2008-09 Fact Book: The State Of The Industry Report

Monitoring indoor tanning rules and regulations that begin at the local level is an enormous undertaking—which is the primary reason why the industry must band together to do so.

New laws are not always initiated through a traditional state agency, which adds to the challenges of tracking proposed rules. A range of departments including offices of cosmetology, radiation safety, health and consumer affairs oversee today’s active tanning rules.

Tanning critics will continue to target our industry; however, they can be countered largely by the mounting studies favoring sensible, moderate and responsible exposure to light in a controlled atmosphere. The ITA and salon operators are doing their best to fight state tanning legislations, but they need the help of other salon owners willing to step up to the plate and help at the local level.

Statistics indicate there are roughly 20,000 professional indoor tanning salons and another 15,000 to 20,000 locations— such as health clubs, spas, video stores and beauty salons—that house one or two tanning units. In keeping with tradition, the Midwest and Southeast have the highest number of tanning salons per capita, with Ohio, North Carolina, Michigan, South Carolina, Illinois, Indiana and Florida leading the charge.

The majority of U.S. indoor tanning facilities are small businesses, and more than 50 percent of them have female ownership, compared to 25 percent of businesses in other industries, according to the U.S. Census. Indoor tanning also provides jobs for approximately 160,000 employees annually.

Today’s salon owner is a professional with a long-term commitment to the future of the tanning industry. Statistics support that the average salon has been in business for about 10 years; however, some salons have experienced a turnover in ownership. The majority of growth is from individuals staying in the business longer, which equates to more maturity of ownership, experience and stability.

The majority of freestanding tanning salons have at least 10 rooms on average; of those, most have four to five levels of tanning and a sunless unit. In fact, 37 percent of salons surveyed for our the 2008 Top 250 Salons issue reported having at least five levels of tanning services, while only 2 percent had one level of tanning. A typical 10-unit salon may feature one big bed, two mid-range or premium beds, a UV standup, five entry-level beds and a sunless unit. Survey statistics reveal that 63 percent of salons reported an average single-session price of $7 or more; only 3 percent charged $5 or less.

Lotion sales in 2007 continued to shift to the mid-range price-points with 86 percent of salons reporting that lotion sales accounted for 10 percent to 30 percent of their monthly revenues. This number is up from 80 percent last year. Only 11 percent of salons reported that lotions accounted for 30 percent or more of monthly revenues. This number was down from 46 percent two years ago and confirms the fact that consumers are looking for more affordable deals. However, only 3 percent of salons reported that lotion sales accounted for less than 10 percent. This is good news as it means more salon operators are educating their customers about the value of professional skincare products.