Looking Fit 02/15/2005: The Top 250 Report

by Judie Bizzozero

What you hold in your hands is the sixth compilation of Top 250 Salons in the United States. Since 2000, the editors of LOOKING FIT® have worked diligently to identify some of the country’s most innovative, professionally committed and fastest-growing tanning salons. Judging from the responses to this year’s survey, it’s clear that the $5 billion indoor tanning industry stood strong through another year of economic uncertainties that have plagued many other industries.

Salons were chosen from surveys submitted from June through Nov. 18, 2004. It is important to state that the selection process was not taken lightly. Nominations came from industry manufacturers, distributors and industry veterans. A list of notable tanning salons visited during past LOOKING FIT® Tanning Tours™ also was added, and those recommendations were combined with a collection of in-magazine and online surveys sent in by salon owners and managers. The result was the largest volume of entries vying for the Top 250 Salons honor.

The judging committee conducted hundreds of phone interviews to gather and validate information for the most accurate listing possible. The judging panel also included the National Tanning Training Institute and took into account salons that participated in certification programs and ongoing training. This was factored more appropriately in states where certification was not mandated but voluntary. As in years past, a salon’s community commitment was determined by its participation in charities and other public-service activities.

Finally, I personally contacted each and every salon that made it to the final round of judging. Every effort was made to gather precise information to lay an equal playing field for all of our respondents. In the end, we relied on the truthfulness of the salon owners who provided us with information.

Selection also was based on salons that operated under a set of standards consistent with accepted and required procedures for the professional operation of an indoor tanning facility.

Knowing that many factors contribute to a salon’s success, we looked at each salon separately, judging on the caliber of business it does based on the kind of salon it runs. The survey asked participants to provide in-depth information regarding their tanning businesses including the number of salons owned, how many years in business, types of services offered, total number of units at each salon, average price per session, bed-to-tanner ratio, and the types of retail products carried in the salons.

Confidential statistics used in the selection process also included a salon’s 2004 gross revenue, percentage of growth over 2003 gross revenue, projected revenue for 2005, and percentages of monthly revenue generated from lotion sales, tanning and other services. We also factored in whether a salon participated in certification training, took part in ongoing education, provided educational materials to customers, offered incentives or bonuses to employees, etc. With these considerations in mind, we carefully studied the responses and ranked the salons.

The Top 250 Salons listing is alphabetized by state in five regions: Northeast; East and Southeast; Central and Southern U.S.; Northern and Upper Midwest; and Midwest and Western U.S. The chart is broken down into number of tanning salons owned, years in business, total number of units, brands of units, services offered, average session price and whether a salon is certified.

Salons were asked to submit separate surveys for each of their locations. If a salon owner owned facilities in different states, those salons were judged in the appropriate state and region.

This year we updated the method of compiling the “total number of units” section. In the past, we only counted the total number of tanning units. This year, we listed the total number of pieces of tanning equipment and sunless stand-up equipment for all locations. For example, if a salon had two locations—each with 10 tanning units and two sunless standups— then the total number of units equaled 24. We modified this at the request of salon owners who pointed out that the expense of a sunless unit equals or exceeds the cost of a tanning unit and should be factored into a salon’s equipment investment.

Speaking on sunless services, this year’s statistics reveal that 40 percent of salons offer at least one sunless stand-up booth, and 22 percent offer sunless airbrush or HVLP turbine services. This is a significant increase over the past few years.

For additional facts and figures regarding the growth of the industry, please refer to The Numbers Game section that breaks down statistics calculated from the Top 250 Salons surveys.

We congratulate the thousands of tanning facilities nationwide that have helped contribute to the professionalism and education in the indoor tanning industry.