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The State of the Indoor Tanning Industry

People ask me all the time how indoor tanning salons stay in business. And I give them the same answer: the same way Las Vegas stays in business.

We have been doing business with indoor tanning salons since 1990. While the industry continues to shrink, there are still some 15,000 salons in the U.S.

The manufacturer of Designer Skin, Australian Gold, Swedish Beauty, and California Tan among other brands is the dominant leader with more than a 80% market share. And they want more.

With the "E" word on everyone's minds, business has been slower than usual. Chains have the capital to ride out the storm but 1-3 store operations are facing a difficult decision: Put more money into the business and ride out the storm or toss the keys to the landlord and walk away.

As in every industry, smart entrepreneurs are stepping in, taking risks, and making it happen. But for those that have seen their annual revenues drop more than expected, what's the right decision for them to make?

Once again, I will use my social network to get some answers. I know many that tan regularly and I'm most interested in hearing from tanners, ex-tanners or those thinking about tanning.

We have our annual Beach Party coming up November 21 so this will be good conversation for the hundreds of tanning salon owners that show up. Anything that can help is worthwhile.

And in case you are wondering about 2010 new products, look no further than Designer Skin's new price buster at $117.00 a pop. If you would like to pre-order a dozen or two, let me know!

Happy Tuesday!


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