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An Internet Presence Can Add To Your Bottom Line

by Hollie Costello

In this new age of information, having a site on the World Wide Web could mean the difference between getting the word out and bringing customers in or becoming yet another statistic in the out-of-business column. Though manufacturers, distributors and wholesalers have had Web sites for quite some time, many tanning salons still do not--begging the question, what does big business know that tanning salons need to know?

Easy as Pie

Once thought of as a fly-by-night substitute to daily business, the World Wide Web has become a force to be reckoned with in the competitive market. Expected to reach more than $400 billion in the year 2000, the worldwide business-to-business market will change the way everyone--including tanning salons--will do business.

The indoor tanning industry has slowly evolved into a Web-savvy culture, with some of the leading equipment and lotion manufacturers creating company sites and some of the larger distributors and wholesalers doing business over the Internet.

"We have had a Web site for more than seven years now," says Leif Vasstrom, chief executive officer of San Francisco-based QDM Co., Inc. "However, in this stage of the industry, salon owners are not using the sites as much as they could."

Vasstrom says the QDM site fields numerous hits, now more than 1,000 each week; however, he finds people are more interested in education and industry information than in ordering equipment or software.

"I believe the salons that are busy and are really doing well, just don't have time for it," he says. "Yet, in another year, I think indoor tanning sites--from salons, distributors and manufacturers--will be more prevalent."

One of the reasons more salon owners have not taken advantage of this growing opportunity may be intimidation. Salon owners seem to be intimidated by the possibility of creating and updating a business Web site, considering them too expensive and too time-consuming to be a part of their small business. Now, however, it is easy to create a site with little to no Internet experience. It is also fairly inexpensive.

As a general figure, most salons can update their business with less than $3,000--the cost of a good computer, a site designer (or a book on Internet design), the registration of a domain name (www.find-a-tan.com for instance) and a second phone line. In the beginning, however, simplicity may hold the key to a long-lasting relationship between salon owners and the World Wide Web.

"We created our site more than two years ago to answer questions and expand our business," says Jeff Grissler, president of Quest Resources, Inc., a financing company based in Neptune, N.J. "Now, we have an instant online applications process, as well as online approval in about four hours."

Grissler says the first year was a learning year, simply seeing if the site would get as many hits as the phones received calls. When the hits starting expanding past questions and on to letters, requests and information sharing, Grissler felt it would be best to bring in someone to create a larger, more informative site that was easy for salon owners to use and understand.

"I am not a computer person, but without an Internet site I believe our business would be held back," he says. "Response is growing on a daily basis, with more than 20 percent of our requests coming from the site. That is too much business to ignore the impact."

Eye Pro, Inc., a Fort Wayne, Ind.-based company currently is working on a site. President and Co-owner Brenda Fishbaugh says the decision to add a Web site was an easy one.

"We felt we wanted to be able to accumulate the hard-to-reach business by offering them more than one way to get in touch with our company," Fishbaugh says. "Since we are an accessory, the key to our business is getting information to the end-users--people who find their information faster and easier online."

From the Boardroom to the Tanning Room

With the Internet becoming such a large part of commerce and marketing, salons should register a domain name and start building a page soon. Without a home page, salons are missing the opportunity to attract new customers while helping keep in touch with old customers--therefore, losing business.

"We created the site as another sales tool," says Mike "Zeke" Lemle, president of Breeze Products, based in St. Petersburg, Fla. "As the Internet becomes more popular, I believe indoor tanning businesses will not be able to survive without a site"

Currently, Breeze updates its site regularly, and he allows customers to link their salon pages to the Breeze page so tanners can go directly to his site; however, few salons have jumped at the opportunity.

"There is not a drastic amount of salons that have their own Web sites for Internet business use," Lemle says. "However, that number is growing and now more than 15 of our regular customers have their salon sites link up to ours."

According to figures collected by LOOKING FIT in the last year, salons are grossly under-represented on the World Wide Web. Of the salons interviewed, 67 percent were computerized. However, of that 67 percent only 30 percent had direct Internet access within their salon and only 9 percent had a business Web site--proving salon owners are not necessarily using their computers to full advantage.

Manufacturers, distributors and wholesalers are more Web savvy, with 52 percent having Web sites for their companies and 51 percent having personal e-mail systems to better serve customers. Salon owners need to move ahead in the Internet revolution if they want to catch up to the bigger companies.

LaDonna Pharris, owner of Hot Spot Tanning Resort in Abilene, Texas currently is working with her employees to build a Web site for the salon. With 13 units, Hot Spot is a medium-sized salon within the industry; however, as far as the Internet is concerned, it truly has hit the hot spot.

"Currently, we are listed on a message board and people can pull up our information or get an e-mail address to talk to us directly," says Pharris. "It has really brought in some interest."

Pharris is looking to the Internet more as a connection to her clients, than as a way to do business. Her ideas include e-mailing regular customers, and allowing customers direct contact for information or questions.

David Orwick, sales manager for Lucas Products, says the Toledo, Ohio-company has had two Web sites in more than three years, but the new site is more informative and more customer-oriented.

"Now we have a contact list for people to get in touch with anyone from the company," he says. "In addition, users can access the company at any time of the day or night--something we could not do without the site."

Orwick says site feedback has been positive and quick responses from everyone in the company have kept people coming back--making some customers regular e-mail correspondents.

"The entire company recognizes the importance of the Internet to our business--and our industry," he says. "I think any company that discounts the Internet as a vehicle for business is soon not going to have any business."

Knowing Your Clientele

E-advertising is just one of the many benefits salons can use after creating--and using--an Internet Web site. Like word-of-mouth, the word-of-the-Internet is a quick way to interest people in the salon just by allowing them a preview through pictures, package information or client testimonials.

