bed utilization?? - tanTALK

newtantan · 06-08-2006, 04:56 PM

i am working together with some great biz partners and we are opening a tanning salon. we are new to this business but are working with some great "mentors". i was hoping to get some feedback from others to help us in out business plan. our mentors have been very successful so everything they tell us sounds wonderful but we want to be VERY conservative in our numbers before deciding to take the plunge.

What % bed utilization should we plan for our first year (goal to open in november)?

We plan on having Level 1, Level 2, Level 3 and a Mystic. What percent of our business will be from each bed?

How soon before we open should we start advertising?
We plan on advertising all year but which months should we focus the largest buget?

bodyglow · 06-09-2006, 04:07 PM

The numbers we received for bed utilization in upper midwest for the first year were as follows:

Nov- 17%
Dec- 17%
Jan- 25%
Feb- 35%
Mar- 40%
Apr- 45%
May- 45%
Jun- 35%
July- 15%
Aug- 10%
Sep- 10%

On our business plan, we didn't do a percent per bed but rather took an average session price and multiplied that by our estimated total sessions per month.

I'd like to hear from others as well on utilization estimates.

Steve Underhill · 06-12-2006, 11:25 AM

If you are concerned about percentage of equipment utilization I am very concerned. I am not sure who your mentors are but if you have a current marketing plan that is proven in this industry, you should be more concerned with your demographic profile, equipment mix and salon size. If you are going to sell sessions you will be concerned with individual equipment use. You will also be a low income producing salon. If you are properly structured selling Memberships, and point or credit packages you will have a great deal more success. In order to make projections. I use a formula that was derived of salons across the country using this type to marketing. It is proven to be a very accurate source for income projections and market evaluation.

There should be no guess work in this industry, always know what the result will be if you follow a specific plan.

newtantan · 06-12-2006, 11:30 AM

Steve, thanks!! What is that formula?

Tanzenite · 06-12-2006, 01:42 PM

Who are your "mentors"?

newtantan · 06-12-2006, 01:44 PM

a couple in another market similar to ours with two tanning salons so far.

BigLeo · 06-14-2006, 10:45 AM

Steve is right. you need new mentors. dump them as quickly as you can. how many potential tanners are there? how many competitors there are? average price being charged. what are the demographics of those consumers? what is your plan to compete in that market? location, location, location. in this business stupidity can kill you.

newtantan · 06-14-2006, 11:38 AM

OK, not much positive feedback. We have done lots of demographic research in our area for our location. We have several advertising ideas, cross-promtional ideas and branding ideas. We have what we believe to be in demand for our location in bed mix and a great system for package pricing and push promotions. It was just a simple question of bed utilization to get an idea of what peoples busiest months are. I know this is a seasonal business and I was just trying to decide a couple of things and thought I would ask.

Bodyglo thanks for the input.

Steve, from what I read your a sales rep or distributor with TanAmerica and help lots of people get started in this business as do all of the sales reps. I value any information you can give me as far as formulas.

BigLeo, from what I read you sell TanPlan which I don't need. Nor do I need new mentors. I was just asking a simple question out of curiosity so I can look at this business from every angle possible. I know it is all a numbers game. People in your demographic, around your location, how many advertised to, how many times you advertise to before they react and what makes them react. I am trying to set some goals for us and thought this might be another angle to look it. I am not stupid but thanks for your concern. I am just a go getter that is excited about our new salon and entry into a biz I know will be hard work but fun if done right.

West Side Tanner · 06-14-2006, 11:54 AM

All "FREE" advice!

bodyglow · 06-14-2006, 02:26 PM

You go, NewTan!!

You're welcome for the %'s - I am doing the same as you - trying to analyze things from many different angles.

Good luck to you!!

06-08-2006, 04:56 PM	#1 (permalink)
newtantan Join Date: Jun 5 2006 Posts: 5 Rep Power: 0	bed utilization?? i am working together with some great biz partners and we are opening a tanning salon. we are new to this business but are working with some great "mentors". i was hoping to get some feedback from others to help us in out business plan. our mentors have been very successful so everything they tell us sounds wonderful but we want to be VERY conservative in our numbers before deciding to take the plunge. What % bed utilization should we plan for our first year (goal to open in november)? We plan on having Level 1, Level 2, Level 3 and a Mystic. What percent of our business will be from each bed? How soon before we open should we start advertising? We plan on advertising all year but which months should we focus the largest buget?

