My Blog

In 50 short words... "Why GOLD'N TAN Television?"

09/06/2011 21:37:00

Simply put, community. The idea that my customers cannot easily communicate with me, and understand why we do what do bothers me, and I want to know what they want, and how they want it. This new show gives me the ability to quickly, easily, and without boring text communicate 2 way in real time with my clients.

Enjoy the show!

Why does GOLD'N TAN have contracts?

09/03/2011 19:58:00

Commonly people say that other salons do not have contracts, that they do not offer yearly unlimited memberships similar to ours. Sometimes I think people see the word CONTRACT as a bad thing. This is why we - in the membership business - call it a membership AGREEMENT. The thing is, I know you people arent idiots, a membership agreement is just a contract with a pretty name. However, a contract IS simply a written agreement, a piece of paper that simply lists obligations and expectations that two or more people agree to perform and accept.

For example, to OPEN my business, I am obligated to sign many contracts, to list a few.

In order to allow people to buy things with electronic payment cards such as debit cards and credit cards. I have to sign a contract saying I will continue to use them as my debit machine company for a set period of time. Since they come out with new machines and security technology they also allow me to lease a new machine with free maintenance and upgrades to the new more secure systems.
In order to charge you with that debit machine, I had to have something to sell, so I had to sign a loan contract with a bank, agreeing to pay them significantly extra money, plus all sorts of fees, and late penalties, in exchange for a large chunk of money I did not yet have. To buy tanning beds, for clients I did not yet meet.
In order to open a location, before I had any clients I had to sign a contract with my landlords, saying that I would pay money I did not yet earn, every month, for the next 5 years, for the opportunity to put tanning beds and try to operate a business. If I was not able to make those payments, these landlords could take my equipment as compensation for breaking the contract early by not paying the rent.
In order to sell this service to all you great people, I then have to get a contract for telephone, internet, and many other smaller contracts.

So I made agreements to pay all this money, and in a seasonal business, such as tanning, there are months where my service is in HIGH demand, and in LOW demand. Owning a salon in West Edmonton Mall, means that many of these contracts had to be for much larger sums than my competitors, and thus a responsible business owner must strategize around these circumstances to attempt to build a successful company.

Now in respect to the age old concept of supply and demand, when demand is high, supply reduces, and thus the prices has to increase, to attempt to curb demand to manageable levels, and the whole theory of the profit motive is to benefit for having an excess in supply of something that is in demand. Which also has an inverse relationship, when supply is high, and demand is low, the price decreases to create demand, based on the profit motive of the client, and their desire to save money. This is largely due in part to the businesses desire stability, especially since the expenses stay stable. Rent doesnt change with the seasons, neither does the equipment loans, and so on.

Without further ado, back to the issue of the contract. What a contract shows ME the business owner, is that you, the customer, are committed to staying a client here. There is a set market rate for tanning services, based on the power of the tanning bed. On average the price for a month unlimited, in a higher end bed ranges between $70 and $140. Yet many salons have contract options, that allow you to tan Unlimited in those beds, for a significant discount, such as $30 to $70 a month.

This is an offer BASED on the commitment, if you were to get a 1 year membership, stay for two months during a high demand season, then refuse to pay. He sold you two months for lets say $30 per, or $60, when the no commitment option is $70 per or $140 for those two months. So by you not agreeing to commit for the expected time period, the business owner lost $80 potential revenue. This is why an agreement needs to be solidified in a CONTRACT. To protect BOTH parties.

So why, you ask, would we even bother selling it for lower on a membership, with all the hassles of a contract and whatnot? Well, simply because it is an OPTION for those not afraid of commitment. I as a salon operator know that there will be months where you tan A LOT, and months where you will tan very little However I need to keep the business open year round. In exchange for steady, year round, dependable income, allowing the stability of making sure all the bills are paid regardless of how good of high pressure sales people we hired, has VALUE. Value that I as the owner am willing to pay - through reduced pricing - to have the privilege of earning. Also, some clients simply do not have the ability to buy minutes in bulk in large $150-$200 portions, and can really benefit from budgeting it out. Even if they are only going to tan for 6-7 months a year, it is still more cost effective to use the membership option. It is simply an OPTION, a CHOICE it is by no means mandatory. The problem with the membership is the profit motive of the client is to save money, they feel cheated when they know that we can sell Tanning for $50 a month, yet charge $125 for the single month unlimited.

Well, for the girls, let me ask you this, if a man you liked was up front and said he wanted to be with you for at least a year, and didnt do the short term thing, and another guy you liked was up front and said he really only wanted you for the month. Which guy would you be more likely to be attracted to? The smart mature female sees a committed man as more attractive than a man who simply wants to please himself for a short time then run. Now, as a third scenario, how do you feel about the man who only wants you for a month, makes you think he wants a year, but then leaves after a month? I don't really need to argue this point, they are called players and dogs and dirtbags. Well this is how I feel when I promise a client a deal, based on commitment, and they run off when they are done with me. I dont need to go to university for 12 years to know that this potential outcome is a real issue in my business. So I have TWO choices.

