Feel The Heat

Feel The Heat
1999 Season Red Hot For Salon Owners In The Southeast

by Scott Hoover

From Nashville, Tenn. to Lexington, Ky., from Charleston, W.Va. to Asheville, N.C., the 1999 indoor tanning season has been red hot. That is the consensus from the more than 50 salons in five states that LOOKING FIT visited during its recent Tanning Tour '99 to promote responsible tanning. In addition, after driving more than 2,200 miles through Tennessee, Kentucky, Virginia, West Virginia and North Carolina, I also can surmise that salon owners are continuing to become more professional and better educated on how to better serve their tanning clientele. I would like to extend a special thank you to our Tour sponsors, John Abat International and Vitasun USA, for all the incredible products and promotional items that were used during this portion of the Tour. The following are excerpts from interviews conducted with salon owners and managers during the first half of the Southeastern Tour. Check back in November for interviews from the second half of the Southeastern Tour and again in December when I review the Midwestern portion of the Tanning Tour '99.

Tanning Place
Nashville, Tenn.
Phillip and Tabitha Myers--owners

New To The Game

For Phillip and Tabitha Myers, running an indoor tanning salon is just another challenge in their lifelong pursuit of excellence. With 25 beds and a membership base of more than 3,000, the couple has turned a "down-and-out" salon into a thriving business in less than one and one half years. "The one aspect that allows us to stay ahead of our competition is the type of customer service we deliver to our clients," says Tabitha. "That is something we really pride ourselves on."

One of the biggest obstacles the couple has faced since purchasing the salon in 1997, was upgrading the salon without antagonizing a loyal client base that had become accustomed to the old owners. "Tanners can be an extremely fickle bunch," says Phillip. "We tried to make changes very slowly so that customers who had tanned here with the previous owners felt comfortable. In the end, we did lose a few customers; however, overall the salon is much more professional today."

Since purchasing the salon, the Myers' have added to the already strong client base through a number of advertising avenues including direct mail and cross-marketing with a nearby World's Gym. However, both Phillip and Tabitha admit they are still in the learning stages. "We have only been doing this for 18 months," says Tabitha. "We both know we have a lot to learn. Our goal is to be a very professional salon that offers our clients the best possible customer service available."

VITALS SIGNS:

• Years in business: 1.5
• Services: Tanning
• Number of units: 25
• Number of employees: 6-8 (depending on the season)
• Busy season: February to May
• Average tanning sessions per day: 275-300 (busy season), 100 (slow season)
• Average client age: 25-40
• Average tanning session price: $8.50
• Best marketing tip: Be knowledgeable and offer clients good customer service.
• Best advertising avenue: Val-Pak
• Biggest business obstacle: Educating customers about the values of indoor tanning.

Tan USA (2 locations)
Nashville, Tenn.
Frank Verden--owner Christian Scott--district manager

Great Expectations

For Christian Scott, district manager of Tan USA in Nashville, Tenn., there is no business like the indoor tanning business. Scott, who moved from Dallas to take the district manager's job at the Tan USA in Nashville, has been working in the industry for more than six years. As the day-to-day manager for two Tan USA salons in the Nashville area, he allows owner Frank Verden time to concentrate on more pressing needs such as expansion and increasing the bottom line.

According to Scott, Tan USA will generate record sales for the third year in a row at its two Nashville locations, a fact that he attributes greatly to good marketing. "Our best form of marketing is word-of-mouth," says Scott. "However, we also advertise in the Nashville newspaper as well as Val-Pak and campus coupons."

Although business is good, Scott says the biggest obstacle he has running the salon is finding good employees.

"Since the economy is good and unemployment is down, it's hard to hire and retain good staff," he notes. "When we do find good employees, we try to offer them incentives such as a percentage of lotion sales in order to keep their wages competitive with other employers in the area. Overall, this has been one of the best tanning seasons ever and we are even more excited about next year."

VITALS SIGNS:

• Years in business: 5
• Services: Tanning
• Number of units: 13 (20 total)
• Number of employees: 8
• Busy season: January to June
• Average tanning sessions per day: 300 (busy season), 170 (slow season)
• Average client age: 19-31
• Average tanning session price: $4.50-$5
• Best marketing tip: Make sure staff is educated about products.
• Best advertising avenue: Val-Pak
• Biggest business obstacle: Finding and retaining good employees.

