Indoor Tanning: Merging Into the Mainstream

Indoor Tanning: Merging Into the Mainstream

As we move into the 21st century, yesteryear's dreams are becoming today's realities. From electric cars and wall-mounted, flat-screen TVs to virtual reality and electronic imaging, the future is now.

With this in mind, is it possible that indoor tanning will become a common household word? The answer is a resounding yes!

If the overall growth of the indoor tanning salon market is any indication, then the possibilities are real. Now, more than ever, tanning is becoming more recognized as a true lifestyle activity. Whether we realize it, it is part of our daily lives and we look forward to its benefits.

With this increased recognition comes more interest from mainstream businesses that are studying the tanning salon market and venturing into this lucrative arena. This only creates a heightened awareness of the business of indoor tanning. From health clubs to video stores, tanning is emerging all over the business world.

Interestingly, many of these businesses start with an addition of tanning to their existing operations. As they experience the success and acceptance of tanning by their customers, some are opting to open free-standing tanning salons as well. And while some tanning salons view this as competition, it only emphasizes that fact that tanning is a viable industry worthy of the respect of other markets.

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Video store operators understand the importance of selling time. In fact, the businesses of video and tanning align so much that it is estimated that 10 percent to 12 percent of new tanning salons opened in 1999 were by proprietors who were formerly in the video business.

Many video stores have added tanning not only as an added profit center, but also to capture new customers for their video rentals or sales. And with today's demanding consumer wanting a one-stop shop for all their needs, this is a perfect fit for tanning.

In the beginning, video store owners were open to the idea of adding tanning to their stores. Larger chains, such as Blockbuster and Hollywood Video, were squeezing many mom-and-pop video stores out. With tanning beds needing little space, they were a natural weapon in the war against the large chains.

Henry Turner, owner of Premiere Tanning and Premiere Video in Jonesboro, Ark., first was drawn to the idea of tanning many years ago. He owned a chain of video stores and was interested in adding tanning after meeting Porter Hurt, president of SUN Ergoline, then known as Sun Industries.

"Now we have tanning in three of our 12 stores and are adding tanning to four more," says Turner. "Some of the stores are free-standing tanning salons next to video stores instead of inside the video store."

Turner's decision to have free-standing stores was determined by customer demographics. For instance, in Jonesboro--a college area--there are 10,000 potential customers for tanning but not as many for video. However, in the smaller town of Newport, Ark., it was not feasible to have just a tanning salon or just a video store. Therefore, Turner created an eight-bed salon with 1,000 square feet of video.

"We knew from the beginning that the video and tanning combination would work in certain areas," he says. "Now we are trying to venture out, see if the combination is right for all of our stores."

Whether adding tanning to video or video to tanning, you have to be in a high-traffic, high-visibility area and get the word out.

SUN Ergoline was one of the first tanning equipment manufacturers to embrace the concept of combining video and tanning and attend video trade shows armed with investment analysis, marketing support and design plans. The plan worked--attracting video stores across the country to the idea of tanning.

"In the early '90s people in the indoor tanning industry thought we were crazy for going to those shows because they didn't see the common denominator between tanning and video," says Jerry Deveney, director of marketing for SUN Ergoline. "They both sell time."

Apparently, video store owners agreed. Since that time, more and more video stores have added tanning beds and booths to their facilities or even deleted older videos from stock to concentrate the space on tanning. According to Worth Magazine, movie rental outlets offering on-site tanning beds now number more than 2,000.

Today, many more tanning equipment manufacturers have seen the light and realize the profit potential from video. In fact, Team Tan and puretan® International also exhibit their equipment at the video trade shows throughout the country.

"Video stores and tanning salons are a perfect compliment to each other," says Deveney. "Video stores are busy on the weekends--they get their rush on Friday and Saturdays, but tanning salons are busy during the week, with almost all of their customers making regular appointments Monday through Thursday."

The two industries even have complimentary busy seasons, with tanning having a rush of customers from January to June and video stores doing more business in the summer and fall.

Jason Durnett, vice president of Team Tan d.b.a. Sportarredo says video store owners have seen the growth in the indoor tanning market overall and realize they can reap additional profits by adding tanning to their existing businesses.

"They are finding out just how much revenue they can earn by adding tanning units, and a high percentage are then deciding to open free-standing tanning salons in close proximity to their video stores," he says. "The exposure this has provided for the tanning industry overall has been phenomenal."

