New salon in Dec/2002 - tanTALK

ksritz · 03-08-2002, 11:20 AM

Hello everyone, I'm new to this board, so bare w/me. I'm going to lay it all out there.
We are wanting to open a new salon in a small midwestern town in Illinois. Pop-about 5000. 2 highschools w/about 1700 total enrollment. There are numerous smaller towns dotted 2,3,4 miles away from us. We are somewhat "The hub". There is some competitionwithin our town(about 4 hair salons with a bed or 2 each, no staff, never change bulbs,dirty, and you have to clean beds yourself.Their prices are also very low-$2-3-4 per session on 20 min beds) We would be the only full service tanning salon in about 15-20 miles. A few people have recommended only 2 levels of beds since it may be hard to convince our customers on upgrades. We are thinking 4-6 beds total for now, to see what kind of traffic we get. We were thinking 3-4 base beds and 2 upgrades. Is 3-4k for base beds too cheap? I don't want to end up with ETS.
Any recommendations or advice for our situation would be greatly appreciated.

Tan Talker · 03-08-2002, 12:56 PM

You seem to be in the best position to educate your clients to the fact that if they want great service, clean beds, and quality products, they will be paying for it. To make a profit and stay profitable you will have to charge a min. of $7 a session and up to a dollar a minute for upgrades. Product prices should also represent your stance on quality.
Jim
Welcome aboard

Chippp · 03-08-2002, 01:44 PM

I hate to say it but most people want the cheapest they can find. You will get people that want something better but they are not the largest number.
Don't price your self out of your market.
Stat with cheaper units at lower prices then get a few better units and set them with higer prices see what your market can support.

If the people in your area don't have a large disposible income you can't pry the money out of them.

If people in your area do have money to blow get the best and charge for it.

neon · 03-09-2002, 02:15 PM

I am not affiliated with them, but you may be interested in looking into an Ergoline Signature Salon. They will look at your demographics and help you with a business plan, finance your beds, and give suggestions on pricing.

I do agree with Chippp that you don't want to jump way over what other people charge, but still remember that people get what they pay for. You can charge more. I do and I'm doing very well so far.

Open five months and counting!

shallee

JeffinKC · 03-09-2002, 03:31 PM

You should find a distributor who will work with you to determine a good mix of equipment. There are many factors to consider when choosing equipment including demographics, houshold income, and competition. If you have other cheap alternatives in town you may try to offer a more exspensive higher quality alternative.
If your distributor isn't willing and able to help you every step of the way then I would advise finding someone else.
Also as I said on another post I would encourage you to tan on the equipment before you make a purchase that you will regret.
I'm in Kansas City and you are always welcome to come by and try the beds for yourself.
[ This Message was edited by: JeffinKC on 2002-03-09 15:33 ]

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03-08-2002, 11:20 AM	#1 (permalink)
ksritz Join Date: Mar 8 2002 Posts: 3 Rep Power: 0	Hello everyone, I'm new to this board, so bare w/me. I'm going to lay it all out there. We are wanting to open a new salon in a small midwestern town in Illinois. Pop-about 5000. 2 highschools w/about 1700 total enrollment. There are numerous smaller towns dotted 2,3,4 miles away from us. We are somewhat "The hub". There is some competitionwithin our town(about 4 hair salons with a bed or 2 each, no staff, never change bulbs,dirty, and you have to clean beds yourself.Their prices are also very low-$2-3-4 per session on 20 min beds) We would be the only full service tanning salon in about 15-20 miles. A few people have recommended only 2 levels of beds since it may be hard to convince our customers on upgrades. We are thinking 4-6 beds total for now, to see what kind of traffic we get. We were thinking 3-4 base beds and 2 upgrades. Is 3-4k for base beds too cheap? I don't want to end up with ETS. Any recommendations or advice for our situation would be greatly appreciated.

03-08-2002, 12:56 PM	#2 (permalink)
Tan Talker Join Date: Jan 18 2002 Location: Lake Mary, Florida Posts: 1,274 Rep Power: 23	You seem to be in the best position to educate your clients to the fact that if they want great service, clean beds, and quality products, they will be paying for it. To make a profit and stay profitable you will have to charge a min. of $7 a session and up to a dollar a minute for upgrades. Product prices should also represent your stance on quality. Jim Welcome aboard

03-08-2002, 01:44 PM	#3 (permalink)
Chippp Join Date: Apr 19 2001 Posts: 2,262 Rep Power: 24	I hate to say it but most people want the cheapest they can find. You will get people that want something better but they are not the largest number. Don't price your self out of your market. Stat with cheaper units at lower prices then get a few better units and set them with higer prices see what your market can support. If the people in your area don't have a large disposible income you can't pry the money out of them. If people in your area do have money to blow get the best and charge for it.

03-09-2002, 02:15 PM	#4 (permalink)
neon Join Date: Oct 21 2001 Posts: 667 Rep Power: 23	I am not affiliated with them, but you may be interested in looking into an Ergoline Signature Salon. They will look at your demographics and help you with a business plan, finance your beds, and give suggestions on pricing. I do agree with Chippp that you don't want to jump way over what other people charge, but still remember that people get what they pay for. You can charge more. I do and I'm doing very well so far. Open five months and counting! shallee

03-09-2002, 03:31 PM	#5 (permalink)
JeffinKC Join Date: Apr 21 2001 Posts: 418 Rep Power: 24	You should find a distributor who will work with you to determine a good mix of equipment. There are many factors to consider when choosing equipment including demographics, houshold income, and competition. If you have other cheap alternatives in town you may try to offer a more exspensive higher quality alternative. If your distributor isn't willing and able to help you every step of the way then I would advise finding someone else. Also as I said on another post I would encourage you to tan on the equipment before you make a purchase that you will regret. I'm in Kansas City and you are always welcome to come by and try the beds for yourself. [ This Message was edited by: JeffinKC on 2002-03-09 15:33 ]

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