How has the pandemic impacted our industry and what lies ahead?
Getting into the Salt Therapy Business
Timing is critical for so many aspects of our lives. Sometimes it’s great and other times (like most of 2020) it’s not. When it comes to getting into the salt therapy business, however, the timing has never been better.
While many people have expressed concerns about starting or getting into the salt therapy business during the pandemic, others have seen an opportunity. Never before has respiratory wellness, strengthening immunity, and self-care been so important and on top of everyone’s mind.
Prior to COVID-19, the salt therapy business and industry had been accelerating in growth.
According to the Salt Therapy Association and others, the overall industry is growing even more.
Unfortunately, there have been many spas, wellness centers, and other facilities that have been greatly impacted, like so many other small businesses, in various cities across the nation and the world.
Yet, there have also been so many projects that have been moving forward. Many facilities are pivoting to add salt therapy, new start-up businesses are emerging, while existing facilities have even been deemed ‘essential’ in their communities. And most importantly, people are going to get salted.
Is it the right time for you to get salted?
While interest in starting a new salt therapy or related business, or simply adding salt therapy to an existing business, has become a great opportunity—time and money are always key factors in determining decisions. Many people are concerned about COVID-19, the economy, changes that may occur in our government, and what lies ahead in 2021 and beyond.
When evaluating a business opportunity and investment, you are looking at several key indicators:
- How are the market and industry?
- What is the risk?
- What are the costs and Return-on-Investment?
- Does it fit with your vision and goals?
Salt Therapy Market and Industry
Dry salt therapy (halotherapy) is a growing market. According to the Salt Therapy Association, the industry has been on an accelerated growth pattern for several years as the awareness and education of the market has been increasing. According to the Global Wellness Institute, the forecast for the wellness industry has never been more promising. The demand for respiratory health, lung function, mental health, and building the immune system is only going to grow.
When you begin to explore the amount of the population that suffers from all types of respiratory and skin conditions (allergies, asthma, COPD, cystic fibrosis, lung cancer, bronchitis, cold and flu, eczema, psoriasis, etc.), it is significant. The amount of money spent on prescription and over-the-counter medicines is well over $100 billion a year. Salt therapy is safe, drug-free, and a great complimentary treatment that is backed by science and research.
Risk Adverse or Risk Tolerance
There is always a risk in anything we do. When assessing the risk that involves an investment of time, money, energy, and resources, one must evaluate the cost-benefit of the risk.
Currently, the demand and money spent on respiratory health—including allergies, asthma, COPD, cystic fibrosis, lung cancer, and now COVID-19—is over $100 billion. From over-the-counter medications, prescription drugs, doctor visits, and hospitalizations; not to mention costs for employee absenteeism, lost productivity, and school attendance— the cost is significant. Halotherapy has a proven track record of evidence-based science and research and continues to garner the attention and recommendation of pulmonologists, respiratory therapists, infectious disease doctors, clinicians, and researchers. The market that benefits from salt therapy includes pretty much anyone who breathes. That includes children to seniors with respiratory and skin conditions. Additional benefits include enhancing overall wellness, improving athletic performance and recovery, reducing stress and anxiety, improving breathwork, and more. The demand for respiratory wellness and health is high, and salt therapy is safe and helps to improve the quality of life.
The real question is the hesitancy of evaluating the cost versus the return. How much is in the investment? What’s the impact on cash flow? How can I increase my revenues? What is my profitability? Can I afford it right now?
In assessing an investment, you also need to realize when you will not only achieve a return on investment, but also begin to produce profitable revenue. This can be calculated based on increased revenue, increase in new customers, referrals, cross-over sales, etc. While professional commercial salt therapy equipment and concepts can range from an entry point of approximately $4,995 for our SALT FX® halogenerator and $7,500 for a commercial SALT Booth®, small room projects which include a SALT FX® halogenerator can range from approximately $10K to $15K for equipment, décor and the build-out. There are obviously larger and more elaborate décor designs that can range from $35-$50k and some well over $100K.
The consumable used is pure grade sodium chloride, which only costs pennies a session. For example, a 10-lb. container of HaloSalt™ costs $25 and can provide at least 400+ salt sessions in a SALT Booth®. It uses low power so there are minimal, if any, additional utilities. And the labor involved comes to only a few minutes here and there during the day to refill with salt and to clean the equipment.
The average single salt session ranges from $15-$45 per session and can greatly differ from a stand-alone treatment or a treatment packaged with other modalities to discounts on bulk sessions and even memberships. Based on an average of $25/salt session, a salt room or SALT Booth® can generate $3,000 a month based on just 4 sessions a day. If you increase to 1 session an hour in an 8-hour day, that doubles to $6,000 in monthly revenue. Salt rooms that have multiple chairs or multiple salt rooms or SALT Booths® can see what the projections look like by increasing the occupancy and utilization.
In addition to the financial contribution to the bottom line, there is the enhanced value of providing a wellness treatment that produces results for people, is easy and simple to use and maintain, does not require additional labor, and is safe.
Self-care, respiratory wellness, strengthening the immune system is critical and the bottom line is that the timing for salt therapy is now.