--- In FairfieldLife@yahoogroups.com, Rick Archer <[EMAIL PROTECTED]> wrote:
> Emailed to me on the side:
> 
> Got a long voicemail from someone on the course.
> 
> 
> Anyhoo...Turns out the whole thrust of this
> 'recertification' seems to be marketing.
> Within the next 2-3 months there will be 500
> storefronts in malls.   Each one will have all the
> MAPI and movement products, a largescreen TV with the
> M channel, a children's corner, a spa, a TM center.
> There's more I can't remember.
> He wanted to know the 5 high end malls in the area.
> They will hire 4 people working in each store plus a
> manager.  A man and woman from the course will be
> supervising.  AND GET THIS.  MAHARISHI WILL BE PAYING
> FOR EVERYTHING.

************

If the TMO is looking for high-end malls, that means they're not
going to do the cheap strip mall option, and they're going to pay
through the nose, like $36/sq.ft:

http://retailtrafficmag.com/mag/retail_bad_news_retailers/

In addition, renters at malls usually have to pay a percentage of
sales, something I doubt the TMO is going to be happy about:

http://retailtrafficmag.com/mag/retail_hot_topic_long/

In order to have a spa with separate facilities for men and women, 
plus a MAPI store, plus a TM center, it sounds like you would need 
about 2000 sq. ft. -- at $36/sq.ft., that's $72,000/month. Plus two 
TM teachers at $4K/month each, one manager at $5K/month, and 4 other 
employees at $3K/month, plus payroll taxes. Total for rent and 
salaries: about $100K/month (plus whatever the mall owners collect as 
percentage of TM store sales). 

Income from MAPI products sales could not amount to much -- many of 
the items are so overpriced (like honey at $50/lb.) or of little 
interest to the general public, so these sales won't amount to much, 
and if meditators start to shop for their MAPI products at these mall 
stores, it would be merely cannibalizing sales from the MAPI.com web 
site.

The mall store will have to rely on the income from the spa and from 
TM instruction, shooting for two spa treatments a day at $645/day 
(taking this figure from The Raj's price list: 
http://www.theraj.com/rajoffers/panchakarma.html ). But the Raj has 
always lost money, even in a town with 2000 meditators, many of whom 
are rich and can afford these pricey treatments. And, outside of 
Fairfield, there are many other spas, even competing Ayurveda spas, 
that offer similar treatments, often at lower prices, and usually in 
more attractive surroundings than a tiny room in a mall.

Initiating one person every day into TM at $2500, in addition to the 
two per day for the spa treatment, would bring in enough money to 
break even, and a handful of these mall stores may be able to meet 
these goals, which have to see two spa treatments and one initiation 
day in and day out indefinitely to stay solvent.

But when you multiply the 500 proposed stores by these numbers for 
spa treatments and initiations, it amounts to 30,000 people a month 
in the USA seeking TM spa treatments -- a very unlikely figure -- and 
15,000 people a month starting TM, a figure which has not been 
remotely approached since the wave of initiations in the 70s after 
the Merv Griffin shows (when 50,000/month were learning TM). 

Somebody should call in a consultant from Booz Allen Hamilton or some 
other top consulting firm and bounce these ideas off somebody 
reasonable before they commit to long-term leases (which would 
probably be required since the spa would require extensive 
modification to the leased mall space that would not be suitable for 
many other applications) on a proposition that can't possibly work.







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