Trends 2002

Trends 2002

This year hardly looks like the world we knew just one year ago. From the way the country conducts its everyday business, to the way Americans spend their leisure time, almost everything has changed. We have entered an era in which Americans have discovered the importance of taking time to do things for themselves--as well as for others. In spite of the national tragedy of 2001, already this year (and no doubt in the years to come), tanners continue to support the indoor tanning industry with their tanning activities--and dollars.

This year's look at our industry's trends reveals many slight to moderate changes occurring across the U.S. indoor tanning market--from equipment, service and products to finances and changing lifestyles. Getting a glimpse at some of these up-and-coming trends just may help you and your tanning business to better succeed.

By identifying these trends--before they pass you by--you can make better, more informed decisions. We hope that you enjoy this special section and refer to it throughout the year.

Salon Software

If growth is your goal, the choice to use software--or not--will be a major determinate factor as to whether you succeed. Most competing salon software programs have the same basic features. Almost every software supplier in the indoor tanning industry offers a system that allows users to optimize the efficiency and quality of business within their salons. Since the software is going to be running the salon, some hands-on salon operators might view that as negative and a reason not to buy the software package. However, that is just the reason they should buy the software because most people who develop software are very familiar with the indoor tanning industry.

Some of the basic features of salon management software programs include client tracking with the option to input tanning history and personal package purchases; tanning bed timer control; sales and client reports; and, employee and business record-keeping. It benefits you in your customers' eyes to show them that you are keeping up with state-of-the art technology.

Salon software also allows you to eliminate employee theft and error, which can save thousands of dollars per year. It can monitor all transactions in your salon throughout the course of the day in seconds and you also can take advantage of the technology by using auto debit systems to make tanning more affordable and convenient.

Since most salon management programs are Windows-based and very user friendly, the only real difficulty a salon operator will encounter will be choosing which software to purchase. Support is the single most important aspect of purchasing a management system for your business. It's a smart business decision to look at the company providing the software--are they going to be around for the long haul? What is their position in the tanning industry? What level of support can you expect? In many ways, the company behind the program is as important as the program itself. You can purchase a great program with all the features you need and still lose out if you are dealing with an unreliable company.

For operators of chains, networking is a must. Linking salons is a tough problem to solve because you have to have a path of communication between the stores, which typically has been an expensive infrastructure to put together. If an operator tries to do it by utilizing a wide area network where he is serving one application between all of his stores, there could be big problems. If the server goes down, all of the stores will be down, and even if the pathway to the server is down, all of the stores will be down.

According to The Cash Register Warehouse, cash registers still remain popular. Dinosaurs are popular too, but you only can see dinosaurs in a museum. With cash registers one skip and a jump away from museum-relic status, owners need to evaluate whether their salons are becoming relics. They can rest assured that the salon around the corner--with software in place--is a pacesetter.

Tanning Equipment

The look of indoor tanning equipment has changed dramatically since the United States first fell in love with the industry in the late 1970s. One of the first beds introduced in America was a very basic unit with just the bottom of the bed emitting UVA. However, with the gain of its popularity between 1981 through 1984, the market literally exploded, and by 1985, there were more than 70 manufacturers of tanning equipment and more than 500 distributors nationwide. Today, the goal of most equipment makers is to provide customers with high-quality equipment that gives real results.

The trend to offer bigger beds with multiple levels of tanning capabilities--including low-, medium- and high-pressure options--continues. This multi-level system of equipment has provided salon owners with the unique opportunity to "upgrade" their low-pressure tanners to medium-pressure beds, and their medium-pressure beds to high-pressure for a minimal charge.

To give the client added value for their dollar, the bigger beds now contain more lamps in the canopy and the bottom of the bed--ultimately to allow for a more intense and quicker tan. Equipment manufacturers also are offering more mechanical features such as piston-lift canopies and frosted and curved acrylics to allow the tanner to tan better and more comfortably during the tanning session.

Maintenance also continues to be easier as more manufacturers are putting their components in trays that slide out of the bottom of the beds--making repairs and cleaning easier. Specially coated finishes allow beds to be more durable and ensure their trendy look much longer. Additionally, more and more manufacturers are offering a bigger selection of colors and designs to better match existing salon decors.