Tan Without Sand
Nashville, Tenn.
Christi Merritt--owner

Fighting The Good Fight

Christy Merritt has experienced a lot of ups in the five years she has been in the indoor tanning business. Today, she is in the fight of her business life. "I read about all the 40-bed salons that are opening around the country; however, I just never thought one would open right down the street," she says.

With six units, Merritt has decided to accentuate what sets her salon apart from a "mega" salon. "We are very customer-service oriented," she says. "We try to make sure to know everybody's name that walks into the salon. Our customers are not just numbers, but names that go along with faces."

In addition, Merritt says she has investigated working with a local travel agent in order to market the salon to a larger base of customers as well as targeting prior clients through direct marketing.

"This is just another business challenge that the salon will overcome," Merritt says. "The competition we are experiencing will just make the salon stronger in the long run."

VITAL SIGNS:

• Years in business: 5
• Services: Tanning
• Number of units: 6
• Number of employees: 4
• Busy season: February to July
• Average tanning sessions per day: 100 (busy season), 50 (slow season)
• Average client age: 25-41
• Average tanning session price: $4.50-$5
• Best marketing tip: Good customer service
• Best advertising avenue: Word-of-mouth
• Biggest business obstacle: Dealing with larger salons

Absolute Style Salon & Tan
Nashville, Tenn.
Snuffy Smith--owner

Energy Squared

The is nothing slow about "Snuffy" Smith. A salon owner for more than three years, Smith's never slow down attitude has allowed his four-bed salon to maximize its potential.

"We are seeing the maximum amount of clients we can see for the size of the salon we own," he says. "I am ready to expand to eight or 10 beds as well as expand the hair and nail sections of the salon. Hopefully, within the next year, the expansion will take place."

Smith says that his tanning clientele has tripled over the past year, generally because of the growth of the surrounding neighborhoods.

"We pull most of customers from within a three mile to five mile radius," he notes. "This is a great business to be in because you meet a lot of new and very interesting people. I wouldn't want to do anything else."

VITAL SIGNS:

• Years in business: 3
• Services: Tanning, hair and nails
• Number of units: 4
• Number of employees: 5
• Busy season: February to June
• Average tanning sessions per day: 80 (busy season), 35 (slow season)
• Average client age: 16-45
• Average tanning session price: $4.50-$5
• Best marketing tip: Know your products.
• Best advertising avenue: Word-of-mouth
• Biggest business obstacle: Lack of room to expand.

Eurotan
Nashville, Tenn.
Howard Fridrich--owner

Back In The Saddle

Howard Fridrich has been a salon owner for more than 17 years. He has seen the salon thrive and seen it struggle as he pursued other business ventures. Today, he is back in the saddle and ready to invigorate his salon with new equipment and increased marketing as it moves toward the millennium.

"Over the past few years business has been very consistent," says Fridrich. "The one thing that I have learned while running a salon is that the owner has to be onsite for it to be successful."

Fridrich's one of the few salons that sells membership minutes on a credit-card type unit, thus taking the hassle out of keeping track of each client's minutes.

"The cards have worked very well for us," he notes. "The customer brings in the card, we run it through our card machine and it automatically subtracts the amount of minutes the customer will spend in the tanning unit."

VITAL SIGNS:

• Years in business: 17
• Services: Tanning
• Number of units: 14
• Number of employees: 4
• Busy season: February to June
• Average tanning sessions per day: 275-300 (busy season), 150 (slow season)
• Average client age: 20-35
• Average tanning session price: $7-$8
• Best marketing tip: Must be an onsite owner for salon to be successful.
• Best advertising avenue: Word-of-mouth.
• Biggest business obstacle: Finding and keeping good staff.

Panache Day Spa and Salon
Nashville, Tenn.
Gayle Scales--owner

Building A Clientele

Gayle Scales is a hair stylist who is trying to make the change from a hair salon to a complete day spa. Over the past couple of years she has added a number of new additions to the salon including two nail technicians, an aesthetician and two tanning beds.

"We are taking things rather slowly; however, we feel we are making progress," says Scales. "By adding day spa amenities, our clients can receive a complete makeover without having to go to three different salons."

Scales says although much of her clientele is still female, she has seen a larger percentage of men coming to the salon to get a hair cut or tan.

"Most of the men we saw in the past came in with their wives or girlfriends," she notes. "That is still true; however, we are beginning to get some regular male customers that come in just to tan and relax. Hopefully that trend will continue and the salon will continue to grow."

