Originally Posted by Steve Underhill

You kind of said it all in this statement. To react to new competition you may have to take out a loan to make needed changes. If your salon was of the highest possible standard the new salon would not be in a position to offer a better product thus taking your tanners.

this is exactly my point, make changes when needed to make sure you offer the best possible product priced the way tanners want to pay today. If your salon has not kept pace with the consumer there is always the chance that any new salon that comes into your market will be a better choice for the tanner. This is a perfect example of having to react when the horses are already out of the barn.
My personal butt is on the line every day. I compete nationwide, I have to be on top of the industry and be in front of things or I too would not be successful. My business is always changing because I am staying in front of change. So I understand. Never be afraid to invest in yourself. The new competitor you speak of just made a major investment, a much greater investment than you need to make to keep your share of the market. You are starting with the advantage of a data base, the new salon is starting from scratch. Getting customers is easy, keeping customers is easy, getting them back after you have lost them is much harder. Take your blinders off, you need to look at the big picture. You have to spend money to make money. Every successful business is always reinvesting.