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Should I turn my tanning salon into an EFT based business or use packages?

Almost every modern tanning salon now offers some type of unlimited monthly membership that allows clients to tan once a day for a flat monthly fee.  Commonly referred to as EFT’s, or electronic funds transfers, the memberships are usually reoccurring until canceled.  From a convenience stand-point this is much easier for both the salon owner as well as the customer.  If used frequently a monthly membership often makes more sense for a regular tanner because of the high cost of single sessions and standard packages.  The prices on unlimited monthly memberships vary anywhere from $9.99 to $129 a month depending on what the membership entails as well as what geographic area the salon is located in.  In big cities like Chicago and New York tanning tends to be much more expensive than in suburban locations.  This is caused by the high overhead costs associated with running a business in a big metropolitan area.

Another benefit to purchasing an unlimited tanning package is the lotion discounts that many of them now include.  It has become common place for EFT programs to integrate lotion discounts depending on what level of membership was purchased.  The savings can vary from anywhere between 10-50% of tanning products.  Considering that some bottles of lotion cost upwards of $130, often times the tanning package is basically free after considering the savings from lotion purchases.  From a salon owner standpoint EFT programs help to make salons run more efficiently and often times with fewer employees.  Payroll is second only to rent in overhead costs for tanning salons so anything to reduce it can make a big difference in the bottom line.  The reason EFT based stores can reduce payroll is because it is not necessary for employees to sell clients packages and memberships every time they visit.  Instead they can quickly engage them in a conversation about lotion and put them in a room.  This drastically cuts down on the time that each employee spends with a customer and they are then able to process more tanners per hour.  It is also a good way to build a continual revenue stream that can really help a tanning salon cover its overhead in the slow season.

Although at this point it might seem like an EFT salon is by far the smartest way to go, it must also be pointed out that package based salons often generate much higher per session earnings.  This means fewer tanners to generate the same income.  If you consider the high price of electricity this is even more advantageous.  The best thing for a tanning salon owner to do is study the local demographics and competition before deciding which system to use.  If people in the area are used to buying unlimited memberships at other salons, then it is probably a good idea to follow this example as the customer base is already accustomed to this.  The same is true for what type of equipment to purchase.  Some markets are dominated by tanning booths while clients in other markets prefer to lay down in tanning beds.  Another variable is whether to purchase high pressure tanning beds and tanning booths.  Some cities have a high use on HP equipment, while others have minimal use age.  With the high cost of these machines it can be very costly to purchase a high-end tanning bed that will get little usage.

Related posts:

1. How to build a good base tan.
2. How to lease or purchase Tanning Beds and Tanning Booths
3. What tanning salon software should I use?
4. How long should I tan? Tanning Exposure times explained.
5. Advantages of Tanning in a Tanning Bed vs Tanning Booths

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