VITAL SIGNS:

• Years in business: 17
• Services: Tanning, hair, nails and facials.
• Number of units: 2
• Number of employees: 7
• Busy season: January to June
• Average tanning sessions per day: 50 (busy season), 20 (slow season)
• Average client age: 25-45
• Average tanning session price: $5-$6
• Best marketing tip: Offer more than just tanning.
• Best advertising avenue: Word-of-mouth.
• Biggest business obstacle: Customer education.

Riviera Tan Spa
Nashville, Tenn.
Trey Spraker--owner

In A Class By Itself

When you walk into Riviera Tan Spa, you immediately feel relaxed. Classical music is playing in the background, the surroundings include large green plants and soft colors--all around you feel like you have walked into a very classy establishment. And, that is just how Trey Spraker wants his customers to feel.

"The salon is located in an upper-class area of Nashville," he notes. "I want my customers to feel comfortable when they come to the salon. I only have three employees, so my customers know when they walk in that whoever is behind the desk will know their name and treat them with respect. I have tried to establish a very classy atmosphere in the salon."

Riviera Tan Spa offers both high- and low-pressure beds to suit the needs of its clientele.

"We try to introduce a new bed at the beginning of each tanning season," Spraker notes. "There is a lot of competition in the area and this is just one of the areas that I feel sets us apart from the competition. That, and the way we treat our customers which I believe is second to none."

VITAL SIGNS:

• Years in business: 14
• Services: Tanning
• Number of units: 10
• Number of employees: 3
• Busy season: Mid-February to June
• Average tanning sessions per day: 200-220 (busy season), 50-75 (slow season)
• Average client age: 28-45
• Average tanning session price: $20
• Best marketing tip: Treat customers with respect.
• Best advertising avenue: Yellow Pages
• Biggest business obstacle: Introducing new people to high-pressure beds after they have tanned in low-pressure beds all of their lives.

EuroBronz Tanning Salon
Nashville, Tenn.
Bill and Shelia Wade--owners

Changing Times

Bill and Sheila Wade have been in the indoor tanning industry for 16 years and have seen it change immensely. Today, they own a 19-unit salon in Nashville, Tenn., that offers both high- and low-pressure units.

"People just don't have the time to tan," Bill says. "We have changed our salon over the years from carrying low-pressure to more VHR and high-pressure units because we have learned that people want to come in, tan and head to their next appointment. The world has become a very fast-paced place."

The Wade's have been at the current location for just over 18 months and have seen their salon sales increase by more than 25 percent over the past year. Bill says another aspect that has changed in the tanning industry is the busy season. "Our busy season really has increased and become longer," he notes. "Today, our busy season can extend right through August when before it might have ended in May or June."

Bill adds that he is excited about his salon and hopes to open another salon in the near future. "We go to all the trade shows and stay on top of what works in the industry and what does not," he notes. "That is the formula that has made us successful."

VITAL SIGNS:

• Years in business: 16
• Services: Tanning
• Number of units: 19
• Number of employees: 3
• Busy season: Mid-January to August
• Average tanning sessions per day:
• 300 (busy season), 50-75 (slow season)
• Average client age: 22-32
• Average tanning session price: $8
• Best marketing tip: Offer clients different types of beds depending on their needs.
• Best advertising avenue: Direct mail
• Biggest business obstacle: Negative press about tanning.

Sun-O-Rama Tanning Salon
Bowling Green, Ky
Cindy Ervin--owner
Esther Crow--manager

Growing Pains

When running a small business, many owners frequently experience growing pains. Thus is the case with Cindy Ervin, owner of Sun-O-Rama in Bowling Green, Ky. Having owned the salon for more than four years, she has seen her sales decrease by approximately 30 percent since 1996. The decrease can be attributed to a number reasons.

"The main reason why sales have decreased is that there are just too many salons in this area," says Ervin. "Bowling Green is a community with a population of approximately 35,000, and there are more than 10 salons in the area. There is just not enough people to support all of the tanning salons in the area."

In order to combat the increased competition in the area, Ervin has tried a number of different things including offering body wraps and other amenities.

"We try and offer our clients the best possible atmosphere for tanning and relaxing," she says. "By offering good customer service and knowledgeable employees we try and educate our customers the best we can."

VITAL SIGNS:

• Years in business: 4
• Services: Tanning, body wraps
• Number of units: 8
• Number of employees: 5
• Busy season: January to July
• Average tanning sessions per day:
  200 (busy season), 75 (slow season)
• Average client age: 25-30
• Average tanning session price: $15
• Best marketing tip: Make sure employees are knowledgeable about products the salon carries.
• Best advertising avenue: Word-of-mouth
• Biggest business obstacle: The number of salons in the Bowling Green area.

