Ring Up
New Revenues
by Judie Bizzozero
If your salon only offers tanning, you may be limiting your growth potential. As the total salon concept becomes more widespread, you may find adding popular in-demand services gives you an edge over your competition. Diversification is critical to a steady profit center and there are a number of trendy services ideal for today’s tanning customer. When talking with salon owners, I am often asked about the latest trends in ancillary services and what the return on investment is for particular services. With this issue, LOOKING FIT® introduces this new Profit Centers column to address such issues. Each installment will include answers from vendors of core services that run the gamut from specialized equipment to retail profit centers.
This month, LOOKING FIT® sat down with manufacturers of ancillary service products to get their views on trends in cellulite reduction, body wraps, supplements, light therapy, localized tanning equipment and hydrotherapy. Look for more topics in future issues, and feel free to contact me if you have questions about any service you would like to know more about.
Profit Center: Body Wraps
Spotlight On: Set-N-Me-Free Aloe Co.
Jan Heinrich, managing director
Benefits: Body wrap treatments are in season year-round and fill in the vacancy that is common for tanning treatments. People wanting to look good by tanning are the same people that want to look good with body wraps. Wraps flush toxins from the body for improved skin texture, tone and loss of inches. These results often are noticeable after one session and may increase with subsequent treatments. This nearly instant image enhancement makes body wraps a great fit in the tanning salon. Body wrap services also may attract new clients to the salon that perhaps do not tan.
Return On Investment: On average, the startup package for a 100- plus body wraps is about $1,000. If a salon charges an average of $65 they can gain $6,500 in additional income. A technician easily can wrap three clients every two hours. Our statistics reveal that 73 percent of body-wrap clients return for a series of seven to 12 treatments. That client is back in the salon once or twice per week, week after week.
Salon Sales Pitch: Plan to stay after your tanning session for a body wrap because it will help hydrate the skin and may reduce inches from problem areas.
Requirements: A tanning room can double for a body-wrap room and the tanning bed can be covered with foam to use for lounging the client during the wrap.
Training: Training is easy and can be accomplished via video or DVD. It takes about two days of practice for an employee to be ready to apply a professional treatment.
Profit Center: Cellulite Reduction
Spotlight On: Tropical Sun International
Jim Taylor, owner
Benefits: Some of the most popular new salon ancillary services are related to health and fitness. Cellulite reduction is a perfect fit because the typical tanning customer comes to the salon to look good and feel better. Many already go to gyms or exercise at home, so salons should consider offering something those facilities don’t. Our Infrared Cellulite Pod combines a 45-minute mild-aerobic activity with infrared lamps to produce phenomenal results. The combination of tanning and a cellulite-reduction system is a perfect fit and year-round revenue generator for a tanning salon.
Return On Investment: The Infrared Cellulite Pod system provides salons with a great return on investment because it is an all-inclusive unit that does not require a technician to perform a hands-on service. After an initial orientation, clients schedule an appointment, come into the salon, turn on the pod and complete the session. This alone reduces the expense of hiring an extra employee. The average session cost should be between $65 to $95,which makes the profit margins staggering for salons.
Salon Sales Pitch: Clients will see results in four to six sessions and, in many cases, drop a dress size. Optimal results are seen after approximately 15 to 17 sessions. Pitch the fact that non-invasive, painless therapy also is a low-impact, mild-aerobic exercise with great results. It works great for people who are already in good shape but want to look great and for those who want to shed some inches and cellulite.
Requirements: The Infrared Cellulite Pod requires a room about the same size as one used for a piece of tanning bed equipment, but is a much more profitable use of that space.
Training: We provide in-salon training to make sure all employees are familiar with how the unit functions. It’s easy for clients because all they do is get on the pod and turn it on. It’s easy for salon employees because all they have to do is wipe it down 45 minutes later when the session is complete.
Profit Center: Skincare & Anti-Aging
Spotlight On: Sybaritic, Inc.
