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Rise to the Top: How to outclass low-cost competition

Wednesday, December 7th, 2016

The floor has risen in indoor tanning. Now it’s time to raise the ceiling.

As the industry landscape continues to change, the poorly operated businesses are long gone. At this point, even businesses that are competing on bargain-basement prices, or whose primary focus isn’t even tanning, are stepping up in order to keep drawing customers to their UV services. Salons that compete on low prices, and other businesses that offer tanning as a side service, are now commonly offering newer, quality equipment, name-brand lotions and well-trained staff in order to succeed.

It’s easy for other tanning businesses to sit and complain about how some providers are offering tanning services as dirt-cheap add-ons, or how they’re not held to the same standards, but that’s never going to change anything. If you’ve positioned your salon as a premium tanning option, then your only path forward is to continue to improve and provide enough reasons for customers to justify the cost of your services. And if you’re caught up in keeping your overhead low in order to offer competitive pricing, it might be time to change your approach entirely.

The reality is that there is a certain segment of consumers in your market that are always going to buy based on the cheapest price, regardless of the value it offers. So, you have a decision to make: Do you want to cut your prices and battle with other discount tanning options for low-margin sales, or do you want to take the steps to attract clients that want better experiences and are willing and able to pay for them? With more and more low-cost tanning options out there, it’s likely that your best bet is to change the playing field.

The high-end demographic of customers is out there in every market, but when you’re asking for more, you’ve got provide more, and that’s not always easy with the discount providers adding value to their businesses as well. To convince customers that paying more for your salon experience is worth it, you need to elevate all aspects of your business: Equipment, sunless, products, diversification, customer service and expertise, environment and branding.

Because, if you have the same equipment, and don’t provide vastly superior experiences, why wouldn’t clients just go with the cheapest option?

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

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