CeeJay

Hello everyone. I am looking for opinions/experiences with salons on/near college campuses.

What makes that demographic unique? Are there certain types (levels) that just won't sell? Are there types (levels) that sell better than your average non-college salon? Do students seem to have an aversion to EFT's and long term contracts? Does "first come first served" work better than appointments for the college crowd?

What I'm really interested in knowing is what about a college salon is/should be different from a non-college salon.

Any and all opinions are appreciated.

RCKnep3

I think it depends on the college campus demographics. There are defn differences between a typical salon and one that is gearing toward college campus. We purchased one at the start of the year which is basically on campus. Happy to share some tips, but how about some details on what the situation is.

CeeJay

Sure.

-Four year university with 25k students
-Small town with pop of 12k
-92% white
-50k median household income for the town (not the students, obviously)
-1 salon in the entire area, very small, low quality beds, about a mile from campus.

Prospective site is pretty much on campus. It is a brand new strip mall that sits in between the campus and student housing. Northern, Mid-West climate (cold -under 70 degrees) 8-9 months of the year.

I've been lurking these forums for a while now; and I'm fully aware of the doom-and-gloom attitudes about opening salons in the current economy. I am also aware that it is not as simple as "build it and they will come". However, I feel that with only one small salon, the market in that area is no where near saturated nor highly competitive.

I have a BS in BA: Management / Marketing and have been a Construction Manager for the last 15 years. Most of the buildout could be done for materials cost only, and a lot of my sweat. Uncle is a master electrician for added savings. My wife would be the one running the salon. She has a 4 year degree and 15 years of experience in Hotel management. She has had management positions in Q.A., Sales, Operations, Engineering, F&B, and is currently a GM of a hotel. We have enough cash to buy 6-10 beds outright.

I'd be happy to answer anything I missed if you had a specific question.

Thanks for taking the time to read this.

parrot head

If you have to borrow anything you're doomed. College kids want the cheapest and most do not want to commit to an EFT contract. They constantly are asking what are your specials and you better have some all the time. You can not charge full price because in their eyes it is not a special. Your season ends in early May, but starts in September. September and October are good months, November is fair and the first three weeks of December is only fair. January sucks because the kids are on Christmas break. February is fair only because the kids are thinking about spring break in March. March is good because of the Spring break tanners, but remember they are gone for a week in March. April is a good month because the kids want to keep their tan and they are thinking about summer and looking good. And here we are in the month of May and looking forward to fours months of not making enough to pay the bills. This is the life of a tanning salon on a college campus. Are you still enthusiastic about the tanning business. I'm glad I could answer some of your questions, but please remember I'm just one tanning salon on a college campus. I'm sure there are others quite sucessful.

CeeJay

Menomonie, Hey that's where we're looking!




J/K!

Thank you kindly for your response. It was filled with useful information. Concise and precise! Just the way I like it =)

We're not in WI btw

parrot head

I know it's not Menomonie, because our enrollment is about 8000. But if it were, good luck. No pie in the sky here; I tell it like it is.

nlabtec

IMHO I would say stay away from opening by a college campus. This generation wants everything free and the best. Soon as it isnt free for them they just run back to mom and dad for them to foot there habits saying "were're just a college student".

Open where the the age is more 36ish and above. They spend more they been tanning since the early 80's and they like it, they just need a push back into the salon. Another reason is to get the the 36ish group is because we forgot all about them really. We fight so much to keep the younger crowd that we forget all about the ones that made us money in the first place. People are creatures of habbit, keep them happy and they will come back.

Tanning by the main stream train of thought all ready views tanning as a business based on young kids, thus when the older crowd hears this they think I shouldnt tan anymore, plus on top of tanning is gonna kill you that makes them stop too. Get them back they will bring there kids and there friends, this group is the best in bringing the friends in for a "treat" and PAY FULL PRICE. Not bringing in a crowd of people because they all have tan free cards.

