This is the future - Page 2 - tanTALK

Black Sun · 05-01-2014, 03:08 PM

Not shocking #'s...I have been saying on this forum for 4 years, it takes deep pockets to open today, franchise or non-franchise...on all these newbe questions seeking advice, I always reply, it takes at least $350K to open and sustain until a profit is realized...

It takes that much to compete and be competitive..to be the salon others want to be

uts-sj · 05-01-2014, 03:24 PM

Okay, so we can agree for a new owner to enter the market with a vanilla space, it will take deep pockets.

So, is that fact in itself, destroying the industry for the rest of us?

peach · 05-02-2014, 05:27 AM

Quote:

Originally Posted by uts-sj

It's admirable to take on the mantle of saving the industry, but I still don't see how an owner over spending on a tanning salon following a crazy model affects your salon.

Are you saying that a client who overspends on spaceships at a PBT 5 miles away from your salon will eventually leave that salon and leave the tanning industry forever and never have the idea of going to your salon who kept things steady, consistent, good tans, good customer service?

In the short run, it doesn't. But, I am an educated economist. I know that what effects my industry will eventually effect me. If this industry becomes so gimmicky and expensive that the middle class cannot afford it, they will form opinions about the tanning industry that will effect their buying and spending habits.

They will choose to avoid tanning salons in favor of the alternatives of home units and other businesses such as gyms and the internet (lotions). Also, I fear that salon ownership will become unaffordable for the average person; some of you think that that is OK, but it is not.Concentration of wealth in the tanning industry in the hands of a few will make this industry's problems worse, not better.

Look, I have started tanning salons from scratch for less than the PBT's franchise fee. I know tanning; I've been doing it for 22 years. But there aren't a lot of me's left in the industry. That ability will be lost when we are gone. That is why I bother to get on this site. To let people know that they can still get in this industry, without spending 500k and going broke.

But you would be surprised how many people in this industry want me to shut up and go away.

Black Sun · 05-02-2014, 05:29 AM

Long gone are the salons with plastic flamingos, plastic palm trees, neon signs that blast "HOT BULBS", worn-out beach themes, offering 28 and 32 lampers...tho some, and probably more than known, still exist.

I have been preaching from the old TanFormation.com days, that the tanner of the future, and now here today, is of a sophisticated class. They expect luxury with that quick tan..they want a more spa-like environment. The industry answered over the years with high-price lotions and high-priced equipment. It all comes with a high-price start-up expense, and deep pockets to sustain. Look at the most successful salons, franchises and local multi owned salons. They are more a spa, or close to it, than just tanning. They have learned to diversify and give what a growing and demanding demographics has been, and will continue, to demand...

The industry, IMO, is not destroying itself, but weaning out those w/o the deep pockets, and only making survival possible for those who have them.

peach · 05-02-2014, 05:39 AM

Quote:

Originally Posted by Black Sun

Long gone are the salons with plastic flamingos, plastic palm trees, neon signs that blast "HOT BULBS", worn-out beach themes, offering 28 and 32 lampers...tho some, and probably more than known, still exist.

I have been preaching from the old TanFormation.com days, that the tanner of the future, and now here today, is of a sophisticated class. They expect luxury with that quick tan..they want a more spa-like environment. The industry answered over the years with high-price lotions and high-priced equipment. It all comes with a high-price start-up expense, and deep pockets to sustain. Look at the most successful salons, franchises and local multi owned salons. They are more a spa, or close to it, than just tanning. They have learned to diversify and give what a growing and demanding demographics has been, and will continue, to demand...

The industry, IMO, is not destroying itself, but weaning out those w/o the deep pockets, and only making survival possible for those who have them.

Sorry, but, I could not disagree with you more. The tanning industry DID NOT respond to discriminating, sophisticated customers, they responded to a small group of millionaires that wanted to corner the indoor tanning market and wipe out all of the local competition. Ala Walmart.

My customers are $500 a week factory workers. They want an honest service for a fair price. They are not getting it at PBT. That is why I still exist and will continue to exist. PS- I have no flamingos in my store ;)

Steve Underhill · 05-02-2014, 10:16 AM

Quote:

Originally Posted by Black Sun

Long gone are the salons with plastic flamingos, plastic palm trees, neon signs that blast "HOT BULBS", worn-out beach themes, offering 28 and 32 lampers...tho some, and probably more than known, still exist.

