ZZ DAY SPA INC
About the Company
ZZ Day Spa, located in Manhattan, New York, offers day spa services with an emphasis on creating an unforgettable customer experience. Oberoi's goal was to establish a spa that prioritized the customer’s experience above all else, inspired by the business philosophies of leaders like Jeff Bezos, Elon Musk, and Warren Buffet. The spa quickly gained recognition, earning over 1,000 five-star reviews and being named the #1 Day Spa in New York City in 2021 by the International Beauty and Spa Awards.
The spa's team is vital to its success, and Oberoi believes in hiring caring and dedicated individuals. The company also prides itself on paying employees 10% more than the average spa wage in the industry to foster a positive work environment that contributes to customer satisfaction.
Idea Behind Company
The idea for ZZ Day Spa originated when Oberoi helped his former girlfriend turn around her struggling spa business. At the time, he was working in real estate but found himself drawn to the satisfaction and happiness spa customers experienced after their treatments. While transitioning into the spa industry was a change from the competitive world of Manhattan real estate, Oberoi saw it as an opportunity to create a "slice of heaven" for his clients.
His "aha" moment came when he realized that providing an unforgettable experience that exceeds customers' expectations could be the key to success. Oberoi aimed to kill customers with kindness and love, offering more than they expected. This philosophy helped him differentiate ZZ Day Spa and build a loyal customer base.
Creating the Company
Starting ZZ Day Spa required Oberoi to be resourceful since he didn’t have the capital to invest in a new spa. After finding a spa for sale in Manhattan that was losing money, Oberoi negotiated a deal to take over 50% of the business for free in exchange for turning it around. Located near the Empire State Building, the spa's prime location gave him a competitive edge despite its financial struggles.
Over the course of 2.5 years, Oberoi successfully turned the spa around and eventually bought out the original owners using the profits he had generated. By applying lessons learned from customer experience seminars, Oberoi shifted the business from unprofitable to highly successful.
Launching the Business
Attracting customers initially was challenging. Oberoi partnered with Groupon to fill the spa with clients, but he was only receiving 20-25% of the retail price, which nearly led to financial disaster. A turning point came when he realized he needed to take pricing off the table and focus on creating a service so compelling that customers would be willing to pay full price.
Oberoi also capitalized on digital marketing strategies, utilizing Google, Instagram, Facebook ads, and SEO to attract new customers. These strategies resulted in an 8-fold ROI and helped the business gain a solid presence in the competitive New York market. Additionally, Oberoi focused on building a positive company culture by hiring the right people and fostering a work environment where respect and positivity thrived.
Earnings
ZZ Day Spa currently generates around $250,000 in monthly revenue. Oberoi projects continued growth, with plans to expand to new locations outside New York in 2023. He attributes the company’s financial success to the principles of resourcefulness, customer satisfaction, and a "profit first" approach, where he prioritizes profit over expenses. This shift in thinking allowed him to grow the company debt-free and maintain profitability while paying himself and his employees well.
Oberoi’s strategy of continuous learning and improvement, along with a customer-centric focus, has propelled ZZ Day Spa into one of the most respected and highly rated spas in New York City.
