Ergoline,Inc.

Ergoline,Inc.
Broadening Tanning Horizons

by Matt Morgan

Editor's note: As of press time, Ergoline, Inc. had acquired TW Enterprises, Ltd., one of the largest distributors of indoor tanning lotions, lamps and equipment. The distributor will promote products from Global Sunlight, Inc. and SunLync LLC throughout the United States, and assist Sun Ergoline, Inc. in promoting tanning equipment. Please look for more details in the April issue of LOOKING FIT.

Ergoline, Inc. is the U.S. holding company for some of the indoor tanning industry's most recognized brands: Ergoline, Sundash, Global Sun Light and SunLync. The name has become synonymous worldwide for cutting-edge equipment highlighted by quality, style and comfort.

"Our recipe for success has been a combination of fascinating sunbed design, UV power providing impressive tanning results and delighting tanning comfort by ergonomic design," says Nina Neuschuetz, international marketing manager for Sun Ergoline, Inc., the U.S. arm of Ergoline's equipment manufacturing. "Together with reliable quality, excellent service and inspiration by exquisite marketing material, we have succeeded in building a strong brand that ensures success for our customers."

Following a blockbuster transaction in January, Ergoline now includes the Dr. Mller brand of tanning beds and lamps, as well as the Breeze line of management software. Boosted by these new brands, the company appears poised to set new heights for tanning manufacturers.

New Acquisitions

On Jan. 14, Ergoline announced a major agreement with QDM, Inc., whereby Ergoline acquired the rights to the Dr. Mller name and Breeze software from QDM, and hired key staff members from the company.

Ergoline recognized that QDM had grown increasingly dissatisfied with its European distributor, so the two groups began talking. "In discussions with them, we learned how unhappy they were, and we thought we would make them an offer to buy their trademark--Original Dr. Mller--and their Breeze software package, which was totally complementary to our SunLync package," says Mike Hadjinian, president and CEO of Ergoline, Inc. "And we liked the people."

The former QDM employees will be sprinkled throughout the Ergoline sales network. "We're happy to have good people who know the business," Hadjinian says. "We want to grow, and one way to do that is to acquire good brand names, good products and good people."

Ergoline will not manufacture Dr. Mller equipment, and distribution of the current Dr. Mller line will be phased out by QDM--a process Hadjinian expects to take a few months. After such time, however, Ergoline still will provide after-market service on Dr. Mller units. Global Sun Light will be the exclusive distributor of Original Dr. Mller lamps.

"We acquired a very good, highly recognized brand," Hadjinian says. "Obviously, we believe--as anybody would--if we're doing a good job taking care of customers' service needs, maybe in the future they'll buy an Ergoline unit."

The Breeze software package will not suffer the same fate as the current Dr. Mller equipment. In fact, Breeze complements Ergoline's existing salon point-of-sale software, SunLync, which Hadjinian says is a premium, powerful, multi-salon software package. "We've put a lot of research and development into that product," he says. "Installations have been extremely successful. It's meant to be the product of the future. We're very pleased with the stability and power of the SunLync product."

But what about the owner with one salon who doesn't need high-powered networking capabilities? "Breeze is an excellent single-salon product," he says. "If you're a salon and you have a chain of 12 or 15 stores, SunLync is the way to go. But you wouldn't put SunLync into a single salon. Breeze is ideally suited for the single-salon segment."

The two software packages are even written in the same programming language. "We want to have a full product line, and Breeze gives us that in the software field," Hadjinian says.

Best Of Both Worlds

Since August 1999 when Germany-based Ergoline took over SUN Industries in the United States, the resulting company--Sun Ergoline, Inc.--combined with its partner overseas, has been able to provide salon operators all over the world with the best technology from both countries.

"With our European parent, we have the largest research and development staff of any company in the industry right now," Hadjinian says. "What makes us unique is we're able to take certain European products and add them to our U.S. portfolio. We don't take everything. We take the products we think are appropriate to our market. We're able to take the best of the most-advanced European technology and American technology and offer a full product line to our customers."

Because the needs of the U.S. indoor tanning market are different from those in Europe--and because conversion costs become a limiting factor--Ergoline is extremely selective in which beds are brought to U.S. shores. "There are a number of products that exist for Ergoline in Europe that we do not introduce to the United States," he says.

The Sundash line represents the best entry-level equipment Sun Ergoline has to offer to the U.S. market. The Competition and Performance series are Sundash's best-sellers. "The Sundash product line has been a workhorse for many, many years," he says. "We're very happy with it."

Neuschuetz agrees. "These products have a strong following among U.S. tanning salons since they offer great tanning results at a good price point."

To satisfy high-end needs, Ergoline offers several popular beds--among them are the Classic 600 and the Avantgarde. "The Classic 600 has been extremely successful over the last few years, since it has proven to be a valuable profit generator for tanning salons," Neuschuetz says. "The Avantgarde has been the star of the past season. With its unique design, it has captured the attention of salon owners and tanning customers. It is a real eye-catcher at every trade show and in every salon."

The result is a wide assortment of equipment to satisfy any salon--whether it needs four or five levels of tanning or one type tying into a theme. "We can do both, with clearly the most stylish brands and product in the industry," Hadjinian says. "Most salons will start off with our entry-level beds, which are typically from the Sundash line, and then go all the way up to a 600 or Avantgarde from the Ergoline side. They have a complete range of products. We offer the broadest range of any supplier."

Still No. 1

Ergoline will decide in the coming off-season which European products it will next introduce to the United States. In the meantime, Hadjinian says, the company currently has a successful U.S. product line.

That said, more than 70 designers, technicians, electrical engineers and mechanics in Germany alone--not to mention U.S. engineers--working full-time on new developments will ensure Ergoline continues to introduce cutting-edge tanning products.

"There's no company that has as much research and development as we do," Hadjinian says. "What that means to our customers is they're going to have a full line of modern, exciting products to attract customers to their salon. At the end of the day, it's all about different salons trying to attract customers, and the equipment does make a difference."

Ergoline is the No. 1-selling equipment manufacturer in the world and second in the United States. The company's goal is to reach the No. 1 spot in America and "grow gradually over time," Hadjinian says. "I'd like to see us be the leading equipment supplier in the industry with a very broad line of excellent products and extremely happy customers."

This summer, Ergoline, Inc. expects to move into its new North American headquarters in Chicago, where it will oversee Sun Ergoline and Global Sun Light in Jonesboro, Ark., and SunLync in Buffalo, N.Y.

Ergoline offers world-renowned equipment and now has additional brand names. More than ever before, salon owners can entrust their businesses to a company that will provide equipment, lamps, software and unparalleled quality and service.

"As the tanning industry continues to mature, salons are going to need to have new products to attract their customers," Hadjinian says. "We see our role as being able to provide these exciting new products for salons to be successful."