Well, lets all VOTE whether we think the small salon can survive then you Mods can lock this thread since it appears we are beating a dead horse. I say the small tanning salon can survive if they continue to market and take care of their clients. Set yourself apart from that 30+ bed megasalon, dont try to be their small version.

I agree they can survive, I said that way back when. But a pay cut and other losses may follow.

Just once..could you try and be possitive.. I think they can if they stay on top of their game.

All businesses are a risk. Do your homework and research and when you think you are ready to open up research some more. Constantly read and reread. Constantly market you and your salon. Network like mad. Do some grassroots marketing that the big guys cannot get away with because no one would believe them. Be different and set yourself apart. We tell everyone that we may not be the biggest but we will tan you without a wait and will know your name. How can the 40+ bed megasalon say that? Answer - they cant.

Great thread as I'm really learning alot.

To get back on track, yes a small salon can survive. I'm in a small village of 1k. This March we will be in business for 1 year. I started out with 2 beds and recently added another one. Business is has been great all year and we really never noticed a slow season. I'm current running around 50% to 75% capicity of tanners that I could do in a day. We provide excellant service, cleanest salon and friendly knowledgable staff (hubby and me.....LOL). I'm really surprised at all the new customers were are getting. As for changing out beds, I would say it all depends on your location, other salons in the area, advertising and so forth. I have to agree with Neon somewhat on this, whats good in one location isn't always good in another. There is no way in h$ll that a 20- 40k bed would work around here especially if your changing $15 to $20 per visit. I am a little worried as a hair salon moved into town and is going to offer sunless and I heard 2 beds. But I look at it this way, provide the best service and reasonable pricing and we will survive. Not only that we have better hours of operation, where as they will close at 5. As for specials, I do a monthly special each month even during the busy season. Last month I did a Valentine's/Tan with a friend type special. Buy on package at regular price and get a 2nd at 1/2 price. Had to be 2 people to get this offer. Sure I got a bunch of the regular tanners buying it, but hey it's nice to let them get a little bettr deal. But I was surprised at all the new customers we got. As far as making a living, I'd have to say we are keeping our head above water and haven't got sick of Mac & Cheese yet. But I'm sure as thing go on we will increase our earnings. We will continue to offer the best service around.

_________________
[ This Message was edited by: Coppertone on 2005-02-28 10:52 ]

A couple of points I'd like to make.

The industry is changing and if you are in a market with a lot of competition it is neccesary to have the upgrades in order to compete.

However I disagree that you do not need these in smaller markets. You see Neon if your competition or interested competitors read this they have a bigger incentive to open up in your town with VHR, sunless, and HP. I believe that as the larger markets become more competetive some chains/franchises will start looking at untapped markets and come in to provide the equipment that has been lacking. Movie Gallery has done this in the video industry with much success.

I try to upgrade my equipment at least every two years preferebly adding something new every year. I am currently adding sunless and replacing my HP bed, if you don't I believe someone else will. In the last few years prices have gone down so it is easier to purchase upgrades. Quality VHR's can now be had for 10k or under, Sunless $17k and under and some HP beds around 17k as well.

My advice would be to any salon that is looking to survive you must add these alternatives. If $$ is an issue you can even now find quality used spray booths, HP, and VHR beds.

There are VHR units and sunless. But I'll tell you right now, no one, and I mean no one in this town will be willing to dish out $35 (except out of curiousity, once) to tan in an HP unit. For the same reason there is no Mercedes dealership here. Remember that your $29000 bed is over $40000 here. The lotions that fly off your shelves there at $20, cost us $16.00 to put on our shelves. Obvioulsy there are differences that you don't understand.

Neon, I never said $29k bed I said $17k or a nice used one for $10-$12k. I would still recommend charging the higher price points but if you are unsure you still have flexibility to lower the price. Anytime you add these type of beds you sometimes have to offer specials or incentives to get people hooked but once they are they will pay the price.

What do your competitors charge for their VHR and sunless?

By the way I sell very few $20 lotions more into the $40-$60 price points. It is the same concept with lotions you have to know how to sell the benefits and value as opposed to price.

Okay. ~shrug~

Quote:
On 2005-02-28 11:48:00, JeffinKC wrote:
Neon, I never said $29k bed I said $17k or a nice used one for $10-$12k. I would still recommend charging the higher price points but if you are unsure you still have flexibility to lower the price. Anytime you add these type of beds you sometimes have to offer specials or incentives to get people hooked but once they are they will pay the price.

What do your competitors charge for their VHR and sunless?

