Trends 2001

Trends 2001
Predicting the Future

Many of us start off the New Year wishing we had a crystal ball that would make the coming business year more clear. While many of us may make decisions based on guessing, the most logical approach to predicting the future is to simply examine past and present industry developments and try to forecast future trends.

Being able to predict future trends allows successful business owners to stay on the cutting edge while creating success in both day-to-day operations and long-term business goals.

Helping you stay a pace ahead of your competition is one reason why we created this special section. We wanted to provide you with an in-depth look at various product categories and a forecast of their performances for the coming years. We've spotlighted a variety of popular categories including lotions, moisturizers, regular beds, high-pressure beds, standups, lamps, salon software, eyewear, add-on services, turnkey systems, distributors and financing.

By identifying the coming trends you simply can do better business--both in purchasing decisions and salon sales. We hope you enjoy this special section and refer to it year-round. You'll make smarter, more informed buying decisions while target-marketing your key customers easier.

Tanning Lotions

For more than 10 years, lotions have been the fastest-growing revenue producers for indoor tanning salons. With proper marketing and a full understanding of their benefits, salon owners have captured year-round profits with tanning lotions. So what does the future hold for tanning lotions? Let's take a look.

First, as manufacturers up the intensity on their tanning accelerators, it is obvious that they are catering to the advanced tanners who want to raise their tanning plateau. When the first "advanced accelerator" was first introduced more than 10 years ago, no one could have predicted the influence it would have on the indoor tanning industry. More recently, many manufacturers have added hot action or tingle products to expand their product lines and to provide their customers with more choices.

Even for people who don't use accelerators, it is clear that the availability and selection of these advanced tanning products will be key to increasing sales.

Also, along with added heat, manufacturers are pushing the envelope when it comes to ingredients. Today's tanners not only are smelling the products, they also are reading the labels. Consumers are taking notice of things like preservatives, vitamin additives and active ingredients when making their purchasing decisions. As lotion professionals, we too must be aware of these ingredients so we can explain the differences between brands.

Indoor tanning clients don't have to pop a pile of pills to reap the benefits of vitamins in their skincare regime. It is now believed that topical application of antioxidants (vitamins) is the most effective way to reap their benefits. We are still learning a lot about the benefits of vitamins when applied directly to the skin, but right now, lotion manufacturers have discovered that vitamin C and E have the ability to neutralize free radicals and fight the environmental damage that typically occurs to the skin.

This current craze for vitamin C has more to do with skincare than it does with curing the common cold. Topical vitamin C enriched lotions are all the rage among facialists, dermatologists and indoor tanning professionals. The interesting part about vitamin C is that our body can't produce it, so we have to get it from outside sources such as food and supplements.

However, no matter how much we ingest, there's no guarantee that enough will make its way to our skin. Applied topically, as in tanning lotions, it can be directed where it is needed. Vitamin C takes every form including creams, gels, serums, dermal patches and capsules.

Vitamin C by itself was once not stable and could only partially penetrate the skin. To ensure maximum absorption and benefits, most manufacturers now use a stable form of vitamin C to which plant extracts are added and other antioxidants to stabilize, support and aid the penetration of vitamin C.

Additionally, vitamin E seems to be effective in blocking sunburn reactions. In recent studies, vitamin E was shown to block sunburn reactions even when applied eight hours after exposure. Furthermore, topical application of vitamin C and E is believed to reduce redness and irritation caused by skin inflammation.

In the past, dermatologists scoffed at the idea that vitamin-enriched lotion could penetrate the skin enough to do any good. The molecules were thought to be too large to penetrate, but the technology and formulations of these lotions have improved to the point that most of these ingredients do penetrate.

In terms of meeting society's need for speed, many first-time tanners want the look of a golden tan even before a sensible schedule can be navigated. These consumers want the immediate gratification that only a bronzer or self-tanner may offer. And, in order for you to capture that sale, the possession and knowledge of just such a product may be necessary.

Many manufacturers have added various levels of bronzers and shimmers to their lineup of lotions this season. And self-tanners have gained popularity in the past few years for a number of reasons. The medical community's periodic criticism of UV light has caused some sun worshippers to seek reduction in their total UV exposure. And, while indoor tanning offers a controlled environment and all the comforts a tanner could want, the media's sporadic criticism has caused some to shun the indoor tanning process.

Another reason self-tanners continue to gain popularity is the ease of application and upkeep. In the past, self-tanners had a tendency to be messy and difficult to apply. Current and future self-tanner application will be more refined, and these products will continue to become more respected as an added service from the indoor tanning salon.

