Luxury businesses working hard to hold on to clients
Lynn Thompson, owner of Urbana Curves for Women, has a stack of letters from former clients gushing about how they loved working out at the club, but needed to save money by not renewing their membership.
Thompson has owned the fitness club for a year and has seen its membership rolls fall by at least 50, with many former members saying they are cutting back on what they see as a luxury. To remain in business, Thompson has worked round-the-clock, taken no salary, avoided hiring other employees and added more programs to help clients reach their goals and stay motivated to keep their membership.
"I'm emphasizing over and over again that this is not a luxury," Thompson said. "I think all gyms will have to do that … In the long term, people are going to pay more in health care and medicine than they would pay for a gym membership. When your body is moving, it wards off diseases."
From gyms to spas to golf courses, businesses seen as offering luxury services are struggling to keep clients, as those clients are increasingly struggling to make their mortgage payments, keep their jobs and put food on the table during what some economists are calling the nation's worst recession in a generation.
Gyms try to retain business by shedding luxury' image
Gold's Gym in Frederick has worked hard to gain members in recent months, said general manager Craig Gaddis. The franchise has drawn many gym-goers from nearby clubs that have closed and has received a positive response to promotions for its new 24-hour work-week hours, which started Dec. 1.
"We're doing everything we can to get out in the community," Gaddis said. "Honestly, we're trying to find out what groups out there need help, like older people. People are coming in to make sure they stay healthy."
The gym has launched a radio ad campaign urging people to join before Jan. 1, when fees will likely increase and Gaddis expects a rush of people trying to meet their New Year's resolution to get in shape.
More than half of all gym membership holders nationwide were from households that earned more than $75,000 in 2005, with only 9 percent from those earning less than $25,000, according to the International Health, Racquet and Sportsclub Association.
Spa industry image teeters between luxury, necessity
At Red Door, a Connecticut spa chain with three locations in Maryland, traffic has been on the rise in the Kentlands in Gaithersburg in 2008 compared with 2007, said general manager Anna Lam. The spa opened in 2005 and has noted steady growth each year, she said.
"We notice that even though we are a luxury industry, people are viewing it as maintenance," Lam said. "We do offer a lot of savings and holiday packages and gift ideas. That helps attract more guests."
But other spas in Maryland are not faring as well and are trying to get the message out that spa treatments can counter stress during tight budget times. While many are closing, others are venturing into the business.
With two locations in Everedy Square and Shab Row in Frederick, Golden Orchid closed Sept. 22 after six years. Owner Yvette Shirey, who could not be reached for comment, cited financial reasons for the closure on the Golden Orchid Web site and said that "financial situations" prevented her from refunding money for gift certificates.
"It is my hope that people will try to understand … that there must be circumstances beyond my control that brought us to today," the Ijamsville woman wrote. "I truly regret that I was unable to remain in business and honor these obligations."
Daisy Price, a former Golden Orchid employee, opened Daisy's Salon and Body Boutique at one of the former Golden Orchid locations. Price's staff of 24 includes hires from both the Golden Orchid and PariSpa, another downtown spa that recently folded. Price said she had always wanted to open a spa and did not expect an opportunity during an economic downturn.
"I really hope everyone does well in this industry. I wish them all the best," Price said. "I think all the salons need to come together at this time. I hope nobody else closes."
Courses change course
as golfers shed clubs
David Combs, head pro at Nutter's Crossing Golf Course in Salisbury, said the course has seen a 2 percent fall-off in business this year, particularly in its less expensive "twilight zone" rounds. Nutter's Crossing sells roughly 30,000 rounds per year at from $45 to $60 each in season. He said the summer's high gasoline prices of near $4 per gallon likely affected golfers, particularly those with lower incomes.
"Since golf is a luxury, people aren't going to spend the money when they don't have to," Combs said. "I would guess we'll probably be down next year about 5 percent, just because of the economy."
Other courses, like the White Plains Golf Course operated by Charles County, have been absorbing golf lovers from courses that have closed, said assistant manager Dennis Willet. At $24 per round and $14 for a golf cart, the par 70 course has seen a steady stream of golfers this year, including dozens who rented the 20 golf carts by midday Wednesday.
"Golf is an expensive sport," Willet said. "We're not out to make a killing because we're a county-run facility. You're getting your money's worth here. … We've had a pretty good year."
Plastic surgery businesses feel economic strains
While the number of cosmetic procedures in the U.S. rose across the board in 2007, early indicators show a likely drop this year, according to the American Society of Plastic Surgeons.
Among women considering plastic surgery in the next two years, 59 percent said the economy has had an impact on their plans, up 9 percent from March, according the group's October survey. Twenty-seven percent were considering less expensive options.
More cosmetic surgery patients are turning to less expensive, but temporary, procedures and away from permanent expensive operations, said Michele Shermak of Johns Hopkins School of Medicine and a member of the plastic surgeons group.