By the way I sell very few $20 lotions more into the $40-$60 price points. It is the same concept with lotions you have to know how to sell the benefits and value as opposed to price.


when it comes to lotion sales Again location has a lot to do with it. for example lets take up state Maine. Small town X where Wal-mart is the main store in the town. Most of the residents who live there work at wal-mart. You are a salon owner in town X One of your regular clients needs a new bottle of lotion. She is tanning because like a lot of your clients she can’t afford to go on vacation and tanning is her only indulgence. She has 2.5 children and lives on a tight budget like most of the people in town X how do you sell a $40 a $60 bottle of lotion when she just can’t afford it like most people in town X ?

Quote:
On 2005-02-28 13:22:00, Kay wrote:
Quote:
On 2005-02-28 11:48:00, JeffinKC wrote:
Neon, I never said $29k bed I said $17k or a nice used one for $10-$12k. I would still recommend charging the higher price points but if you are unsure you still have flexibility to lower the price. Anytime you add these type of beds you sometimes have to offer specials or incentives to get people hooked but once they are they will pay the price.

What do your competitors charge for their VHR and sunless?

By the way I sell very few $20 lotions more into the $40-$60 price points. It is the same concept with lotions you have to know how to sell the benefits and value as opposed to price.


when it comes to lotion sales Again location has a lot to do with it. for example lets take up state Maine. Small town X where Wal-mart is the main store in the town. Most of the residents who live there work at wal-mart. You are a salon owner in town X One of your regular clients needs a new bottle of lotion. She is tanning because like a lot of your clients she can’t afford to go on vacation and tanning is her only indulgence. She has 2.5 children and lives on a tight budget like most of the people in town X how do you sell a $40 a $60 bottle of lotion when she just can’t afford it like most people in town X ?

Exactly..... I sell at least a case of Brown Envy a week. Point being that not everyone lives in high populated areas. The biggest populated city in my county is 5k. The income per person is very low. I look at it this way and maybe I'm wrong. I'll let someone else buy these higher priced beds and see what they do. I mean if they can get $8, $9, $10 or even higher and still keep there customers. I'll then jump on the band wagon and buy them then.

Different areas, different people, different needs. Whats great about this website is the diversity. Just like America this site is host to many hopes and dreams. Embrace them to greatness!

Off topic:

This kind of post as an intelligent exchange between industry professionals is why the bulletin boards work and are worth all the aggravation.

Can small salons survive..?? Ask Leif..

The Viking?

I am waiting for the follow up thread - Can the small salon make profits for its owner(s)?

i think we should have separate forums for the big salons and small salons so that we don't have to pointlessly argue back and forth about who is right and who is wrong.

Quote:
On 2005-02-28 15:35:00, sizzlestan wrote:
I am waiting for the follow up thread - Can the small salon make profits for its owner(s)?


yes, I do Believe they can.

Quote:
On 2005-02-28 15:58:00, tanman02 wrote:
i think we should have separate forums for the big salons and small salons so that we don't have to pointlessly argue back and forth about who is right and who is wrong.
Sort of the wrong side/right side of the tracks thing. Keep them poor folk where they belong.

Depends on what you mean by profit. Are we making a profit? Yes Enough to live on? Not really, but everyones different. We have another very profitable business and plan to sell out within the next 5 years. As far as the salon goes. Our main concern is to have all our oars in the water when we decide to do this. We opened in March of last year. In the past year we have now 3 beds (all paid for), bought the building (which will be paid off in 5 years), have a growing customer base (just hit 500 2nd week of January), money in our bank acccount and most of all this was all done without using any kind of funds from our other business. The building we have will handle 5 units at the most, unless we decide to build out back.

"Exactly..... I sell at least a case of Brown Envy a week."

Yeah, that's great if your population isn't "FIXED". If I UNLOADED a ton of cheapo lotion to EVERYONE, then EVERYONE has lotion and they don't need another bottle. I got fools that DRAG lotion out over YEARS and there is no telling them otherwise, as in, they got their bottle, why need another. (I'm not asking for marketing help.) You all are operating in different areas AND if you are anywhere OTHER than the east coast you can't really relate. East Coast (NEW ENGLAND ESPECIALLY) is too busy trying to pay for all you hillbilly rednecks' welfare and unemployment to be wasting money on smelly cookie lotions. Just GIMME THE BEST and leave me alone is what we got (if that). Busy season, shrinking. Direct marketing that's SUPPOSEDLY the best way to go does NOTHING overhere.

