I have been asked by many if they can purchase Gift Cards during the Mandatory Shutdown ordered by New York State Governor Andrew Cuomo to help me get through this period of time. I truly appreciate the offer, but for ME, for MY BUSINESS it is not the right option.
First, a little background. Momma Moon is a 30% pre-booked/returning customer business. This means that 30% of my business is booked 2+ weeks out. The remaining 70% of my business is rolling booking. People booking online, or over the phone for same day/ same week appointments. When March started I had 10 appointments pre-booked. Even before Covid-19 had reached Monroe County officially, there was concern for Covid, as well as cold and flu season. I had 3 cancellations for people having cold symptoms. Then we had our first confirmed case of Covid and I had 4 more cancellations. I had 3 people step up and book late last week.
On Friday, March 20, 2020 we were shut down by Government Order (with no protection in place to help small businesses, the massive layoffs, or the self-employed not able to work from home) and I closed my doors. At this time I had a total of 15.5 hours of massage, 5 of those hours were unpaid hours (trade hours or promotional gift certificates I donated to worthy causes). 10.5 hours of PAID massage of the necessary 32 hours to survive. Less than 1/3.
I completely understand and support my clients who cancelled appointments if they were unwell, or just worried about Covid.
In the first few days of our confirmed Covid Cases (we are on Day 12 as this is published), restaurants and the service industry (hair, massage, etc.) saw huge and immediate declines in our revenues as people became concerned for public health. Many restaurants and salons and even other massage therapists have been asking people to buy gift certificates to keep supporting them. I understand and support other businesses decisions to do this.
Here is why I cannot:
1. It is against my moral compass to do so. I am required under NYS laws and regulations regarding Gift Certificates to be prepared at any time to refund a Gift Certificate (to the original purchaser) and/or redeem it. For me this guides me to keep Gift Certificate funds in a holding account until the Gift Certificate is redeemed.
2. I am a small business with NO UPSELL. If I sell the necessary 32 1 hour gift certificates to cover my monthly costs (March and if necessary repeat in April). When I reopen I would potentially have 64 gift certificates booked and once again no income coming in. I would have to do 96 Hours of Massage in the May (assuming we get to reopen in May, it may not be till June or July) just to survive. My ideal business model allows me to do 80 massages on a fully booked MONTH. I am honestly holding steady at about 40 massages per month.
Check back tomorrow to learn how you can BEST help my business.
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