We reached out for some input on a hot topic in the industry these days: should tanning salons diversify their menus with spa services, or stay “pure” with tanning only? There are so many options out there – many are highlighted in this month’s Buyers Guide.
[gap height=”40″]Here’s what some industry veterans had to say about it:
[gap height=”40″]JUSTIN: Diversification is important in any industry in which there are opportunities to make more money; but, you must also continue focusing energy on promoting what your original business model is. We see too many salon owners try too much at once: red-light, teeth-whitening, massage, clothing retail, etc. and they lose focus on what is really making them a majority of their income: tanning.
[gap height=”40″]TERESA L: To diversify – or not? The word has many meanings, and the choice depends upon how a salon owner perceives it. To me, diversifying means understanding that each individual client is unique. For us, when we opened up another 1,800 square feet for our salon in 2012, my father and I decided to go with another 12 beds in a range of different tanning levels, and to add the Norvell Arena custom airbrush system. We felt that red-light therapy or infrared body wraps would not work well in our area, and our “gut” was right with that decision. I had asked our clients about different services – would they use it or would they not, and I valued their input.
Overwhelmingly, the custom airbrushing was the most popular of the add-on services. I’ve been in the tanning industry for almost 34 years, and have learned that each individual client is unique. Forty percent of my UV tanners use the Norvell spray-tan system, and it has brought in over 400 new clients to the salon since we introduced it in March of 2012. As a salon owner or manager, you need to ask your customers the simple question, “What can we do differently or what service would you like us to offer?” There are many companies promising you that your business will increase 100% if you add their product … been there and done that! Ask yourself, “Will MY customers want this? Will it bring new people?” There is no such thing as a “magic pill” in this industry. It begins with the salon owner and the time that they invest in their business to make it successful … not necessarily the diversity of the service and product menu.
[gap height=”40″]GRANT: In my humble opinion, diversifying your tanning center is an absolute must! As much as I love the tanning industry (and always will), tanning services alone are not quite enough to sustain your business for long-term survival and prosperity. That being said, deciding what else to offer is the next big question. Salons need to provide high-value, high-revenue services that will attract a new and different client base. The middle class has been crushed for the last eight years, and they are typically the largest demographic portion of most salons. Replacing these people with a higher-income customer who has the ability to hand you a large chunk of money is the best way to secure your salon’s success.
Selling flip-flops, candles and teeth-whitening products is all fine and good, but that is not going to save your business. Spa and beauty services like lash extensions, waxing, massage, laser hair removal, cryotherapy, lipo services, hydrafacials, etc., are great examples of services that can generate a tremendous amount of revenue. In my salons, I started offering MyLipo three years ago, and that has been an amazing revenue and profit enhancer. Next came laser hair removal and a HydraFacial system. A cryogenic chamber is being installed this month. Not only do these services bring you new customers and revenue, but many who are seeking these spa services have become tanners, as well, which helps to grow the tanning business.
The more services you offer, the more reasons you give people to visit your facility more often. Lastly, resist the temptation to think, “This won’t work for my salon,” or the 100 other reasons why you can’t do it. Growth, change and prosperity will only come from innovation. You need to push the envelope and challenge yourself to decide how you will continue to grow your business.
[gap height=”40″]BRANDON: Please, diversify! It’s not only refreshing to see your customers’ faces become eager to spend so much money to try the latest technology, but it’s also great to have them spend it in your salon and not someone else’s! After upgrading our UV and sunless systems, we added an extra room for our FIT Bodywrap and teeth-whitening. And, we’re working on adding rooms for red-light therapy services, both beds and the new iStim Facial!
Also keep in mind that Caucasians (typical indoor tanners) aren’t the only people out there who want spa services! With service diversity, you can attract so many different ethnic groups who have the same if not more discretionary income, just waiting to become the latest, greatest and biggest fans of your salon! Diversify your salon menu and you’ll diversify your clientele!
[gap height=”40″]DREW: I think that any time an industry sees a decline, some form of diversification is necessary to remain competitive – you’ve got to constantly be growing and adapting. In the tanning “hay day,” you could open the doors with beds and people would come and you’d have them waiting in line; not the case anymore. So, we figure out how to meet people where they are – maybe that’s a need for sunless, maybe it’s skincare. The point is, we’re looking to meet people where they are and offer a service they want.
The other thing we as salon owners have to remember is, specifically: nothing we offer in our facilities is really essential. This emphasizes the need to meet people where they are, so the product or service we’re offering is something they can’t turn down.
As far as services that can be considered, I think keeping it complimentary with your existing lineup is crucial. When you have too many different services on the menu, you end up with scope creep – quickly. It’s hard to market 3-4 things in different service sectors or that don’t easily complement each other. Many successful salons are diversifying into spa services and using them as membership add-ons; add $20 to your monthly EFT tanning package to get more recurring revenue out of the same client each month. While $20 doesn’t sound like much, if you have a good tanning base paying $50/month and that increases to $70/month, say with 50 different people, you’ve created an additional $1,000 month. Nobody hates that!
[gap height=”40″]TERESA T: To attract new customers, we do a bundle of services for one low introductory price. We call ours the “Tour of the Sun.” All new customers receive a welcome postcard with special offers pertaining to the services they can purchase again, and special “try me” offers for services that they might want to try.
Instead of implementing discounts on packages and lotions, we add a service for free along with a membership purchase. For example, when a customer purchases a lotion valued at $40 or more, they might receive free upgrades or red-light therapy sessions. The key is to add an item that gives them the opportunity to try another service that they would not usually purchase.
