Looking Fit 1/98

by Jerry Deveney

Many people opening new tanning salons have been motivated to do so by the poor conditions that exist at their local salons. Before you turn the page, confident in the knowledge that I'm not describing your salon, remember that flaunting your success also can attract competitors.Each month equipment manufacturers and distributors field thousands of calls from people who are considering opening indoor tanning salons. Many of these calls are from salon customers who are interested in opening a salon because the one in their town has antiquated tanning units, never change the lamps, have cracked acrylics and require the customer to clean the equipment themselves. Additionally, the staff is rude and the salon is in a state of general disarray.

Poorly run salons are a breeding ground for competition. And while using lamps beyond their rated life and failing to properly clean and sanitize equipment are some of the more obvious signs of a poorly run salon, other practices also will attract the interest of entrepreneurs.

Quite often the salon owner, (though knowing better), refuses to recognize the writing on the wall. Since tanning is in such demand, especially from January to June, many salon owners are blinded by their own success. Seeing a lobby filled with customers lulls some into a false sense of security.

Mislead by their observation that "everything must be going okay or I wouldn't be tanning so many people," some salon owners have taken their customers and their businesses for granted. In reality there may not be enough quality salons in the area to handle the demand which leaves customers with little choice but to patronize the poorly run salons.

The auto industry behaved the same way back in the 1970s and early '80s. Detroit's "Big Three" auto manufacturers created poorly designed gas guzzlers for decades. Overall sales remained relatively high not because consumers wanted or even liked the clunkers, but because they didn't have much choice. As more baby boomers reached driving age, more cars were sold. People complained, but Detroit wasn't listening.

Thankfully other car manufacturers were watching, and Detroit paid dearly for its indifference to customer needs. When finally given a choice, customers, including myself, snapped up Hondas and Toyotas while the Big Three scrambled for answers.

But Detroit was lucky. It had the staying power, (and government loans), to remain afloat while the manufacturers redesigned their product lines and dramatically increased their attention to customer service. Today, we have a wide variety of the highest-quality automobiles available on the market. And many are now manufactured by the Big Three.

Salon owners can learn a lesson from the auto industry's mistakes. While business may be booming now, you must stay ahead of the curve. You must maintain your equipment in peak condition and remember that the customer always comes first.

Competition in our industry is as fierce as it is inevitable. Competition also is healthy. In the same way that lions instinctively single out the weakest members of the herd, entrepreneurs lay in wait for the opportunity to pounce on the customer base of poorly managed salons.

Sometimes the demise of a salon's business is not entirely the salon owner's fault. Some will open a salon with the best of intentions and the worst of equipment. They find a great location then renovate and decorate until an almost resort-like ambiance is created. Following a spectacular grand opening, business is fantastic for the first few months, and then reality sets in.

The unsuspecting salon owner realizes all too late that the cheap or used equipment he or she purchased cannot hold up to the stress and abuse of tanning hundreds of customers each week. Further fueling the fires of distress are the huge electric bills and miscalculated replacement lamp expenses generated by the antiquated equipment.

Once again the lion is waiting in the brush. All of a salon owner's hard work and money spent establishing his or her business goes to waste as the shrewd competitor moves in with state-of-the-art, top-of-the-line, energy-efficient equipment. The salon owner is forced to watch in disbelief as his customers leave for tanner pastures.

However, just as gross mismanagement surely will attract competitors, so will flaunting success. During my 14 years in the business I have enjoyed helping thousands of people open salons and operate them successfully. Many people have become financially secure and now can afford some of the finer things in life.

While I'm not discouraging anyone from enjoying the rewards of hard work, one must realize that the envious are watching. On several occasions I've had good customers complain to me via the car phones in their new BMWs that salons were popping up all around them. Before I can respond I'm placed on hold while they take calls from stockbrokers and travel agents. On one occasion I was abruptly disconnected from a salon owner when the chauffeur had to swerve to miss a squirrel.

As much as manufacturers and distributors appreciate the leads generated by such behavior, it does not contribute to the overall health of the industry. The industry as a whole needs expansion from within. Experienced salon owners opening more locations is much more preferable than trying to accommodate an endless parade of "ingenues."

You must carefully and honestly examine your current business operations and lifestyle. Think about the tremendous investment you have made and the rewards that you have earned. Are you ready to give that all away?

At the recent 8th Annual National Tanning Trade Expo in Chicago it was clear that the tanning industry is in for a tremendous year. Many salon owners experienced their best year ever including a surprisingly strong August. Consequently, orders for new equipment are at a record pace.

Many sales were made to those opening new salons; however, the majority of orders were for those expanding an existing location or those opening second, third and fourth locations.

This is an extremely healthy sign. It's an indication that the industry is maturing. We are improving the quality of our equipment and level of customer service. As we gain experience, we avoid repeating costly mistakes. By using the same tried-and-true methods that made the first salon successful, you are now able to expand operations and increase profitability.

However, success is like a slippery fish and it will slip through your fingers if you flaunt your prize catch too often. So what can you do to avoid attracting competition or survive its inevitable arrival?

• Research equipment before you purchase it. Get 10 or more references from salon owners (not dealers) who have purchased and successfully used the equipment for more than one year. Evaluate the equipment first-hand. See it, feel it and tan in it. Sometimes what looks good in a catalog leaves much to be desired when the box is actually opened. Ask yourself if you would tan at a salon that offered this equipment. Remember that cheap equipment attracts cheap customers.
• Check the financial health and track record of the company. To avoid being taken in by false promises, you must evaluate the company with whom you plan to do business. Check the company history for name changes and bankruptcies. The best advice is to require that the company stamp its corporate seal on company letterhead. This will provide proof of the date the company incorporated and the actual name of the company. Then compare it to the company's literature and claims made by the salesperson. Avoid companies that refuse to provide this information.
• Maintain equipment in showroom condition. Maintain the equipment you purchase in peak condition. Change lamps before they reach the end of their rated life. If an acrylic cracks replace it and do not use duct tape to repair it. Above all else, you the salon owner are responsible for cleaning and sanitizing your equipment between sessions. Do you really believe that your paying customers should be responsible for cleaning the unit properly? Remember that no one eats in a dirty restaurant twice.
• If you flaunt your success watch for barbarians at the gate. While many historians will argue the exact cause for the fall of the Roman Empire, one fact remains clear--the Romans had established such an incredibly high standard of living that it attracted barbarians from all corners of the known world. The tremendous demand placed on the empire's resources as it tried in vain to maintain order among the hordes of moochers and opportunists eventually caused the empire to crumble from within.