Like tanning beds, standup units now offer appealing features that enhance their marketability. Standup units offer sleek new looks, novel shapes and ergonomic designs. Manufacturers are offering eye-catching looks that assist the salon staff in upgrading from more basic units. Customers not only want enhanced tanning performance, they also are after visual incentives that distinguish their upgraded sessions from the basic program.

A standup unit may not market itself as well as some of the bigger beds; therefore, a tanning salon owner purchasing a standup unit actively should promote the benefits described above to their clients in order to guarantee increased sales. Once a client sees how evenly and well they tan in a standup, many clients will incorporate the standup unit into their tanning regime.

Over the past few years, indoor tanning equipment has evolved from the typical 24-lamp beds to a nice mix of beds and booths having anywhere from 24 to 60 lamps and more. And, even in the bigger beds, upgraded cooling systems have been installed to keep tanners more comfortable.

Furthermore, manufacturers continue to be more sensitive about component accessibility so salon owners can address maintenance issues more easily. In the years to come, salon owners will be buying a more superior product than in the past, complete with features and quality never before seen in the indoor tanning industry.

In addition to meeting the demands of U.S. consumers, the European market also has influenced U.S. manufacturers to produce better-looking products and smarter marketing. In terms of understanding their equipment, more and more salon owners are taking the time to learn about their tanning units so they can perform better maintenance and possibly make their investments last longer.

The bed market will see more tanning systems that combine enhanced engineering and manufacturing quality with modern, trendy style and sophistication, particularly, but not exclusively, from the European market.

This market for high-quality, more sophisticated tanning units will continue to grow at a fast pace, providing salons with more options than they've ever had before.

High-Pressure Tanning Units

The first glimpses at high-pressure tanning first were seen in the United States as early as 1981. A few European manufacturers began exhibiting this technology at health and beauty shows around the country, but found that due to the expense of the equipment--coupled with the fact that the tanning industry was still relatively young in America--they did not find the market they had hoped for. The American salon owner still was trying to understand the concept of low-pressure tanning.

By the 1990s, high-pressure began to make a name for itself in the United States. Today, a growing number of companies currently manufacture, import and distribute high-pressure units across the country.

For years, when it came to high-pressure tanning, most salon owners either were for it or against it. However, in the last few years, those that have done their homework on the technical aspects of high-pressure tanning and understand the tanning potential offered by this service are asking different types of questions. Now they wonder whether high-pressure tanning will increase profitability or if clients will pay the higher prices associated with high-pressure tanning--and typically the answer is yes.

High-pressure tanning systems utilize lamps filled with mercury vapors that produce very high UVR intensity levels. Special filters are used to remove unwanted wavelengths of UVR, primarily UVB and shorter wavelengths of UVA (320-340 nm), leaving most of the longer wavelengths of UVA (340-400 nm) intact. This allows the high-pressure spectrum to produce a deeper, darker, longer-lasting tan.

Longer wavelengths of UVA penetrate deeper into the skin than do shorter wavelengths of UVA and UVB wavelengths and, therefore, are able to oxidize melanin granules farther away from the surface of the skin. These deeper-oxidized granules take longer to reach the surface of the skin and allow for a deeper tan with a longer life.

Obviously, greater care must be exercised when tanning anyone who is most sensitive to UVR (that goes for both high-pressure as well as low-pressure tanning). Every tanner that frequents a tanning salon will have a pre-established level of sensitivity to UVR. Thus, if they are overexposed to UVR, whether on a high- or low-pressure system, they will burn.

Tanning salon owners are continuing to purchase high-pressure units so as to offer a more diverse mix of tanning options for their customers. A tanner in this type of mix often is encouraged to rotate between the high-pressure and low-pressure units in order to maintain a deeper, darker tan, as well as maintain optimal levels of vitamin D.

Since little or no vitamin D is produced by wavelengths higher than 315 nm, high-pressure alone is not an effective system for producing this important vitamin. This is one reason some salons have clients who choose to alternate between high-pressure and low-pressure systems. Tanning in both systems gives the tanner the best benefits and features of both lamp types.

