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Tanning Salon Management Salon management help here.

View Poll Results: What Membership options do you offer?
Standard EFT - auto draft their credit cards til cancel 29 72.50%
Local EFT - don't hold CC, but they have to renew before month is up 3 7.50%
Year or month unlimited with a small (e.g. $1-2) co-pay 8 20.00%
Super Saver - upfront fee and half-off single visits 5 12.50%
Tan Till the end of the Year (usually Fall - discounted) 11 27.50%
Summer Tanning pass (discounted 3 month pass) 6 15.00%
Time/Day option (e.g. mornings or weekends only) 1 2.50%
We offer some other membership options 3 7.50%
We offer NO membership options 4 10.00%
Multiple Choice Poll. Voters: 40. You may not vote on this poll

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Old 02-27-2014, 09:53 PM   #11 (permalink)
 
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Re: Membership - MANY approaches...

Quote:
Originally Posted by Steve Underhill View Post
Tony as you know, when a tanner stops tanning it is not because they all of a sudden no longer enjoy tanning. In most cases something in their life has caused them to change their routine that has been established that included tanning. It is up to you to be marketing your clients regularly as a reminder that they enjoy tanning and to insure that what ever caused them to change routine your communication efforts is likely to bring them back quicker. Also the level of interaction in the salon also creates a relationship that also strengthens that ability to market them. Use of media, email, text, social media effectively will reduce loss of tanner activity. Educating tanners as to the benefit of tanning during normal slower months will also encourage regular tanning.

There are 3 distinctive advertising seasons. When where and what you advertise during these 3 cycles is important. These are things that I am sure you know Tony. Operators can control their level of success as well as failure. I am not being vague, because each salon must be evaluated individually based on what they are currently working with.

When operators say I don't advertise because it did not work for me or I do not offer EFT memberships because it does not work. Indicates that they did not structure their attempts properly to make them work. It is not always what you do as much as how you do it that is important.

Yes I am a Consultant that restructures salons to be successful, however I try and give solid advice here that can greatly help salon owners. In many cases it takes some encouragement for salons owners to take responsibility for the problems they are having and to ensure them that those problems can be corrected.

Right now salons should be showing significant increases in sales over last year. If this is the case you are obviously doing things right with possible room for additional effort. If you are not showing increases you can sit on your hands and continue to decline or you can chose to change the direction of your salon and be one of those operators that are benefiting from strategic change.

Tony you too suggest change, granted it is to sell everything for $9.99 but you are suggesting change. change is good. Just make sure changes are not random.

Steve

The number 1 reason why people start to tan and stop tanning is due to a photobiological reaction!
Are you aware of this? You can treat your client like Gold and they will still stop tanning! You just
cant get most people to tan year round which is the reason an EFT exists in the first place.

There are 3 types of EFT clients

1) Those that tan year round. The smallest group of EFT clients
2) Those that join, start tanning then stop tanning and QUIT PAYING! They are the largest group of EFT clients.
3) Those that join, start tanning then stop tanning and DONT QUIT paying. This group is the group you need to
focus on creating a larger number of members! This is member retention. This is the key metric!

Are you aware Steve that photobiology is responsible for our busy season?

Last edited by Tony; 02-27-2014 at 09:55 PM.
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Old 02-28-2014, 01:20 PM   #12 (permalink)
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Re: Membership - MANY approaches...

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Originally Posted by Tony View Post
...photobiology is responsible for our busy season?
Having spent many hours behind the desk as well, I understand what you are saying; I call it the Lemming effect. (The running of the lemmings)

Tony, in your tracking of clients, is there one single psychographic or demographic detail that you can point to that is most prevalent in this group:

Quote:
Originally Posted by Tony View Post
3) Those that join, start tanning then stop tanning and DONT QUIT paying. This group is the group you need to
focus on creating a larger number of members! This is member retention. This is the key metric!

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Old 02-28-2014, 08:29 PM   #13 (permalink)
 
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Re: Membership - MANY approaches...

