Every year, the indoor tanning industry welcomes a host of new
salon owners and operators. With the 2006 tanning season right around the
corner, many are finalizing plans to enter this exciting industry. While
selecting the right mix of equipment and lotions are essential, the salon’s
location is an important variable to consider when outlining a business plan.
The location of your salon is a critical
decision. According to industry experts, location is probably the single most
important factor in the success or failure of a tanning salon.
For years we’ve all heard about the importance of location.
When choosing a location, companies like McDonald’s and Burger King spend
enormous amounts of money on studies that provide them with the information they
need before a final decision is reached.
In the tanning business, most of us do not have the luxury and
cannot spend the money on a study that will help us make a location decision. So
how can you actually decide where to open your salon? Would it be more
advantageous on a bustling commercial avenue? Nobody but you can answer these
questions, and the answer always depends upon your own situation, goals and
objectives.
However, there are guidelines that will help you in making
this most important decision. The immediate goals of this section will be to
provide you with the necessary guidelines that will help ensure the success of
your new salon.
Keep in mind that your services are appealing to people who
want to enhance their image in the eyes of others as well as themselves. For
these people, looking good is their top priority. Remember, the better the salon
looks, the more comfortable people feel and the more your clients will feel that
they are getting the most for their money.
There are five basic location factors that should be
considered when selecting a business site:
Population Density—This
refers to how many people in the general population there are and, of that
total, how many are actually potential customers.
Population Income—Obviously, a
high disposable income among your customer base is very desirable. The more
disposable income a person has, the more free money, and probably time, they
have for enhancing their looks.
Competition—It
is highly unlikely you will choose a location next to another tanning salon, but
there’s nothing to prevent you or a competitor from opening a few blocks away
from each other. As indoor tanning becomes more and more popular, increased
competition is inevitable. Your best protection is a well-respected, ongoing
business based on exceptional service and outstanding equipment performance.
Targeting Your Audience—If
you want to target an upscale audience, the location should then be in an
upscale neighborhood. If you want to set your sights on students, it would be
wise to select an area near a university. Make sure you have defined your
audience. When you know who your potential clients are, it will be easier to
select a site where there is an abundance of these people. This is a key factor
in the success of your salon.
Selecting and Leasing/Buying a
Building—In determining the building size, consider the amount of money you
have to invest and the amount of equipment that it will take to operate
profitably. Also, before building or leasing, always check with the proper
local offices to verify all zoning ordinances, building codes, etc. Seek
legal help prior to signing a lease.