Tanning Salons Needs to Diversify

If you own a tanning salon, then you know that this business is seasonal. Having a tanning salon that only attracts customers looking to get a tan works well during the tanning season, which varies across the nation. But, what about the off-season? If your customers are not looking to come in to get a tan during certain months of the year, what can you do? Well, you have to offer other services that will appeal to your current customer base. Salons have been adding Infrared Body Wrap Systems, Infrared Massage Beds, skincare products, Dermabrasion Systems, and spa capsule systems. These types of services are usually found in day spas but, by adding them to you salon, you will certainly complement your tanning service with these additional services providing more revenue during the off-season.

Some of these services actually work best in your off-season such as the infrared body wrap systems. These systems claim to have weight loss benefits, can contour your body, and can improve the appearance of cellulite. Most tanning salon’s slow times usually occur during November, December and January and these are the perfect times to sell this particular service. Not only will it supplement your tanning income and get you through the slow season, it will help boost your revenue and growth during the rest of the year.

Dermabrasion Systems and Skin Care Products are also very popular and you may benefit by just having them available in your salon. Keep in mind, though, that some of these day spa products or equipment may require some licensing. Check with your state or Board of Cosmetology to find out if licensing is required in your state.

By offering additional services in your tanning salon, you are more likely to see more revenue from your current customers and you are likely to see your customer pool rise. If people who don’t normally tan come in to your salon to have a session on the body wrap or have an appointment for dermabrasion, you would be making money that you otherwise would have not. And, since they are already in your tanning salon, you will have the opportunity to introduce and sell them on your tanning services.

So, if you own a tanning salon, or are looking to start one, know that the business is a seasonal one. Expand your service offerings, with services such as the infrared body wrap or dermabrasion systems, in order to increase revenue during the slow part of the year. The more people you have visiting your salon throughout the year, because of additional services, the better the opportunity to sell them any of your services.

Keep Customers By Keeping Your Tanning Salon Clean

If you had the choice to tan at a messy salon and the clean salon down the street, which tanning salon would you tan in? One of the most major concerns customers have at a tanning salon is whether or not the salon is kept clean. Basic cleaning is required to keep customers from feeling that the salon is dingy and unkept. Seeing a tanning salon with dirty windows, and lotion splatter on the walls in a tanning room makes the impression and assumption that perhaps the tanning beds aren’t being sanitized properly. A little salon cleaning and maintenance goes a long way in helping make customers feel comfortable and will help retain their confidence in your services.

Customers know that just because a tanning bed has a “this bed has been sanitized” sign laying on it, does not mean it has been properly sanitized. Tanning bed cleaner such as Lucasol is widely used in the tanning salon industry. Lucasol is a hospital grade cleaner that is also known to disinfect HIV. But, if the product is not being used in accordance with the instructions on the label, then it’s possible that the tanning bed is not being sanitized properly. Lucasol is a concentrate and paying special attention to how much Lucasol is being mixed with water, and paying attention to the instructions on the label, is of utmost importance.

Cleaning the acrylics, with tanning bed cleaner such as Lucasol, on your tanning beds is one thing, but it’s also a must to remove hair from under the acrylic, clean air vents, and clean the tops of the tanning bed when you are doing your regular tanning bed maintenance. Keeping the whole tanning bed clean gives a better impression of the overall cleanliness of the tanning salon. In addition, cleaning the vents, filters, lamps, and ballasts will also keep the tanning bed in tip-top shape keeping the tanning bed from that extra wear-and-tear.

Aside from the tanning beds, keeping the rest of your salon clean helps keep customers stay confident in your tanning salon. As I mentioned before, tanning lotion splatter is unappealing and dirty. It’s also tough to clean if it isn’t cleaned up quickly. Having the tanning salon attendant pay attention, not just to cleaning the tanning bed, but to the floor and walls after a customer tans can also help from this unwanted detraction.

Creating a check list helps keep the tanning salon clean. Clean bathrooms, mirrors, floors, windows, counter-tops, lotion displays, all help with keeping customers happy and feeling like the salon they are visiting is in the best shape it can be. A squeaky clean salon gives a positive impression for customers leading to greater retention.

Choosing the Right Lease

Many companies lease or finance equipment without considering the differences in expense deduction methods between a true lease or loan. It’s only after year-end when tax time arrives that they find out the type of lease or financing they chose did not maximize their possible deductions for that and future years.

The end of lease residual or purchase option is the primary factor that determines the tax handling of your lease. Every for-profit company in the U.S. has an amount of capital equipment they can purchase each year that can be fully expensed under I.R.S. Section 179.

If your company has not exceeded the annual limit, then a finance lease with a $1.00 residual may be the choice for you. On the other hand, if you have met your maximum capital purchase deduction for the year or regularly do so, you may want to choose a true lease with a fair market value residual or purchase option not less than 10% of the original equipment price. Since the total monthly payments of a true lease are normally expensed each year, you may be able to accelerate your equipment depreciation if the lease term is less than the term required to depreciate the asset under it’s classification. You will also save in the accounting costs associated with creating and managing depreciation schedules.

Another important factor in choosing your lease is weighing the benefits versus disadvantages between longer and shorter terms. Longer terms can provide for lower monthly payments and increased annual cash flow for revenue producing assets. The main disadvantage to longer lease terms is the higher balance you will have to pay off if you want to trade out of the equipment or buy-out the lease early for any other reason. If the equipment you are getting does not retain it’s value, depreciates in value quickly, or regularly becomes obsolete, it may be wise to choose a shorter term.

This article was contributed by Corky Downing of Lease Process.