From soft drinks to clothing, cars and phone service carriers, most of us want a large variety of choices and we want it NOW. Need a specific pair of running shoes? “No problem, what color?” Go to the car dealer looking for a unique ride: “It’s in stock. Want the leather seats, upgraded sound system and turbo-charged engine?” Or, simply go for a self-serve soft drink at your local fast food restaurant – the machine I hit up this week features over 100 brands! But when it comes to indoor tanning, should we follow suit? A multitude of choices? I checked in with veteran mega-chain salon operator, Tony Toepfer, for his take on the subject. Tony is CEO of Zoom Tan, with locations throughout Florida and New York and plans for expansion. I’ve known him for quite a while and he is seldom at a loss for words, always willing to share his insights.
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IST: Tony, it’s great to chat with you about the topic of choices when it comes to tanning. Is there a formula for the right menu “mix?” Does it differ for beds, lamps and lotions?
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Toepfer: Joe, the formula is simplicity. All the research I have seen for 20+ years says “more is less.” Simply put, salon operators think that more lotion SKUs on their shelves create more sales and nothing could be further from the truth.
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IST: That’s hard to believe! Most salons that I’ve recently visited seem to offer the “latest, greatest” lotions and from several different manufacturers. Some operate as “preferred accounts” with allegiance to only one manufacturer, but far more do not.
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“The fewer membership plans we offer, the more we sell. I think salons can make more money with three tanning levels, as opposed to five or six.”
Tony Toepfer, Salon Operator
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Toepfer: A typical salon will have 4-6 equipment levels – this is the pricing ladder I developed back in the mid-90s. It’s been a very effective method to get more customers involved, spending more money. But my own personal experience has shown that I can create even more sales with few options. The fewer membership plans we offer, the more we sell. I think salons can make more money with three tanning levels, as opposed to five or six.
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IST: Wow – only three levels? Don’t you think that operators might be afraid that this narrowing of choices may inevitably cost them sales?
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Toepfer: I definitely think they fear that fewer choices will result in lower sales. That’s why it’s called the paradox of choice – more choices = less sales. It’s counter-intuitive. That’s why it’s so hard for most salon operators to reduce the product and equipment choices they offer.
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IST: I see your point. Sometimes, we can get overwhelmed by choice. Case in point: I don’t need 25 different Buffalo wing sauce options. Give me a mild, medium or hot to choose from and turn me loose! Time is money and most folks don’t have a lot to spare. Narrow the choices on your product and service menus, sharpen your level of knowledge on the benefits of each of them and be prepared to boost revenue by increasing sales of those top-shelf options.
