows spas to focus their marketing message to the specific
people who are looking for their products and services. Now, more than ever, MedSpas need
to have a website.

With 69% of U.S. adults accessing the web, the Internet has revolutionized how business
operates, markets, and communicates - yet it‘s a channel that is sadly underutilized in the
beauty field. Shop.org and Boston Consulting Group (June 2002) found that the Health and
Beauty Industry has achieved weak online retail product penetration (only 1.4%). Each day,
hundred of thousands of Internet searches are performed on the products and services that
MedSpas sell. The Internet only drives qualified prospects as traffic to those MedSpas with
an online presence.

Market Size

                      Search Term                 Searches done in
                                                     July 2006

                      Laser hair removal        774,630
                      Botox                     256,005
                      Med spa                   18,653
                      Chemical peel             43,480



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These numbers, taken from Overture, represent Internet searches for the month of July ‗06 -
real people seeking information about this business.


Competitive Landscape

According to the International Medical Spa Association there are over 1,000 open medical
spas in the U.S. Jeff Russell, CEO of MedSpa Financing says, ―Competition is definitely
setting in, and it‘s not only direct competition from other medical spas, but indirect
competition from businesses that offer the same services. You have salons that offer hair
removal, day spas that offer dermal filler injections, and mall outlets that offer
microdermabrasion.‖ If you are going to not only succeed, but thrive in this new environment,
you are going to have to be better than your competition.

According to Nielsen//NetRatings (May 2003), female Internet users perform more online
searches than men. Most of their queries involve home fashion, personal care items and
cosmetics. A study published by comScore Media Metrix, found that affluent Internet users
(those with household incomes greater than $75,000) spend more time online, view more
pages, and spend more money online than any other demographic. This group has
discretionary income to spend on your products and services. Doesn‘t it make sense to put
your marketing efforts into their preferred media – the Internet?

What We Know

This industry is highly fragmented—there are several players. Once a MedSpa captures a
new customer, the average transaction value is about $1500. Some MedSpas have
websites, but not all of them do. Some have websites that could definitely use some work!
(NOTE: Huge potential for IC‘s to upsell web design services to these clients).

Average MedSpa campaign budget: $1500 - $2000
Average cost per click : $3.00 - $3.50
Recommended budgets
Local & Small DMA = $500 - $750
Medium Size DMA = $750 -$1000
Large DMA = $2000
NOTE: Recommended budgets are based on average industry keywords cost, population of
targeted advertising area, and product demand from selected area.

Sample Reports

MedSpa San Jose

MedSpa Seattle

MedSpa Portland

MedSpa San Francisco


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