A chiropractor and an acupuncturist have come together to create this wellness center located in the hustle and bustle of Manhattan.

In business you can be sure of one thing: if an industry is profitable, it will draw competition. That's okay when demand for your product or service is growing, but if it levels off or declines, there will be a shakeout, and only the most innovative will survive. In New York City in the late 1990s, new spas were opening almost weekly to pamper denizens of the Internet economy, but when the recession hit in 2001, many spas began to lose business. A Balinese statue and back-lit Balinese panels inset with mother of pearl contribute to an exotic tone in one of the treatment rooms. The painted red wall makes a dramatic statement. opposite: Original artwork adorns the hallway leading to treatment rooms

For Steven Margolin, D.C., co-owner of Longevity Health, a wellness center in New York City, survival has always been about defining and redefining his business in response to new market conditions. Indeed, Longevity Health is only a year-and-a-half old, having been reincarnated in April 2003 from its former life as Dr. Margolin's Wellness Spa. The Spa was the brainchild of Margolin, a chiropractor who had successfully expanded his business in the late 1990s boom economy. His practice offered a unique combination of spa therapies integrated with holistic health care, such as chiropractic, acupuncture, and nutritional counseling, which became a big hit among the Broadway theatrical, TV, and film communities. "At the time, I saw that the spa industry was growing, and I related to spa treatments as an individual," says Margolin. "I saw that I was in a unique position to create a new entity because I was a health provider willing to create treatment plans that incorporated spa therapies."

At its peak between 1999 and 2000, Dr. Margolin's Wellness Spa—with 13 treatment rooms in 3,000 square feet of trendy Manhattan real estate on Fifth Avenue—operated at 90 percent capacity. "But just a couple of years later, utilization dropped to forty-five percent of capacity," says Margolin, "which was borderline break-even." The spa market in Manhattan had become saturated and demand had dropped off dramatically because of the recession. More spas were chasing fewer clients. In 1997, there were just two spas within a 10-block radius of Margolin's business. Today there are 10.

Ten pounds of mineral salts are added to the 42-jet tub during hydrotherapy treatments.

In February 2003, Margolin decided to join forces with a longtime colleague, acupuncturist Noah Rubinstein, and together they formed Longevity Health. The company's goal, reflected in the new name, has been to refocus the business on attracting customers who are interested more in health than pampering. "Most people who go to spas see it as a luxury that they deserve because they've worked so hard. We would rather be known as a place that people seek out to promote [their own] health," says Margolin, adding that there is only one other facility in his immediate market that offers both spa treatments and holistic health care.

The partners have taken an aggressive marketing approach. For years, the bulk of Margolin's business came from the acting community. In the last year-and-a-half, he and his partner have diversified their customer base with new packages and programs geared to well-defined subsegments with a wellness orientation. "We're currently trying to bring wellness into the corporate world in our neighborhood and offering special programs to keep their employees healthy—whether it's offering discounts for spa services or us going to them and educating their employees on a regular basis." Under Rubinstein's marketing leadership, they now offer a pregnancy package for women who are expecting, a pre- and post-marathon program for New York City runners, and a course that teaches couples how to massage each other. "As we go through these different target groups," says Rubinstein, "we become adept at recognizing what their constellation of concerns and needs are. It's very difficult to do, but we're trying to become a specialist in each of them." With revenues up 20 percent since the new partnership, the marketing focus seems to be working.

By redefining its target market and bundling a wide array of spa services with holistic health care in a way that no one else does, Longevity Health is staying ahead of the competition and ensuring its own healthy future.

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