Roger Brown, president of puretan® International agrees: "With a little guidance and quality equipment, video stores can reap the profits from indoor tanning. It's been a salvation for some of the video stores that have come under fire from the larger video chains."

However, Brown is quick to point out that tanning equipment manufacturers should provide the tools necessary for the video industry to embrace tanning. "We don't want them to just gain business--we want them to succeed in adding tanning. We can accomplish this by providing them with a turnkey operation," he says.

Team Tan's Durnett attributes the growth to the increased professionalism of the indoor tanning industry. "Video store owners are investigating tanning salons and finding the equipment is getting better and the salon owners more professional," he says. "Thus, it makes it easier for them to enter the market because they see it as a viable industry."

Seasonal promotions also help to keep a year-round clientele, instead of working through the seasons video and tanning seem to generate.

"We created baskets for Christmas that had monthly passes, lotions and five free video rentals and they flew off the shelves," says Chris Birdsong, owner of Premiere Tan and Premiere Video in Alabama.

Birdsong owns 12 Premiere Video Superstores and entered into the tanning business for the first time last November. His Premiere Video and Premiere Tan stores are separate for all purposes; however, they connect through an adjoining wall.

"We kept them separate for a lot of reasons including the license, liability and business interest," he says.

Success came from using a cross-marketing approach through his video stores, handing out free tan coupons with video rentals and working with a local bookstore to offer free tans to students who purchased books.

"Our video store has been there for three years, but when the 3,200 square feet next to it became available we thought it would be a good chance to start in with the tanning," Birdsong says. "Though the tanning salon just opened in November, we have had a great response from the public."

Adding Muscle

Another mainstream business experiencing growth with tanning is that of fitness clubs and gyms. Whether they are upscale fitness clubs or hard-core muscle gyms, more and more of them are realizing the profit potential from adding tanning services.

According to Rich Minzer, former assistant director of licensing for Gold's Gyms, today's gym operators are looking ahead to the future and adding services to attract additional members who are interested in total wellness, fitness and lifestyle.

"Studies indicate that people want their amenities and luxuries within a five-mile radius of where they live or work," he says. "In other words, people want a one-stop shop for their needs. A gym that offers tanning, skincare and other amenities most likely will keep their customers much longer than those that offer just fitness."

However, just adding a couple of tanning beds to a gym won't cut the mustard. A facility must be dedicated to the concept of tanning otherwise it is just an attempt to gain a few customers.

"Club owners must be committed to tanning in order to make it a viable business," he says. "Putting four or six beds in a club not only shows a financial commitment but also a business commitment. Turning clubs into a profit center is key for the future."

puretan's Brown has noticed a significant rise in tanning equipment sales to health clubs--a rise he attributes to more and more consumers becoming concerned about their overall wellness.

"Gym owners are realizing that by adding tanning, they can generate more profits from their regular clients as well as a whole host of new customers," he says. "They are learning how to sell the concept of wellness with tanning in order to give their clients great looking bodies and great looking tans."

But just adding beds won't make the cash registers ring. Additionally, a commitment to education and customers is key. This such commitment has helped Joe Bueme, owner of two Gold's Gyms, turn one of his Buffalo, N.Y., locations into a profit center for tanning.

According to Minzer, the northern New York club added eight tanning beds to its facility and has experienced phenomenal success--even from non-club members. The tanning area even has its own entrance so clients don't have to trudge through a loud gym to get to their tanning session.

"The facility is always busy," says Minzer. "And Joe doesn't feel any competition from the 100-bed tanning salon down the street."

Again, convenience is key here. Customers can sign up for tanning memberships with their fitness package or they can purchase single sessions.

"Many of his clients are gym members, but many are not," he says. "Joe offers a lot of skincare lines and has a knowledgeable staff that can advise clients on how to achieve a great looking tan the right way."

Minzer is quick to note that much of the education comes from the distributors and suppliers who sell the gyms the tanning equipment. They are teaching the businesses how to increase revenue through tanning because it is a viable and respected business.

The Future is Here

The exposure that diversification from mainstream businesses affords the tanning industry is immeasurable. The tanning industry overall stands to benefit greatly from this widespread movement of other core businesses into tanning. This not only creates awareness, but also legitimacy to the business of tanning and more customers in the end. All of which are good for tanning salon owners everywhere.

Editor's Note: We will be examining other mainstream businesses that are studying the tanning salon market and venturing into this lucrative arena in upcoming issues of LOOKING FIT.