Ken

Ok Peach, I'll go three for three.

1. "We are headed in the wrong direction" - I truly don't know what direction you are headed in but I am confident that it's not the direction I am headed in so "we" are not headed in the wrong direction.

2. Maybe you are following "poor leadership" but the people I regard as leaders are astute and effective.

3. "ruled by special interests" That's a vague, nonsense statement. Who "rules" you Peach? Identify these mystery special interest people that you believe rule the industry.

Everyone who is invested in this tanning industry has choices: work, grow and improve their business, let their business run as is, or get out of the business. Railing against "poor leadership" somewhere undefined, "special interests" operating against some undefined common goal, and what "direction" something is headed in does not serve to grow and improve my business and I doubt it will improve anyone else's.

Now you can have the rest of the thread, I've got work to do.

TanRepairBook

The demand is certainly at a much steeper decline currently than the supply. Even very smart and business savvy operations are seeing a decline this season in my region. Our product UV is fantastic, but has been poorly represented through various themes of vacations and sex. This paradigm is simply too ignorant for where the world is going, particularly for products that has an effect on our bodies. We need to be ahead of curve with excellent advice and matching responsibility, and provide a long lasting and true value to people that choose to spend their money in the salons. Well priced EFTs is still the go-to in my opinion, and creates a predictable monthly bill for the client, less hassle is value too. Be knowledgeable on what the lotion truly provides as value, and do not over sell, there is the reason why the terminology “oversell” exists. Foot traffic for all retail is down, the average consumer is more savvy with their money. We need to accommodate all this, just like any other retail business. Price structures and reasons to buy today are certainly important factors for a successful business, but very short sighted to have as focus. This might still work in some regions, but it will soon enough catch on. The information age has removed the consumer away from that mess, and I am personally happy about that. No truly good business will also fill your heart now.
The bottom line is that it is a good time to expand and be the salon that people will choose in the new retail environment. Then you can watch the sharks of overselling long binding contracts and salons that are too lazy to implement true advice on tanning die off.

peach

Ken, as usual, you and others like you dodge the obvious issues and try to act like all is well, when you and everyone else in this industry know that it is not.

The "we" that I referred to is the indoor tanning industry. All of it. Of course, you changed the "we" term to the "me" term. That indicates that you do not think about the overall industry and probably do not care about the overall industry. As long as "me" is doing OK, to heck with the "we". I guess for you, it is each man (or woman) for themselves. That philosophy is at the root of what in wrong with the indoor tanning.

I know we live in a capitalist economy model, but all industries realize that when one loses, we all lose. Smart and astute leaders realize when their industry is in jeopardy. Except the indoor tanning industry.

My comments were:
1) the entire industry is in trouble and going in the wrong direction. The data on this is clear. Ken, you might be doing well, but the industry as a whole is not. Salons are closing, and supplier tanning companies are closing. Fewer people can get into the business today and cost for consumers to tan are going above their disposable incomes. WRONG DIRECTION

2) I also said that leadership is poor. The ASA's first big move was to a)lobby the industry for a .25 tax on all lotion sales to fund themselves and b) tell the whole industry that the battle over teenage tanning is lost. The ITA spends their time and money wining and dining congressmen. POOR LEADERSHIP.

3) These organizations are led by a small group of big players in our industry. When they get into a place of power, do nothing to promote this industry at all. They have no will to fight for us, the rank and file salons. That is because they don't care about the small salon owners. Like you, Ken, they think people like me are the problem with the industry. They want people like me out of the industry. RULED BY BIG SPECIAL INTERESTS.

There, Ken, I have been very specific, whereas, you have not. Exactly the reverse of your critique of me. You offer vague generalities, and personal digs, and worst, you have shown a callous disregard for the industry that you say that you are in.

Anyone with 1/2 a brain, knows that the indoor tanning industry is on life support, yet you and others run around speaking as though all is fine. You insult the intelligence of me and everyone else on this site.

MKTans

Well it is better than the alternative which is selling less to less people. The industry is changing- I have been in it for 12 years. I don't think this post was about what are we going to do to turn the industry around, it was about how are people fairing so far in 2014. In 2014 I am seeing increased dollars, decreased costs.

