azjester

hehe- thought that'd get your attention. While reading posts the last few days, many people have said that if they could do it all over again, they'd build a much larger salon. Here in Phoenix, I've never seen a salon larger than 10 or 12 beds. I wonder if there's a reason for that, or, why people haven't built a 20 or 30 bed salon here? Reading these posts makes it seem as if some of you have a 'if you build it they will come' mentality in reference to the salon size.

Will a larger salon naturally draw in and attract more clientele'? Obviously, you gotta have the demographics to support it, have a nicely run business, and market/advertise the **** out of it. But- my business expereience says that just because I build it doesn't mean they'll do better financially. Can someone shed some insight to this for me? Again, most the salons here in Phoenix are 10 beds or so- there's gotta be a reason for that. IF the demographics/market analysis and financials support it, is there a reason NOT TO do a larger salon?

I appreciate any insights you can share...
Thanks
D

sunsally

Size matters for a few reasons:

1. Economies of scale. Within reason, a 14 bed salon can be the same labor costs as a 6 bed with only slightly more cost in rent, electricity etc - and MUCH greater revenue potential!

2. Revenue potential. Tanners expect a "base bed", and you need that level to lure people to your salon (often using them as "loss leaders" or price match beds compared to competition). These don't pay the bills. As your salon size increases, can add "levels" of tanning. Minimum of 3 levels would be recommended - base bed, a 2nd level probably with a few more lamps and probably higher wattage on the top, MAYBE facials and then a 3rd level with more lamps, higher wattage all the way around, facials, possible other bells and whistles (shoulder tanners, A/C,...).

In a slightly bigger salon, can add more revenue producing/competitive niche defining equipment - high pressure tanning, sunless tanning, etc.

I wouldn't consider a salon with fewer than 10 beds today. 15-20 would be much safer and have much greater risk of surviving competitive challenges (all this assuming a proper bed mix, good location, reasonable rent, etc of course). Over 20+ beds and you are in small company with a few of the bigger "mega stores" - some chains/franchises, some independent. Probably a big chunk to bite off with your very first foray into the industry, but with the right location and guidance it COULD make sense.

If there are none in Phoenix bigger than 10-12 beds now, expect them to be coming soon, and probably well-funded and formidable!

azjester

This TOTALLY makes sense to me. Thank you for posting. Let me ask you this- on the backend then, when is a salon TOO large (taking away the demographics aspect, etc etc).

sunsally

Too large depends on your area, demographics, level of saturation, and planned "model" of salon.

There are successful 40-50 unit salons - including some that post on this forum. Not seen/heard of many over 50. Typically there FIRST store wasn't 40-50 --- they got bigger as they gained the reputation within a market and then got bigger and captured it.

Over 50 and you are probably just looking at a need for more than one rather than one even bigger one. At that point I'd probably put two 40 bed salons up in different traffic areas instead.

azjester

omg! 50 bed salons! WOW! That's impressive! What kind of demographics, saturation, etc etc do you need for THAT to be successful?

I think that is definitely out of my league, but, would love to do about 1/2 that right away- obviously considering that it's in the demographics, etc etc etc.

missmojorising

Phoenix and the surrounding areas have a tanning salon in every strip mall it seems like...the prospect of that area growing ever bigger has strong potential--this should mean new neighborhoods where there will be more strip malls and more potential tanners.

azjester

Oh yes- Phoenix is rapidly growing right now- in all directions, which is why I think there might be some room for a new salon. Yes, there's many others, but, there's also a ton more rooftops each week too. In fact, the rooftops are coming in MUCH faster than the commercial industries can handle. I don't know which demographics to look for yet (could someone post some for me?), but I'd be very interested in doing a larger salon here. I just don't know how to determine if that will survive the market here. Any suggestions for that?
Thanks
D

TotalEclipse

AZ....I do not own one of the 50 beds salons, but I run one of them. Independently owned...not franchised. Some of the demographics you'll want to look into are the population around your store, the population of people that are in the prime tanning market age, (tends to be 22-45 for us, and the age group that spends the most is the 25-35) the number of other tanning salons (no matter their size) within 3, 5, and 10 miles of your prospective salon, longevity of salons in your area (are they still in business, or have they been bought out/sold out/gone out of business already) median income in the area of your salon, rent in the area, etc, etc. That should keep you plenty busy while others post on here with more demographics you can pull.

25 beds is a great # to have...enough beds to make it to where you won't have much of a wait (if any) which is a great marketing tool (no wait!!), but few enough for someone just starting out in the business to not go too nutty with all the details.

sunkissedtan

Yes, size does matter!!!! hehe