High-pressure tanning will continue to grow because of its unique features and benefits. Most importantly, salons with a mix of high-pressure and low-pressure units continuously report that customers are willing to pay upgrade fees for the added value of high-pressure tanning.

Most vendors currently supplying high-pressure systems in the United States would agree that this segment of the industry will continue to grow and gain acceptance--much like the early days of low-pressure tanning. However, many professionals agree that it will never exceed low-pressure here in the United States, rather, will work to enhance it. The more salons begin to invest in high-pressure systems and reap the profits, the more customers will be motivated to use this advanced form of tanning.

Distributors

One of the most important relationships for any salon is that of the owner and the distributor. Several factors are vitally important to the success of this relationship. A distributorship that provides unsurpassed service--combined with an impressive selection of products-- can make a distributor an invaluable member of any salon's team.

Today's salon owners realize that finding a distributor that offers the level of service and selection needed for success can be an ongoing process. This relationship becomes even more crucial during peak tanning season.

Salon owners are faced with a deluge of solicitations--almost on a daily basis--from vendors that want their business. Once an owner finds a reputable distributor with consistently fair prices and an untarnished service record, that distributor will continue to battle to keep their business. So, what are many distributors doing to secure the continued loyalty of salon owners?

Customer satisfaction continues to be an important factor in distributor longevity. Nowadays, most distributors compete intensely to strive for customer satisfaction long after the first purchase. Offering quality products at low prices and taking an active role in the success of the salon also enhance customer satisfaction.

One important way distributors are taking an active role in helping salons succeed is by offering training programs that teach salon owners how to grow their businesses in the most effective manner. Many distributors now offer one- and two-day training programs that not only offer free or discounted technical certification, but also include time with vendor representatives that offer attendees the opportunity to experience and learn about some of the newest products found on the market today. And, in addition to receiving free product information and samples, salon owners and key sales staff at many of these distributor-sponsored programs are shown sales and marketing tips for virtually guaranteed salon success.

With today's competitive marketplace, distributors know that they've got to get the basics down in order to keep your business. Some of the most customer- service oriented distributors in the country will be keeping a close eye on the following service factors in the year to come:

• Immediate response to customers
• Taking responsibility for customer needs
• Doing what they say and following up immediately
• A "zero damage" and error-free delivery program

Lamps

One of the single, most vital features influencing a tanning unit's effectiveness is its lamps. Understanding their significance and maintenance requirements has become an important factor in salon success. Some of the most-asked questions salon owners have today are those about lamp output, expected lamp life, new lamp technology, lamp standards, performance and compatibility. Recent trends show that ALL these questions are important when choosing which lamps to order.

Salon owners welcome the day they will have more control over the performance--and choice--of their lamp selections. That's why work is being done at the UVR Research Institute to create a standard by which all salon owners someday can determine the output and compatibility of a lamp within the salon setting.

Another hot issue regarding lamps has to do with lamp-life. Within the industry, it is a general consensus that the best, most reliable way to determine when lamps should be replaced is through the correct use of a UV meter.

On average, when a lamp's output has dropped to 70 percent of what it produced when new, it's time for the lamp to be replaced. It is important to note that lamps generally show the highest decline in output performance during the first 100 hours of operation (between 10 percent and 20 percent of total decline, depending on the properties of the phosphors used).

To account for this, some manufacturers now define their lamp's nominal output performance as the average at which the lamp performs after those initial 100 hours. Because some of these maintenance curves have been based on "free-burning" lamps under optimal operating conditions, it should be taken into consideration that the actual decline of output for lamps in tanning beds may differ significantly.

Other steps many lamp professionals suggest when dealing with ordering, compatibility and installation are as follows:

Ordering--Do your best to select quality products. Remember the old adage: "You get what you pay for." When it comes to lamp purchases, these words ring true. Order your lamps in the correct configuration (i.e.; 71" bi-pin 100-watt; 71" bi-pin 160-watt; 73" RDC 100-watt). The proper size and wattage will be listed on the tanning unit, owner's manual and/or the original lamp will indicate the proper size and wattage. Ordering the wrong lamp can cost time and money.