Nielle Arnold, Hydration Station product manager
Benefits: The Hydration Station™ oxyhydrating moisturization system was created for the tanning and sunless-tanning industries. Hydrofusion™, a combination of dense steam and infrared heat, deeply moisturizes and helps prolong, protect and nourish tanned skin. The complete sensory experience combines vibratory massage, dense steam, an LED color system, and a deluxe color LCD panel and three preset programs. Salons will see an immediate increase in UV, sunless and retail sales. Many locations are raving about the new non-tanners this unit is attracting, including those looking for relaxation, weight-loss or skin-conditioning treatments.
Return On Investment: Most clients pay for their system in the first six to eight months, depending on their clientele and the amount they charge for the various services. For example, if a salon sells three sessions a day with a gross profit per day of $87.21 that equates to $6,802.38 gross profit per month.
Salon Sales Pitch: The Hydration Station is a tan-accelerating skin-conditioning system specifically designed for the modern tanner. The system prepares, prolongs and protects your tan and the health of your skin. The unit promotes advanced absorption of lotion’s active ingredients, and clients can achieve a two- to four-shade darker tan with just one treatment. For sunless tanners, the unit cleanses, balances and ensures an even, deep absorption of sunless solution. It also prolongs most sunless results for up to eight days.
Requirements: While the unit moistens the skin with steam it does not require indoor plumbing or a floor drain. The unit’s electrical requirements are 220-watt/240-volt,15-amp and can be adapted to buck boosters if necessary. Additionally, the unit requires the same room space as a lay-down tanning bed.
Training: We provide salons with one full day of onsite training to educate their staff on marketing and selling Hydration Station services and system benefits, as well as operation of the unit, cleaning and maintenance. We have created many educational tools for the salon staff to study the features of the unit and test their skills, ensuring they present accurate, consistent and comprehensive information to clients.
Profit Center: Hydrotherapy
Spotlight On: Aqua Massage International, Inc.
Dave Cote, president and owner
Benefits: Dry water therapy combines ancient healing therapies with breakthrough modern technology. Because clients receive the benefits of a traditional hour massage in only 15 minutes, they can schedule additional treatments during their appointments, immediately boosting a salon’s profit margins. Hurried clients enjoy the convenience of not undressing, and modest clients appreciate the privacy of not being touched by a stranger.
Return On Investment: An effective break-even evaluation can calculate the minimum revenue that would be required to cover the cost of a monthly lease. For example, a 60-month lease in the range of $700 per month only would require two $15 sessions a day, six days a week to achieve $720 in revenue, which covers the monthly lease cost. Every session after that is net revenue to the salon’s monthly bottom line.
Salon Sales Pitch: Sell on the advantages that a client receives the benefits of a customized full-body or local massage in only 10-15 minutes without the need to undress or get wet. Salons have found success selling monthly memberships, individual sessions, combination packages with tanning and other services.
Requirements: The units are very movable because they are on wheels and require no plumbing, just electricity. A salon can dedicate a special therapy room for the unit or place it in the lobby. It really depends on the layout of the salon and how the therapy will be promoted.
Training: Salon staff easily can be trained on the promotion, use and care of the Aqua Massage SPA in less than two hours. The Automatic Body Profiling and EZ-OP Touch Screen Control allow customers to control their treatments.
Profit Center: Light Therapy
Spotlight On: Raymond Anthony International
Ray Mead, CEO
Benefits: Tanning salon customers already are spending money to look younger and improve their problematic complexions. Lumière enables salons to profit by offering facial rejuvenation services and products to existing customers while bringing in a new set of clients. Facial rejuvenation is an existing, multibillion-dollar industry that is going to continue to expand. Delivering Lumière under a client self-service model makes it more affordable to the client, and because there is no risk, discomfort or recovery time, it is capable of expanding the market for facial rejuvenation services.
Return On Investment: We have had several exceptional salons achieve full return on their investment within 90 days. Most well-operated salons will require closer to six months. Salons with good credit can lease Lumière and be cash-flow positive by the time their first monthly payment is due.
Salon Sales Pitch: The basic strategy is to sell these new services to existing tanning customers while attracting an altogether new customer base. New technologies are making the concept of the tanning spa a reality without changing our industry’s “client self-service” operating model. The pitch should always be: Let us introduce you to Lumière.
