It dosen't matter...he still has less than your population.

Population is good, but what if those people are living in poverty? Demographics, as nice as they are, mean nothing until you take into account the average income per household.

Demographics are not just pop., but income, race, etc..

I have salons in very poor areas...they still tan and smoke....and have cable

Smoke? So you are a dealer then?? That would explain a lot.

what? Are you smoking something?

~snicker~

I always felt that the key to success in tanning salons is #1 --- realize that tanning is an option, that people love doing, but medicallyand finacially, THEY DO NOT HAVE TO TAN INDOORS! so thats why it is important to let them know that you appreciate their business ALL THE TIME!NOT ONLY DURING BUSY SEASON! And in doing that, ALWAYS REMEMBER: CUSTOMER SERVICE,CONVEINANCE, SERVICE and VALUE! A women I worked for drilled that statement in all her employee's heads 24-7...and now that I own my own salon I will live by that also. Customers love it when they are greeted by name and ect...but what they really enjoy is know and trusting their salon, and knowing what you are selling and how to sell it helps not only you but all your employee's LOOK alot better. I can't stand talking to someone,trying to buy a lotion and or a package and they know nothing about what they sell! You know?? LOL...thought that info might help the question earlier! thanks!

But when that same client can get a tan for 75% less? they won't care if you know their name as long as you can scan their fingerprint, or swipe their membership card............ Sad, but true.

Yeah I think maybe 50% of customers like those little gadgets, but really they are not there for all that cool computer crap, they want a TAN, and don't care how they get it, they just want it fast,thats why they come indoors, they do not want to tan outside for 3 hours or whatever, I feel that if a salon expands too much with all the other crap, they forget to upgrade their beds or lotions, i mean that is what we are selling (tanning) not a fingerprint right? You can have 30,0000 dollar tanning bed but if you have cheap lamps in them and you sell crappy lotions, what are you telling your customers about your salon? Thats what upsets me about all that expensive computer fingerprint stuff, just an oppinion, LOL

Sad but true Neon, at this point in my life I a'm paying 70,000 in rent and 25,000 a month in electric to say nothing of labor,some times it is scary,its all relative.
dennis
ps I have a 14 bed store around the corner,you can even tan at the landury mat.

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[ This Message was edited by: Dennis on 2005-03-01 21:16 ]

But ya did it! How? But ya did it.

I wonder if you were opening your first salon if you would have gone in with 18 financed units in a town of 9100??

Carry on............

Do you offer anything else besides tanning? I decided not to for the simple reason, that I wanted to be a full service tanning salon- I do not sell gas, videos or haircuts, I sell tanning and tanning only, when you have too many things going on, I think it makes you forget about tanning. I am not putting these people down that do this, I just poersonally do not want to. A quick question for you guys, what is the best bed cleaner soulution out right now, Mine is streaking really bad. I have puretan units, I am thinking of getting puretans' cleaner, what do u think?

Being undercapitalized is the number one reason for failure in this industry.

Not understanding the "business" side of things is probably the second!

Despite hopes, expectations, and stories of lore, tanning is NOT a 'get rich quick' industry! There used to be "easier times" when any doofus could put a few beds in the back of a hair salon and fill their mattresses with cash (hey Dennis - is that how you started?? !! ). But all the OTHER doofus's saw this and THEY wanted a piece of the action and now we are ALL doofus's in the soup together trying to make a buck!

But - it CAN be very profitable - still. Just have to be smart about how you approach the entire undertaking...

I try to do the same, but in this day and age, tanning is becoming a loss leader for many "tanning salons"........... that is why this business is losing integrity!

What do you mean tanning is becoming a loss leader? Do you think people whore out tanning to sell lotions?

no this business is not loosing it is gaining I think! And the very few that are loosing its because of their stupidity, i think.LOL

when I first opened that store it was 9 beds it seemed risky even then.the point is can the small survive,yes for awhile, until players realize you can pull 1/2 mill from small markets. you said if we knew the whole story,I have always shared what I know,there are many people on this board who have been to some of my stores they will tell you I hold back nothing. so please no back handed cowardly slures.

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[ This Message was edited by: Dennis on 2005-03-01 21:37 ][ This Message was edited by: Dennis on 2005-03-01 21:42 ]

Tanning and integrity??

Wow - those are two words that rarely went together in the history of the industry!!! Any "oldtimers" on here want to comment?

There is no more or less "integrity" then there ever has been. Just MUCH more savvy "business people" in the industry rather than Bill & Mary Smith who had a notion to put a few beds in the back of their gym.

Doesn't mean Bill & Mary can't survive - not at all! But they have to "change with the times" which may mean updating equipment (re-investing in the business), offering longer hours (convenience), and pricing "competitively" as opposed to "getting what we always have gotten".

Tanning isn't a "loss leader", it is moving from a "luxury good" to a "commodity".

