Indoor Tanning: ’08 State Of The Industry Report

Intense competition on the equipment side also was evident this season with some vendors experiencing increased sales while others struggled to break even. Salon owners are demanding more from potential equipment manufacturers and distributors. With a limited share of the pie, those vendors need to fine-tune relationships and offer a complete package. Unfortunately, the manufacturers and distributors felt the squeeze again in 2008 as the dollar took a severe beating by the euro. This caused manufacturers and distributors to re-evaluate business strategies and tighten belts across the board.

Franchising and large chains, on the other hand, continue to do well. Franchising in particular has taken on a larger role in the industry, mostly due to solid marketing plans and sound financial resources to help franchisees. Meanwhile, the majority of independent salons reported average growth—though some are in the middle of expanding existing salons or opening more locations. (Click here to find out more about franchising.)

Shedding New Light On Tanning

First and foremost, we need to do a better job of marketing indoor tanning. In plain English, we need to get more butts in the beds and introduce the concept of indoor tanning to non-tanners. As the industry gears up to turn 30 years old, many of the first-generation tanners are baby boomers choosing to tan less often. Additionally, dermatologists and cosmetics companies are targeting teens and young adults with ad campaigns portraying tanning as uncool and unhealthy.

So, on an individual level, salon owners need to get creative with marketing. Need ideas? Check out what your peers have come up with on TanToday.com. There are a lot of great ideas out there; it’s up to you to implement something that will work for your salon and demographic.

On a larger front, we as an industry need to stop viewing ourselves as each other’s competition. It’s a hard concept to swallow, but as mentioned earlier, the real competition is the anti-tanning coalition. While no one expects every salon owner to embrace each other, you can embrace the idea of a united front. Just look at what other successful salon owners are doing to promote tanning and vitamin D awareness.

For example, Don Hirsch, president of Chicago-based Ultimate Exposure Tanning Centers and member of the ITA Board of Directors, held a meeting last year and invited other Chicagoland salons to attend. The meeting’s success turned into a grassroots campaign among salon owners, who decided to work together as partners to promote the benefits of tanning and vitamin D. Those in attendance—representing more than 200 tanning salons—all agreed to devote 15 percent of their advertising space to promoting the sunshine vitamin.

“Salons need to realize that while we are competitors, we are not the competition,” he says. “Salon owners nationwide need to get more people interested in tanning and active in fighting the anti-tanning critics that continue to beat the drum. We have to change the way people view tanning and educate them about all the benefits. We have to increase the number of people who visit tanning salons on a regular basis. We have to find ways to bring in a new stream of customers, rather than relying on our current clientele or those you might pick up when other salons close.”

In the past, no one really worried about regulations, but those times are behind us. Tanning critics can’t pass legislation if public perception is in our favor. Now is the time to get involved at the local and national level.”