American Sunbed Manufacturers, Inc.
by Matt Morgan
American Sunbed Manufacturers, Inc. is a collection of industry veterans who have been around long enough to know a winning combination when they see it. Ten years after its founding, Burr Ridge, Ill.-based ASM has a hot- selling, restyled bed in Royal Sun and good old- fashioned trust built on a firm handshake.
Finding Success Through Meeting Customer Needs
When the Dutch company began looking for "greener pastures," they refer to it now, the group members knew it was time to venture on their own. By 1993, they took what they had learned and formed their own consortium, American Sunbed Manufacturers, and connected with a Canadian manufacturer for importation and distribution of beds in the United States.
By the following year, the first bed was produced.
Essentially, ASM seeks to treat its customers well because the six distributor partners recognize firsthand the value of customer service and good business practices. Their combined experience is staggering. McQuay, the new kid on the block, has 15 years in the industry under his belt. The other members have been in the business since 1982. They have more than 100 years in indoor tanning among them.
Niels Christensen, who serves as president, and McQuay, are the only two left from the days of ASM's founding, but each of the other members--Bob and Scott Reilly, Dennis Neugebauer, Rome Haloftis and Richard Laurin--is an equal partner with equal territories and equal say in the business.
"We are running the company basically as a corporate group, and we are all voting on what we are doing," Christensen says. "The selection of the distributors that we brought into the group is key. If we can't work together, then everything falls apart."
McQuay agrees. "Every one of these guys has an above-average reputation," he adds. "We're all above-board, do-a-deal-on-a-handshake kinds of guys. We don't have to have a contract with each other."
Royal Sun
More specifically, ASM's niche lies in the product's value in the marketplace. ASM's members were at one time salon owners and have been involved in all aspects of the indoor tanning industry--retail, wholesale and manufacturing.
While some manufacturers dictate what salon owners carry in their stores, ASM observes what salon owners demand in their equipment and incorporate those demands into a quality bed.
"We see what the customers in the tanning salons want," Christensen says. "That is a very big thing. We know what they are looking for in the tanning equipment, and then we adapt our manufacturing based on that."
The all-steel construction is the first sign of a Royal Sun bed. "Everybody else is on their way to plastic, and we've stuck with steel through and through," McQuay says. "We don't want any plastic parts associated with our equipment."
Simply put, steel lasts longer, and that translates into a longer-lasting product. "We have the least amount of downtime of probably anybody in the industry because the quality of the product is so good," he says. "These machines are workhorses because they're never down and they're making people money."
Key Features
The new beds are easier and safer to use and maintain. Salons have recognized this and, not surprisingly, sales have gone through the roof.
"Since we retooled and redesigned the body style--we didn't do anything with the internal components of the bed--our sales doubled," McQuay says. "We hit the market pretty much right on."
The days of petite 24-lamp beds are gone, along with conveniently sized acrylics. Today's beds have 32 lamps and up, the company says, which makes acrylics unwieldy at best. With the number of women salon owners in the industry, it's no wonder they shy away from do-it-yourself maintenance that has anything to do with the acrylic.
"Ease of service and maintenance is important," he says. "We kept the customer in mind, which is the salon owner. Now, can a woman service the bed by herself? Ninety percent of them can't; they have to hire us to come out and change the lamp." Now they don't have to.
Acrylic Lift System technology allows for quick and easy access to clean and change lamps. The acrylic is attached to a hydraulic system that automatically lowers or raises the part, without the salon employee needing to pull it out of the bed.
The patent-pending Adjustable Spring Lift System makes opening the canopy "light as a feather," the company says.
During demonstrations of the Royal Sun's new features at the ITA World Expo in November, salon owners, particularly women, were visibly impressed. "They turned to their boyfriends or husbands and said, 'I want that bed, no matter what!'" Christensen explains.
ASM also is one of the few companies that uses Underwriters Laboratories (UL) to certify each and every part in its equipment, when many manufacturers shy away from UL because of the expense.
Education And Training
Each new salon owner who buys Royal Sun equipment has the opportunity to spend a hands-on day in ASM's showroom and training facility in downtown Chicago, to learn the ropes of running an indoor tanning business.
"They learn the software system, how to do a transaction, how to sell a membership package, how to clean the beds and wash the towels, how to mix the solution for the disinfectant," McQuay says. "They learn the whole business of working an eight-hour shift."
Looking ahead, ASM hopes to expand its private- labeling enterprise, and possibly expand business to overseas markets.
The corporation's six members expect to take a bigger market share, too. Yet regardless of the direction taken for the future, ASM expects "a lot of the same," Christensen says. It's as good an indication as any that the company has found that all-too-elusive golden business model.
