Increasing Profits With Tanning

The more things change, the more they stay the same, as the old adage goes. This could not be truer than in a competitive business such as health and fitness clubs. Regardless of the time of year, what is happening in the world around us, or the industry in which we compete, the bottom line is always a top priority. Around every turn we are looking for ways to increase profit. “Should I increase prices?” “Should I add services? If so, which ones?” “What makes my club different from the competition?” “What do my clients need that they have to go someplace else to get?”

I bet you ask yourself questions like these every day. Increasing prices may not be a reasonable answer, but finding a way to get more money from your current clients, bringing in new clients, and distinguishing yourself from the competition are the answers. One of the quickest and most lucrative ways to do this is by adding tanning to your health club. Consider your client base, how many of them work hard every day to look and feel their best? How many of them are going elsewhere to get that beautiful tan they desire?

Adding tanning to your club’s line of services can have an immediate and powerful impact on your business and your bottom line in three ways:

1. First, your revenue per client will increase. Chances are that many of your clients are tanning at a tanning salon right now. As a matter of fact, our studies have shown that more than likely, 10 percent of your male clients and 15 percent of your female clients are already tanning, which means they are leaving your facility to spend their money elsewhere. By adding tanning to your facility, you make it easy for members to tan with you, therefore increasing the average revenue per client. Your customers will love the convenience and you will love the profit.

2. Second, the motivation behind tanning is the same as getting and staying in shape, people want to look good and feel great! With tanning, you will attract new customers by advertising that you now offer tanning as a service, especially if your competitors do not. This makes you a one-stop-shop. The best part is that you will receive new customers for both tanning AND fitness!

3. Finally, although there are many types of tanning equipment from which to choose, by choosing a stand up unit with or without a dressing room, you will be able to take advantage of an empty corner or even some space in the lobby, thus gaining more profit per square foot of your building. Many tanning salons will add a tanning booth to the lobby to create interest and excite customers. The more excitement you can generate visually, the more often customers will turn their curiosity into revenue-producing sessions.

With the high cost of space, it only makes sense for you to use as much of your space as possible to generate revenue. Think about turning an extra office, storage space or closet into a tanning room to help increase your bottom line. Also, make sure you have a nice display of tanning products that is visible from the front door so everyone who comes into the club will see it. Learn why tanning lotions and after-tan moisturizers help extend the tan and your products will fly off of the shelves, again increasing your bottom line. Don’t miss an opportunity to get every dollar you can!

The good news is that you should expect to add at least $25,000 revenue per tanning unit depending on the unit and the price per session you charge. Also, by adding supporting products such as tanning lotion, after-tan moisturizer and eyewear you should be able to increase that revenue by at least 20 percent. In addition, tanning has been a proven, consistent moneymaker for more than 20 years; whether a stand-alone salon, video store or fitness club, tanning generates profit.

With the competitive nature of today’s market, we all know it is easier and more cost effective to get one customer to spend more money once they enter your club versus trying to attract a new one. Because of this, adding tanning to your club is like adding a business within a business. You will have some cross-over customers, and some customers who will tan but not workout and vice-versa. You will have a huge opportunity to crossmarket within your own business. The bottom line is that you will be able to increase your revenue per client quickly and cost effectively.

Overall, by adding tanning to your fitness club, you will increase your revenue, profit and customer base, which answers those recurring questions, “How do I increase my profit and beat my competition?”

Bill Pipp is the CEO of ETS, Inc. He can be contacted at 800.668.5193, or by email at wpipp@etstan.com, or visit www.etstan.com/f1.