06-09-2006, 04:07 PM	#2 (permalink)
bodyglow Join Date: May 22 2006 Location: Minnesota Posts: 55 Rep Power: 0	Re: bed utilization?? The numbers we received for bed utilization in upper midwest for the first year were as follows: Nov- 17% Dec- 17% Jan- 25% Feb- 35% Mar- 40% Apr- 45% May- 45% Jun- 35% July- 15% Aug- 10% Sep- 10% On our business plan, we didn't do a percent per bed but rather took an average session price and multiplied that by our estimated total sessions per month. I'd like to hear from others as well on utilization estimates.

06-12-2006, 11:25 AM	#3 (permalink)
Steve Underhill Join Date: Apr 21 2004 Location: Frisco, TX Posts: 1,502 Rep Power: 21	Re: bed utilization?? If you are concerned about percentage of equipment utilization I am very concerned. I am not sure who your mentors are but if you have a current marketing plan that is proven in this industry, you should be more concerned with your demographic profile, equipment mix and salon size. If you are going to sell sessions you will be concerned with individual equipment use. You will also be a low income producing salon. If you are properly structured selling Memberships, and point or credit packages you will have a great deal more success. In order to make projections. I use a formula that was derived of salons across the country using this type to marketing. It is proven to be a very accurate source for income projections and market evaluation. There should be no guess work in this industry, always know what the result will be if you follow a specific plan.

06-12-2006, 11:30 AM	#4 (permalink)
newtantan Join Date: Jun 5 2006 Posts: 5 Rep Power: 0	Re: bed utilization?? Steve, thanks!! What is that formula?

06-12-2006, 01:42 PM	#5 (permalink)
Tanzenite Don't you dare! Join Date: Jun 2 2005 Posts: 1,816 Rep Power: 30	Re: bed utilization?? Who are your "mentors"?

06-12-2006, 01:44 PM	#6 (permalink)
newtantan Join Date: Jun 5 2006 Posts: 5 Rep Power: 0	Re: bed utilization?? a couple in another market similar to ours with two tanning salons so far.

06-14-2006, 10:45 AM	#7 (permalink)
BigLeo Join Date: Jan 27 2005 Posts: 251 Rep Power: 20	Re: bed utilization?? Steve is right. you need new mentors. dump them as quickly as you can. how many potential tanners are there? how many competitors there are? average price being charged. what are the demographics of those consumers? what is your plan to compete in that market? location, location, location. in this business stupidity can kill you.

06-14-2006, 11:38 AM	#8 (permalink)
newtantan Join Date: Jun 5 2006 Posts: 5 Rep Power: 0	Re: bed utilization?? OK, not much positive feedback. We have done lots of demographic research in our area for our location. We have several advertising ideas, cross-promtional ideas and branding ideas. We have what we believe to be in demand for our location in bed mix and a great system for package pricing and push promotions. It was just a simple question of bed utilization to get an idea of what peoples busiest months are. I know this is a seasonal business and I was just trying to decide a couple of things and thought I would ask. Bodyglo thanks for the input. Steve, from what I read your a sales rep or distributor with TanAmerica and help lots of people get started in this business as do all of the sales reps. I value any information you can give me as far as formulas. BigLeo, from what I read you sell TanPlan which I don't need. Nor do I need new mentors. I was just asking a simple question out of curiosity so I can look at this business from every angle possible. I know it is all a numbers game. People in your demographic, around your location, how many advertised to, how many times you advertise to before they react and what makes them react. I am trying to set some goals for us and thought this might be another angle to look it. I am not stupid but thanks for your concern. I am just a go getter that is excited about our new salon and entry into a biz I know will be hard work but fun if done right.

06-14-2006, 11:54 AM	#9 (permalink)
West Side Tanner Join Date: Dec 27 2003 Location: Florida Posts: 1,818 Rep Power: 21	Re: bed utilization?? All "FREE" advice!

06-14-2006, 02:26 PM	#10 (permalink)
bodyglow Join Date: May 22 2006 Location: Minnesota Posts: 55 Rep Power: 0	Re: bed utilization?? You go, NewTan!! You're welcome for the %'s - I am doing the same as you - trying to analyze things from many different angles. Good luck to you!!

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