by Scott Hoover
The year was 1993, and the indoor tanning industry was just beginning its metamorphosis into one of the fastest growing industries in the United States. That same October, at the National Tanning Trade Expo in Chicago, UltraSun introduced some of the most innovative tanning units indoor salon owners had even seen in our country. The response was incredible; and, it was with that exposure that a new industry giant was born.
Ultra Successful
UltraSun Professional of Holland and Germany has been manufacturing high-pressure beds since 1975. It is this experience that is one of the keys to the company's success.
"I believe that competition has made everybody better," says Jim Peek, president of the Indianapolis-based UltraSun of North America. "Some of the companies that dominated the industry back in the late 1980s and early 1990s aren't as dominat as they once were. One of the reasons for this is a few of the new U.S. companies that originated in Europe positioned themselves to take a portion of the marketshare by offering new and improved technology."
Another reason Peek believes that UltraSun has grown so fast (the company has experienced a 30 percent to 40 percent growth rate each of the past five years) is timing.
"Salon owners were looking for something new," he says. "They were looking for something other than the 24- to 30-lamp units that were an industry staple in the 1980s. Our timing in introducing the bigger beds in the United States was perfect."
Peek also attributes UltraSun's dramatic rise in popularity to the fact that the company can offer salon owners a full product line including high-, medium- and low-pressure beds, lamps and a complete line of indoor tanning products.
"Many of the salon owners we are working with today are creating a more balanced indoor tanning facility," he notes. "They are providing a base or entry-level type of equipment, a medium-level unit and a top level of equipment. For the salon owner who wants to deal with just one manufacturer and is searching for a unified look throughout their salon, UltraSun has all three levels of equipment and currently offers 17 different models. There are not a lot of manufacturers that can offer that many models and lines of equipment."
Additionally, UltraSun's tanning unit sales percentages are extremely even across the board, so the company doesn't have to depend on any one bed model for its profitability and stability.
In what may be a throwback to a simpler time, UltraSun has stayed close to its small company roots and still delivers more than 80 percent of the tanning units that it sells.
"Most salon owners actually are shocked when we pull up in our trucks," Peek says. "We have a lot of salon owners--who after watching us set up the equipment, hook up the timers and train their staff on how to use the equipment--tell us they have never had a manufacturer come in and do this. This builds relationships and is why the largest percentage of our sales is repeat business."
Peek believes this is extremely important because as time goes by and equipment continues to get more advanced, it is a service more manufacturers will have to offer.
"We treat the salon owners who are buying the low- and medium-pressure units with the same quality and service as the salon owners who are buying the high-pressure units," he comments. "This is just another way that we are trying to increase not only our company's, but also the industry's professional image."
Ultra Innovative
One of the areas where UltraSun continues to excel is in the manufacturing of high-performance tanning beds. As salon owners are becoming more sophisticated, they are realizing that customers are willing to pay a $5 to $10 upgrade for the better results of a high-performance bed.
"We used to tell salon owners that they could charge $10 to $20 for a high-performance bed session and they wouldn't believe it," Peek notes. "Today, that is a nominal fee for a high-pressure session. That is one of the reasons why UltraSun has continued to grow and many of the American manufacturers now are trying to make high-pressure units."
However, UltraSun continues to stay one step ahead of the rest. At the LOOKING FIT National Tanning Trade Expo in Chicago, the company introduced the Turbo 17,000, a combination high-pressure/low-pressure bed without a mattress. The Turbo 17,000 contains 25 high-pressure quartz lamps in the canopy and 100-watt low-pressure reflector lamps in the bed.
"The combination high-pressure/low-pressure beds are extremely popular in Europe," Peek notes. "Additionally, the company received a lot of feedback from salon owners and customers who were looking for a high-pressure bed with lamps in the bed instead of the mattress. So far, the response we have received has been incredible."
In addition to the Turbo 17000, the UltraSun 22000 Turbo high-pressure unit, Ultrasun Series 3600, UltraSun Series 4300 and UltraSun Series 5300 all have been extremely popular money makers and have been well received by salon owners.
UltraSun recently introduced its Sunfit Power Bronz indoor tanning lotion to the North American market. The all-in-one lotion for advanced tanners is based on taking care of the skin and follows years of laboratory testing. The new generation of sunbed cosmetics was created with L-tyrosine, vitamin E, panthenol and liposomes for the ultimate tanning experience and quality skincare.
"UltraSun of Europe has been asking us for years to carry the product in the states because of the great response it has had in Europe," Peek notes. "We were just so busy with our bed line that we didn't have the time to introduce a lotion. This past year we appointed Cory Schechter as director of Sunfit Power Bronz and the product has been a huge success due to the quality of the lotion and her hard work."
Sunfit Longlife Professional Reflector Lamps is the new lamp by UltraSun.
"I believe lamps are one of the areas where the indoor tanning industry has made substantial gains," Peek says. "Part of the reason that customers are willing to pay more is because lamps have become so much better than they were in the past. Our 100-watt reflector lamps have been registering 42 milliwatts to 44 milliwatts and our 160-watt lamps 50 milliwatts to 60 milliwatts. As lamp technology continues to improve, salon owners will see better tanning results in a shorter time which will increase their profit capacity."
Also new for 1998 is Ultra, a quarterly company newsletter that features tips on UltraSun products, comments from UltraSun salon owners and an informative question and answer section that covers indoor tanning, beauty, fitness and nutritional advice.
Ultra Vision
As the millennium approaches, UltraSun has set it sights not only on continuing to grow, but also on maintaining the deep roots the company planted the first five years of its existence.
"One of the most important aspects of the company is to constantly improve the equipment," states Peek. "The indoor tanning salons in the United States are following in the footsteps of the salons in Europe. European salon owners operate all big equipment; however, they are not charging $30 a session. I believe as competition heats up in the United States, prices for the larger tanning units also will start decreasing. So salon owners who can purchase the larger beds now, actually are getting a jump on their competition."
Constantly improving equipment and service is not the only way UltraSun plans to grow. Another important aspect is how the company reaches it clients.
"Today, we receive approximately 15-20 e-mails each day from our Web site," he says. "These are salon owners who are looking for information about our products. I believe we have just seen the tip of the iceberg. Currently, we are working to make our Web site fully functional and interactive so that it will include information about designing a salon, marketing tips, as well as be able to answer questions. We need to provide easy access so that our customers can find the information they are looking for, when they are looking for it."
Peeks adds that as the UltraSun grows, it is important to remember why it has been so successful in the first place.
"We are a big company with a small company feel," he says. "Customers can call in with questions and get the owner on the phone if necessary. That doesn't happen at many other large companies. In addition, the way our staff handles customer service is invaluable. When we get a salon owner on the phone and they have a question, to have knowledgeable staff available to immediately answer the question shows our customers just how much their time and patience means to us."
Another key component to delivering personalized service is the fact that UltraSun can provide equipment when salon owners need it year-round.
"Our factories in Europe are some of the largest in the country and contain more than 200 pieces of equipment in stock almost at all times," Peek says. "When salon owners need equipment, they need it right away and we are able to provide that. The company looks at annual projections and tries to stay two steps ahead of our customers. Service is what makes us different from other companies and we plan to continue that trend. Repeat business is the largest percentage of our business so keeping our customers happy is vital to our company."