My unique customers have increased, my dollars have increased... my sessions have declined. That is not a bad thing in my book... I have more unique customers doing more upgraded beds. We have shown them value and convenience- they don't need to be here 4-5 days a week, 1-2 is enough with a good lotion and decent equipment. It's what works for us. Just like what works for you- works for you. I don't want 125 people walking in doing base beds with base lotions- too much work trying to educate them to better options.

Thanks Steve- I am always trying something new! Drives the staff crazy I am sure, but the customers respond well and seem to enjoy it.

__________________
Mary

peach

If you read the thread from the beginning, it was started by someone who made a blanket statement that everyone was doing better in 2014 than 2013. Then there were people who disagreed with that assessment. It then turned to a conversation about the state of the tanning industry.

You say that the industry is "changing", but MKTans, you nor anyone else defines what "change" really means. It could be either way; for the better or the worse.

My comments are more about the macro-economic issues facing the Tanning industry; something most salon owners don't seem to care about.

My point has been that Higher prices for tanning services and products along with lower real wages is causing our industry to lose customers. For every salon that has increased sales with fewer customers, there is one that does not have higher sales that is doing the same thing.

This means that the tanning industry is shrinking it's own customer base, pricing themselves out of the market for much of the middle class. Pat yourselves on the back if you want to, but while most industries are cutting costs and prices to keep the middle class, the tanning industry keeps raising prices, and implementing other unfriendly customer policies.

MY final comment is that we are being given the wrong advise by the industry "experts". In effect, we are our own worst enemies. Instead of making our services more affordable, we are making them more expensive; instead of beng more customer friendly, we are tying them up in confusing legal eft tape. So we are losing sales as an industry, running good salon operators out of business and enticing potential customers to buy their own beds and lotions on the internet or to go back to the free UV light as soon as possible.

Tony

Peach

You are wrong on almost every point. You speak as if you have some
inside knowledge when in fact you have none. You are just plain wrong
Peach. As always you will argue to infinitum but hey its obvious you get
some weird form of gratification out here watching yourself bloviating!

peach

Tony, You and others on this site have no problem telling me that I am wrong, but NOONE on this site really refutes anything that I say. And I am the one bloviating?

So, which issue am I wrong on:

1) Overall Industry sales shrinking
2) Indoor tanning products and services becoming more expensive
3) Good salon owners going out of business
4) Poor Tanning Industry leadership
5) EFT becoming a pain for customers
6) Cost of entry into the Tanning business going higher
7) Poor advise by industry gurus


So which of these am I wrong about? Pick one; it might be hard to defend any of these as being untrue, but try. Pick anyone of these and explain to Tan Talk why you think that I am wrong. Then I will tear you to shreds with the truth.

Steve Underhill

I know that everyone thinks that income in tanning salons are dropping like a rock, but the numbers are coming in today, Here are a couple of examples. One salon so far is showing a 32% increase first quarter over 2013 numbers. This is a salon that she purchased a year and a half ago. We did a purchase restructure.

Another client, that is now 2 years in with the changes we made, just for April alone did a 60% increase in April 2013 over 2012 and now has done a 42% increase April 2014 over 2013, for a first quarter increase over 2013 of 62% that gave her a $28,000 April and still climbing.

These are independently owned operators. One purchased the existing salon in 2012 the other a salon owner that was ready to give up and close her doors. Now she is even making some equipment upgrades.

You just can't convince me that the tanning industry is dead.
It does take more effort to do well. Figuring out what you are doing wrong and what you should be doing that you are not doing.

We are excited about the second quarter. You should be too.

__________________
Stephen Underhill
Consultant
steve@smuconsulting.com

peach

No one said the tanning industry is dead, Steve. What has been said is that it is shrinking. Do you really want to debate that?

I guess what you are trying to say is that the survival of the individual salon owner is your primary concern. Can an individual salon be turned around with better management? Of course. We all have to be concerned about our own individual salons.

My point in starting this thread is that there are industry issues as well as economic issues that are hurting the income potentials of salons this year.

I guess you can act as though none of it matters and that nothing can be done about it OR that it is just the normal "shaking out" of the "bad operators" who still have pink flamingos in their salons.

I think otherwise.

peach

What you are not telling us is 60% of what? I can go from $4,000 in sales to $10,000 but if my overhead is $10,000, I would hardly be jumping for joy.