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Old 08-03-2014, 04:25 PM   #41 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

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Originally Posted by Wynwood View Post
Do you think franchisees pay the same price as the franchisor? Not in any franchise model I've seen. If you believe that, go talk to a Quizno's franchisee.

A better comparison would be in the hair cutting business. Do you think an independent hair salon is at a competitive disadvantage to Great Clips because they have 5000 salons?

My point is that the Blockbuster/Hollywood rollup has little to do with the problems in this industry. Totally different scenarios and challenges. The chains face the same problems we all do and getting a 10% better deal on lotions isn't going to overcome a government that wants to destroy our industry.
Yes, large chains have several distinct advantages; 1) name recognition,2) buying power, 3)economy of scale, 4) friends in high places.

I can explain them in more detail if you want, but they are significant, and people complain on this site everyday about a big chain that is threatening them somewhere in the US. Are all of these owners mistaken?
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Old 08-03-2014, 05:17 PM   #42 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

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Originally Posted by Dogfan View Post
Yes, large chains have several distinct advantages; 1) name recognition,2) buying power, 3)economy of scale, 4) friends in high places.

I can explain them in more detail if you want, but they are significant, and people complain on this site everyday about a big chain that is threatening them somewhere in the US. Are all of these owners mistaken?
Dog is right on...Name and buying power are two of the best advantages any franchise can expect NO MATTER what industry...no difference if a Burger King, Hair Cuttery, Dominoes Pizza, Cadillac Dealership..name and buying power will drive away competition, while being attractive to customers
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Old 08-03-2014, 09:35 PM   #43 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

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Originally Posted by Dogfan View Post
Yes, large chains have several distinct advantages; 1) name recognition,2) buying power, 3)economy of scale, 4) friends in high places.

I can explain them in more detail if you want, but they are significant, and people complain on this site everyday about a big chain that is threatening them somewhere in the US. Are all of these owners mistaken?
They're not mistaken. But if they're trying to follow a business model that worked 15 years ago and they haven't reinvested in equipment, decor, location, marketing, and training, they won't be able to compete with the big chains. If you want to play the game today, this is how its done. Has nothing to do with saving 10% or even 20% on a bottle of lotion. And equipment? Anyone buying new today is jis' plain stoopid.
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Old 08-04-2014, 07:35 AM   #44 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

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Originally Posted by Wynwood View Post
They're not mistaken. But if they're trying to follow a business model that worked 15 years ago and they haven't reinvested in equipment, decor, location, marketing, and training, they won't be able to compete with the big chains. If you want to play the game today, this is how its done. Has nothing to do with saving 10% or even 20% on a bottle of lotion. And equipment? Anyone buying new today is jis' plain stoopid.
Assuming everything else is equal, you are still at a considerable disadvantage. If a corporate franchisor wants your territory, it will get your territory. They will drop the cheap prices on you, and just wait you out. They can afford to do that. The indie that needs to turn a profit to survive cannot.

Yes, outdated salons will go, but that has already been happening; it will soon begin happening to experienced owners with nice salons; it is already happening. Look at the great equipment for sale on this site.
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Old 08-04-2014, 12:57 PM   #45 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

Quote:
Originally Posted by Dogfan View Post
Yes, large chains have several distinct advantages; 1) name recognition,2) buying power, 3)economy of scale, 4) friends in high places.

I can explain them in more detail if you want, but they are significant, and people complain on this site everyday about a big chain that is threatening them somewhere in the US. Are all of these owners mistaken?
You hear that complaint anytime a new salon comes to a market. Single salon or chain. If your salon is not of the highest standard in product and service that is marketed based on todays consumer you will not be able to compete with any salon that is structured to succeed. Typically when a chain comes to town only one location is likely to be in your actual market that extends to a 3 mile radius. Salons outside of your specific target market can't hurt you.

Trust me when I tell you that most operators are their own worst enemy.

Salon owners that are not willing to change their situation should go out of business. That is exactly what is happening. There will always be a place in this industry for new or existing tanning salon owners to be very successful. This is true for chains or single salon owners.
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Old 08-04-2014, 07:37 PM   #46 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

Does anyone know of a good website to sell my evolv heated spray tan machine?
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Old 08-04-2014, 08:29 PM   #47 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

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Originally Posted by Steve Underhill View Post
You hear that complaint anytime a new salon comes to a market. Single salon or chain. If your salon is not of the highest standard in product and service that is marketed based on todays consumer you will not be able to compete with any salon that is structured to succeed. Typically when a chain comes to town only one location is likely to be in your actual market that extends to a 3 mile radius. Salons outside of your specific target market can't hurt you.

