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There is a positive vibe in the air … new salons are opening and existing salons are adding new equipment and diversifying their service menus.
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Several savvy industry players have been on a buying spree of late, snapping up competitors and positioning themselves for what’s shaping up to be a strong selling season.
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The social media forums that focus on our industry are buzzing with upbeat posts on “how to increase sales,” as well as idea-sharing platforms that help identify the hottest new products for 2019.
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And, perhaps the most convincing evidence that indicates an upturn in business was the tremendous attendance and sales activity that occurred during the National Tanning Expo, held in Saint Charles, MO in October 2018.
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Lisa Parsons, Director of Brand Development for Devoted Creations concurred: “Our salon partners are very optimistic for the upcoming season!” she exclaims. “The October trade show seemed to jump-start sales and we are seeing this flow through into 2019,” she adds.
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Many salons are already reporting higher sales activity and foot traffic.
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Carol Karamichalis, owner of Harbor Lights Tanning & Spa in Baltimore, MD stated, “We attend the expos to find new products and services for our customers. This has translated into increased business across the board. For example, the addition of red-light sessions has been a welcomed addition to our line-up and our customers love it!”
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“The October trade show seemed to jump-start sales and we are seeing this flow through into 2019.”
Lisa Parsons, Devoted Creations
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The Window of Opportunity is Wide Open
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The indoor tanning industry started way back in the late 1970s and gained a solid foothold as part of the active American lifestyle by the mid-1980s. And, while there have been major advances in tanning equipment design, innovative new skin care products and highly effective sales and marketing strategies, most salons continue generating up to 70% of annual revenue between January and June.
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So, given the predictable “seasonality” of the business, and then, anticipating that the industry is due for a major upswing, it’s imperative that salons take advantage of this watershed moment and be fully prepared to maximize sales on every level.
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Set Daily & Monthly Sales Goals
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You want to ensure that each product, package and membership program you sell offers maximum customer appeal and profitability. Begin by analyzing everything on your menu. Next, set daily and monthly goals based on the quantity of each product and number of packages and memberships you must sell to generate the income required to cover expenses.
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For example: If your rent is $2,500 per month and your most popular EFT or Monthly Membership Package is $29.95 per month, then, your goal should be to sell at least (84) of these packages every month to cover your rent.
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If your monthly labor costs are $3,000 and your best-selling lotion product offers a profit of $50 per bottle, then, you need to create promotions and incentives to stimulate sales of 60+ bottles (that’s just two per day) to cover your monthly labor expense.
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“I haven’t seen this much excitement in years!” exclaimed long-time industry veteran, Greg Jordan of Tan Incorporated. “My customers are buying new equipment to handle the increased traffic, which ultimately leads to more lotion sales. Now is the time to prepare your lotion and skin care bundles for the busy season,” he added.
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“The indoor tanning season really begins when the Super Bowl ends.”
Bill Hurt, Founder, Sun Industries, Inc.
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Jump-Starting Your Season
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One of the most creative and productive sales strategies that I have observed is that of offering customers – new and existing – a salon credit to spend any way they like.
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For example: kick off the year by giving all customers a $10 Salon Gift Card / Salon Credit (or whatever value you choose). Make it redeemable for select products and services and stipulate that the credit must be used during the month of January. Limit the offer to one per qualified customer and state that the gift card may not be combined with other specials, etc.
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When redeemed, most salespeople should be able to use this as an opportunity to “upsell” customers to a larger purchase. Furthermore, this strategy will help your less-experienced salespeople to gain confidence. I have witnessed such programs generate thousands of dollars in sales – while also attracting many new customers.
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I highly advise that you test the offer on 5 to 10 customers first and see how they respond. Once you feel comfortable with the offer and the redemption and up-sell process, roll it out to a larger market.
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“Our industry has reached a turning point,” says Susan Carlton, Regional Sales Manager for New Sunshine. “We believe that the level of excitement achieved at the NTE will have a positive impact on salon owners across the country and will spread to all the regional shows,” she adds.
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Brenda Fishbaugh, President of Eye-Pro, who recently participated in the SHINE Expo in Manchester, England, informed us that Europe is also seeing an increase in business. “We exhibited at the NTE Show in the USA and the SHINE Show in the UK and both events had record attendance. 2019 is setting up to be a great year!” she exclaimed.
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“We exhibited at the NTE Show in the USA and the SHINE Show in the UK and both events had record attendance. 2019 is setting up to be a great year!”
Brenda Fishbaugh, Eye Pro
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Preparing for Increased Traffic’
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Anticipating that your business will need to handle more customers and increased equipment usage, now is the time to take the steps necessary to prepare your salon.
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- Lamps should be new or have a minimum of 70% of rated lamp-life remaining.
- Acrylics should be free of stress-cracks and spider-webbing.
- Equipment lift systems and all moving parts should be operating smoothly.
- Timing devices and software should be checked and tested.
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It’s also a good idea to have spare lamps and components on-hand, rather than having to scramble if a system unexpectedly fails.
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“The St. Louis expo was action-packed with lots of energy and excitement throughout the entire event,” stated Kevin Apgar, President of JW North America, one of the world’s largest manufacturers of UV-tanning lamps. Added Sales Manager, Brendan McCarthy, “salon owners were very inquisitive with respect to new products and marketing ideas – especially everything that focused on social media.”
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Bill Hurt, the founder of Sun Industries, Inc. and the man who began manufacturing some of the first indoor tanning systems in the USA way back in 1979, shared an interesting observation with me many years ago. He stated, “the indoor tanning season really begins when the Super Bowl ends.”
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All indications are that we are in for a great year. By the way, the 2019 Super Bowl will be played on February 3, mark your calendars and judge for yourself!
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