Forever Young
THE GROWTH OF ANTI-AGING PROFIT CENTERS

by David Suzuki

In 1513, Juan Ponce de Leon reached North America in search of the fountain of youth—the legendary spring infused with the power to gift those who drank from it with eternal youth. Although the strategies of maintaining youth have become somewhat more sophisticated through the years, the core of this desire remains the same: People want to remain youthful and are willing to go to any lengths to do so.

This obsession to stay young translates directly into dollars for those in the anti-aging industry. According to a Market Trends study, the U.S. market for anti-aging products is valued at $12.4 billon, nearly triple the $4.4 billion it was valued at in 2000, and is expected to grow to more than $16 billion by 2010. Nearly 90 million Americans use or have used products or procedures in an attempt to reduce the visible signs of aging. With figures like this, there is no denying that the anti-aging industry is a fast-growing and extremely profitable venture for everyone involved.

Skin therapists are realizing the benefit of this anti-aging revolution via age-defying, non-invasive, device-driven service revenues. The American Society for Aesthetic Plastic Surgery estimates a 470-percent increase in non-invasive anti-aging services over the last six years, while the data published by Medical Insight, Inc. shows that skin rejuvenation and the addressing of the appearance of fine lines and wrinkles is forecast to grow to more than 35 million annual treatments in 2007, generating nearly $9 billion in fees—figures only dreamed about 10 years ago.

Part of the demand for anti-aging goods and services is due to the growing population of aging Americans.

According to the U.S. Department of Health and Human Services’ Centers for Disease Control, “The United States is on the brink of a longevity revolution. By 2030, the number of older Americans will have more than doubled to 70 million, or one in every five Americans.” During the second half of the 20th century, the average life expectancy has increased by 20 years, and seems to be growing rapidly. In short, we are happy to live longer lives, but we refuse to grow old.

In additional to this new longer life span, there are flocks of entirely new generations educated practically from the womb about living a preventive, proactive, healthy life. Because of this awareness, we are seeing a growing trend of clientele in their late 20s to early 40s, which makes up as much as 40 percent of some spas’ “anti-aging” category of customers.

“Anti-aging is not just for the baby boomers,” says Dr. Barb Schell of Ageless in Seattle. “We are seeing our anti-aging clientele’s age scope become broader and broader as each year goes by. We find that although the older clientele is definitely in more need of anti-aging services, much of the younger clientele is less hesitant to have them, and more informed regarding many of the progressive non-invasive services such as microcurrent.”

The National Consumers League’s most recent study on anti-aging noted the following:

• Americans as a whole prefer to look younger than they are—36 being the ideal desired male age, and 34 for women.
• Respondents concur that a youthful appearance is important for personal happiness and professional success.
• A whopping 72 percent of female and 66 percent of male respondents believe that undergoing surgery or other procedures to look younger now is acceptable.
• Over-the-counter anti-aging products are used by 76 percent of American women.

Are we obsessed as a society? I prefer to think of it as proactively conscious. Although we may be among the most consistently assertive countries in the world when it comes to anti-aging, most other countries are not far behind, and in many cases allow new science and technology to the market more rapidly due to less-restrictive government guidelines.

Historically, non-invasive devices have been greatly overlooked by Western medicine and considered fluff by most physicians.

“The perception was if there was no blood or pain, it simply could not be effective,” says Dr. Robert Loss, owner of Dermatology Associates of Rochester’s Dermaspa Cosmetic Enhancement Center. “In 1994, I performed well over 125 laser-resurfacing treatments per year in comparison to four in 2004,” he says. “Conversely, during the same 10-year span, we have seen an enormous shift in our business toward noninvasive treatments. We believe that this trend is due to a combination of patients not wanting the downtime, risk and pain, and the fact that non-invasive technologies such as microcurrent, facial toning and oxygen infusion have become scientifically proven and extremely effective.”

Not only are non-invasive treatments effective, proven and painless and offer results without downtime, many also are harmonious with the body’s natural functions. This idea of addressing anti-aging naturally is very attractive and deems the pursuit of youth one in the same with good health and wellness. Who can fault this desire? In short, anti-aging now is justified.

Industry experts note a more-than-400-percent increase in device usage over the past four years, and believe that this is only the tip of the iceberg. Having said that, it is fair to say that the average skin therapist is a bit overwhelmed with the decision of what technology to purchase and which technology really provides the kind of profits that will accelerate his or her business to the next level.