[quote=House of Tan;15083375]Having spent many hours behind the desk as well, I understand what you are saying; I call it the Lemming effect. (The running of the lemmings)

[color=black][font=Verdana]Tony, in your tracking of clients, is there one single psychographic or demographic detail that you can point to that is most prevalent in this group:

It is a series of metrics that define the clients propensity to tan.
We have that info but its more then 70 items that are measured.
Also we know by the credit card you give us if your a wealthy client
and Hyperion informs the staff that this client is using a high value
card. It encourages them to be more aggressive with up sells and
selling mutliple sku's.
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Old 03-01-2014, 08:39 PM   #14 (permalink)
 
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Re: Membership - MANY approaches...

Quote:
Originally Posted by Tony View Post
Steve

The number 1 reason why people start to tan and stop tanning is due to a photobiological reaction!
Are you aware of this? You can treat your client like Gold and they will still stop tanning! You just
cant get most people to tan year round which is the reason an EFT exists in the first place.

There are 3 types of EFT clients

1) Those that tan year round. The smallest group of EFT clients
2) Those that join, start tanning then stop tanning and QUIT PAYING! They are the largest group of EFT clients.
3) Those that join, start tanning then stop tanning and DONT QUIT paying. This group is the group you need to
focus on creating a larger number of members! This is member retention. This is the key metric!

Are you aware Steve that photobiology is responsible for our busy season?
Tony you have things fine tuned I assume with communication with your client being a matter of fact.

I think you will find that most operators are still lacking in some of the most basic operation skills. While I agree there are different profiles for the EFT client, you can still have a more positive effect of each type with your level of consistent communication.

EFT membership is only part of a well orchestrated price structure. What where and when you advertise can still allow you to have a more productive off season.

While there can be different price structures that can be effective, it is still imperative that the plan is properly executed on every level.

I know you like your $9.95 membership and assume that because it is so cheap people don't cancel, but to suggest this is the best program for all salons is probably not realistic.

I don't think any salon should look to only EFT as a price standard.

Some people will only make shorter term commitments for many different reasons. I believe having a price structure that offers something for everyone while maximizing the income potential from each type of tanner is a smart way to go.

This thinking is also easier to adapt to most existing salons.

You have to agree it is not simply pricing, there is much more to it than that.

Tony, I am not sure why you feel we are having a contest here, We have different views of what we feel works best. I think people can llisten to what we both have to say and decide for themselves what might be best for them to investigate further.

One thing is for sure, there are a great many operators here that can generate a great deal more income by making changes that will increase sales 100% of the time.

I just heard from a client today that with change increased sales by 90% in 2013 over 2012 and is up 184% in the first two month of 2014 over 2013. While so many operators are talking about how sales are down, it has to make you think about why?
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Old 03-01-2014, 08:56 PM   #15 (permalink)
 
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Re: Membership - MANY approaches...

Quote:
Originally Posted by Tony View Post
Steve

The number 1 reason why people start to tan and stop tanning is due to a photobiological reaction!
Are you aware of this? You can treat your client like Gold and they will still stop tanning! You just
cant get most people to tan year round which is the reason an EFT exists in the first place.

There are 3 types of EFT clients

1) Those that tan year round. The smallest group of EFT clients
2) Those that join, start tanning then stop tanning and QUIT PAYING! They are the largest group of EFT clients.
3) Those that join, start tanning then stop tanning and DONT QUIT paying. This group is the group you need to
focus on creating a larger number of members! This is member retention. This is the key metric!

Are you aware Steve that photobiology is responsible for our busy season?
Photobiology: the study of the effects of light on biological
systems.

Tony one of the main reasons for the seasons of indoor tanning is because of the way it was marketed in the very early years and in many cases how it is marketed today. Through marketing we have conditioned tanners to tan during what is now the busy season. Through reeducating tanners you can change seasons. That would explain why so many salons while having peaks and Vallie's each year the degree of income falling off during the so called slow season does not have to be as severe as it is for most salons. To say the slow season is caused purely because of the photo biological effect is over simplifying things.

