TanGoddes

My name is Stephanie and I am the owner of TAN USA. It is a franchise down here in FL and I am one of the licensees. About 4 years ago, a HUGE chain called ZOOM TAN (most of you are probably familar with them) moved in and literally in 2 years has opened up over 30 locations! The owner of ZOOM TAN said that his main goal is to put all other tanning salons out of business so there would only be ZOOM TAN. He offers months at $9.99. This is what gets people in the doors. Now heres my issue. There is one across the street from me, and there is another one going up about a mile behind me. People are always looking for the best deal. Now I have hear from many many people that they are rude there and their beds are crappy but people still continue to go there for the $9.99. They only offer stand up units and they put their own covers over every unit so you cant see the actual make and model of the bed. So heres where Im struggling. What am I suppose to do? In Feb 2012 we will have had this location open for 2 years. We are doing good, but I believe that if ZOOM wasnt around we would be doing GREAT! Our other business helps keep this salon open. Even with tons of advertising and getting active in the community and even offering things other salons dont have such as personal airbrush and clothing, swimwear, sun glasses, ex., it still seems to not be enough. We have our loyal customers but we need more new people coming in the door. So heres my question. Do I try to stick it out as long as possible and see if I can make good, great? or do I just cut my losses and close this down and keep my guaranteed money making business ( which is not a salon)? I dont know what to do. I want to be smart. ZOOM TAN has a huge spending allowance for advertising. They are all over the radio stations, on the ice in the local arena, and are even printing out coupons on boarding passes!!! Its insane and small businesses cant compete with that. HELP! pLEASE!! aNY ideas as to how I can get more people in the door. I know for a FACT that we have better quality beds and have better customer service! Thank you!

toasted1

"Brown as a biscuit for $9.99!"

This is interesting....

excusemesir

What does your franchiser, Tan USA, have to say about Zoom?

sunsally

I'd recommend you read like mad - there is SO much of value on this site!

Next recommendation - stop spending time worrying about what they would or wouldn't be if they didn't exist. They DO exist. And like ANY business - they want to succeed as best they can. Part of that means less competition (and therefore more business for them). It isn't personal - it's business. So you need to figure out what "niche" you can carve out for you.

You hit the nail on the head - you need more bodies. How do you do that? You don't have the budget they do - so you can't spend MORE - you will therefore have to spend SMARTER.

1. Referrals. The most obvious and often neglected. You DO have loyal customer who CHOOSE you over them. Have THEM be out there "working it" for you. Give them $$ in upgrades for every customer they refer. Talk about it all the time. Have signs about your referral program in the rooms. Have a contest. Get creative.

2. Personally invite customers to try your salon. Bring cards wherever you go with your new customer offer* (details to follow). Pass them out to every person you encounter - the grocery clerk, bank teller, gas station worker and more. Babysitters. Donate g.c.'s to every school raffle. Etc etc etc. Make it "personal" - people like to know the owner. Cross-market with other small businesses like yourself. You help them, they help you.

3. Focus on VALUE!!!!!! I'll say it again - focus on VALUE!!!! In your opinion, they offer a low price for lousy service and crappy beds. There IS a market for that. There is also a market for a little higher price - but better beds and service. It is all about value and finding your niche. Do they only offer membership? Offer something different as well as membership - maybe week unlimiteds, or tan till the end of the year, or co-pay (search on these). Lots of options. Not everyone wants to give their cc to be charged monthly, not everyone wants the "bargain basement" place. But make sure it is REALLY a "bargain basement". Are you SURE their beds are lousy?? Are you SURE their staff is rude?? Are you SURE yours is vastly superior?? Your salon needs to be spotless, convenient, friendly, well-maintained equip, etc


*New Customer special. Make sure it is NOT "1st tan free". Do search on this topic too. I recommend a multi-visit package at an extraordinary price. And they should be using your best equipment - not your base level. This is a function of what you set up and how you pitch it. This is critical. You have to "convert" ALL the prospective customers that walk through your door into customers. You can't afford to have them try you, walk out, and later get enticed by Zoom Tan instead.



No reason to panic. But with a strong competitor - you have to work hard. Really hard!

sunlover71

I do a new client pkg. that is an unlimited month in base beds with a free tan in each of my other levels (we have 4) for $39.99 new clients love it as they get to try all of the beds to see which ones they like the best at a great price.
We here in Washington have a large franchise that is our direct competition and we have done very well even with them a few blocks away, if it was not for our property managment being horrible we would not be ending our lease.

Black Sun

I am familiar with Zoom, having read their history/growth plans for the future...it amazes me they seem to open their own salons close to each other, as in your case, one across from you, another a mile away. They seem to oversatuate even themselves, and do not understand their strategy.

Since they only offer stand-ups, it reminds me of HT..they planned on taking the industry by storm as well with only standup concept...has not been accepted to well by the public. Hold your ground and capitalize on the fact laydowns are more relaxing...based on industry stats, only 10% of tanners prefer a standup...perhaps market with that in mind..

Sadly, I see on their web that they actually say standups are cleaner and safer than laydowns...the same scare tactic used by the other standup franchise....it didn't work then, doubt it will now, but also market and emphazise your cleanliness..

I always said this was a 'cut-throat' biz, and this is proof here
Best of luck!

Brian Oshman

You are a business person. Run it like a business and read the writing on the wall. You stated that you have another business that is keeping this one going. That means that this one is not able to sustain itself and it is basically robbing the profit from the other one. What you are doing is working twice as hard for half the money and the "status" that you own two businesses.

You need to close the salon and cut your losses and focus on the other business that is profitable and grow that one. If it is capable of sustaining itself and a second ball and chain then it is a viable business that should afford full attention.

DO yourself a favor and shut down the salon and focus on your other business. The energy that you are putting into this sinking ship could and should be used to either build the other business or just spend the time you do now on the other business to maintain it and enjoy the time off from the loss leader salon that you have.

Run business as business, not with your emotions. Don't be afraid to make the right decision and close it. You will be much more profitable by doing so.

sunsally

Agree with Brian. Can't tell if your tanning salon is LOSING money - or if it is "good but not great". If it isn't making it, then you have to look at the cost of getting out (breaking your lease, loans/equip leases still due,...) vs. the cost of staying in.


Also - don't fall into the "victim" mentality. You bought into a franchise/license situation because you felt there would be "strength in numbers" and you wanted to take advantage of the name recognition etc. At one point TAN USA was one salon. Now they are licensing/franchising. ZOOM is no different. It started small --- but apparently they became successful, so they are growing. It isn't "unfair" to small businesses. It IS what business is all about! It isn't about small vs. big. It is about successful vs. unsuccessful. Do what you need to do to be successful. They will continue to try to do the same.

TanGoddes

why is this so interesting to you?

TanGoddes

This was so helpful to me! Thank you soo much!