Health Works Nutrition and Tanning Center (3 locations)
Bowling Green, Ky.
Stephen McCoy--owner

Fit To Tan

One of the fastest-growing add-on profit centers in the indoor tanning industry is nutritional supplements. That is why it is no surprise that Steve McCoy, owner of Health Works Nutrition and Tanning Center in Bowling Green, Ky., says sales are growing so rapidly. With locations throughout the Bowling Green area, McCoy has learned how to balance his nutritional supplement sales within his tanning salons.

"People who take nutritional supplements are many of the same people who frequent tanning salons," he says. "They work out in the gym three times a week, they try and eat healthy and they want to look good. That is why supplements and tanning are such a good compliment."

McCoy has taken advantage of his clientele that uses nutritional supplements to also market his tanning at local gyms and health centers.

"I guess I have just tapped into a great market," he says. "The cross-marketing that I do with the gyms allows people to come in tan and purchase supplements. If business stays the way it is now, I might even look at opening a fourth salon in future."

VITAL SIGNS:

• Years in business: 3
• Services: Tanning, nutritional supplements
• Number of units: 5 at this location.
• Number of employees: 15
• Busy season: January to June
• Average tanning sessions per day: 125-150 (busy season), 50 (slow season)
• Average client age: 20-30
• Average tanning session price: $2.50-$3
• Best marketing tip: Cross-marketing tanning with another product.
• Best advertising avenue: Local television and direct mail.
• Biggest business obstacle: Finding dependable employees.

Express Tan, Inc. (8 locations)
Bowling Green, Ky.
Ronnie and Johnny Allen--owners

Growth Explosion

With 28 beds, Express Tan is the largest tanning salon in Bowling Green. And, with eight locations throughout the Southeast and the strength of one of the largest distributors (Four Seasons) behind the salons, the small chain is growing by leaps and bounds. The Express Tan in Bowling Green has been in business for a little more than one year.

"We noticed before opening the salon in Bowling Green that there were a lot of smaller salons but not one large one that offered a variety of lotions, swimwear and active wear," says Jamie Hernandez, assistant district manager for Express Tan. "We wanted to come in and offer our customers more of a one-stop store."

That is exactly what the salon did. According to Hernandez, the salon caters to the business and professional clientele of Bowling Green.

"We see a lot of businesspeople and professionals coming into the salon," notes Hernandez. "One of the fastest growing areas is the number of male clients that we are beginning to see. On average I would say that male to female ratio is just about even. In addition, because we offer an entry-level bed as well as an upgrade bed, I think more clients will turn to us for all their tanning needs."

VITAL SIGNS:

• Years in business: 1
• Services: Tanning, swimwear and activewear.
• Number of units: 28 at this location
• Number of employees: 5 at this location
• Busy season: January to June
• Average tanning sessions per day: 300 (busy season), 100 (slow season)
• Average client age: 20-30
• Average tanning session price: $5 for regular bed; $12 for upgrade bed.
• Best marketing tip: Offer clients a variety of units.
• Best advertising avenue: Radio and college newspapers.
• Biggest business obstacle: Upping lotion sales.

Tropical Exposures Tan-Hair-Nails
Louisville, Ky.
Kimberly Hayes--owner Doreen Price--manager

Offering It All

For more than three years Kimberly Hayes has been offering her clients in Louisville, Ky. some of the best salon service available. According to Doreen Price, manager for Tropical Exposure Tan-Hair-Nails, during the last three years the business has grown by more than 20 percent.

"Tanning is just one of the services we offer," notes Price. "We also garner a good percentage of our business from our nail technicians and hair stylists as well as travel agents. Due to the fact that the three services are so closely related, they tend to cross-market very well and it allows us to continue to build our customer base. I would say that approximately 60 percent to 65 percent of the clients that come in for a service other than tanning, turn around and tan within the first year. It works out very well."

VITAL SIGNS:

• Years in business: 3
• Services: Tanning, nails, hair and travel.
• Number of units: 12
• Number of employees: 22
• Busy season: March to May
• Average tanning sessions per day: 225-250 (busy season), 75-100 (slow season)
• Average client age: 18-30
• Average tanning session price: $3-$4
• Best marketing tip: Offer clients a variety of services.
• Best advertising avenue: Coupons on the back of register receipts.
• Biggest business obstacle: Educating customers about tanning.