Compatibility--The lamp that you order either has to be the same as the original lamp that came with the tanning unit or an FDA-compatible version. The compatible lamp is required to be plus-or-minus 10 percent as effective in producing erythema and melanogenesis. However, it does not have to have the same maintenance or durability as the original lamp. Ask your distributor for a copy of the lamp's compatibility sheet.

Installation--Wipe each lamp prior to installation to ensure the lamp is clean. If your system utilizes an external reflector system, use a damp cloth moistened with mild cleanser to clean each reflector. Be careful not to spray any cleaner directly onto the reflectors because overspray may end up on the lamp sockets. Prior to re-installing the acrylic or screen shield, turn the unit on and make sure that each lamp ignites. Be sure to use compliant UV-blocking eyewear anytime you are working with lit lamps.

After installation of lamps, salon owners should continue to inspect lamps for signs of malfunction or unusual deterioration separate from the normal life cycle of the lamp. This can be accomplished by both visual inspection and metering of the lamp.

Financing & Leasing

The cautious loaning habits by lending institutions have helped reinforce a trend toward leasing and financing in the indoor tanning industry.

Still-obtaining financing is no walk in the park. The benefits of having a personal relationship with a finance company that understands your business are immeasurable. It is a must to be realistic when making income projections for financing--and for your own expectations. When making projections of potential income, be sure to use only 35 percent of your "best potential yearly income" as your basis.

It's also important to do your research. There are finance companies out there that can custom-tailor credit packages to meet your daily business needs.

If you are in the market to add new equipment or upgrade your salon, be sure to research your lending options. While many banks are extremely conservative when it comes to approving small business loans--especially in the indoor tanning industry--there are other options

Leasing is the alternative form of financing that operates with realistic lending criteria. Leasing companies are much more aggressive than banks because federal banking regulations do not apply and non-bank lenders' profits come exclusively from lending.

Leasing companies have the ability to assist salon owners in financing equipment purchases along with renovation costs. Additionally, they can accommodate all applicants--whether they have been in business for 20 years or are in the early stages of development.

Most leasing companies have programs in place to finance as much as $75,000 just by filling out an application. Typical guidelines require two years under current ownership, a $1,000 bank balance and three trade-identifying suppliers used in daily business.

A typical credit application consists of a personal credit report, business credit report, business bank reference and the three trade references. Once the application is complete, the finance company submits it to its funding sources and a decision is made.

Leasing may offer up to 100-percent financing. This could mean little or no down payment and allow you to save working capital and preserve existing credit. Leasing provides customized payment flexibility, allowing deferrals or step-up and step-down structures so payments can be tailored to a specific cash-flow need. Leasing has flexible mid-lease and end-of-lease options that allow easy equipment upgrades. This enables you not to be locked in to outdated equipment.

There are a number of leasing and financing companies marketing directly to the indoor tanning industry that offer excellent packages. There also are a number of equipment manufacturers that now offer in-house leasing programs.

These manufacturers realize more than ever that salon owners want the flexibility of changing or completely upgrading when it comes to bed purchases. With leasing realistically lowering a person's monthly payment, the possibility of acquiring better--or even more--equipment is a definite reality. And, just like financing and leasing companies, most manufacturers are willing to meet or beat competitive pricing with a lease transaction.

Protective Eyewear

Eye protection is not a matter of choice when it comes to indoor tanning--it's required by the FDA--especially since eye damage is cumulative. You know that, but in a lot of cases your tanners don't know that regulations state that indoor tanning eye protection products must block 99 percent of UVA and 99.9 percent of UVB to be in compliance with federal law. There are two common misconceptions regarding eyewear. The first is that eyelids will tan. The second is that closing the eyelid protects the eye. The simple truth is that it does not, therefore protective eyewear is imperative. The result of not wearing eyewear is that UV may pass through, damaging the cornea, retina and lens. The cumulative effects can cause cataracts, night blindness and color blindness.

