Is this a bad business idea?
Last week, Hoboken411 reported there was some fishy business going on at Mesh Spa.
They closed abruptly without notifying customers. However, they indicated that “water damage” was the reason why they closed for “renovations.” Whether or not they re-open or when, is irrelevant for this story.
Jersey City spa tries to capitalize
The Spa at Port Liberte recently announced some kind of “special” for those currently in possession of a Mesh Spa gift certificate – offering “discounts” that are valued up to 75% the total value. Sounds generous? Maybe – but do the math and realize what you’re getting into:
Basically – they’re offering 25% off three services if you surrender your Mesh Spa gift certificate.
Example: You received a $100 GC to Mesh. Take 25% off your first massage ($100-$25=$75), 25% off your second, and 25% off your third.
Your $100 gift certificate now cost you $225! WTF!
I think this is a poorly executed idea. While it’s always nice to receive a discount for services – not everyone is necessarily in the market for luxury services like this. The beginning of the year, after the holidays – is usually a slow time anyway – why not just offer those 25% discounts for every new customer during the month of January?
If anything – make the deal for Mesh Spa gift certificate holders almost too good to turn down. Your “objective” should be to get new customers in your spa – and hopefully win them over. A mediocre discount – and multiple visits to “redeem” that gift certificate is way too complicated. How about a single 50% (or more) discount for Mesh GC holders? The purpose of the gift certificate was to give someone a FREE massage… having them pay almost full price pretty much defeats the purpose – especially since this spa is outside of Hoboken!
C’mon people! Have you not seen the state of our economy?