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The Four Secrets of Tanning Salon Success

Friday, September 14th, 2018

By Grant Miller, salon consultant

These four “secrets” may seem obvious at first, but you’ll want to look closely at your business and see how you can improve each one to maximize your salon revenues. This is particularly important as you head into the slower time of the season.

#1 – The Extreme Power Of EFT Memberships. Nothing is as important as a healthy, robust EFT membership. EFTs will give you a more level source of revenue throughout the year and help you to avoid a cash crunch in the slow season. EFTs also are the best way to retain your clients so they don’t stray to your competitor. If EFT revenue does make up at least 50 percent of your overall business, then you have plenty of opportunity to improve, and please quit telling yourself “My customers won’t buy an EFT!” Properly structured, an EFT is the easiest membership to sell and will make you more money than anything else.

#2 – Raise Your Prices. This may sound contradictory to Secret #1, but chances are your other package and membership prices haven’t changed in many years or possibly since you started in business. Analyze your equipment offerings and overhead, then ask yourself if your prices are really too low. One way to raise your prices may simply be to add more value to a bed level or EFT membership. Include several services or bundle UV and spray tanning into one higher price. Bundling can be an excellent way to get more money while providing more value to your clients.

#3 – Sell Or Upsell Something To Every Client. Every single time a client is standing in front of you, it is an opportunity for them to buy something to improve their result and/or experience. If your staff (or you) is simply telling Sally that she is all set in room #1 for 15 minutes, that is costing you huge amounts of money over the course of the year. Determine what your transaction value goal should be for every client. Then figure out how to make your goal. Always suggest upgrades, specials that are going on, lotions that will enhance their result, etc. Create a lotion deal of the week that is a great deal to get them in the habit of using lotion. Offer them a special discount to try another piece of equipment that they never tried before.

#4 – Diversify Your Services. Being just a tanning salon should not be the business you are in anymore. There was a time when UV tanning alone could make you a very nice living, but those days are distant memories never to return. We are really in the “make me look and feel great” business. What else can you offer your clients that will make them want to visit you more often and give you more money? This will also bring in new clients with new money that will help you prosper in the dreaded offseason. Even renting out an empty room to someone who offers an additional service will bring you in some fresh revenue. Ideally, you would bring in some high-revenue service where you could keep all the revenue.

#5 – BONUS SECRET – Create a High-End Package/Membership. This is kind of part of Secret #2 about raising your prices but with a twist. There will always be clients who want the best or most expensive version of what you sell. These clients are willing to pay a higher price to achieve a higher status and belong to something that is exclusive. Honestly, who really needs a Louis Vuitton bag, Rolex watch or a Ferrari? People will pay irrational amounts of money to feel better about themselves. Why not offer an expensive high-end membership that includes everything that you offer for one price? Or have a membership that allows special privileges like preferred appointment times, a cool towel, free refreshments, etc.

Carefully look at your business and see how you can implement all 5 of these success secrets.

 


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