Indoor Tanning: ’08 State Of The Industry Report

Industry insiders agree that marketing-savvy salon owners should reap 30 percent of their monthly revenues from lotion sales—even in a difficult economy. Examine the salon’s customer demographic and zero in on what they want and what they are buying. Be sure employees understand the various products and know how to sell them. Additionally, 84 percent of salons pay employees commission on lotion sales. In fact, quite a few salon owners hold weekly, monthly and quarterly contests to promote fun competition between employees, which creates a win-win for everyone.

A fair majority of salon owners also reported an increase in dollars-per-customer ratios and said customers are spending more on lotions, upgrades and packages than in years past. Salons also are honing their marketing skills by using salon software, implementing successful e-mail and text-message marketing campaigns, building their brand online through a salon Web site and increasing their reach through targeted marketing with salon social-networking profiles. (For more information on those topics, click here.)

The goal of any tanning salon should be to stand out in a crowded marketplace by offering a unique experience, and many salon owners are diversifying services to do just that.  Add-on services such as light therapy, sunless, hydrotherapy and spa amenities provide more options for existing clients and can attract non-tanning customers.  If you don’t take advantage of the chance to cater to your clients’ needs, a salon down the street will. Regardless of the positive relationships you’ve established with your clients, they would sooner visit one salon that fulfills all their needs than spend the time tanning at your place and then going elsewhere for related services.

(For more industry statistics, click here.)

What’s Ahead In 2009

As the 2009 season approaches, the industry must continue to find innovative ways to cater to the needs of current and future customers. Salon owners also have been more cautious the past few seasons, opting to take a closer look at their businesses and operations. In our industry, there is a growing concern that people will save money by cutting down on luxury expenses, and tanning sessions will be one of the first things to go. Unfortunately, griping about these issues and endlessly speculating about what is to come isn’t going to do much for your business.

Instead, you need to take this time to find proactive ways to grow your client base and ensure the continued success of your salon—and as an industry, we need to introduce tanning to a new populous by promoting tanning as a lifestyle. It is important to remember this is a fun, look-good, feel-good industry and that salon owners can help it thrive by continuing to promote sensible, moderate and responsible exposure while educating customers about the benefits of sunlight and vitamin D. 

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The Top 5 Business Boosters 
   Biz Booster No. 1: Changing With the Industry 
   Biz Booster No. 2: Being an Ambassador For Tanning
   Biz Booster No. 3: Motivating Employees
   Biz Booster No. 4: Advertising
   Biz Booster No. 5: Rewarding Customer Loyalty