A great many times operators stop marketing during the so called slow season because they are told it is the slow season. That is the time to step up direct marketing to the client base. Also what you do during the busy season will also have a potential negative or positive impact on the summer and fall months.

What you do determines how good or how bad each season is, pricing is only part of it.

If we spent more time marketing the benefit of tanning, things would be different.

Studies conclude that people also use indoor tanning equipment for the following benefits…

The Feel-Good Factor:
The overwhelming response of customers is that using a sun bed or booth brings an all-round improvement to their well-being.

Your Body:
The luxury of lying down on a sun bed, surrounded by warmth, and cooled by a air flow system, while stimulated by music, is a rare opportunity to relax in a hectic world.

Your Mind:
Time for quiet, away from the phone, work and the home allows restoration and rest for the mind.

Your Feelings:
Looking better helps you feel better about yourself. The better you feel about yourself, the more you will look after your health in other ways, and the more confident you will feel about the use of indoor tanning beds and booths.

Ask anyone what time of the year they want to look good and feel good about themselves? I don't think they will say February through May. They are more like to say always. Now all you have to do is connesct tanning to that desire to look and feel good.
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Old 03-01-2014, 09:42 PM   #16 (permalink)
 
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Re: Membership - MANY approaches...

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Originally Posted by Steve Underhill View Post
Tony you have things fine tuned I assume with communication with your client being a matter of fact.

I think you will find that most operators are still lacking in some of the most basic operation skills. Steve i have been in the RETAIL tanning industry for 29 years this month. I was a software provider of POS software for 18+ years which makes me the only RETAILER and software guy in indoor tanning. This gives me a profound knowledge of indoor tanning so YES I am aware of the deficiencies of MOST operators. While I agree there are different profiles for the EFT client, you can still have a more positive effect of each type with your level of consistent communication. Please put this is some form of functional reality without the Tony Robbins spin.

EFT membership is only part of a well orchestrated price structure. EFT is the MOST important part of a salons price structure. The way its implemented will directly and drastically affect profits. What where and when you advertise can still allow you to have a more productive off season. I would venture to say that I run more radio and possibly more TV ads then any other chains in our industry. I dont say this to be braggadocious but to provide some perspective for what i am about to say. I run a very substantial amount of radio and TV all 12 months. I am almost positive no one else does this so I speak with unique experience. I have run so many tests to try and stimulate off season tanning. It just cant be done with much effectiveness. Before you tell me "oh its how you communicate with people" let me tell you two more interesting facts. I took one isolated MSA and BOMBARDED it with Radio. I took another isolated MSA and BOMBARDED it with TV. There was only the SLIGHTEST difference in new client counts and sales compared to same store sales the previous year and other store sales with much less advertising! And this was after 3 months of nothing less then a total onslaught of marketing. I know the photobiological trigger better then almost anyone. I am 100% a believer and yet I still attempted to see if i could force mother natures hand!

Also why do you think that 70+ % of EFT members dont tan in the 4th quarter? They dont use what they paid for so how the heck do you think you can get people to stay on longer or even get them to join year round with better communication and advertising? Really Steve? Retail tanning has been my life. I study it and devour it like few others in our industry do!


While there can be different price structures that can be effective, it is still imperative that the plan is properly executed on every level. DUH!


I know you like your $9.95 (its $9.99) membership and assume that because it is so cheap people don't cancel, How do you know what I assume? Well I dont assume that so you dont know what I assume but to suggest this is the best program for all salons is probably not realistic. I dont suggest I know. Why do I know? Because everyone I have mentored (yes I mentor which means I dont charge) since 1999 has been HYPER successful with my strategy. Oh by the way I dont believe in EFT concepts I believe in EFT strategy.

I don't think any salon should look to only EFT as a price standard.
I dont know a single salon that does so why even say this?

