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Next Generation Diversification: Trendy options that excite clients, open revenue streams

Monday, March 6th, 2017

Like a number of early adopters in indoor tanning, Grant Miller started with a few sunbeds in his Erie, PA video rental store. He identified a new way to make money, pounced and reaped the benefits. Before long, the video rental business was dwindling and indoor tanning was thriving, so tanning became Miller’s business.

Years later, he was the first person within 100 miles of his salon to offer an automated spray booth, giving him the early-mover advantage in the sunless tanning business that has been growing ever since.

Now, Miller is going through another evolution of his business, changing the name and implementing new spa, beauty and wellness services. It’s not about turning away from tanning – that’s still the main focus of his business – but about taking advantage of opportunities to generate more revenue and not putting all his eggs in one basket.

“I’m always very nervous leaning on one thing,” Miller says. “The most dangerous number is one. The more you diversify your offerings your marketing your services, you’re just on more solid ground. If I have 10 ways to bring in customers and two fail, I still have eight good ways.”

Whether your tanning sales are thriving or declining, there’s no reason to be reluctant about diversifying. The wellness and beauty services industry is booming, and already having your salon business established puts you in prime position to take advantage. According to Wellness USA, the sector is worth $3.4 trillion in total and still growing. There are 40 million core health and wellness consumers in the U.S. and hundreds of millions more untapped patrons that could benefit from wellness services.

“If you said you were in the wellness business 10 years ago, they’d think you were digging wells,” says Ron Alright, consultant for Wellness USA. “Now, people are thinking about these things. Fitness clubs are up. We’re getting to the point where people are thinking ahead of time about living longer and staying healthy.”

Diversification with spa, beauty and wellness services, as well as cosmetics and other merchandise, is not a new concept in indoor tanning. There are many products and services tanning businesses have been selling successfully for years that continue to be profitable and attractive to clients that care about beauty and wellness. FIT Bodywraps, Twilight Teeth and others continue to be consistent, valuable complements to tanning services.

There are also some new trendy options that will generate major buzz in your market and distinguish you from competition that has not capitalized on the new opportunities yet. Just as Miller and others thrived by jumping into indoor tanning and sunless services before most, being the first to offer new services in your market is a big opportunity to generate new revenue.

“The thing I learned was if you’re the first to have something, it’s a big advantage,” Miller says. “That first-mover advantage can really establish you as the go-to person in that area. You’re actually creating a business within the business. It’s a new revenue stream; it’s a new client. I love tanning. I’m going to be in tanning as long as I can be, but it’s always good to diversify.”

Miller started making the gradual move into the spa market a few years ago. More recently, he’s installed a cryotherapy chamber and will add a Cocoon Wellness Pro 8-in-1 wellness pod as soon as he can make room for it. Those two options are among the most popular new additions in the industry right now, along with eyelash extension services and a flourishing cosmetic product, bath bombs. Incorporating these options can breathe new life in your business, bring whole new demographics of customers through your doors and simply add more earning potential beyond possible growth in tanning sales. 

“It’s not just about bringing in new clients, but keeping your current customers happy, giving them new options and differentiating from the competition,” Miller says.

Click here to read the entire cover feature in the latest issue of Smart Tan Magazine online.


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