The industry has changed in the past 3 years! - tanTALK

Soakinuptherays · 03-02-2005, 08:26 AM

The reality is the indoor tanning industry has changed forever:

* Higher gas prices
* Little to no wage increases
* International outsourcing
* Increasing intrest rates that increase credit card payments
* The post 911 economy,
* Increased Competition

The result is salon owners need to look for ways to reduce their overhead/business costs while still providing the best tanning experience.

_________________

[ This Message was edited by: Soakinuptherays on 2005-03-02 08:44 ][ This Message was edited by: Soakinuptherays on 2005-03-02 09:32 ]

fashiontan · 03-02-2005, 08:39 AM

True. So why have tanning prices continued to plummet? I'm seeing months for $14.99 & $19.95 with no contracts. This was unheard (in my market) just three years ago. I don't get it...

Neon Beach · 03-02-2005, 08:39 AM

You got that right!

Soakinuptherays · 03-02-2005, 08:46 AM

Quote: True. So why have tanning prices continued to plummet? I'm seeing months for $14.99 & $19.95 with no contracts. This was unheard (in my market) just three years ago. I don't get it...

It is simple:

Salon owners are deperate to do anything for revenue.

[ This Message was edited by: Soakinuptherays on 2005-03-02 08:47 ]

Neon Beach · 03-02-2005, 08:51 AM

Like free tan weekends??

ssupertanzz · 03-02-2005, 08:57 AM

When you look at the salons that have these extremely low prices, it is in most cases a franchise which the franchisee has no control on pricicng it is set by the franchisor who could not care less about the franchisee if they make money or not, or salons that have no idea what they are doing by charging $2 tans or $14.99 a month, how they maintain Lease/lamp changes/ expenses/payroll etc..I have no idea, in the end they make it difficult for the professional salon to charge prices accordingly.

fashiontan · 03-02-2005, 09:08 AM

You know, I used to cringe at giving away a free visit. Now I will soon have to (and I say HAVE to because customers have actually been asking for it) do a free tan weekend. With all the competition in the area and the FTWs, all the veteran "bottom feeders" can probably tan a whole season without paying a dime.

Sherin · 03-02-2005, 09:29 AM

With all of the FTW's, is it any wonder the customers are always looking for a deal or a special? I had another one come in and say she could get 40 ultrabronze tans for $100.00.
When I asked why she was not tanning there any longer, she said..."They were rude & because they changed their prices to 10 UltraBronze tans for $100.00...Why should I pay $100 for 10 when I can get 40 for $100? When I asked why they changed their prices, she stated that they said they were a lot busier now and they could get more money? When I agreed, she left.

Greg, did you mean Increased completion or competition?

Soakinuptherays · 03-02-2005, 09:32 AM

thanks, spelling disorder

Neon Beach · 03-02-2005, 09:54 AM

Quote:
On 2005-03-02 09:08:00, fashiontan wrote:
You know, I used to cringe at giving away a free visit. Now I will soon have to (and I say HAVE to because customers have actually been asking for it) do a free tan weekend. With all the competition in the area and the FTWs, all the veteran "bottom feeders" can probably tan a whole season without paying a dime.

I love it!!

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03-02-2005, 08:26 AM	#1 (permalink)
Soakinuptherays I love Derf!! Join Date: Oct 19 2000 Location: Tampa, Florida Posts: 1,160 Rep Power: 24	The reality is the indoor tanning industry has changed forever: * Higher gas prices * Little to no wage increases * International outsourcing * Increasing intrest rates that increase credit card payments * The post 911 economy, * Increased Competition The result is salon owners need to look for ways to reduce their overhead/business costs while still providing the best tanning experience. _________________ [ This Message was edited by: Soakinuptherays on 2005-03-02 08:44 ][ This Message was edited by: Soakinuptherays on 2005-03-02 09:32 ]

03-02-2005, 08:39 AM	#2 (permalink)
fashiontan Join Date: Mar 30 2004 Location: Washington Posts: 204 Rep Power: 21	True. So why have tanning prices continued to plummet? I'm seeing months for $14.99 & $19.95 with no contracts. This was unheard (in my market) just three years ago. I don't get it...

03-02-2005, 08:39 AM	#3 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	You got that right!

03-02-2005, 08:46 AM	#4 (permalink)
Soakinuptherays I love Derf!! Join Date: Oct 19 2000 Location: Tampa, Florida Posts: 1,160 Rep Power: 24	Quote: True. So why have tanning prices continued to plummet? I'm seeing months for $14.99 & $19.95 with no contracts. This was unheard (in my market) just three years ago. I don't get it... It is simple: Salon owners are deperate to do anything for revenue. [ This Message was edited by: Soakinuptherays on 2005-03-02 08:47 ]

03-02-2005, 08:51 AM	#5 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	Like free tan weekends??

03-02-2005, 08:57 AM	#6 (permalink)
ssupertanzz Join Date: Dec 13 2004 Posts: 53 Rep Power: 0	When you look at the salons that have these extremely low prices, it is in most cases a franchise which the franchisee has no control on pricicng it is set by the franchisor who could not care less about the franchisee if they make money or not, or salons that have no idea what they are doing by charging $2 tans or $14.99 a month, how they maintain Lease/lamp changes/ expenses/payroll etc..I have no idea, in the end they make it difficult for the professional salon to charge prices accordingly.

03-02-2005, 09:08 AM	#7 (permalink)
fashiontan Join Date: Mar 30 2004 Location: Washington Posts: 204 Rep Power: 21	You know, I used to cringe at giving away a free visit. Now I will soon have to (and I say HAVE to because customers have actually been asking for it) do a free tan weekend. With all the competition in the area and the FTWs, all the veteran "bottom feeders" can probably tan a whole season without paying a dime.

03-02-2005, 09:29 AM	#8 (permalink)
Sherin I love Derf!! Join Date: Aug 10 2004 Location: Puget Sound Posts: 2,870 Rep Power: 24	With all of the FTW's, is it any wonder the customers are always looking for a deal or a special? I had another one come in and say she could get 40 ultrabronze tans for $100.00. When I asked why she was not tanning there any longer, she said..."They were rude & because they changed their prices to 10 UltraBronze tans for $100.00...Why should I pay $100 for 10 when I can get 40 for $100? When I asked why they changed their prices, she stated that they said they were a lot busier now and they could get more money? When I agreed, she left. Greg, did you mean Increased completion or competition?

03-02-2005, 09:32 AM	#9 (permalink)
Soakinuptherays I love Derf!! Join Date: Oct 19 2000 Location: Tampa, Florida Posts: 1,160 Rep Power: 24	thanks, spelling disorder

03-02-2005, 09:54 AM	#10 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	Quote: On 2005-03-02 09:08:00, fashiontan wrote: You know, I used to cringe at giving away a free visit. Now I will soon have to (and I say HAVE to because customers have actually been asking for it) do a free tan weekend. With all the competition in the area and the FTWs, all the veteran "bottom feeders" can probably tan a whole season without paying a dime. I love it!!

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