Market Trends

Silverlake · 01-26-2006, 08:25 AM

Hi All,

I am in the middle of constructing my business plan and need some numbers on industry growth. Is there any place to find an analysis of the tanning industry in the last 3-5 years? From reading some of the posts here, it seems to be a 2-3 year up and down cycle.

Thanx in advance.

BigLeo · 01-29-2006, 12:01 PM

From what I've been reading, indoor tanning sales has been basically flat or down depending on your geographic location. The ITA recently released its salon profitability, and although this numbers may not represent the entire industry, both sales and profits were down.

Industry leaders, especially equipment manufacturers were mostly cautious about growth. Many sited the mature state of the industry and back-to-back down years.

There are a lot of reasons that were sited for the lower than expected results:

+ Weather
+ High cost of oil and resulting increases in power costs
+ Mature state of the industry - just too many tanning salons

I've been hinting at this for at least two years in my posts on this forum so my best adice is to remain cautious. There is a lot of industry conslidation, and it has been mentioned in some articles that I read that as many as 30% of new tanning salons opened in 20904 went into the tank last year.

My advice is to not depend on tanning sales as your only source of income. the key word is diversification. Offer ancillary products and services. Position yourself as a spa. Include massage, day spa, skin care products, health supplements and other products and services that compliment tanning.

Good luck to you in your new salon. Get yourself a good consultant who can give you a helping hand.

Steve Underhill · 02-03-2006, 10:59 AM

Equipment sales may be down one year over another, however as I have said over and over again. If your salon is opened and operated using a proven plan, there are no slow tanning years. Only salons that started wrong and are operated wrong will be effected by the wind blowing. Do it right or you will struggle and fail.

totaleclipse1 · 02-03-2006, 12:19 PM

I have to agree, since the salon itelf has been here we have done nothing but go up in sales. The lotions cost more although our packages have remained the same ... I can say we are down in actual tanners but the ones that come are spending $..

tnannie · 02-03-2006, 12:34 PM

I agree totaleclipse1. We were down actual tanners as well, but our sales came in strong. Things are going well so far this year so I am thinking we are in for a really good year. :)

Neon Beach · 02-03-2006, 12:37 PM

Not here. Very little growth.

totaleclipse1 · 02-03-2006, 12:58 PM

Get on it Knee on... LOL I do think this year will be ery profitable, especially for existing salons...

Neon Beach · 02-03-2006, 01:05 PM

I'm down from last year which was down from the year before. I'm thinking of getting a paper route. :(

tnannie · 02-03-2006, 01:08 PM

I thought you were gonna sell drugs? LOL! You said that was where the money was! :)

Neon Beach · 02-03-2006, 01:15 PM

OH! Yeessss, I keep those figures separately.

01-26-2006, 08:25 AM	#1 (permalink)
Silverlake Join Date: Jan 18 2006 Posts: 3 Rep Power: 0	Market Trends Hi All, I am in the middle of constructing my business plan and need some numbers on industry growth. Is there any place to find an analysis of the tanning industry in the last 3-5 years? From reading some of the posts here, it seems to be a 2-3 year up and down cycle. Thanx in advance.

02-03-2006, 10:59 AM	#3 (permalink)
Steve Underhill Join Date: Apr 21 2004 Location: Frisco, TX Age: 57 Posts: 619 Rep Power: 5	Re: Market Trends Equipment sales may be down one year over another, however as I have said over and over again. If your salon is opened and operated using a proven plan, there are no slow tanning years. Only salons that started wrong and are operated wrong will be effected by the wind blowing. Do it right or you will struggle and fail.

02-03-2006, 12:19 PM	#4 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 31 Posts: 1,939 Rep Power: 11	Re: Market Trends I have to agree, since the salon itelf has been here we have done nothing but go up in sales. The lotions cost more although our packages have remained the same ... I can say we are down in actual tanners but the ones that come are spending $.. __________________ OFFICIALLY MRS. V !! HOLLA!

02-03-2006, 12:34 PM	#5 (permalink)
tnannie I love Derf!! Join Date: Aug 16 2004 Location: nunya Age: 43 Posts: 3,215 Rep Power: 93	Re: Market Trends I agree totaleclipse1. We were down actual tanners as well, but our sales came in strong. Things are going well so far this year so I am thinking we are in for a really good year. :)

02-03-2006, 12:37 PM	#6 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: Market Trends Not here. Very little growth.

02-03-2006, 12:58 PM	#7 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 31 Posts: 1,939 Rep Power: 11	Re: Market Trends Get on it Knee on... LOL I do think this year will be ery profitable, especially for existing salons... __________________ OFFICIALLY MRS. V !! HOLLA!

02-03-2006, 01:05 PM	#8 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: Market Trends I'm down from last year which was down from the year before. I'm thinking of getting a paper route. :(

02-03-2006, 01:08 PM	#9 (permalink)
tnannie I love Derf!! Join Date: Aug 16 2004 Location: nunya Age: 43 Posts: 3,215 Rep Power: 93	Re: Market Trends I thought you were gonna sell drugs? LOL! You said that was where the money was! :)

02-03-2006, 01:15 PM	#10 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: Market Trends OH! Yeessss, I keep those figures separately.

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