1. Dont offer that membership option, and simply offer the no-commitment options.

2. Offer that membership, but make sure there is a written agreement that is clearly explained so that there are consequences to both our actions if the commitment is not upheld.

Remember, the contract option is simply an OPTION. If you choose to get a contract, and not choose the no commitment option, then you are displeased with the choice, or your life changes, there are options to get out of the contract at a reduced price than staying bound by the pre-determined terms of the contract. Known as a cancellation fee. If you are displeased with the service in general, this is partially buyer beware, but it is also on you to discuss that you dont feel that part of the written agreement is being held up. Which means you need to discuss it with the people you made the agreement with. Disappearing of the face of the earth, putting stop payments on, and talking poorly about the person online, are not legally considered in the contract. They are simply turbospaz responses created by the speed and efficiency of the digital world. However, they do not get you off the hook within the scope of the agreement.

Simply put, make sure that if you make a commitment, you are willing to work things out with the person you made the agreement with because you made a commitment. Make sure you investigate with whom you are entering into a written agreement with, and other than that. Suck it up. Because it was a choice, an option, one that you chose. This is the way of the world and I had to sign far more contracts before you showed up. I love all my members, and I care more about this business than many other business owners because I live it every day, and I am always far more willing to make things work with someone who is committed. For that commitment, you own me, and have a right to demand happiness from the relationship we agreed to.

To all my valued members! Thank you for the ongoing support and referrals!

Why do we give away lotion for FREE? A lesson in Marketing

02/12/2011 15:15:00

Whether you are my competition reading this, a fellow salon owner from abroad, a friend, or a customer, you have probably wondered;

"Why the HELL does he give Tanning lotion away for FREE? No other salon does that!"

Lets take a look at what it costs me to give away free lotion. So the matrix is booked up 12 hours per day between two of them lets say, and ignore the regular tanning units. 12 Hours x 3 sessions per hour = 36 sessions per day.

Now imagine that every client goes once per week, 5 days per week.

36 Clients per day x 5 days = 180 Clients per Week.

Lets say every client buys the same lotion. A $60 bottle that is 8.5 Oz in size, resulting in approximately 10-12 tans. If each client tans once per week. Every client replaces their bottle every 3 months.

180 Clients x $60 every 3 Months = $10,800

So its safe to say that I spend $10,800 in LOST REVENUE on giving away free lotion to our members. I say lost revenue because my competition gets to make this money, whereas I do not. Why would I be so stupid?

Well, lets take a look at what it takes to run a business. Every business has operating costs, rent, staff, taxes, equipment maintenance, banking fees, utilities, licenses and permits, and ADVERTISING. Most of what I do in business, I learn from books, and this idea came from a few select books that combined to give me this idea, Purple Cow (By Seth Godin) and FREE: The Future of a Radical Price (By Chris Anderson). Just skip to the next bold portion if you'd rather be spared the details!

In FREE, they talk about how Amazon.com used to spend millions of dollars per month on advertising in magazines, web ads, television ads, and news print. However, in many cases the message gets lost amongst millions of other ads and at the time, people were afraid and unsure of buying online. It was viewed as trading off getting the product now, for later, for not much cheaper, and you had to pay for shipping. Amazon basically sat down and thought, what can we do to fix the online purchasing businesses faults, and discovered that they could afford to use the advertising budget to offer FREE shipping to its clients, and still afford to do SOME advertising. A new concept in online shopping was born, No Cost shipping. Now with this, and inconvenience in the experience of switching to Amazon was solved, and it was enough to take the company to new heights in its success. Because PEOPLE the customers, enjoyed telling everyone about the free shipping and they did more of the advertising for Amazon, then they ever could with ads and radio spots.

The "FREE LOTION" membership was all done in an effort to evolve GOLD'N TAN into a "Purple Cow". In a sea of black and brown cows, its hard to stand out, unless you are a purple cow, then its pretty easy. An example that will always resonate with me was an example of UPS. In big cities like New York, interns and assistants courier paperwork all day long. A common complaint in New York is that if you go to the street, you cant go one block without seeing 10 trucks for FedEx or UPS, but sometimes finding the closest retail location for shipping was a huge pain, especially when all they needed to do was put it into a mailbox with their companies billing info on it. No money or information had to be exchanged. Everyone thought "Why can't I just give this to the driver, that would be so easy." One member at UPS thought this idea had some merit. After a long bout with everyone in the company, the idea finally got pushed through to have a small mail deposit box on the side of each UPS truck. Now it was like having 1000 retail locations in the city, rather than 10, if you were an intern, or assistant, or otherwise had to deliver a package in downtown New York, which companies envelope do you think you would grab? The one that was easy to deliver, or the one that was more difficult? Do you think that a 15% discount would be enough to sway you away? What about a really fancy television ad with Couriers dodging football players to show their tenacity in on time delivery? Clearly, UPS rocked the market with this choice to innovate, rather than advertise. Of course advertising will always have its place in a business, but sometimes you need to spend a little more time and money on innovation, and creativity, and a little less on the advertising itself. With a truly unique customer focuses offering, the advertising should be more effective even if its less frequent or expensive.