I have been preaching from the old TanFormation.com days, that the tanner of the future, and now here today, is of a sophisticated class. They expect luxury with that quick tan..they want a more spa-like environment. The industry answered over the years with high-price lotions and high-priced equipment. It all comes with a high-price start-up expense, and deep pockets to sustain. Look at the most successful salons, franchises and local multi owned salons. They are more a spa, or close to it, than just tanning. They have learned to diversify and give what a growing and demanding demographics has been, and will continue, to demand...

The industry, IMO, is not destroying itself, but weaning out those w/o the deep pockets, and only making survival possible for those who have them.

Now here is a person that understands that todays consumer is more educated, even the middle class. With tanning as well as all consumer products and services the consumer expects better products and a better experience. Why do you think people keep standing in line for the new Iphone or Samsung product. The promise that it is better.

The thinking that consumers and what consumers spend money on should not improve and those improvements will kill an industry is narrow minded and in fact the kind of thinking that will leave you behind.

Yes this industry like all industries is going through a thinning out process. The point is you and your salon does not have to be a casualty. It is time to restore and modify if you want to continue to grow in an evolving world. The business model that works today will again have to change in the future. We are constantly evolving.

peach · 05-02-2014, 10:33 AM

Quote:

Originally Posted by Steve Underhill

Now here is a person that understands that todays consumer is more educated, even the middle class. With tanning as well as all consumer products and services the consumer expects better products and a better experience. Why do you think people keep standing in line for the new Iphone or Samsung product. The promise that it is better.

The thinking that consumers and what consumers spend money on should not improve and those improvements will kill an industry is narrow minded and in fact the kind of thinking that will leave you behind.

Yes this industry like all industries is going through a thinning out process. The point is you and your salon does not have to be a casualty. It is time to restore and modify if you want to continue to grow in an evolving world. The business model that works today will again have to change in the future. We are constantly evolving.

Yes, a 10 year thinning out process. I wish that people were as interested in tanning as they were their cell phones. And, I don't know what middle class you are talking about. The middle class that I service cannot afford $35 tanning sessions and $100 bottles of lotion.

Steve Underhill · 05-02-2014, 10:33 AM

Lets also clear something up. A large portion of salons today are dirty, run down and look like it is run by a hoarder.

The cost of cleaning a salon up, a fresh coat of paint, get rid of trinkets and junk sitting around, creating a buying environment, training yourself and staff and putting a logo shirt on them, upgrading your price structure and advertising using social media and email is not a major expense but goes a long way in creating more of what a tanner is willing to spend money on.

You do not have to spend a great deal of money to make a salon you already own more productive. We do it every day and instead of sales declining every month they start to increase every month. You are not all competing with $350K salons.

These salons chains have different levels of salons depending on the market. Where they overpower existing operators is they are clean, freshly painted with a proven business model. That formula can be adopted by any salon.

For a salon do be successful you must first look like you care and provide a great product, visually and in results.

I go into markets where 2 or 3 salons are competing and they are all dumps. All it takes is for one of them to put a new face on their salon and improve the overall product and suddenly they become the standard in the market. None of this cost $350K.

peach · 05-02-2014, 10:43 AM

Quote:

Originally Posted by Steve Underhill

Lets also clear something up. A large portion of salons today are dirty, run down and look like it is run by a hoarder.

The cost of cleaning a salon up, a fresh coat of paint, get rid of trinkets and junk sitting around, creating a buying environment, training yourself and staff and putting a logo shirt on them, upgrading your price structure and advertising using social media and email is not a major expense but goes a long way in creating more of what a tanner is willing to spend money on.

You do not have to spend a great deal of money to make a salon you already own more productive. We do it every day and instead of sales declining every month they start to increase every month. You are not all competing with $350K salons.

These salons chains have different levels of salons depending on the market. Where they overpower existing operators is they are clean, freshly painted with a proven business model. That formula can be adopted by any salon.

For a salon do be successful you must first look like you care and provide a great product, visually and in results.

I go into markets where 2 or 3 salons are competing and they are all dumps. All it takes is for one of them to put a new face on their salon and improve the overall product and suddenly they become the standard in the market. None of this cost $350K.

Are those "dumps" the ones on this site selling their equipment?

uts-sj · 05-02-2014, 12:05 PM

I guess we will have to disagree on two points:
1. Ownership being unaffordable is not a bad thing.

And I am specifically talking about a new owner opening a new salon that has never been tanning before. I keep bringing up this type of salon because I don't see how that type of salon not existing anymore is hurting the industry. Existing salons needing revamping, existing successful salons who want to buy 50K equipment for tax write offs, chains running EFT only plans selling $100 bottles...not a problem.