Some people will only make shorter term commitments for many different reasons. I believe having a price structure that offers something for everyone while maximizing the income potential from each type of tanner is a smart way to go. Well it sure sounds really good Steve but its more philosophy. Go after the 80%!

This thinking is also easier to adapt to most existing salons.
I dont recommend whats easier. I recommend what works better!

You have to agree it is not simply pricing, there is much more to it than that. I think your pricing STRATEGY is a gigantic part of your stores success at the point-of-purchase. Marketing gets them in the door but pricing strategy makes sales. You also want a strategy that sells. Systems sell - People Tell :)



Tony, I am not sure why you feel we are having a contest here,
Steve you feel its a contest not me. I just STRONGLY disagree with what you say. My views are based on YEARS of empirical data analysed with a religious fervor! Dozens of focus groups and thousands of interviews with salon owners, employees and clients. We have different views of what we feel works best. I think people can llisten to what we both have to say and decide for themselves what might be best for them to investigate further. Sure they can decide for themselves and their results will vary greatly :) But they certainly have the right to believe who they want and quite frankly I dont really care since I am not a consultant making money off salon owners!

One thing is for sure, there are a great many operators here that can generate a great deal more income by making changes that will increase sales 100% of the time. AMEN!

I just heard from a client today that with change increased sales by 90% in 2013 over 2012 and is up 184% in the first two month of 2014 over 2013. Well I think I have to pull out the BS card on this one Steve. And if its not BS then they did such a terrible job at every aspect of their business to surpress their sales so much that such an unrealistic increase could become reality! While so many operators are talking about how sales are down, it has to make you think about why?
My sales have been up every year for the last 6 years. I had one down year since 1985. All the things people whine about here is effecting them because they fail to execute properly!

Steve i did paid consulting in the 90's. I use to fill my marketing classes for $500 a head. I literally sold out every class. I gave tours to my stores with motor coach busloads of salon owners during the shows in Chicago. Some of my young students where Tony Hartl (Planet Tan), Todd Beckman (Tan Company), Bart Bonn (Ashley Lynns and now Palm Beach). All 3 went on to great accomplishments in our industry! I could name many more! I did what you do with fervor, passion, experience and strategy that I sincerely believe was unmatched then and now! Once again I am not trying to be braggadocious. I just want you to understand where I am coming from and why!

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Old 03-02-2014, 02:21 PM   #17 (permalink)
 
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Re: Membership - MANY approaches...

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Originally Posted by Tony View Post
My sales have been up every year for the last 6 years. I had one down year since 1985. All the things people whine about here is effecting them because they fail to execute properly!

Steve i did paid consulting in the 90's. I use to fill my marketing classes for $500 a head. I literally sold out every class. I gave tours to my stores with motor coach busloads of salon owners during the shows in Chicago. Some of my young students where Tony Hartl (Planet Tan), Todd Beckman (Tan Company), Bart Bonn (Ashley Lynns and now Palm Beach). All 3 went on to great accomplishments in our industry! I could name many more! I did what you do with fervor, passion, experience and strategy that I sincerely believe was unmatched then and now! Once again I am not trying to be braggadocious. I just want you to understand where I am coming from and why!
Tony not everything is directed at you. Why are you so defensive? We all acknowledge you are so impressive. When I give advice I am not directing it to you. I am directing it to anyone it applies to. Many of these people you mention I sold some of their first equipment too. You have a very extensive background, we are all impressed with your years of experience. There are many of us with that much experience and more. We all have knowledge to share. I am sure it makes you feel good when someone you have worked with becomes successful, I know I have a great sense of pride when my clients do well.

Please I ask you to realize that when I post or answer your post it is not directed to you it is only another view or approach. What you believe is not being challenged. But your belief like mine are not the only views to a subject.

There are people and companies that are respected for giving advice in this industry that have no experience in the industry. And yet here we are with more than half a century of experience in the industry bumping heads. Please stop taking things personal.

I think you are doing great down in your corner of the country.

