Showing posts with label marketing. Show all posts
Showing posts with label marketing. Show all posts

Thursday, November 13, 2008

Confessions of a Former Independent Tanning Salon Owner.

Once upon a time, a girl in the Midwest, sick of working hard for everyone else, tired of leaving her kids at home to be raised by everyone but her, who decided to go into business for herself. Here’s her (er—my) story.

I stated the why of wanting to own my own business. This was followed by a whole series of questions regarding business ownership—everything from what type of business I desired to embark upon, to whether or not I had enough capital, to did I need (or want) business partners?

Deciding to open a tanning salon wasn’t a stretch. I was a misplaced Floridian who missed the rosy, healthy-looking glow of a sun-splashed body. One of my dearest Florida friends owned and operated her own tanning salon and hanging around her place, I got a taste of what was involved as far as licensing, costs, upkeep, employees, etc. I felt that the decision to open a tanning salon was a practical choice that wouldn’t require a ton of research on my part. I certainly didn’t want to wander blindly into business ownership. I only wish that the decisions beyond what kind of business to open had come with such great ease.

I briefly explored buying into a tanning salon franchise, but balked at the prices on those things. I remember thinking it would take me ten years to recoup my investment and I’d have to share a percentage of my profits still after that! Convinced that I could do it myself for a fraction of the cost, I ordered a tanning bed catalogue and set about planning and spending.

I used a personal savings/loan combination to open Tropical Tan North—yes, I actually went into the experience with dreams of a South someday. I rented a premium location near major businesses and a huge local college, two distinct advantages over the other tanning salons currently in local operation. I also played secret shopper to those salons to see what worked or didn’t work for their businesses. I got the proper permits and paid (through the nose) to have the place renovated to accommodate half a dozen beds to start with and for wiring to city code. None of this came cheap. In fact, I had to forgo one of my initially intended bed purchases (each one cost as much as a compact car) just to offset costs, then I had to justify this decision to my banker with whom I’d taken out the loan—bankers understand collateral, not ideas. I opened Tropical Tan North and it was wildly successful, and I closed it four years later. Here’s why:

1) I wasn’t making tons of money. Oh, I was making money, but not nearly enough given the outrageous clientele numbers we were enjoying. The salon had a great location, was always open, had the newest bulbs, the cleanest beds and the lowest cost lotions, so we had the numbers. But, for example, I barely profited off of tanning lotions, which I underestimated to be such a huge part of salon business. I’d mistakenly figured it to be “bonus” money instead of realizing that lotion was a staple to almost every tanner who entered the salon. By neglecting to realize this and seriously under-pricing the competition, I literally walked away from profit.

2) The cost of salon upkeep was insane. Because we had higher traffic than other salons, the beds were constantly in operation, which naturally spelled out the need to replace bulbs and acrylics more often, not to mention those occasional mishaps that result in bed damage. This probably wouldn’t have been such an issue had I made better pricing decisions on tanning packages and, as mentioned, the lotions.

3) I was dead-tired. In my case, superior customer service became a curse. Because our salon had become known for its courtesy, I was personally in attendance for at least 14 hours a day, every day, to deliver. I did have two part time employees, but because they weren’t enjoying competitive wages (read miniscule profit margin), I was getting sub-par reviews for their courtesy, and on occasion, I suffered profit loss through missing lotion or freebie sessions they’d “sampled” to their friends and family. I couldn’t be the only eyes/ears of the salon, couldn’t risk further shrinking my tiny profit margin, and couldn’t take it any longer. I paid my bills and closed up shop.

For four years my intended American Dream of being an independent business owner bordered an all-out nightmare. Analyzing the situation now, I can see that I had many assets: the desire, the knowledge and some cash and/or ability to get a loan. Had I invested that time, talent and money into a franchise tanning salon chain, I might still be in business today.

When you buy into a franchise, you’re buying patented knowledge. When making the decision to go independent, I seriously undervalued the benefit of guidance and tools of those who have gone before us. You see, when you’re buying into a franchise, you’re not just purchasing the rights to a name, some equipment and a business manual. You’re purchasing a wealth of experience from business pros who stand make a handsome living from, in part, your business success.

When you buy into a franchise, you’re buying into a reputation. My independent operation had a well-earned reputation that cost me only 14 hours a day, seven days a week, with minimal profit to show for it.

When you buy into a franchise, you’re buying a tried and true business plan. It works, or there would be no need for franchising whatsoever. You’re buying into pricing, scheduling, and other valuable operational information, which means you eventually stand to have some semblance of life outside of your business. As an independent owner/operator, I couldn’t even slip home to shower or read a bedtime story to my kid without fear that everything was going wacky back at the ranch.

There’s some serious benefit to the trust that comes with owning part of something bigger than you are. Not to say that you won’t still work hard or that you don’t have to have any of your own business sense to decide to buy into a franchise, there’s just no such thing. But along with the franchise price tag comes the power of a network and access to solid business knowledge, and that is priceless.

Friday, April 4, 2008

Proofreed...er, I mean Proofread

I drive the same route to work everyday, listening to the same radio station, passing the same buildings, laughing at the same stupidly written sign. Yeah, that’s right, I find endless amusement in a sign on the side of the road.

What I find so amusing is the fact that they list their phone number, and then spell it out in parentheses to help commuters to better remember it. Not unlike how Papa John’s have arranged all of their phone numbers to end in the final four digits 7272, which neatly spells out “PAPA.” It’s a common practice, nothing odd there. Except for how this particular establishment spells out its number (I’ll hide the area code and prefix to save them some embarrassing phone calls):

XXX-XXX-5111 (LOVE)


I’ve looked at the number pads on several phones and not one has ever had 5111 spell out “LOVE.” In fact, the “1” key has no letter associated with it whatsoever. So, if a wary traveler does see the sign, and happens to associate that amorous word with the church’s phone number, he will dial 5683 instead and get the wrong business; perhaps even a confused and angry homeowner tired of the calls will berate him.

Anytime any information from your business is being published for public consumption, check, double check, and triple check it. Then, have another person proofread it, then proofread it again, and finally proofread it. Having a third person do the same couldn’t hurt.

Major corporations have staffs comprised of copy writers, technical writers, copy editors, marketing writers, etc. to check every scrap of writing for errors before it goes to print and then distributed to the public. You’ll very seldom see poor grammar or misinformation in a pamphlet or advertisement for the big boys of business.

Since you’re likely a bit smaller than them, the best you can do is proofread, proofread, and proofread. Be absolutely certain that a potential customer on his daily commute isn’t going to take a quick digital picture of your sign and send it in to the late night shows for the whole world to laugh at.

Not that I would do that or anything.

Franchise "Creature Feature" Writer