Yup!

In order to sell a lotion, or a pair of peepers, or a moisturizer? Yup.

In some cases, here for instance, many tanning units are in hair salons or nail salons, they have no training, just a spare room or two at the back of the place (in the basement in some cases), clean your own bed, set you're own time, cause I wanna go to Cancun this winter kinda of tanning services, and it's only $2 a session! Different strokes for different folks.

good lord you need to move

You got that right.

As you often say Neon, no offense but....

if salons in your town that offer no training, just a spare room or two in the back, clean your own bed, set your own time are more ATTRACTIVE to the tanners in your town than YOUR salon --- then is it POSSIBLE they don't see the "value" in the services you DO offer compared to the prices you charge??

And you really think they are making their fortunes on $3 pairs of peepers and $18 bottles of moisturizers??

Basic economics. At $10 for an apple (Harry & David catalog), only a few will purchase. But SOME will! At $1/pound for apples, many more will purchase. In greater quantities. With regularity. And even have some "accidentally go bad" in the frig because they didn't get to them in time without feeling great remorse.

Harry & David will survive. A lot more apples will be sold at grocery stores. If Harry & David was a stand-alone store in one town they would NOT survive.

If it is ALL about price in your market, then figure out a way to make your pricing enticing enough that you will get MORE of the tanners who are flocking to your competitors to flock to you instead - get ALL the "apple eaters"!! You pay the same rent this month whether you tan 20/day or 200/day! Pay the same payroll, same phone bill, same mag subscriptions, same licensing fee, same bed lease payment. The only thing that changes is a MINIMAL uptick in electrical and lamp costs!

Truly, it isn't a "maybe in your market...." thing - it is basic market theory!

No offense sunsally, but the endless analogies were worthless, keep it simple.

"if salons in your town that offer no training, just a spare room or two in the back, clean your own bed, set your own time are more ATTRACTIVE to the tanners in your town than YOUR salon --- then is it POSSIBLE they don't see the "value" in the services you DO offer compared to the prices you charge?? "

Hmmmmmmmmm? Maybe the comsumers in my town don't care, they just want the "same" for cheaper. I have spent 7 years of advertising dollars emphasising Smart Tan training, we don't tan minors, free skin type analysis', first session free, you get my first born!!

You really have to experience this town before you can judge my performance as a business owner and tanning salon owner.

Hmmm -- you seem perfectly confident to judge Dennis and others without experiencing their towns.....

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?

"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~

I prefer "brainiac"

"What I'm saying is that people here cannot make an intelligent decision..."

Wow - hope your competitors don't use that one!! LOL!

I'm going to contact my old Econ profs and suggest they make Timmons Ont a case study for their next book - the one city that defies all the economic and business theories!

Meanwhile, I think I'll take a pass on the offer to live there - were you making a pass at me?? wink wink

I think you're starting to warm up to me a little......

Neon...Walmart thrives in alot of towns...not just yours...they have been doing well across the country.
I hope the really strong local tanning salons survive and I hope there are a couple of large "local big time" salons and or large franchise/corporate stores that take over each market.
We need to have 3 major players in each market to survive as an industry...."When the elephants fight the ants die"....we have so much to do in our industry!
We have to come together and promote Vit.D and the benefits of sunlight exposure. We cannot do this if there are 30 salons of individual business owners...we can only become a strong industry if there are major players across the country. If we have bigger players and salon owners with multipale locations hopefully they will have additional funds and connections to get our message out to the consumers....then we will all be better off as an industry...
We need a lot of good press....and it will come with money and salon owners who can afford to see the bigger picture and help all of us reach the consumer.

Quote:We need a lot of good press....and it will come with money and salon owners who can afford to see the bigger picture and help all of us reach the consumer.


Agreed...however I just have diffucultly understanding why can't the 'ants' and the 'elephants' chip in the ching to do it? NOW on a individual basis..I am not talking about a NAC or PTAf whatever..
What I mean to make it a point to utilize a minimum of a 1/4 of all your advertisments to educate the clients. (an potential tanners) At the very least.
You could ---Take it a step further and once or twice a year devote an entire 3 X 5 ad to tips on sun safety...or in the winter a few tips from The Vitiman D council..or other docs that post information on the benefits of tanning. Timed appropriately of course.
JMHO



That would create more tanners from scared media believing non tanners...doncha think?

I believe in that 100%...I think there needs to be a couple of elephants and strong ants to see and believe in looking at our big picture...if we are making this analogy! I think there is some consolidation that has to happen and larger salon owners to start the ball rolling with strong local players. I think at least in our market we are close but there still needs to be a strong player to step up and start the effort.

Absolutely we can!!! Customer Service, Informed, Friendly, Resonibly priced, CLEAN and FUN atmosphere, Professional....the list goes on.

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.

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

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???

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!

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