Tony I have known you since you got started in this business. Again good job. You do not need assistance. I agree salon operators today do not execute very well but a bigger problem is the lack of a business model that works today. I am sure you will agree that the business model you believe in 10. 20, or 30 years ago would fall flat today. Change to keep up with todays consumer is what is needed.

The salons that I restructure don't show small improvements they show huge improvements in maximizing income potential. I am sure that with guidance from you, operators can also make changes. I believe in not under valuing tanning and you appear to believe the new age is to sell tanning at low prices requiring huge membership bases. There is room for any type of business model that works. I see a few salons selling tanning for $10 a month. I am anxious to see how that model survives. I see how it works in a fitness center setting when attached to the gym membership, handled as a secondary service, not convinced that it will work stand alone in all tanning salons. I think tanners want a higher level of customer service than is provided when tanning is a secondary service.

Tony I started in the tanning business in 1979, it is safe to say that I also live, eat and breath tanning because that is what I have done for 35 years. I love this business and the people in it. I am still having fun. I am listening because I still learn new things every day. I have certainly changed strategies over the years because you have to in order to grow. I am listening to everything you say. Still not exactly sure what you are suggesting operators do.

I know when I take on a salon the price structure is only part of the changes that must be made. I just can't get my head around selling all of your tanning for $9.99 a month. I guess when I see large groups of salons generate substantial income with that business model I will have no choice but get on board. Unfortunately the most successful chains in the country do not use that model. Even those companies that you mentioned mentoring do not use your $9.99 model. Who other than you is doing this?
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Old 03-02-2014, 04:09 PM   #18 (permalink)
 
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Re: Membership - MANY approaches...

I just heard from a client today that with change increased sales by 90% in 2013 over 2012 and is up 184% in the first two month of 2014 over 2013. Well I think I have to pull out the BS card on this one Steve. And if its not BS then they did such a terrible job at every aspect of their business to suppress their sales so much that such an unrealistic increase could become reality!)Quote

Tony, that is just rude to say BS. This is a salon that had a lot of issues. My task was to turn her around and head her in the right direction. She will continue to increase sales as we move forward following my advice. Here are the actual numbers for 2012, 2013 and 2014. My strategy was put in place March 1st 2013, all numbers in red reflect my changes. This is just one example I work with chains as well as independent single salon owners. Tony you may not realize it but the smaller salons as well as the bigger salons need help. These are strong increases for such a short period of time. You must also know that she was down 34% in 2012 over 2011.
I am sure any salon owner here would welcome this kind of improvement.

2012 total $89,220
2013 total $159,083
2014 total for January and February $32,227



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Old 03-02-2014, 06:05 PM   #19 (permalink)
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Re: Membership - MANY approaches...

I'm seriously thinking of offering unlimited purchase of single session tanning. Buy as many as you like in each level of tanning that I have. Bargain basement level for $1.00 ea., Base bed $2., Medium level $3., and Ultra level $4. Buy as many as you want, with no expiration. Minimum purchase of 10 units. Cash flow is the name of the game, and this would certainly achieve that. I know a salon owner who did this (owned 3 salons), and sold his salons based on annual tans sold. He had unbelievable numbers, and sold his salons for $450,000. Maybe I can increase my numbers and sell to the same person. lol
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Old 03-02-2014, 07:53 PM   #20 (permalink)
 
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Re: Membership - MANY approaches...

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I'm seriously thinking of offering unlimited purchase of single session tanning. Buy as many as you like in each level of tanning that I have. Bargain basement level for $1.00 ea., Base bed $2., Medium level $3., and Ultra level $4. Buy as many as you want, with no expiration. Minimum purchase of 10 units. Cash flow is the name of the game, and this would certainly achieve that. I know a salon owner who did this (owned 3 salons), and sold his salons based on annual tans sold. He had unbelievable numbers, and sold his salons for $450,000. Maybe I can increase my numbers and sell to the same person. lol
Poor Strategy....you need to collect money from people who are no longer tanning!
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