"We have had a Web site for five years," says Inge Glees, vice president of marketing and sales for John Abaté International™, a leading lotion manufacturer based in Scottsdale, Ariz. "This year we revamped the site to include animation for more advanced modems. It makes it more fun for the regular users."

Glees says the site already has added to JA's customer base, and continues to receive more hits every year.

"I believe salon owners are becoming more technologically advanced," she says. "In the past, very few salons had any Internet access. Now we have an extensive e-mail list and people are contacting the company through our site regularly."

In addition, salons can register with search engines such as find-a-tan.com which simplify for customers the process of finding a tanning salon in a certain area. Like a Yellow Pages on the Internet, find-a-tan.com displays salons registered within a particular area through zip code. Salons can register for a listing on the browser simply by logging onto the site and typing in the basics--name, address and phone number, as well as a short description if desired. It's an easy--and free--way to advertise a salon to a worldwide market with a few easy keystrokes.

Working with the People

In this day and age, becoming Internet savvy is just good business practice. With the e-marketplace allowing billions of dollars to run through the wires in a year, many in the indoor tanning industry are learning the craft to do business faster and more efficiently.

"Our site has been live for more than three years," says Kathy Clarke, vice president of Ultraviolet Resources International, a tanning equipment distributor in Cleveland, Ohio. "Originally, it was designed simply for company awareness and exposure, but it has matured and grown in both aesthetics and information."

Clarke says it took months of planning and organizing to create the site. The company has seen tremendous response by offering customers the ability to contact the company, receive price quotes via e-mail and receive information on both the company and the indoor tanning industry as a whole.

Salons recognize the need for Internet business and, in fact, more than 50 percent say they have done research or ordering over the Web. According to Forrester Research, Inc., the e-marketplace eventually will comprise between 45 percent and 74 percent of Internet business. That means more than half of all businesses will do some form of sales over the Internet. The indoor tanning industry is well aware of this situation, with lotion, equipment, and accessory distributors, as well as manufacturers, online and ready for business.

Cheri Mullenix, marketing coordinator for Wolff System Technology Corp., says its Web site has been a real enhancement for the company, bringing in more questions and more interest on various topics--from the company's lamps to the entire indoor tanning industry.

"Wolff System markets its lamps through a network of licensees and distributors, but people now can order Wolff apparel over the Internet, as well as view our educational and basic training information," says Mullenix.

The company also has seen a noticeable increase in the amount of site hits during the two years it has been operational.

"Visitors really like the fact that we post new information on a periodic basis," she says. "Although still in its infancy, I believe the entire industry is looking at more ways to do e-commerce in the future."

It also is important to notice researchers say that 52 percent of the current business sites are retail to consumer--the same idea a salon would use to catch the attention of customers--with 18 percent being business to business sites--similar to the sites created by manufacturers and distributors.

More Than a Tool

However, salons should know that doing business online is only one of the many uses of an Internet Web site. After all, the Internet was created as an information source--and should be used as such.

J.P. Patterson, owner of E.O.S. Tanning in Phoenix, has done business consistently on the Internet for more than one year, finding everything from equipment parts to towels and accessories. Yet, most of the time, he uses his Internet access to download information to showcase in his salon and on his site.

"It is better than any resource, any tool you could possibly use in business," says Patterson. "On our Web site, we will give not only information on the salon, but also connect to our favorite sites regarding tanning and indoor tanning."

Companies also use the Internet as a resource, allowing salons and distributors access to product information, company contacts and the future innovations.

Zen Carling, marketing director for Melbourne, Fla.,-based FloridaTan, says the company currently has product and company information available on its Web site so salon owners, distributors and even the average tanner can see the quality products they are purchasing.

"Right now, people cannot order over the Web site; however, we are looking to add that in the future so our salons and distributors can do business over the Internet," she says. "We have to first find a way to make sure the average person cannot order from FloridaTan so that we support our salons and our distributors."

Carling says the site has encouraged international interest in the U.S. company. In fact, since appearing at a show in Germany, the site has received a large amount of international exposure.

Matthew Price, owner of the Golden Palm Tanning Resort in Kennewick, Wash., also added the Internet to his salon for the opportunity to do research and business easily and quickly.

"We started our Web site after seeing site information pop up on the letterhead and advertising of our favorite manufacturers," says Price. "Since we put in our second line more than one year ago, I have used the Internet more times than I can count for research, education and information."

By researching lotion ingredients, photosensitivity lists and other information, Price is keeping on top of the industry without having to leave his salon. In addition, he can pass information on to salon employees and clients. Price includes links to other sites through his salon home page so others can find the research he includes and read further on responsible indoor tanning.

"People are responding to our site on a regular basis," he says. "Since we use it primarily as a service to our clients, as well as to the public, we don't have to check it every week and people like that we are linked to other indoor tanning information sites."

According to salons that have Web pages, establishing a link to a search engine or larger site is just the kind of kick-start a business needs. In addition to sites like find-a-tan.com that link all salons in the country, LOOKING FIT allows salon owners to link up to the magazine's home page, providing years of indoor tanning information at the touch of a mouse. That makes the ease of educating customers on the theories and information behind the indoor tanning industry on par with the ease of teaching them how to type in "indoor tanning industry."

The Web-vantage

When evaluating the effectiveness of the World Wide Web plays in business, especially small business, it is important to recognize that what looks like an expensive investment will save money in the long run. Managers and owners, of course, need to be aware of the challenges and limitations that touch the Internet marketplace in the same way they touch traditional management strategies.

The Internet allows salons to extend their relationships--and their profits--by informing an existing customer base and creating a new customer base.

"My time is important to me and my customer's are the same way," says Price. "The Internet is a way to get any information--from pages and pages to one little address--quickly and efficiently without bothering anyone or myself."