Trimming, but not forging, some personal indulgences

Keiko Morris

Jun. 30, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Surrendering personal indulgences seems like a given with the prices of fuel, food and other necessities soaring. But though consumers have their limits, some things in life are difficult to discard.

Some Long Islanders are willing to trim down the extras but not entirely forgo their personal indulgences. Those salon and spa visits are still a go, but customers are stretching out the intervals between hair, skin or body treatments. The gym membership? Check. But it's so long to the extras, like a nutritionist or a personal trainer.

Auto bling bling

Despite the bumpy economy, the ride remains smooth for some businesses selling high-end car accessories. One business owner says there is still a healthy base of monied car enthusiasts who have no trouble decking their vehicles with a set of $30,000 custom-built wheels.

"I've been getting a lot of tax money from people who have a passion for hooking up their cars, who won't own a car without a set of wheels on it," said Jonathan Achkhanian, owner of the high-end auto accessories store Parts and Polish in Great Neck. He said sales increased by about 25 percent over the past year. "Most of my customers say it's like a drug to them. They have to have it, and they have to have it fast."

It appears unwise to underestimate the allure of Auto Couture wheels bejeweled with Swarovski crystals. Achkhanian said that the bad economy seems to have accelerated wealthy clients' spending. "The guys who have the money are buying exotic cars now because it's a buyer's market," he said.

Hair and beauty

Salon owners say they are seeing some customers wait a week or two longer to retouch their hair color treatment. Leigh Anne Rodgers, co-owner of Salon Blue and Spa 190 in Mineola, said her clients are buying products to maintain their dye jobs at home for longer periods. Unless they're covering up the gray.

"[Then] they're in like religion," said John Vater, of Spa Adriana in Huntington.

The tough economy has taken its toll on the beauty and skin care market, which traditionally weathered economic slumps. First-quarter sales in department stores were down by 7 percent, according to Karen Grant, global industry analyst for beauty at the NPD Group, a Port Washington market research firm.

But in April the beauty market saw a turnaround, she said. And the items that have continued to do well are the skin care and anti-aging products, plus smaller-ticket cosmetics like lip gloss and eyeliner.

"When you think of the cost of filling up a gas tank now in excess of $200 a month, a beauty item, which is on average less than $30 to $40 or even $70 to $80, is an affordable luxury," Grant said. "It lasts for a couple of months, and it is just a little escape from the doldrums."

At upscale salons like Spa Adriana, product and gift certificate sales have dropped slightly, but salon service sales have increased about 10 percent from last year, said Vater, who runs the salon with his wife, Adriana. The haircuts and coloring sectors of his business are robust, as are sales for anti-aging treatment and massage and other spa services, he said.

"We're not recession proof, but we are recession-resistant," he said.

But some businesses are seeing more pronounced budgeting among customers. Immacula Oligario, owner of Immacula Hair Care Clinic in West Hempstead, said she has seen a drop in sales, with customers putting off haircuts or relaxers. Her salon, which caters to women with textured hair and those with hair loss, offers services priced from the middle to the high end, she said, and she guesses some of her clients might be getting their hair done elsewhere for cheaper rates.

"I realize that people are not spending like they were spending before," Oligario said. "Usually when people get income tax checks they start spending, but I didn't see that this year."

Specialty coffee drinks

Saving money? At least one consumer is drinking to that. Ellen Douglas, a certified financial planner and single mother from Roslyn, has cut out her daily latte habit.

Douglas, 51, of Roslyn, is a single mother of a 9-year-old boy. She earns about $300,000 a year, but has prioritized her life so that paying for educational expenses, medical expenses and the costs of maintaining a home with a large mortgage are now her main focus. That means twice weekly massages, facials and spa vacations are indulgences of the past. And the $15,000 annual tennis club membership? Gone. Douglas figures she can save $1,000 a year on her latte indulgence .

Starbucks (NASDAQ:SBUX) , recognizing the tough economy, has launched a Starbucks Reward Card, offering complimentary items such as unlimited free refills on brewed coffee during the same visit; a free tall beverage with a purchase of a pound of whole bean coffee; and syrups and milk alternatives like soy milk and half-and-half at no extra charge.

Since the card's April debut, about 20,000 new cardholders sign up each day, and more than 1 million have taken advantage of its benefits, the company said.

Meet me at the spa

While some spa and salon owners say they have seen a slight drop in facials, most say that women treat these services almost as necessities.

"People come to the salon to make them feel good about themselves," said Rodgers, of Salon Blue, whose first-quarter sales were up 15 percent compared with year-ago figures. "They may cut something else out of their budgets so they can still have their hair and beauty treatments."

And there's been no slowdown in bookings for manicures and pedicures. Salon owners say that a few may wait longer to get their nails redone, as Douglas says she is now doing, but the summer fashion of open-toe shoes means most will get pedicures, salon owners say.

Some spas have seen a small decline in massage appointments. But there is a growing number of customers who view massages as a necessity for today's hectic, fast-paced lifestyles, said Natasha Bogoev, co-owner of the Sandalwood Day Spa in Massapequa. And spas like Sandalwood, which cater to bachelorette, bridal and anniversary events, say they haven't seen any drop in spa party requests.

Though business may be booming, some do fret. Rick Joseph, owner of the Village Spa in Roslyn, said he worries daily about the effects of rising fuel prices and other escalating costs on his business. But he's doing better than he was last year.

"We deal with the solid middle class, upper middle class and wealthy," said Joseph, whose spa specializes in couples and spa parties. "But I think more than anything people might say, 'Hey, we're not going on vacation, but we're going to spend money on alternatives.' People still want to celebrate special occasions."

Gym memberships

Business appears to be steady, with some gyms seeing sales growth and others saying that they are maintaining their revenue figures from the previous year.

"[The business] isn't growing, but it's not declining either," said Barbara Larrea, assistant manager at the World Gym Wantagh. "We're at the same amount that we were last year."

Deanna Amodie, owner of Express Yourself Fitness, said it's difficult to discern the exact effects of the economy on her health club. Business has been booming since she moved from smaller quarters in Huntington Station to a larger location in town, and the number of members joining per month has doubled. Sales from some of the extra services like nutritional counseling and exercise classes have fallen, but personal training sessions are up, she said.

Getting people to exercise is hard enough, she added, and it becomes even more difficult when a dollar sign is added to the formula.

"Fitness is always the one they put the blame on when money is tight," she said. "But they will buy that coffee and go out to lunch every day at work. Add it up and there's your gym membership."

Newstex ID: KRTB-0134-26329378