Trust me when I tell you that most operators are their own worst enemy.

Salon owners that are not willing to change their situation should go out of business. That is exactly what is happening. There will always be a place in this industry for new or existing tanning salon owners to be very successful. This is true for chains or single salon owners.
Steve, when your personal butt is on the line, then you can tell us what its like to face competition. You can be the best salon on the planet; if a new salon moves into your area, you will lose 20-25% of your gross revenue in the 1st year, no matter what. Then you have to decide whether to take out another loan or dig into your savings to try to either improve or hang on for another year. When this multi-million dollar national competition starts dropping the $18.88 and $9.99 a month bombs on you, month after month, its hard to get comfortable with throwing more money at an industry that is shrinking and competition that you know can outlast you and will not go away.
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Old 08-12-2014, 06:53 PM   #48 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

Quote:
Originally Posted by peach View Post
Steve, when your personal butt is on the line, then you can tell us what its like to face competition. You can be the best salon on the planet; if a new salon moves into your area, you will lose 20-25% of your gross revenue in the 1st year, no matter what. Then you have to decide whether to take out another loan or dig into your savings to try to either improve or hang on for another year. When this multi-million dollar national competition starts dropping the $18.88 and $9.99 a month bombs on you, month after month, its hard to get comfortable with throwing more money at an industry that is shrinking and competition that you know can outlast you and will not go away.
You kind of said it all in this statement. To react to new competition you may have to take out a loan to make needed changes. If your salon was of the highest possible standard the new salon would not be in a position to offer a better product thus taking your tanners.

this is exactly my point, make changes when needed to make sure you offer the best possible product priced the way tanners want to pay today. If your salon has not kept pace with the consumer there is always the chance that any new salon that comes into your market will be a better choice for the tanner. This is a perfect example of having to react when the horses are already out of the barn.
My personal butt is on the line every day. I compete nationwide, I have to be on top of the industry and be in front of things or I too would not be successful. My business is always changing because I am staying in front of change. So I understand. Never be afraid to invest in yourself. The new competitor you speak of just made a major investment, a much greater investment than you need to make to keep your share of the market. You are starting with the advantage of a data base, the new salon is starting from scratch. Getting customers is easy, keeping customers is easy, getting them back after you have lost them is much harder. Take your blinders off, you need to look at the big picture. You have to spend money to make money. Every successful business is always reinvesting.
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Old 08-16-2014, 10:30 AM   #49 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

Quote:
Originally Posted by Steve Underhill View Post
You kind of said it all in this statement. To react to new competition you may have to take out a loan to make needed changes. If your salon was of the highest possible standard the new salon would not be in a position to offer a better product thus taking your tanners.

this is exactly my point, make changes when needed to make sure you offer the best possible product priced the way tanners want to pay today. If your salon has not kept pace with the consumer there is always the chance that any new salon that comes into your market will be a better choice for the tanner. This is a perfect example of having to react when the horses are already out of the barn.
My personal butt is on the line every day. I compete nationwide, I have to be on top of the industry and be in front of things or I too would not be successful. My business is always changing because I am staying in front of change. So I understand. Never be afraid to invest in yourself. The new competitor you speak of just made a major investment, a much greater investment than you need to make to keep your share of the market. You are starting with the advantage of a data base, the new salon is starting from scratch. Getting customers is easy, keeping customers is easy, getting them back after you have lost them is much harder. Take your blinders off, you need to look at the big picture. You have to spend money to make money. Every successful business is always reinvesting.
Steve

To say your butt is on the line is disingenuous. You don't have brick and mortar overhead and payroll. I doubt you even have a lease since I assume you work form home? You have no liabilities to follow you if you "quit".

There simply is no comparison and you know it.
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Old 08-20-2014, 07:46 AM   #50 (permalink)
 
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Re: Anyone use SMU Consulting to start up?

I have been saying for the last few years, "The tanning industry is fading quicker than a cheap tan'. And yes, some would consider me a negative a$$, but in reality, I am a realist.

I could bet, half the people on this site would have moved on from tanning within the next 5 years. In fact, I will say, this site will have less traffic on it as well. Not that it is a bad site, in fact, it is not. But by virtue of the lack of salon owners still in existence, support will no longer be there. The major players do not come on to theses sites, if they do, they must be very secretive about it.

And I will go on record to say, most of the tanning in existence will be via a gym..as that is where the industry is headed.

'Nuff Said.
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