There are only 2 tanning salons that HAVEN'T changed ownership in the past 3 years. Mine and the wealthy broad up the street who is only in business cause she's got money to blow on her hobby. My town EATS small businesses as an appitizer and chains for desert. The chains in my area are ALL WRITEOFFS cause they make ZERO money and they have MULTI MILLION DOLLAR marketing campaigns.

exactly, i can't relate to them big city folk.

Quote:
Yeah, that's great if your population isn't "FIXED". If I UNLOADED a ton of cheapo lotion to EVERYONE, then EVERYONE has lotion and they don't need another bottle. I got fools that DRAG lotion out over YEARS and there is no telling them otherwise, as in, they got their bottle, why need another. (I'm not asking for marketing help.) You all are operating in different areas AND if you are anywhere OTHER than the east coast you can't really relate. East Coast (NEW ENGLAND ESPECIALLY) is too busy trying to pay for all you hillbilly rednecks' welfare and unemployment to be wasting money on smelly cookie lotions. Just GIMME THE BEST and leave me alone is what we got (if that). Busy season, shrinking. Direct marketing that's SUPPOSEDLY the best way to go does NOTHING overhere.

There are only 2 tanning salons that HAVEN'T changed ownership in the past 3 years. Mine and the wealthy broad up the street who is only in business cause she's got money to blow on her hobby. My town EATS small businesses as an appitizer and chains for desert. The chains in my area are ALL WRITEOFFS cause they make ZERO money and they have MULTI MILLION DOLLAR marketing campaigns.


Maybe you should try to get them in more. Not trying to start anything, but I'm in a fixed village. If anything our population has went down. The thing is that there is not real tanning salon for 15 miles. Sure there is a few hair salons with beds. I'm pulling from villages 10, 15 miles away. We seen a opportunity and jumped on it. This is with very little if none advertising, direct mailing? Flyer's? newspaper ads? what are those? We have gotten all our business from word of mouth. The thing about welfare and umemployment, I'm sure we are at the national average of slightly above. The thing here is we are in a farming community which means there is a lot of farm land. I thought that we was in the business to make $$$$, sorry to say, but I'd rather sell a bottle of cheapo lotion than none at all. Oh wait I think I see 3 U-hauls driving though town. Sorry wrong they were tractors pulling spreaders.

We are in a state that has more tanning salons than any other! If we can make it hear....you know the song! I can't believe the numbers I have seen in the smaller markets! I think Neon is doing 800k a year and is just trying to keep us all away.

Is that $800k Canadian or $800k US? Thats a huge difference you know. )

I don't know I missed that day at school. I think he is just playing us!

Ohio is one of the biggest markets out there too. It is a very good market to be in. The midwest is a great market and so is Texas.

We have a 18 bed studio in pop. of 9100 would you say this is a big store in a small market.
dennis

Quote:
On 2005-02-28 16:15:00, engfant wrote:
East Coast (NEW ENGLAND ESPECIALLY) is too busy trying to pay for all you hillbilly rednecks' welfare and unemployment to be wasting money on smelly cookie lotions.


we shore do preeshate ya'll up yonder payin for us folks down here bein able to sidle up to the table and eat our viddles. i reckon if it wernt for you yankees payin all our bills yer poor excuse for a tannin parlor would might be makin a go of it. we shore do apologize fer that.

Can I get a **** Yeah and Yee hAAWWWWW?

weer so thankful (praise the lord) for those yanks. i mean most of em are so intellijunt they culd talk a dog off a meat wagon. if all them john kerry supporters hadnt fired up these program to helps us out we wuldnt a been able to have our grits this morn. grits so good it made my tapeworm stand up and bark. thankyou infant. thankyou

how did you ever pay for your beds dennis? half of that 9100 is women maybe. of that 4500 what percent do you think are tanners? you must have every single woman in your town tanning in order to make the bed payment.

We dont have a bed payment there,but there is 49,000 in the county we draw from that.the point is what do you think is a small market. Numbers can be deceving,what do you think 18 beds should in that pop. do in money.
dennis

Dennis made a very good point, he doesn't have payments.

not the point i was making, are you that shallow.
dennis

Randy R you're a HOOT!!!!!

Me. shallow? Not at all, I've never been in that position. The point is, as you know dennis, is that you, at this point in your career, don't have to buy units on credit. You just buy them. Which is great. But others should know that so that they can interrupt your comments properly.

The point Dennis was trying to make is you can make it in any market size. We hear all of the time "it won't work in my market" but here he is making it work with FTW in a market of only 9,000. Your market is huge Neon compared to that one!

You think?


I think. We aren't getting the whole scoop.

I think that the rest of the tanning places are now gone and the locals only have one place to go.

Just a theory, and no offense intended.