Moisturizers

Your customers work hard to achieve their beautiful, golden tans. Everyday, people compliment them on their tanned skin and ask how they achieved such a healthy-looking, rich color.

Translation: Their skin looks great and they have more self-confidence.

As an indoor tanning professional, you understand the role that good skincare plays in the overall tanning process. Moist skin is healthier skin, and healthier skin tans better and more evenly. It's as simple as that.

Therefore, it is your job to pass that knowledge on to your customers. Luckily, most lotion manufacturers market a wide range of moisturizers necessary to keep your clients' skin healthy and supple.

The general qualities of the product such as the smell, texture and absorption factor will influence how your customer will choose and use his or her moisturizer. Today's skincare manufacturers offer a host of daily moisturizing lotions to the consumer market. While the lotions are enriched with vitamins and supplements to help rejuvenate and balance the skin, some manufacturers are adding color tinting, more aromatic fragrances, essential elements, natural botanicals and other organic ingredients to their offerings.

Additionally, moisturizers are available in a number of sizes ranging from packettes and purse-size bottles to full-size bottles and jumbo pumps for the entire family.

As savvy salon owners, you should be reaping the profits of selling moisturizers. Just take a look at these skincare retail figures: Sales for facial cleaners has jumped 58 percent; facial moisturizers sales rose 8 percent; and, hand and face lotions are up 9 percent over just one year ago.

In fact, tanning salons that aggressively market moisturizers are seeing skincare sales rise by double digits. Salon owners also have noticed a trend toward younger clients becoming more aware of the overall skincare regime. They are using quality facial cleansers, cleansing strips, daily moisturizers and SPFs on a regular basis.

Additionally, salons have reported that their older customers are asking more questions about moisturizing ingredients and how they play a role in the overall skincare program. More importantly, consumers are willing to pay a little higher price for high-quality moisturizers that deliver proven results.

Why The Increase?
In the past, moisturizer sales experienced a boom during the dry, winter months when necessary natural moisture, natural oils and vitamins are depleted from the skin. Over the past few years, consumers have realized that using daily moisturizers year-round helps replenish the skin with those lost nutrients--making the battle of dry, blotchy skin relatively easy.

The reduced barrier function of the skin due to dryness can allow a variety of external pollutants to penetrate the skin. These pollutants can deplete the antioxidant system of the skin, making the skin more susceptible to oxidative damage. Vitamins may reduce or, in some cases, eliminate this damage.

A vitamin-rich moisturizer helps replace the necessary vitamins the skin needs. Some of the most popular vitamins will continue to be vitamin E, or tocopheryl acetate, a potent antioxidant, and vitamin C, frequently included as ascorbyl palmitate. Vitamin C works with vitamin E to create a healthy antioxidant system, and many scientists have found that a combination of vitamins may be more efficient together than alone.

Moisture is critical to good skincare because it's necessary to maintain a barrier and creates a flexible, pliable skin that is soft to the touch. Your clients will need to realize that the secret to protecting their skin will be to incorporate a quality moisturizer into their daily routine.

Water is the key element that delivers essential nutrients to the skin, that is why moisturizing right after a morning shower or bath will optimize skin's health and the ability to tan. Be sure to advise your customers to use a liberal amount of moisturizers.

If your clients make this part of their daily routine, they will notice a significant difference within a few days.

It is interesting to note that more and more so-called "skincare stores" are popping up across the country offering a multitude of "good-smelling" skincare products. It is important that you--the indoor tanning professional--remind your customers that products found in these shops usually are not designed for the special needs required by indoor tanners.

Have your customers compare the beneficial ingredients offered by dedicated indoor tanning products to those of the competition, and they will soon find that skincare products and programs offered by your salon will more closely match their needs of an effective skincare program.

Market yourself as a personal skincare expert who is providing high-quality moisturizers to your tanners' skincare regimes.

High-Pressure Units

In the 20 years since it was first introduced in the United States, high-pressure tanning has had an uneven growth history. In the early years, high-pressure tanning was presented as a way of tanning "without sunburning," and that it required only one tanning session per month. The former claim appealed to individuals who wanted instant gratification, and the latter appealed to the fast-paced society we live in.

Unfortunately, after more than 1,000 tanning units were sold and installed in the United States, neither of these claims proved to be completely accurate. In addition, the advent of high-intensity (160-watt reflector) systems using low-pressure (tube type) lamps at a more reasonable purchase price encouraged tanning salon owners to purchase these systems rather than high-pressure systems.

