Benchmarking Salon Growth - Page 2 - TanToday - Helping Salon Owners, One At A Time, Since 2000!

mr belvedere · 12th August 2005, 05:45 PM

"If we pull together ..." Pink, I suspect you're not just here for the intellectual sharing.

Ezliving_Jim · 12th August 2005, 08:55 PM

Quote:

...with no barriers to entry for the indoor tanning market...

Nothing but...

Bags of cash
Great credit
Huge Desire
Superior business management skills
Extraordinary energy
Exceptional Perserverence
Extreme Patience
Strong support network
The best of luck
Extra bags of cash

Pink · 13th August 2005, 12:34 AM

You never mentioned the best thing, or the most important.

PASSION

Alan @ TanToday · 13th August 2005, 03:33 PM

Passion is a good one and definitely needed or it shows that its lacking.

Ranks right up there with LOADS OF CASH and GREAT CREDIT.

Nani Nalu · 16th August 2005, 06:27 PM

As a new salon, you want to look at the following information to monitor YOUR business trend:

1. Traffic
a. First time customers (Your first 4 months should bring in an average of 500 First time customers. You should then work on brining in 10 - 15% of your total month tanners as new first time guests each month)
b. Returning customers (All and all you should reach a minimal average of 3,000 tanners per month after your first 4 months, growing 5 – 10% each month by turning your first time tanners into clients)

2. Category Sales
a. Look at what services you offer. Monitor the % or number of tanners for each service:

EXAMPLE: 3000 tans this month
Basic Bed = 780 tans
Middle Level = 920 tans
High Intensity = 700 tans
High Pressure = 480 tans
Spray = 120 sprays

b. What I suggest to look at is the increase in the tanning numbers (how many people you are tanning per month) Also, what beds are more popular during what months? Do you have a steady increase in people using your spray tan? Your HP?
c. Have an EFT? Do you constantly average 4 – 6% of your total sales in NEW EFT sales per month?

On average, I recommend salons to plan on making a 5 – 10% increase in sales month to month for their first year, considering that they do not open up during the salons territories slow season. 2nd year I recommend the salon to plan on a 35% increase over LY sales, 3rd year, 25% increase, 4th+ a steady 10% increase.

Again, this is an average of the 140+ salons I have talked to over the last year. Salons are from across the US and Canada. It is my opinion as a tanning salon consultant.

mr belvedere · 17th August 2005, 05:36 AM

Quote:

Originally Posted by darkriver

Over the past year I have spent a lot of time trying to find some type of bench marking to determine where my salon business should be after one year of operation. Unfortunately I have not been able to find any information on benchmarking. I have been told that the number of new clients you have at the end of the 13th month of operation is a good measure of how healthy the business is. Well that statement would seem obvious! But the gentlemen said that if you had 100 new clients at the end of your first month of operation you should have at least 200 new active clients at the end of the 13th month. He went on by stating; if you had 250 new clients at the end of month two you should have 500 at the end of month 14. He was referring to new clients not the total number of active or inactive clients. Are there any opinions out there on this measure of new salon growth rate, and does anyone have any realistic benchmarking data.

Thanks
Darkriver

I'll show you mine if you show me yours. And theirs.

Brown Bunny · 17th August 2005, 08:19 PM

Does anyone have any insight about the growth of our industry as a rule for the next 3 to 10 years?
What has been said at the conventions and or trade shows?

Brown Bunny · 18th August 2005, 01:17 AM

The reason I want to know about industry figures is so that I can take projected infomation to my bankers. So as to plot out strategies for expansion of growth for our current salon.
I understand that it can vary from area to area. Yet, they want to have some kind of barometer to compare to.

Pink · 18th August 2005, 08:50 AM

Create financial numbers for financing and a set for you.
Take the growth the industry has seen and apply it to future if you would like.
They want to know your location and your plan, if you start talking heavily about the growth of the "industry" , or anything heavy to build that story, they will wonder if something is wrong.
I could go on for an hour. Stick to a business plan, its an art form and it will mean you get money or not.
I know this does not make a lot of sense, but it does in my mind, and I am psycho about business plans and a million thoughts go through my mind when laying this out.

13th August 2005, 03:33 PM	#24 (permalink)
Alan @ TanToday Checks and Balances Join Date: Mar 2005 Location: Maryland Posts: 6,163	Passion is a good one and definitely needed or it shows that its lacking. Ranks right up there with LOADS OF CASH and GREAT CREDIT. __________________ Alan "America is too great for small dreams" - Ronald Reagan

16th August 2005, 06:27 PM	#25 (permalink)
Nani Nalu Rookie Join Date: Aug 2005 Location: Minnesota Posts: 13	Consultant opinion As a new salon, you want to look at the following information to monitor YOUR business trend: 1. Traffic a. First time customers (Your first 4 months should bring in an average of 500 First time customers. You should then work on brining in 10 - 15% of your total month tanners as new first time guests each month) b. Returning customers (All and all you should reach a minimal average of 3,000 tanners per month after your first 4 months, growing 5 – 10% each month by turning your first time tanners into clients) 2. Category Sales a. Look at what services you offer. Monitor the % or number of tanners for each service: EXAMPLE: 3000 tans this month Basic Bed = 780 tans Middle Level = 920 tans High Intensity = 700 tans High Pressure = 480 tans Spray = 120 sprays b. What I suggest to look at is the increase in the tanning numbers (how many people you are tanning per month) Also, what beds are more popular during what months? Do you have a steady increase in people using your spray tan? Your HP? c. Have an EFT? Do you constantly average 4 – 6% of your total sales in NEW EFT sales per month? On average, I recommend salons to plan on making a 5 – 10% increase in sales month to month for their first year, considering that they do not open up during the salons territories slow season. 2nd year I recommend the salon to plan on a 35% increase over LY sales, 3rd year, 25% increase, 4th+ a steady 10% increase. Again, this is an average of the 140+ salons I have talked to over the last year. Salons are from across the US and Canada. It is my opinion as a tanning salon consultant.

17th August 2005, 08:19 PM	#27 (permalink)
Brown Bunny Rookie Join Date: Jul 2005 Location: Hot & Dry place Posts: 5	Industry predictions? Does anyone have any insight about the growth of our industry as a rule for the next 3 to 10 years? What has been said at the conventions and or trade shows?

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12th August 2005, 05:45 PM	#21 (permalink)
mr belvedere Super Star Join Date: May 2005 Location: Denver Posts: 658	"If we pull together ..." Pink, I suspect you're not just here for the intellectual sharing.

13th August 2005, 12:34 AM	#23 (permalink)
Pink Princess Pink Join Date: May 2005 Location: Florida Posts: 792	You never mentioned the best thing, or the most important. PASSION

18th August 2005, 01:17 AM	#28 (permalink)
Brown Bunny Rookie Join Date: Jul 2005 Location: Hot & Dry place Posts: 5	The reason I want to know about industry figures is so that I can take projected infomation to my bankers. So as to plot out strategies for expansion of growth for our current salon. I understand that it can vary from area to area. Yet, they want to have some kind of barometer to compare to.

18th August 2005, 08:50 AM	#29 (permalink)
Pink Princess Pink Join Date: May 2005 Location: Florida Posts: 792	Create financial numbers for financing and a set for you. Take the growth the industry has seen and apply it to future if you would like. They want to know your location and your plan, if you start talking heavily about the growth of the "industry" , or anything heavy to build that story, they will wonder if something is wrong. I could go on for an hour. Stick to a business plan, its an art form and it will mean you get money or not. I know this does not make a lot of sense, but it does in my mind, and I am psycho about business plans and a million thoughts go through my mind when laying this out.