We Are Sunshine

Most tanning business owners are optimistic about the upcoming season

Wednesday, August 20th, 2008

An overwhelming majority of indoor tanning business owners think business conditions will improve in 2009, according to a poll conducted in early August. More than 8 out of 10 salon owners – 82 percent – look for conditions to improve next year, according to the poll, which is not scientific. Only 18 percent think things will get worse.

2008-08-19-optimism-rules-tanningnews-copy.jpgThe finding is consistent with polls throughout the year, which suggest that one-third of salons improved their bottom lines this year, one-third held steady to 2007 results and one-third declined.

“This is one more finding that suggests that more and more tanning businesses are in better financial position than they were two years ago,” Smart Tan Vice President Joseph Levy said. “One the whole, the new generation of owners in the market today has better business acumen than the owners they replaced. Everything we’re seeing suggests that the market as a whole has a stronger foundation than it did in tanning’s last boom period. The market is growing up.”

The number of salons who appear to be interested in making capital investments in 2009 is also encouraging. “Buying new equipment is a sign of optimism, and our surveys and conversations suggest that many salons will look at improving their equipment in the next 12 months.” Levy said.

A poll in July suggested that 61 percent of salons will purchase new equipment in the coming year.

“Mature markets make investments and improvements when the economy is less-certain – moves that make companies more competitive when the economy turns around,” Levy said. “That speaks well for this generation of tanning business owners.”