Currently, high-pressure tanning is experiencing increased attention and growth thanks to the high-pressure vendors who are presenting a more accurate and responsible picture to its features and benefits. They stress that, because UVA-1 wavelengths penetrate more deeply into the skin, that a high-pressure tan will be deeper, darker and longer lasting. However, they also point out that all irradiance sources, including high-pressure, have the potential to cause UVR-induced erythema or sunburn.

Most high-pressure manufacturers now caution purchasers to treat the initial session exposure schedule like they would for low-pressure systems and to be cautious when tanning individuals with lighter, natural skin color.

In addition, high-pressure vendors are able to provide concrete data showing the financial benefit that accrues to tanning salon owners who know how to market high-pressure systems to their customers. Savvy owners understand that their clients are becoming "bored" with high-intensity low-pressure systems and are looking for "something more." Therefore, they are receptive to the high-pressure tanning message.

A typical high-pressure system uses a mercury vapor-filled lamp that has the ability to produce intense UVR levels. Special blue glass filters must be installed in order to remove the shorter UVR wavelengths that are associated with sunburning. After filtering, the light reaching the client is predominantly in the UVA-1 range, and these wavelengths have the ability to oxidize melanin granules better that shorter wavelengths.

One fact to remember regarding high-pressure is that it is not ideal for the production of vitamin D because this hormone is produced by wavelengths between 280 nanometers and 315 nanometers. These wavelengths are filtered out by the blue glass. Therefore, hybrid systems that offer high-pressure lamps in the canopy and low-pressure lamps in the bench have a great appeal and will continue to grow in the marketplace.

Tanning salon owners wanting to offer all the bells and whistles to their sophisticated clientele will purchase high-pressure or a combination of high-pressure and low-pressure tanning systems. They will recommend that their customers rotate between the high-pressure and low-pressure units in order to maintain a deeper, darker tan, as well as maintain optimal levels of vitamin D. Alternatively, they will offer a combination high-pressure/low-pressure system to allow for both processes to take place at the same time.

High-pressure tanning will continue to grow because it is very apparent that there is an expanding market for systems with more features and benefits, and there is evidence to show that the consumer is willing to pay the upgrade fee with high-pressure or high-pressure/low-pressure tanning.

Tanning Beds

As we all know, the face of indoor tanning has changed dramatically since the U.S. market erupted in the late '70s. In fact, one of the first tanning beds introduced in America was a UVA emitting, basic unit with just the bottom of the bed. With the gain of its popularity between 1981 through 1984, the market literally exploded, and by 1985, there were more than 70 manufacturers of tanning equipment and more than 500 distributors nationwide.

The indoor tanning industry has gone through many changes since its inception. Weathering many adversities, indoor tanning has built a loyal following through the generations--seeing people from their teens to their 90s enjoying the development of a golden, brown tan.

And no matter how much someone desires a tan, they must achieve it outdoors or indoors in a tanning unit. Let's face it, without tanning equipment, this industry would not exist. The equipment makers strive to provide their customers with high-quality equipment that give real results.

Over the past few years, there has been a trend in providing bigger beds with multiple levels of tanning capabilities including low-, medium- and high-pressure selections. This diversity in equipment has provided salon owners with the distinct advantage of "upselling" their low-pressure tanners to medium-pressure beds for a minimal price increase.

In the same way, salon owners also can upsell their medium-pressure clients to an even higher level. In addition, the bigger beds contain more lamps in both the canopy and the bottom of the bed to ultimately allow for a stronger and quicker tan.

In addition, equipment manufacturers also are offering more mechanical features such as piston-lift canopies, frosted and curved acrylics to allow the tanner to tan better and be more comfortable during the process.

Maintenance also has become easier as more manufacturers are putting their components in trays that slide out of the bottom of the beds to make repairs and cleaning easier. Specially coated finishes allow the beds to be more durable and ensure their aesthetic look much longer. Additionally, more and more manufacturers are expanding their color palettes and graphic choices.

Upgraded cooling systems have been installed to keep tanners more comfortable and options such as shoulder tanners, built-in timers and stereos have become commonplace.

Many of these technological and design changes are the result of tanning salon operators asking for more choices in equipment. Everything that is added to a tanning unit is done so to help the tanner while at the same time assisting the salon owner to garner more profits.

Over the past few years, indoor tanning equipment has evolved from the typical 24-lamp beds to a nice mix of beds and booths having anywhere from 24 to 60 lamps. Today's tanning beds offer a host of bells and whistles to tanners--not only do they come in a variety of shapes and sizes, they continue to become more and more elaborate in their colors and designs.