Requirements: Because Lumière is a specialized facial service typically found in high-end day spas, it is really not intended for lower-end facilities. Most facilities realize that the high-end service requires high-end support and they provide the service in a private room. It is simple to cost justify of the unit over a level-one tanning bed.
Training: Lumière is delivered in a similar way to tanning so there really is no specialized operator training. We offer training that teaches the best way to market the service. We also provide salons with brochures, posters, DVDs, audio CDs and other selling tools to ensure that salon staff has all the tools necessary to sell the service.
Profit Center: Face Tanners
Spotlight On: Tanses Technologies, Inc.
Angela Mustone, marketing and sales director
Benefits: Many salons are incorporating specific UV-target devices like leg tanners, foot tanners and face tanners for the convenience of their clients to set themselves apart from competition and increase their profit potential. Just like our T-4000 facial unit, these localized tanning units are manufactured for areas of the body that are difficult to tan or require further attention. More UVA exposure is needed where the epidermis is thicker. The face also needs special attention because it’s highly visible.
Return On Investment: A salon’s ROI using a facial tanner can be as much as $1 per minute or can be simply incorporated into a membership package. These specialized services also can be used as a promotional tool or giveaway combined in a package with a tanning bed without facials.
Salon Sales Pitch: The facial tanner is ideal for clients who are in a hurry and don’t want to undress. It is also great for clients that only want to tan their face and upper torso. Secondly, the face tanner is an exceptional added unit for salons with tanning beds without facials because it provides clients with an extra dose of UVA.
Requirements: The space-saving T-4000 fits in a small room or in the reception area. The unit comes on wheels and can be maneuvered anywhere in the salon. The only requirements are a 30- amp breaker with 220-volts of incoming electricity.
Training: Educating your staff about the tanning process is essential to anyone working in a tanning salon. Of course, this sounds elementary, but you would be surprised by the lack of education on skincare and the misrepresentation of indoor tanning equipment that occurs. Have your employees become certified and allow them access to trade magazines such as this one. This is vital for the survival of our industry.
Profit Center: Feet Tanners
Spotlight On: Tootsie Tanner/IPCH
Patricia Craig, executive
vice president
Benefits: More salons are adding personal-care services like massages, waxing and localized tanning to utilize empty space such a waiting areas and empty rooms. The Tootsie Tanner allows clients to tan their feet while waiting for other services, and supplements the full-body tan for clients whose feet don’t tan well.
Return On Investment: If a salon charges between $3 and $5 per session for the Tootsie Tanner, profits can begin after about 40 sessions. Additionally, salons can attract new customers by advertising at golf and tennis clubs because avid sports enthusiasts hate those embarrassing sock lines.
Salon Sales Pitch: Get rid of embarrassing sock lines. The Tootsie Tanner can be used as an incentive to promote client contracts or special promotions. For example, if a salon is promoting a special lotion sale, the foot tanner can be offered as an added value to preferred clients.
Requirements: Our product is really easy to install because the only requirements are a comfortable chair near a regular electrical outlet.
Training: The Tootsie Tanner is very easy to use—just set the timer, adjust the top cover and press the “on” switch. The rest is magic.
Profit Center: Supplements
Spotlight On: Santica USA
Eddie Catalfamo, CEO and president
Benefits: Salons have realized a big benefit to selling body and skincare treatments to enhance the tanning experience. We offer a complete range of oral supplements devoted entirely to beauty, and clinically proven to be safe and effective for daily use. These products feature exclusive blends of carefully selected botanical extracts, require minimal shelf space, and have beautiful, eye-catching packaging. Our Tan Perfect product helps defend skin from free radicals and nutritionally supports the tanning process. It’s easy to tout the benefits of supplements since tanners usually are interested in radiating a good, healthy appearance.
Return On Investment: Salons can make up to 50-percent return on investment by offering these products. For example, salons can purchase the product for $15.99 wholesale and sell it for $29.99.
Salon Sales Pitch: Complete your tanning experience by supporting your tan with good nutritional choices.
Requirements: There are no special requirements to carry our products and there are no restrictions.
Training: There is a minimal amount of training required to effectively sell these products. Employees should learn how the ingredients work and be familiar with the product as well as the company.