When you’re in a store and ready to make your purchases, do you ever pick up that last overpriced item in the checkout line? Impulse buying can be easy because you don’t have time to think about it. So if you’re an impulse buyer, why not add or expand your retail section in your salon? Every day, you have people in your lobby who will give in to the impulse to buy something pretty or frivolous. Why not take advantage of the opportunity? You would be providing a service to your guests and adding to your bottom line.
As always, there are considerations to be made before changing your business model. Of course, insurance is one of those considerations. By adding retail items to your salon, you are changing the exposure your business presents under an insurance policy. That does not mean your current or future carrier will not want to insure you, but it does mean you should contact your agent to make sure you are adequately insured. There may be changes in the cost of your insurance or the carrier may make recommendations to better protect your business.
Clothing and accessories are the most common retail items found in tanning salons. They fit the demographic of salon customers and can add to the atmosphere of your interior decor. These small items do, however, increase your exposure to theft. They’re easily taken in a “smash and grab” burglary and especially attractive to thieves if they are easy to sell online. They also are relatively easy to shoplift. Maintaining accurate inventory records is extremely important in the event of a loss. Inventory records also are helpful in determining if you are a victim of systematic – or ongoing – theft. Unfortunately, this includes employee theft.
Installing a central station burglar alarm may be a requirement to purchasing insurance. While an alarm does not prevent burglaries, it usually limits the amount of time the burglars are in your store. Keep in mind, if your retail items are all displayed and easy to grab, the loss may still be substantial.
It seems the most attractive items to thieves are name brand clothing – jeans, blouses, handbags. If you plan to sell anything like this, you may want to install a tag system to prevent shoplifting. These systems are not inexpensive and could outweigh the value of adding retail to your salon. Again, the tags would not prevent your inventory from being taken in an after-hours burglary.
It is very important to keep your insurance agent informed of any changes you make to your business model. While the additional services or products may seem logical to you, they may present situations that require modification of your coverage. Remember, you are operating a tanning salon and the insurance policy you have is for that service. Some services require changes to the wording, pricing and conditions of your policy. If you discuss your ideas with your insurance agent, they can give you an idea of the expenses before you make a decision. And, if your agent is informed of everything you are doing in your salon, there should be no surprises – for you or the insurance company – in the event you have a loss.