2. Clients being ripped off by "expensive" eft plans and paying $100 for lotion will not cause them to leave the tanning industry.

Oh wait, yes they will if there is not an alternative or the alternative is not marketing to them.

So the question is, if you are the alternative, then why aren't you marketing to them?

05-01-2014, 03:08 PM	#11 (permalink)
Black Sun Join Date: Nov 19 2010 Location: GA Posts: 933 Rep Power: 14	Re: This is the future Not shocking #'s...I have been saying on this forum for 4 years, it takes deep pockets to open today, franchise or non-franchise...on all these newbe questions seeking advice, I always reply, it takes at least $350K to open and sustain until a profit is realized... It takes that much to compete and be competitive..to be the salon others want to be

05-01-2014, 03:24 PM	#12 (permalink)
uts-sj Join Date: Aug 21 2007 Location: San Jose, CA Posts: 155 Rep Power: 17	Re: This is the future Okay, so we can agree for a new owner to enter the market with a vanilla space, it will take deep pockets. So, is that fact in itself, destroying the industry for the rest of us?

05-02-2014, 05:29 AM	#14 (permalink)
Black Sun Join Date: Nov 19 2010 Location: GA Posts: 933 Rep Power: 14	Re: This is the future Long gone are the salons with plastic flamingos, plastic palm trees, neon signs that blast "HOT BULBS", worn-out beach themes, offering 28 and 32 lampers...tho some, and probably more than known, still exist. I have been preaching from the old TanFormation.com days, that the tanner of the future, and now here today, is of a sophisticated class. They expect luxury with that quick tan..they want a more spa-like environment. The industry answered over the years with high-price lotions and high-priced equipment. It all comes with a high-price start-up expense, and deep pockets to sustain. Look at the most successful salons, franchises and local multi owned salons. They are more a spa, or close to it, than just tanning. They have learned to diversify and give what a growing and demanding demographics has been, and will continue, to demand... The industry, IMO, is not destroying itself, but weaning out those w/o the deep pockets, and only making survival possible for those who have them.

05-02-2014, 10:33 AM	#18 (permalink)
Steve Underhill Join Date: Apr 21 2004 Location: Frisco, TX Posts: 1,502 Rep Power: 21	Re: This is the future Lets also clear something up. A large portion of salons today are dirty, run down and look like it is run by a hoarder. The cost of cleaning a salon up, a fresh coat of paint, get rid of trinkets and junk sitting around, creating a buying environment, training yourself and staff and putting a logo shirt on them, upgrading your price structure and advertising using social media and email is not a major expense but goes a long way in creating more of what a tanner is willing to spend money on. You do not have to spend a great deal of money to make a salon you already own more productive. We do it every day and instead of sales declining every month they start to increase every month. You are not all competing with $350K salons. These salons chains have different levels of salons depending on the market. Where they overpower existing operators is they are clean, freshly painted with a proven business model. That formula can be adopted by any salon. For a salon do be successful you must first look like you care and provide a great product, visually and in results. I go into markets where 2 or 3 salons are competing and they are all dumps. All it takes is for one of them to put a new face on their salon and improve the overall product and suddenly they become the standard in the market. None of this cost $350K. __________________ Stephen Underhill Consultant steve@smuconsulting.com

05-02-2014, 12:05 PM	#20 (permalink)
uts-sj Join Date: Aug 21 2007 Location: San Jose, CA Posts: 155 Rep Power: 17	Re: This is the future I guess we will have to disagree on two points: 1. Ownership being unaffordable is not a bad thing. And I am specifically talking about a new owner opening a new salon that has never been tanning before. I keep bringing up this type of salon because I don't see how that type of salon not existing anymore is hurting the industry. Existing salons needing revamping, existing successful salons who want to buy 50K equipment for tax write offs, chains running EFT only plans selling $100 bottles...not a problem. 2. Clients being ripped off by "expensive" eft plans and paying $100 for lotion will not cause them to leave the tanning industry. Oh wait, yes they will if there is not an alternative or the alternative is not marketing to them. So the question is, if you are the alternative, then why aren't you marketing to them?

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Future Sun	tv5049	General Tanning Industry Discussions	10	04-11-2006 02:12 AM
Future Sun HP	esrever	Tanning Equipment	1	01-17-2006 08:35 PM
Is There A HP In Your Future?	Don Smith	Tanning Salon Management	2	05-17-2002 10:22 AM