Don Smith

I'm hearing the words "I'm adding my own PL (Private Label) lotion line next year" from more and more tanning salon owners.

Why?

1. They tell me that they are becomming increasingly concerned about:

A. Online sales of "brand name" products.
B. Diversion.
3. The proliferation of "El Cheapo" lotions.
4. Rapidly increasing prices of "brand" products.
5. The "insane" increase in the "tingling" power of many of the "brand name" lotions.

2. They feel that their own PL line will:

A. Give them some "protection" from the above.
B. Let them make more profit.
C. Reward THEM for their lotion education efforts.
D. Establish their own label.
E. Let them decide the "price points" and "type" of lotions that they will sell.

I find it interesting that these comments mirror the reasons we added our own PL line almost 6 years ago.

Some questions:

1. IF you already have your own PL line, are you glad you added it? [Note: Our answer is YES!]

2. If you already have your own PL line, would you do it again? [Note: Our answer, once again, is YES!]

3. If you already have your own PL line, what advice can you give to those who are considering it? [Note: I will be posting some thoughts about our experience but I want to hear what the rest of you think first.]

4. Are YOU considering adding your own PL lotion line?

The "bottom line" reason (IMHO) for the rapid growth in PL lotions over the past few years is that tanning salon owners increasingly recognize that THEY must do whatever they can to protect their lotion sales!

Don

SteveMiller

I am much slower than you, went PL 2 years ago and am happy with it also. Don when Fred88 reads this he is going to have a cow.

Steve Miller

Larry

We went PL last year with two distinct lines, from 3 different mfgs. We'll never look back. Profits are better, and the frustration of clients telling you that they found your lotion cheaper are gone.

Our own bottles, our own labels, our own caps (closures).

Don Smith

Steve/Larry:

Q-1: What are your PL "price points" and what is your best selling price point?

[Note: We have $19.95; $24.95; $29.95; $34.95; and $39.95. Our "best sellers" are the $29.95 and $34.94 products.]

Q-2: What percentage of your total lotion sales does PL account for?

[Note: Our PL line accounts for between 50% and 60% of our total sales.]

Q-3: How many "branded" lines do you also carry?

[Note: We carry the "hot selling" products from AG, SB, JA and Cal Tan.]

Q-4: Do you also sell "cups" or "bags" of lotion?

[Note: We sell 2 X 3 inch "zip lock" bags of all of our PL lotions.]

Don

SteveMiller

Don, ran the numbers off for you:

Price points, $19.95, $29.95, $39.95, $49.95 and $59.95. Our best selling from the first of the year, was 590 bottles of Copper Rays from Greg, which we retail for $49.95.

Percentage of PL lotion sales 90%.

"Branded" lines, only one, Ultimate from American Royal.

We also use 2x3 zip lock bags.

We are happy with tanners down in all three stores 8%, lotion sales were up 2%.

Steve Miller

Drew D

Don,
Once again, on the mark info for the new salon owner. We have debating this point since we opened. Right now we are brand name only. Our sales are not what I expect. The price points are on the high side and to move it I am losing the profit points my business plan calls for. We are going the make the move this year. I have met Greg, but I am wondering if anyone has other sources we can look at.

ps. Would have loved to had you and Pat in our salon when you were in Denver. Give us a heads up next time. Maybe we can get together.