One of the many criteria that should be considered when selecting equipment is whether it allows for a stand-alone service, an accent service or both. A standalone service is defined as a service that is a treatment in and of itself, having the results and the demand that justifies a premium price without the need of additional support.

Equipment that allows for stand-alone services justifies a higher purchase price, whereas equipment that only provides accent treatments justifies a lower purchase price. Keep in mind that it is rare to see a manufacturer concede that the forte of its device is for accent treatments.

Many businesses have made the mistake of accepting devices free, with the agreement that they simply will split the profits with the manufacturer. The attraction to this concept is that the owners feel as if they have nothing to lose; there are no services purchased, and no cost to them. This is wrong. What they lose if the service is not a well-qualified, stand-alone service is their credibility and customer confidence.

A good rule of thumb to follow is that for every $1,000 spent in technology, a professional should yield approximately $25 per hour in revenue. This would suggest one would charge $75 per hour for a $3,000 device, $150 per hour for a $5,000 device, and so on. Although there are obvious deviations to this simplistic formula, it does not take rocket science to figure out that if the equipment is too expensive, the return on investment is just not there.

Manufacturers’ statistics indicate that the average well-qualified, stand-alone anti-aging modality service usually is priced 50 percent to 100 percent higher than standard skincare. Furthermore, the draw for anti-aging services is as much as 60 percent greater than for standard skincare service. According to the statistics, the philosophy of growing a strong skincare business to justify the purchase of a new anti-aging device is completely backward; standard skincare is mandatory when receiving anti-aging services.

Additionally, the client profile that is applicable to anti-aging services is that of a serious, committed individual. This allows treatments to be sold in a series, prepaid and pre-booked. Additionally, technology and device usage has projected an entirely new perception of skin therapist to the world. Clients take both professional and homecare prescriptions much more seriously, which in turn breeds higher levels of success, as well as product loyalty and, ultimately, the bottom line.

A good, well-qualified, legally manufactured device should have a minimum life of five years and should be relatively maintenance-free during this life span. If selected wisely, equipment should pay for itself within a six-month window and be profitable for the remaining four-and-a-half years.

Another great profit center that anti-aging technology brings to the table is diversity. Not only are well-qualified devices great for stand-alone services, usually they can be added to just about any existing facial on the menu, creating additional revenues as well as uniqueness.

One of the most popular technologies to recently enter the esthetic market is oxygen-infusion. Manufacturers note that oxygen-infusion systems utilize purified, pressurized air to assist in the delivery of strategic products containing high levels of acetyl hexapeptide 3, palmitoyl pentapeptide, vitamins and hyaluronic acid to address expression aging and fine lines and wrinkles. Applications consist of product infusion utilizing pressurized, purified air through a misting wand, complete facial infusion using an oxygen dome, or specific targeted, focused infusion with oxygen jets. Each one of these accessories can be used as an add-on service to a standard facial as well as combined with other modalities.

“I completely join oxygen-infusion treatments and microcurrent treatments, using each technology to target my client’s specific concern,” says Eliza Gooler of Eliza’s European Skin Care in Gig Harbor, Wash. “I book on the hour and charge $185.”

Microcurrent truly is an outstanding stand-alone service that can be added to nearly every facial. Microcurrent works on a low level of electrical current, very similar to the body’s own natural electrical current , and encourages the body to perform its natural functions of wellness much more effectively. In esthetics, it can be used for facial contouring, product penetration, circulatory benefits, and an enhancement of the natural production of collagen and elastin—all of which works toward achieving a more youthful appearance.

“My equipment came complete with an electric masque accessory that allows for hands-free product penetration,” says Monica Leedom of Totally You Day Spa in Leesburg, Fla. “This serves as a fantastic add-on service as well as the opportunity for me to introduce microcurrent to my clients.”

Just 10 short years ago, one was hard-pressed to find a steamer or high-frequency machine in the skincare room. Equipment available at that time only was used periodically at best. In today’s esthetic world, devices are part of the definition of skincare, and in many cases have become the cornerstone on which skincare is built.

We cannot claim to have found the fountain of youth; nevertheless, I believe that Juan Ponce de Leon would be impressed.

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