Protective eyewear also must enable the user to see clearly enough to reset the bed timer. In other words, the user must be able to shut off the unit in case of emergency--without removing the protective eyewear, thus protecting him/her from exposing the eyes to UV rays. If the eyewear product comes with an elastic strap, the strap must be used in order for the product to be compliant--even a worn out strap must be replaced. We may be living in a more health conscious era, but some tanners still try to tan without eyewear. It is important to emphasize the reasons why your customers must wear eyewear. Tell them the obvious--like the fact that sunglasses, towels, cotton balls, contact lenses and simply closing the eyes are not effective methods for protecting the eyes while tanning. Make sure your tanners know that burns to the eye are the most common type of injury sustained among indoor tanners. Every one of these injuries can be avoided by wearing federally approved protective eyewear designed for indoor tanning. That's what your tanners need to know. What salon operators need to know is that protective eyewear has come a long way since the late 1970s. Today's protective eyewear offers fashionable colors and better fits, featuring lightweight materials that withstand customer use--as well as the disinfecting process. In fact, some manufacturers even supply convenient eyewear cases so clients extend the life of their eyewear. With tanners, sometimes fashion outweighs function. One of the latest trends offers goggles with "color therapy" to enhance a tanner's mood.

Additionally, the continued popularity and convenience of disposable eyewear remains a steady trend. Up until recently, the standard goggle approach was to provide goggles to tanners, then go through the sterilization process and recycle the same pair of goggles for another tanner. Disposable eyewear reduces the chance of infection. Conjunctivitis--pink eye--and colds sometimes spread from wearing community goggles. Most disposables also have no nose bridge to leave a tan line across the nose and are adjustable so a tanner can make them fit the shape of the eye. They are also see-through, allowing the tanner more freedom. There is plenty of room for long eyelashes and wearing them won't spoil a tanner's makeup. But the most important benefit is that some salon owners are reporting a $10,000 yearly profit just from selling disposable eyewear. It is up to management whether to provide it for free or sell it; however, eye protection must be available.

Remember--education is the most important weapon to arm your tanners with. Salon operators must continue to do a good job of educating their customers about the importance of protecting their eyes during a tanning session. And don't underestimate the importance of style. Your tanners appreciate style almost as much as you appreciate your tanners.

Lotions

In every industry survey conducted by LOOKING FIT, lotion consistently ranks as the No. 1 fastest-growing segment of the indoor tanning industry. With proper marketing and a full understanding of the benefits, salon owners have captured year-round profits selling lotions specifically formulated for the indoor tanning client.

To ensure continued sales growth, many manufacturers now actively are involved in reducing--or even eliminating--indoor tanning lotion diversion. Industry leaders agree that when products intended exclusively for indoor tanning salons are diverted to non-tanning markets, product uniqueness can be damaged. Needless to say, lotion diversion becomes a major challenge to the indoor tanning salon in terms of sustaining revenue in lotion sales.

As for tanning products, the advent of accelerators more than 11 years ago has helped the industry keep up with the needs of the "advanced tanner" who continues to be a challenge for manufacturers and salon owners alike. Even for those of us that don't use accelerators, it is a proven fact that maintaining the availability and selection of these advanced tanning products will continue to be a key to increasing sales within the salon.

Also, along with the heat-activated stimulation offered by accelerators, manufacturers continue to work diligently to add quality ingredients to their formulations.

Indoor tanning professionals realize the vital role moisture plays in healthy skin. Since the skin retains water within its natural proteins to keep them flexible (each skin cell is basically a sack of proteins, and without water they lose flexibility and become stiff), moisturization has long been at the core of lotion development.

However, moisturizing qualities are no longer the only selling point of tanning products. With today's vast array of choices of indoor tanning lotions, salon professionals also are conveying to clients that a quality tanning lotion should help replace vitamins the skin needs. It has been proven in many studies that environmental pollutants can deplete the antioxidant system of the skin, making the skin more susceptible to oxidative damage. Vitamins now are being promoted as an ingredient that can reduce--or sometimes eliminate--this type of environmental damage.

With indoor tanners insisting on the benefits of vitamins in their skincare regime, vitamins will continue to frequent the ingredient labels on most indoor tanning products.

In addition to quality ingredients, today's tanners are demanding results from tanning facilities that can't be delivered by conventional UV sessions. This is why self-tanners and bronzers are in high demand. These consumers want the immediate gratification that only a bronzer or self-tanner may offer. And, in order for salon staff to capture this sale, the possession and knowledge of these products is now vital.