I hope this helps in some way form or fashion. Let the younger crowd come to you not the other way around.

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sunsally

CeeJay -

No appointments - ever. In any salon. You will make much more money and ultimately make people happier in a walk-in environment.

15 min base beds - no 20's. Move 'em in, move em out. Many WILL wait forever for the cheapest beds.

But they also like to "shop". Expect to sell many more packets than bottles of lotion. Easy to get them to spring $4 each time on a packet than even $25 on a bottle. They have that $4 in their pocket, but tough to get the $25 saved up.

I have other recommendations on pricing strategies (e.g. a "tan for the semester" package that you offer right when they get to campus - and have money from mom & dad!) but since this is an open forum, don't want to post TOO much in the way of details. Feel free to call me and I'll gladly give you more specifics!

Ann (not 'sally' as some assume)

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RCKnep3

Ok, well I'll give my opinion from my experience since purchasing our salon. It will be the opposite of what everyone says, but alot of it was in place before I bought it. Some things I may change, some I may not. Our salon is right next to campus on the main street so students can walk from classes or dorms. There is also plenty of parking. Campus is about 9-11,000 students. We had 5 beds, but I just bought 1 more. 4 base beds 30 lamps w/ soft facials (15 min), 1 42 lamps speed bed w/ 3hp facials(12 min), 1 34 lamp (160w top, 12 min) w/ 3 hp facials (just bought and not in service). Interior is pretty poor to be honest, which is why we are renovating the entire inside.

Even with the poor interior and limited beds, this salon has done very well prior and better for us. I will say don't start right now, get things in order and open just before the fall semester. Our classes let out in early may, and I'd say 80% of the business dropped off. I plan on it picking up a little in a couple weeks when summer classes start, but like parrot I doubt I will make enought to cover my bills (I'll pay it out of my pocket). Come august I'll more than make it up. Overall I am very happy with the setup. My base beds were filled about 90% of the time and upgrade beds about 25%. Sales were up of 32% from prior year. For me, it was trying to train a staff that did no product sales and never upgaded. They had to be retrained and some let go. We are at the point that upgrades are becoming much more full and product sales are about 10% of the revenue.

Doom & Gloom, no, I think college salons are more constant in terms of sales with a built in base of customers that grows w/ the college. Having said that, they ARE cheap. They will buy lotions (about 30-40%), most will go for $20-40 priced and a few for $50. Much more buy packets. They will buy tanning pacakges though. most students are on tight schedules and want to tan when they ask, if your base beds are booked an upgrade is pretty easy (assuming it's only $2-4 to upgrade). Once you get people in the upgrade beds, they will come back to them. Tight schedules and limited beds means appointments are required, they will kill us if we stopped (it was in place before). I like it thought, we always have our beds full morning till night. If I had 10 beds, I might be able to get away from it but not possible w/ 120-160 tanners/day and 5 beds (sson 6). Lots more to say, but could go on forever.

Lastly, This is my wifes salon. I help out in it when needed, but I really handle the business side and the accounting. We have a staff of 4 all students who work about 40 hrs total during school year. DONT BUY/START a salon to make you rich though, it was something my wife felt she'd enjoy and would allow her to set her own hours to be in there or home with our kids. We accept making less w/ having a staff. We could never live off the salon, but it provides a good flexible 2nd income. And yes we did borrow, but should have it paid off in 1 year if we keep no income.

RCKnep3

Oh and my best months are Aug/Sept/Jan/March/April. Aug/Sept/Jan are great because the kids are coming back from break and will buy a semester package. March is spring break, April they want to keep the tan. Nov is soso, Dec stinks. You get kids with money would will buy the longest package you offer (entire semester for me), kids who work and have extra $ but not tons so they buy monthly's or 10 sessions. Then you have the kids who scrap by each week and will buy single sessions (even when you point out they can save a bunch by buy a package)