Today's manufacturers are realizing that consumers want more diverse choices in appearance. Much like the first televisions, the first tanning systems were very primitive and boxy in appearance because they were built for functionality rather than image. As the industry evolved, equipment manufacturers improved upon their products and began introducing a selection of tanning units that included more shapes, more comfort and more highly developed timing systems.

Furthermore, manufacturers have become more sensitive about component accessibility so salon owners can conduct better maintenance. In the year to come, salon owners will be buying a more superior product than in the past. Today's products can, and will, offer features and quality at a more reasonable price.

The European market may be credited for influencing U.S. manufacturers to produce better-looking products along with smarter marketing. In terms of understanding their equipment, more and more salon owners are taking the time to learn about their units so they can perform better maintenance and possibly make their investments last longer.

If you were present at one of the recent tanning trade expos, you would have seen the future of U.S. tanning systems. Sleek looks, innovative shapes, ergonomic designs, air-conditioning configuration and additions such as aromatherapy and CD stereos are the wave of the future. Additionally, many companies are introducing high-tech computerized components that actually instructs the salon operator about maintenance schedules, lamp-life indicators and clientele information. These new tanning systems will fit well into the evolving image of our industry.

The bed market will see more tanning systems that combine enhanced engineering and manufacturing quality with modern, trendy style and sophistication, particularly, but not exclusively, from the European market.

This market for high-quality, more sophisticated tanning units will grow at a fast pace, providing salons with more options than they've ever had before.

Standup Units

Since the beginning of the U.S. indoor tanning industry's inception, industry professionals have been working diligently on evolving tanning equipment into friendlier designs. As the industry has matured and equipment has changed, more sophisticated customers are shopping and patronizing salons that offer the best in equipment selection.

Some of today's consumers are looking for variations from the typical tanning bed of a few years ago.

In the early days, standup units featured 100-watt (non-reflector) lamps with 20- to 30-minute session times. Today, the typical standup unit offers 160-watt reflector lamps with 10- to 12-minute sessions. Some manufacturers even have taken their units to the next level by offering 200-watt reflector lamps with 8- to 9-minute sessions. In addition, some standup units are "hybrid" systems featuring both low-pressure (tube type) and high-pressure lamps; some units even offer all high-pressure.

Why are standup units successful in many indoor tanning facilities? The reasons may be their ability to even out your tan, especially under the arms; their elimination of light spots caused by pressure anoxia sometimes experienced in tanning beds; their ability to handle large clients that may not be comfortable in typical tanning beds; their compact size for allowing for the highest profits per square foot in the industry; and; their ability to offer a faster tanning time without sacrificing tanning power.

As for the salon owner, today's standup units offer appealing features that enhance the marketing capability of the unit. Like tanning beds, standups offer sleek new looks, novel shapes and ergonomic designs. The manufacturers are offering eye-catching looks that assist salon staff in upselling from more basic units. Customers not only want enhanced tanning performance, they are also after visual incentives that distinguish their upgraded sessions from the basic program.

Will standup tanning units sell themselves? Absolutely not! A tanning salon owner purchasing a standup unit must actively promote the benefits described above to their clients in order to guarantee increased sales. Once they see how evenly and well they tan, most clients will incorporate the standup unit in their tanning regime. A properly marketed standup unit has potential for an additional 20 to 30 upgrades a day.

Manufacturers also are offering effective written marketing help for salon owners in persuading tanners to alternate between beds and booths. Eye-catching and informative posters line many salon walls that offer the standup option to tanners. These written reminders let customers know that there is an alternative that can enhance their tanning program. Customers are made aware of the standup option, and prompted to alternate between vertical and horizontal tanning.

Another way manufacturers are helping salon owners promote their standup units is by offering attached changing rooms as an available option. These units are sold as self-contained tanning units that can be placed out in the front lobby or other open areas where clients are constantly reminded of the upright tanning opportunity. Often tanning units are hidden behind walls and doors that hide the total beauty and appeal of an eye-catching tanning unit.

More than 20 years ago, many indoor tanning professionals thought the standup tanning unit could possibly be a fad because of the growth of tanning beds. They didn't expect it to last more than five years. One standup bed manufacturer and industry professional now says, "I find myself in a very mature and stable industry. I think the future belongs to those that can include value-added support to their customers."

Is there a standup tanning unit in your future? Prudent tanning salon owners should take a close look at this indoor tanning option because introducing a properly marketed standup unit can have a very favorable effect on profitability. And, once your clients understand the benefits of including a standup unit in their tanning program, they will appreciate the fact that your salon makes it available.

