Economy Creating More Combination Tanning Businesses

‘Wash and tan’ has been a popular tandem for some time – people start a load of laundry and while waiting, they slip over to soak in some ultraviolet light. But tanning and ... video rental? Hookah? Curry? The possible combinations are seemingly endless, and the prevalence of combo businesses is shooting upward as small businesses see an increasing need to diversify because of the recession.

A representative from a video store in DeKalb, Ill., told the source that after the store went into business in 2001, the owners realized it wasn’t doing as well as they hoped. Being near a college campus (Northern Illinois University), they saw a market for tanners, so they added tanning units. The extent of their services (sunless, lotions, hydrotherapy, etc.) isn’t mentioned in the article, but it doesn’t seem like they offer much more than barebones tanning. But even a (for example) novelty shop that offers one tanning bed in a back room is technically part of “the industry,” signaling growth – which is good for equipment manufacters. It also means market saturation – not so good for people who want to make money primarily off of tanning. The trend shows no signs of slowing down, either.

Another concern many industry professionals have when it comes to combination businesses: Tanning is the ancillary, not the primary, service. Often, this causes a decline in quality, price points and other aspects. At these businesses, there can be diminished diligence toward cleanliness of tanning units or personalized customer service – and when people have negative experiences with tanning, it hurts the entire industry.

It’s foreseeable that businesses could use tanning as a loss leader, selling tans for cheap in order to bring in the customers for the rest of their business. That can make it difficult for traditional tanning salons to compete. But how can they fight back?

Traditional tanning salons have to adapt by becoming a little less traditional. They, too, need to diversify. Emphasizing spa treatment and health benefits by offering services such as hydrotherapy and massage, salons can outshine the combo businesses by leaps and bounds. Even more important, salons must boost their marketing and visibility so that the college students in your town don’t think that the only place to get a tan is the bed in the back of the Asian restaurant across the street from campus.