This was the purpose of the FREE LOTION, I could either spend $3000 a month on radio ads that say "FABOOTIN" or "BEST BEDS BEST PRICES" in my "CONTEMPO SPA" or I could find a way to save clients time, and money with the same money. By offering them a no hassle experience to tanning. No dragging your bottle every where, no having it freeze and get wrecked in your car during the winter. No spending $60, $80, or $140 on a quality lotion every time you run out, which ALWAYS happens to be the day the cell phone bill has to be paid or rent. The purpose was to find a way to put money in our CLIENTS pockets, rather than the local ad companies. The idea was to create something amazing and unique that would turn customers, into RAVING FANS.

So if you like the free lotion membership, Tell someone! It would really help me out in my mission to make you a happy satisified RAVING FAN of GOLD'N TAN. Thanks for reading, have a great day! :)

Discussing Suntan Lotion....

02/10/2011 14:07:00

Tanning... Do it Right Dummy!

Probably one of the most aggravating things I deal with as a tanning salon owner, is my clients thinking they don't need to use lotion. I mean, of course there is a portion of it that is simply "Because I Want the money" but the more frustrating part is the long term effects on their skin, the fact that their skin barely tans, they need more sessions to get a tan, and all the effects that has on the tanning industry as a whole.

When a customer gives me that "look" the look of "You're just some guy trying to sell me useless crap" I think for a moment...... "Could I hit them with the bottle, stuff them in the closet, without getting caught?" Then reality sets in, I try to remain calm and explain to them, these few simple facts.

1. You need to prepare your skin to tan. Dry skin doesn't tan as well, dry skin, reflects light, instead of absorbing it. This can mean you will get a sunburn easier as well. By using lotion your skin is moist, and healthy and supple, ready to take in the sun.

2. You need to protect your skin! Most of the lotions at GOLD'N TAN - I cannot speak for others - are high quality lotions. Many of our lotions are aloe vera based, which is widely known for its positive effects on the skin during moderate to heavy sun exposure. When using a tanning lotion, the main active ingredients are those which accelerate your skins ability to generate melanin. The process by which the skin tans - simplified - is the conversion of Tyrosine, to Melanin, by the UVA portion of light. Your body produces some Tyrsosine, but not enough to actually keep up a high-quality unit like the matrix, especially with its low UVB output. It's similar to having the fastest brick wall building crew, and no bricks. So by not using lotion, you are going to have to a lot more, to get the same tan. Chewing up MORE minutes and increasing your total UV exposure which puts added stress on the skin, especially without the moisturizing qualities of lotion to take care of your skin.

3. You want to prolong your tan. By using lotion, along with some other very basic skincare principles like exfoliating during your shower, your skin will stay healthy, and thus stay tanned LONGER. This means less tanning, using less minutes tha you are paying for, and keeping the same look.

So by ignoring the Prepare/Protect/Prolong factors in using lotion, we end up with wrinkly un-tanned customers, that will go on to talk about how TANNING is bed, when its just tanning like an idiot thats bad. Doing ANYTHING like an idiot is bad, you could drive your car with your feet if you want to, doesn't means its a good idea!

Besides all the fun benefits like smelling good and anti-oxidants, lotion is absolutely imperitive to tanning. It would be like if you saw your little cousin brushing his teeth without toothpaste, you would think he's being stupid. If he argued with you on the importance of toothpaste, you'd tell him he's being retarded, yet you are not a dentist. It's common sense, which isn't so common these days. This is why I get frustrated with people when I have to "SELL" them lotion, rather than just show them the lotions, let them smell them, explain the features and the benefits of those features, and let them happily pick a favorite.

Thanks again for reading, hope you learned something. :)

February is Vitamin D Deficiency Month!

02/09/2011 14:00:00

VITAMIN D...

GET SOME!

This month is not only dedicated to breast cancer, but vitamin D deficiency as well. In fact, did you know that the two are so closely tied they are in fact almost the same? That's right, hundreds of studies show that adequate levels of Vitamin D - the sunshine vitamin - would prevent about 70% of breast cancer mortality.

This is a great reason to get some sun, too many people have become fearful of the sun on account of skin cancer. I am not suggesting to be reckless with your skin, the Golden Rule, is to never burn when tanning. A feat easily accomplished in the matrix tanning units at GOLD'N TAN. What I am saying is that 940 people died of skin cancer last year, and over 5000 women died of breast cancer alone of the total 36,000 female cancer deaths per year. The priorities should be in prevention and detection of the cancers that you are at a higher risk of being diagnosed with. Skin cancer is far easier to detect as well as treat, than breast or any other kind of cancer. Getting into the sun safely, and getting Vitamin D the way your body was intended to, is of too much importance to simply run away from fear of skin cancer which is easily preventable, detectable, and treatable. I would know, my mother has had skin cance from burning on vacation when she was young.

I urge everyone to get their Vitamin D levels checked, and to learn much more about this important aspect of human health. For more information check out the Vitamin D Society! Click HERE to check out their website.