Some people feel that one of the biggest changes in the indoor tanning industry over the last five years may be the shift toward vertical tanning equipment, or at least the offering of the standup options in many salons across the country. Just a few years ago, only a handful of manufacturers offered a vertical tanning unit. Today, it would be difficult to find a manufacturer who doesn't offer some form of vertical tanning unit.

Tanning Lamps

Tanning lamps are probably the second-largest investment a salon owner makes. And more and more salon owners are realizing that many factors can influence the production and overall life of a tanning lamp. Now, more than ever, salon owners are beginning to scrutinize the vast selection of lamps, their distributors and the manufacturers.

Some of the most-asked questions salon owners have today regarding tanning lamps are those about lamp output, expected lamp life, new lamp technology and lamp standards, performance and compatibility. Another key question is whether distributors provide compatibility sheets with the lamps ordered.

Salon owners and operators are realizing that ALL these questions are important and vital when choosing which lamps to order and from which distributors.

Output
The daily measurement of UVA output has become part of today's salon routine. For reasons of expediency and cost, the UVA measuring instrument preferred by most salon owners is generally the pocket-sized type.

Today's salon owners understand that the UVA readings play an important role in tracking lamp output and lamp life. They also are discovering that Rated Lifetime listings on many lamps are far less than "real-world" situations. Unfortunately, many external factors can influence the output and life of tanning lamps, including distance, external reflectors, filters, acrylics, electrical and thermal conditions.

As for future lamp trends, manufacturers will continue to produce a variety of tanning lamps with varying UVA and UVB combinations. The specific composition of the output is mainly governed by the qualities of the specific phosphors that are used. Other important factors in the combination and intensity of UV output are electrodes, the gas filling and the trace amount of mercury found in sealed lamps.

With this in mind, manufacturers will continue to develop lamps with characteristics that cater to the new and advanced tanner, while meeting the needs of the salon owner. Tanners will continue to demand UV exposure that reduces tanning time while offering the UVA and UVB combination that best suits their individual needs.

In addition to finding a lamp that is most requested by tanners, salon owners will continue to search for the ideal lamp that meets the following criteria.

FDA Compliant
Replacement lamps must be as effective as the original lamps, plus or minus 10 percent, in causing erythema and melanogenesis. Federal, state and local authorities report that this is constantly the biggest violation found during a tanning salon inspection.

A revision to the FDA regulations on tanning equipment fortunately takes much of the guesswork out of choosing compatible replacement lamps. Since the procedures and testing necessary to satisfy the regulations are beyond the capabilities of most salon owners, primary determination of whether a replacement is compatible is the responsibility of the lamp manufacturer.

Once the determination of lamp compatibility is established, FDA regulations require the manufacturer to print the specific models that the new lamp is designed to replace somewhere on the lamp or accompanied packaging. If a lamp manufacturer or distributor fails to make a lamp compatibility report available, it would be prudent not to use the lamp in question. This standard must be followed even in areas without specific state regulations.

Adequate Lamp Life
Normally, manufacturers give recommendations on the "useful life" of their lamps; however, these recommendations only can be used as a guide because there is no clear and official definition of the term "useful life." Each manufacturer can make its own definition. Furthermore, different operating conditions, as well as equipment-related factors, have in certain cases a considerable effect on the actual useful life of a tanning lamp.

Salon owners have become painfully aware of factors that influence the recommended "useful life" of tanning lamps. Inadequate voltage, lamp current and wattage will greatly affect the output of a lamp while directly reducing the lamp life.

A productive trend of salon owners today is to be certain lamps are operated under proper electrical conditions. Next to a UVA meter, several electrical meters have become an important part of a qualified electrical professional.

Additionally, salon owners are more aware of heat influences on lamp life. Tanning professional are responsive to the fact that lamps should be operated very close to their temperature optimum.

With salon owners now routinely replacing lamps when outputs reach 50 percent to 75 percent, the continued process of lamp maintenance and monitoring will be a steadily evolving trend.

Salon Software

Competition is tough. It's tough in any business, and it's especially tough in the indoor tanning market. With salons popping up down the street from your business, you might wonder how you can stay one step ahead of your competition.

Of course, offering the highest-quality equipment and products will help, but being technologically savvy will help you retain your clients and attract new ones.

For salon owners wanting to be on the cutting-edge of technology, now is the time to acquire a computer system with user friendly software. The primary factor that a computer system lends to a salon is the ability to gather data quickly and disseminate it efficiently.

It's nearly impossible for a mid-sized salon to calculate who its best customers are, who spends the most money and the busiest times of the day and year if they still are using a card system.