Another addition to the lotion choices that has emerged in the last few years is private labeling. Some salons have found that diversification is beneficial to their success. Because of this, the issue of adding private label lotions to complement nationally branded products is becoming a hot topic of interest for salon owners.

The choices for private label lotions have become abundant. Many salon owners are finding that private label companies now offer a dozen or more formulas--with original artwork for the bottles being created--for a fraction of what it used to cost. In most cases, product liability shouldn't be an issue; however, you should check with your salon insurance agent as to how this may relate to you specifically.

Finally, SPFs accent any salon's selection of skincare products. With the public becoming more aware of the issues related to overexposure to UVR, SPFs have become a natural fit into the indoor tanning salon. Not only has the promotion of sunscreens for outdoor use been successful for existing tanning clients, but word-of-mouth advertising from these clients has been known to attract additional customers who don't typically tan indoors. Many salons are discovering that non-indoor tanners will turn to them for skin care education and purchase of SPF products.

Salons also are finding that it is important to promote responsible tanning whether it occurs outside or inside. This proactive approach as an ambassador of sensible exposure to UV light helps your salon stop bad publicity about tanning--as well as secure additional sales of sunscreen products.

Add-On Services

As salon operators become more in tuned to profitability in the 21st century they must contend with changing customer needs and market trends that affect their business. Realistically, today's consumer has come to expect more from the business world. Diversification is a must. What services can be added to a salon that will have high market demand, low operations costs, good profit potential and minimal start up costs?

Sunless Attitudes
Sunless tanning booths are a whole new revenue center that ultimately will increase the traffic--and thus the revenue--for your salon. By definition, sunless tanning and UV-tanning should be competitors, but both methods actually may complement each other because sunless tanning booths offer a different option for salon clients. For starters, a sunless tanning system offers a service to the segment of the population that otherwise would never get into a salon because of the concerns about the effects of UV radiation. Some operators state that UV bed tanning went up as much as 30 percent after they introduced a sunless booth. Best of all, a lot of tanners find that the brown they get from UV-tanning is beautifully complemented by the golden brown they can get from a sunless tanning system.

Wrap the Body
The profit potential for adding body wraps and spa services is significant for salon operators. The price a customer pays for a body wrap varies greatly from market to market in different parts of the country. On average, a single session will range from $50 to $100 for a body wrap. A small to medium salon can easily average 15 wraps per week once its business is established. Using a median price of $75 per wrap, a salon owner could expect to generate over $54,000 annually. Salons that market body wraps heavily and diversify to offer other spa treatments can easily double their earnings.

Bigger sales achieved by selling wrap packages, similar to selling tanning packages, with reduced rates for larger commitments, can have a major impact on daily sales. A package of body wraps can sell for $300 to $750 depending on number of sessions and salon location. Multiple sessions of wraps have both aggregate benefits as well as providing maintenance for inch-loss results.

Skincare Services and Nail Services
Skincare is reputed to be one of the fastest-growing segments of the beauty market. Out of this huge potential market, there are and will be many different degrees of service required to satisfy the range of consumers' wants and needs. Each level of skincare has its own function and consumer group, so why not provide your clients with a one-stop shop for their skincare products and services?

Many salons have their own extensive product line covering a wide range of skincare treatments for a variety of skin types and conditions. In addition to offering tanning skincare products, providing services such as cleansing, facials, light peels, aromatherapy, normalizing of problem skin conditions and even camouflaging makeup may be performed. Be sure to check regulations in your area to see if you need special training or a licensed professional to offer skincare services.

Adding nail services also can be beneficial in attracting non-tanning customers. The main factor in a tanning salon's financial success is the infusion of money, and nail services have the potential of enhancing salon revenue.

In today's society, longer work hours and less personal time have brought about an American trend of self- pampering. More and more men and women are treating themselves to manicures and other nail services as a reward for their hard work.

Not only does nail service help build self-confidence, it also provides a clean, beautiful look and makes others ask your customers where they received their treatment. In the end, those customers are your walking advertisements for your salon.

Even if a salon only offers tanning, don't underestimate future growth. As the total-salon concept becomes more widespread, it may be necessary for a salon to provide more and better services to maintain its competitive edge. You might just be surprised to see how many customers--existing and new--get in line.