need help pricing new shop! - Page 3 - tanTALK

peach · 08-01-2014, 08:53 PM

Quote:

Originally Posted by delany

The chains are expanding because all the mom and pop salons are closing since we couldn't compete with 18.88 a month tanning. for every 6 salons that close, a chain may open one in the area. I know our biggest chain hasn't opened a location in a few years, but I have seen about 15 salons min close in the last 3 years

There is a difference between "expansion" and "cannibalism". This is cannibalism. These large companies are not expanding the tanning industry, they are gobbling up competitors, taking over some, paying others to simply leave the business.

It is the law of supply and demand; when demand falls, for a good or service, supply has to fall as well.

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