For salon owners who have never used a computer, it can be a daunting experience for the first time. In fact, there are many salons where computerization has not been fully embraced. Some salon owners have convinced themselves that they can continue to provide efficient and well-rounded service while keeping consumer history, packages and purchase information logged on client cards. Unfortunately, client-card access is not the most expedient way to provide your customers or yourself with information. Factor in the typical long line at the front counter during peak season, manual record-keeping can equal customer and staff frustration.

The continued trend for effective software will include programs that offer client tracking with the option to input tanning history and personal package purchases; tanning bed timer control; sales and client reports; and, employee and business record-keeping.

In addition, one of the most beneficial aspects of salon software will continue to be the amount of control it offers a manager or owner. A quality software package will provide key staff the ability to control or gather information at more than one salon location. This will continue to satisfy long-term objectives and allow a program to keep up with the business as it grows.

The motivating factor for becoming computerized usually is the need for heightened internal security, which ensures profits are not sneaking out your front door. Computerization also eliminates a majority of management and record-keeping time and saves salon owners from hiring an outside accountant or business manager. It also removes the limitations on a growing business.

Today's software providers are able to meet the different levels of support needed by salon owners. Software companies may even offer different types of support packages with different payment plans. Manufacturers are developing software that will allow salon owners the flexibility to leave the salon knowing that their employees will be held accountable, and that their salon will continue to run efficiently in their absence.

Salon owners who have chosen effective programs have found software that fits their needs--one that provides the capability for the salon to utilize a local-area network or multiple PCs in a single store. Typically, it requires Windows as an operating system, a network card in each PC, coaxial cable plug-ins and a network version of the actual salon software. As for the wide-area networks that will connect several different salons together, most companies still are perfecting software to accommodate the necessary access.

Furthermore, salons that have successfully integrated an effective software program into their operations realize that most of their employees are high school or college-aged students. These employees usually are more successful with software programs that require little training.

Finally, salon operators should ask as many questions as possible to acquaint themselves with the software and/or hardware they are considering purchasing. Also, salons should view as many demonstration disks as possible and try calling the tech support hotlines for various companies at random times to determine their accessibility.

Financing & Leasing

In the past, many indoor tanning professionals had difficulty securing adequate financing for new or expanding projects. Most banks are extremely conservative when it comes to approving small business loans--especially in this industry. Even if you obtain a bank loan, due to unforeseen overruns, going back to the "money well" usually is not a viable option.

Banks prefer larger companies with strong and stable track records. Most indoor tanning salons don't fit into the "large company" bracket because they have not been around long enough to prove themselves as successful businesses. Tanning salons with fewer than three years of history are considered startups by bankers and stand little chance of obtaining a business loan.

But don't despair--all is not lost. The cautious loaning habits by lending institutions have helped reinforce a trend toward leasing and financing in the indoor tanning industry.

Leasing is the alternative form of financing that operates with realistic lending criteria. Leasing companies are much more aggressive than banks because federal banking regulations do not apply and non-bank lenders' profits come exclusively from lending.

Leasing companies have the ability to assist salon owners in financing of equipment purchases along with renovation costs. Additionally, they can accommodate all applicants--whether they have been in business for 20 years or are in the early stages of developing a business.

Most leasing companies have programs in place to finance as much as $75,000 just by filling out an application. Typical guidelines require two years under current ownership, $1,000 bank balance and three trade identifying suppliers used in daily business.

A typical credit application consists of a personal credit report, business credit report, business bank reference and the three trade references. Once the application is complete, the finance company submits it to their funding sources and a decision is made.

The catch is that leasing money involves paying higher interest rates--typically 2 percent to 4 percent higher than a bank currently charges for a loan, because there are no closing costs associated with leasing.

Why? First, the salon leases equipment from a company who sells equipment. The equipment then becomes the collateral. Should you default on your lease, the equipment is taken back and resold and you are responsible for paying the difference. With a bank, they would take the collateral and not even consider taking back the equipment.

Be sure to examine all the options about leasing because there are numerous advantages that have made it such a trend.

• Leasing may lower your monthly payments. Since lease payments often are lower than conventional loan payments, leasing can be less expensive than purchasing equipment outright.
• Leasing may offer up to 100-percent financing. This could mean little or no down payment and allow you to save working capital and preserve existing credit.
• Leasing provides customized payment flexibility, allowing deferrals or step-up and step-down structures so payments can be tailored to a specific cash-flow need.
• Leasing has flexible mid-lease and end-of-lease options that allow easy equipment upgrades. This enables you not to be locked in to outdated equipment.

