We Are Sunshine

TODAY’S HEADLINE STORY: Half of salons increased their per-session tanning prices in 2008

Monday, December 1st, 2008

Just more than half of tanning salons increased their per-session tanning prices in 2008 — a finding that is another sign of the maturity in the indoor tanning market.

2008-12-01-market-maturity-copy.jpgAccording to a poll conducted in late November, 51 percent of tanning facilities increased their prices in 2008 from 2007 levels, while only 10 percent decreased per-session prices. Another 39 percent reported no change in prices from 2007. The poll is not scientific, but its results are directional.

“In a market whose legacy was declining session prices for so many years, it’s encouraging that half of salons are finding ways to increase prices,” Smart Tan Vice President Joseph Levy said. “It suggests what other indicators tell us: That among market leaders, the overall tanning experience is getting more and more positive, which is how you justify price and value increases in your business.”

Price increases can also be attributed to some market consolidation, which naturally lessens competition in markets. “For so many years as the market grew, with more and more salons in more markets, prices actually decreased. That’s not sustainable for a market in the long run.”