Can the small salon survive - Page 16 - tanTALK

engfant · 03-09-2005, 10:36 AM

Quote:
On 2005-03-01 22:13:00, Neon Beach wrote:
"Your consumers want the "same" for cheaper? So they perceive what you offer as the "same" as those other (low quality) salons, only more expensive???

Simple enough for you? "

No, brainyact , what I'm saying is that people here cannot make an intelligent decision on what is the best value, if it's cheap then that's the one for me!!

That is why dollar stores and WalMart thrive here, and specialty stores and services struggle. You really have to live it before you can understand it here. ~shrug~

EXACTLY EXACTLY EXACTLY. Now, in my town, money and friends are the number one and two on the business plan. The rest is just bare minimum and you are ok. Run the beds into the ground and of course you can afford to only charge $20/month or even let people tan for free. You forget, some people have money and just need write offs or run salons as hobbies and could care less about the "business" side.
Now, someone was mentioning that they are in a small village with only hair salons as competition. Put in 3 salons larger than yours, same or better equipment, with UNLIMITED capital only limited my their own personal limitations. They could BUY AND SELL YOU at any moment. They UNDERCUT you to the death just cause they can. They get away with MURDER cause they grew up in town and have tons of money. The ONLY way they can go out of business is if the owners get bored.

How do you compete against that?

Well, you either hit the lotto or you just know your stuff better than everyone, cut your costs to bare minimum, and start swinging for the fences. The only weak point the competition has is they don't care and let things go such as lamps and burning the people up and hireing children when a pro is needed.
EVENTUALLY the costs to operate the salon are gunna become more of a burden than it's worth (hopefully) but it also applies to myself and the other little jerks stuck working every shift for nothing more than an ATTEMPT at a lick of the brass ring.
I say, as long as some idiot isn't yelling at me to do something I'll stick to the tanning.

TheSolTan · 03-09-2005, 12:48 PM

AMEN.... Well said ENGFANT.... Bravo Bravo

fashiontan · 03-09-2005, 12:51 PM

Three new strip malls are going in all within 2 miles from our location. All three strip malls have either called or sent us cards in the mail asking if we'd like to locate to the new strip malls. The card actually said "Perfect for a tanningsalon, hair salon, dry cleaners..." We declined but they're obviously seeking tanning salons so it's only a matter of time. With the type of rent they're asking, it will most likely have to bring in a large chain. What can you do???

Soakinuptherays · 03-09-2005, 02:26 PM

Nothing and that is the right thing to do.

These hard economic times will destroy franchise salons. 20% of your gross revenue off the top will kill those salons.

Keep your overhead down and sell sell sell!

_________________
[ This Message was edited by: Soakinuptherays on 2005-03-09 13:26 ]

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03-09-2005, 10:36 AM	#151 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 30	Quote: On 2005-03-01 22:13:00, Neon Beach wrote: "Your consumers want the "same" for cheaper? So they perceive what you offer as the "same" as those other (low quality) salons, only more expensive??? Simple enough for you? " No, brainyact , what I'm saying is that people here cannot make an intelligent decision on what is the best value, if it's cheap then that's the one for me!! That is why dollar stores and WalMart thrive here, and specialty stores and services struggle. You really have to live it before you can understand it here. ~shrug~ EXACTLY EXACTLY EXACTLY. Now, in my town, money and friends are the number one and two on the business plan. The rest is just bare minimum and you are ok. Run the beds into the ground and of course you can afford to only charge $20/month or even let people tan for free. You forget, some people have money and just need write offs or run salons as hobbies and could care less about the "business" side. Now, someone was mentioning that they are in a small village with only hair salons as competition. Put in 3 salons larger than yours, same or better equipment, with UNLIMITED capital only limited my their own personal limitations. They could BUY AND SELL YOU at any moment. They UNDERCUT you to the death just cause they can. They get away with MURDER cause they grew up in town and have tons of money. The ONLY way they can go out of business is if the owners get bored. How do you compete against that? Well, you either hit the lotto or you just know your stuff better than everyone, cut your costs to bare minimum, and start swinging for the fences. The only weak point the competition has is they don't care and let things go such as lamps and burning the people up and hireing children when a pro is needed. EVENTUALLY the costs to operate the salon are gunna become more of a burden than it's worth (hopefully) but it also applies to myself and the other little jerks stuck working every shift for nothing more than an ATTEMPT at a lick of the brass ring. I say, as long as some idiot isn't yelling at me to do something I'll stick to the tanning.

03-09-2005, 12:48 PM	#152 (permalink)
TheSolTan Waiting Confirmation Join Date: Mar 5 2005 Posts: 86 Rep Power: 0	AMEN.... Well said ENGFANT.... Bravo Bravo

03-09-2005, 12:51 PM	#153 (permalink)
fashiontan Join Date: Mar 30 2004 Location: Washington Posts: 204 Rep Power: 21	Three new strip malls are going in all within 2 miles from our location. All three strip malls have either called or sent us cards in the mail asking if we'd like to locate to the new strip malls. The card actually said "Perfect for a tanningsalon, hair salon, dry cleaners..." We declined but they're obviously seeking tanning salons so it's only a matter of time. With the type of rent they're asking, it will most likely have to bring in a large chain. What can you do???

03-09-2005, 02:26 PM	#154 (permalink)
Soakinuptherays I love Derf!! Join Date: Oct 19 2000 Location: Tampa, Florida Posts: 1,160 Rep Power: 25	Nothing and that is the right thing to do. These hard economic times will destroy franchise salons. 20% of your gross revenue off the top will kill those salons. Keep your overhead down and sell sell sell! _________________ [ This Message was edited by: Soakinuptherays on 2005-03-09 13:26 ]

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