To keep leasing on the upswing, several leasing firms are working toward the following steps to remain competitive in the indoor tanning market. The following are issues you may want to examine when choosing a leasing company:

• Liberal financing terms and conditions; 
• A direct debit discount;
• No payments or low down payments; and,
• No charge for insurance.

There are a number of leasing and financing companies marketing directly to the indoor tanning industry that offer excellent packages. There also are a number of equipment manufacturers that now offer in-house leasing programs.

These manufacturers realize more than ever that salon owners want the flexibility of change or complete upgrade when it comes to bed purchases. With leasing possibly lowering a person's monthly payment, the possibility of acquiring better or even more equipment is a definite reality. And, just like financing and leasing companies, most manufacturers are willing to meet or beat competitive pricing with a lease transaction.

Protective Eyewear

Eye protection is not a matter of choice when it comes to indoor tanning--it's required by the FDA because eye damage is cumulative.

In the past, most salon owners assumed that protective eyewear lasted forever. Current trends show that salon owners now realize that the material used in eyewear has a tendency to breakdown over time and use. For this reason, many salons now replace eyewear every few months, depending on use.

In fact, protective eyewear has come a long way since the late '70s. Today's protective eyewear offers fashionable colors and better fits with lightweight materials that withstand customer use as well as the disinfecting process. In fact, some manufacturers even supply convenient eyewear cases so clients extend the life of their eyewear.

Additionally, the continued popularity and convenience of disposable eyewear remains a steady trend. Manufacturers of disposable eyewear continue to improve their products' appeal by focusing in on fit, functionality and fun styles. Disposable eyewear also offers salon owners a steady profit avenue.

Education also is a continuing trend. Salon operators are doing a better job of educating their customers about the importance of protecting their eyes during a tanning session. Much of this can be attributed to the protective eyewear manufacturers who are spearheading the education process.

Turnkey Operations

With the indoor tanning industry enjoying a time of prosperity, salon owners are looking for simpler, more efficient ways of initiating or expanding their businesses. Current trends indicate that salon owners are looking for turnkey solutions to their business dilemmas and the following are becoming trendsetters.

Franchising. Originally made popular by fast-food restaurants and specialty coffee shops, franchising is moving into a new arena--indoor tanning. With the development of a number of corporate chains and national franchises, this trend toward the salons with similar features, equipment and accessories should prove that the industry is moving toward a more professional look and attitude.

Under ideal conditions, when a franchisee purchases a salon today, the franchisor will perform the role of a constant consulting firm giving the new business owner the experience and background they need to succeed.

Information Solutions. In today's complicated world of tanning salon operations, it is often hard to find the information necessary to run a successful business. Forward-thinking manufacturers are now making it easier that ever with informational materials that explain the indoor tanning business from the ground up. Whether thinking about starting from scratch or expanding a current salon, there are companies that provide the "whole ball of wax."

Topics usually discussed include how to run a successful salon from start to finish, how to locate the ideal location, customer service advice, salon design, power and utility requirements, tanning equipment choice, interior design advice and marketing and operations plans.

Modular Walls. One of the most expensive parts of any new salon is the cost involved with the build-out. And, not many options give salon owners the financial and design freedom they get from using a modular wall system. Modular walls have become one of the fastest-growing turnkey solutions in indoor tanning in the past year, and its interest is growing.

Add-on Services

Diversification is a must for survival in any business. Though adding services to your existing tanning salon can involve a great deal of work you and your customers may benefit from the efforts in the long run.

A wide range of services can be added to a salon environment to help supplement income. The key is to research which ones your clients will favor most and which ones will be easiest to add without sacrificing space for tanning.

Even if a salon only offers tanning, don't underestimate future growth. As the total-salon concept becomes more widespread, it may be necessary for a salon to provide more and better services to maintain its competitive edge.

Day Spa Services
Another popular trend to hit the indoor tanning industry is the inclusion of spa services. With services like rolfing, lymphatic drainage therapy and ayurveda, today's spas have come along way in the last 700 years. Today's consumers are paying more attention to their bodies and trying to address health issues more holistically.

Incorporating day spa amenities to an indoor tanning salon is becoming more popular because the two offer various forms of relaxation under one roof. Tanners enjoy the relaxation associated with tanning; however, the tanning session always seems to be over too soon leaving the customer wanting more. Offering day spa services is the perfect way to keep that customer in your salon and add profits to your pocket.

Many salons are incorporating amenities such as hydrotherapy machines, oxygen bars and hyperbolic chambers along with massage, body wraps and facials. Clients love the diversity of services and are willing to pamper themselves more often.

Juice Bars
An exciting ancillary options for indoor tanning salons are juice bars. The trend is on the upswing with this service. In fact, reports reveal that the juice industry soared well above the $700 million mark in 1999 and is expected to surpass $1 billion in sales by 2001.

