Steve Underhill

If you want to give yourself the best opportunity to be successful, you must give a great deal of consideration about controlling your operating expenses. While there are certain cost that are an absolute must to be successful such as advertising, payroll, lamp replacement, salon up-keep, there are a number of things that should be considered in the early stages.

Space preparation: If the salon is designed properly you can get by with less AC than is typically recommended by equipment manufacturers.

Lease negotiations: When negotiating the lease give a great deal of thought to annual increases, Ti allowances, and term options.

Equipment purchase: Don't over do it. While prices of equipment keeps going up especially with outrageously priced up-grade equipment. Get the mix that will best support your price structure and marketing program and don't put in more up-grade equipment than is needed for your market and salon size. Remember that with up grade equipment you can tan twice as many people as a base bed in the same amount of time. Dept service, lamp replacement, electrical cost can eat up profits quickly. An equipment mix that will maximize income potential while controlling cost will send more to the bottom line.

Payroll: Control your payroll expenses, create pay scales that will encourage sales. Hire quality people and give them the continuous sales train that will allow them to be productive.

Advertise: The amount of business you do is in direct relationship to the amount of advertising you do. Do the proper type of advertising at the appropriate time of year. Put great emphasis on email advertising. Your specials and when you offer them is important.

Create a relationship with each and every tanner, this is the foundation for great customer service and customer retention.