What does this mean to salons that add a juice concession? It means that a corner of your tanning salon literally could corner the market on the juice boom.

Because of this financial success, many salons are adding fruit or smoothie carts as a regular retail alternative. Starting at 150 square feet, the carts are small, yet profitable, with most paying for themselves within the first three months. Larger salons have gone one-step further by actually building a separate juice stand, or investing in one of the larger carts, to make sure the client is well served.

The popularity of the juice bar over other beverage services seems to hinge on the fact that juice bars are easier to install and maintain and often make back money it takes to run them, plus profit.

Skincare Services
Skincare is reputed to be one of the fastest-growing segments of the beauty market. Out of this huge potential market, there are and will be many different degrees of service required to satisfy the range of consumers' wants and needs. Each level of skincare has its own function and consumer group, so why not provide your clients with a one-stop shop for their skincare products and services?

Many salons have their own extensive product line covering a wide range of skincare treatments for a variety of skin types and conditions. In addition to offering tanning skincare products, providing services such as cleansing, facials, light peels, aromatherapy, normalizing of problem skin conditions and even camouflaging makeup may be performed. Be sure to check regulations in your area to see if you need special training or a licensed professional to offer skincare services.

Nail Services
Adding nail services can be beneficial in attracting non-tanning customers. The main factor in a tanning salon's financial success is the infusion of money, and nail services have the potential of enhancing salon revenue.

In today's society, longer work hours and less personal time have brought about an American trend of self-pampering. More and more men and women are treating themselves to manicures and other nail services as a reward for their hard work. Not only does it help build self-confidence, it also provides them with a clean, beautiful look and makes others ask where they received their treatment. In the end, those customers are your walking advertisements for your salon.

Distributors

Finding a distributor that offers the level of service combined with the selection of products is an extremely important issue. This relationship becomes even more critical during the busy season when salons can't go one day without product.

Salons are solicited constantly by distributors wanting to gain their business. Once a salon owner finds a reputable distributor with consistently fair prices, that distributor must fight to keep claim on that newfound relationship. So, what must a distributor do to guarantee the relationship's longevity?

An effective distributor will help you understand your clients and anticipate how much business will come through the door in a particular month. This knowledge will help you decide how much inventory to stock throughout the year. Some distributors will help you track previous years' receipts to see what sold, how much of it sold and if sales increased or decreased. Whatever the case, distributors will remind you to have enough product on hand to meet demand.

Some distributors now focus on a limited line of lotions instead of carrying every lotion line on the market. In the years to come, many distributors no longer will have the resources available to carry every lotion line. Therefore, in the future distributors most likely will focus on the top three or four lotion lines so higher sales and profits are more attainable.

In response to this trend, many lotion manufacturers already are adding product categories-such as bronzers, shimmers, hot action and moisturizers--to their lines in an effort to create a more "high-profile" product.

It's The Service That Counts
Customer and service are two of the most potent words in the English language.

As customers, we can become disappointed with a company's service and choose to go elsewhere. Many times, companies make a sale, but lose that sale because of an act of rudeness, indifference, poor follow-up, bad service or slow response. This results in a loss of salon confidence in their company and a loss in their revenues.

If you think it seems ridiculous, it's not--it happens thousands of times every day. And it's happened to each of us many times. And the word gets out. Statistics show a disgruntled customer tells 20 times more people about their bad experience than they do about a good experience.

Customer satisfaction is a key factor in distributor longevity. Successful distributors will continue to strive for customer satisfaction long after the initial purchase. This satisfaction will be enhanced not only by quality products at reasonable prices, but also by them taking an active role in the success of every salon serviced.

Some of the largest and most customer-service orientated distributors in the country will be keeping a close eye on the following factors that help them remain successful:

• Dedication to customer satisfaction;
• Immediate response to the customer;
• Taking responsibility for customers needs;
• Doing what they say and following up immediately;
• Agree with and empathies with a complaint or situation of the customer;
• Flexibility to serve specific needs of customers;
• Consistent on-time delivery;
• A zero defects and error free delivery program; and,
• Outstanding people to serve customers and implement customer service

On a final note, many distributors are offering more educational opportunities for the salon owners and their staffs. Lotion and bed manufacturing representatives are being brought in for one- and two-day training events, on behalf of the distributors, to help instill product knowledge necessary to guarantee continued or improved sales for the salon.

These educational events allow salon owners to reap financial gratification through immediate increased sales, while distributors gain sales orders because of their customer-service commitment.