6 Ways To Start Increasing Revenue At Your Tanning Salon

6 Ways To Start Increasing Revenue At Your Tanning Salon Without Selling More Memberships

6 Ways To Start Increasing Revenue At Your Tanning Salon Without Selling More Memberships

As a tanning salon owner, member retention is one of the keys to a successful business and is a massive concern for tanning salon owners. Retaining existing members means more sustainable revenue and the signs of a growing business. But keeping and adding new members isn’t the only way to increase your overall revenue. Getting your members to buy more products, services and upgrades also increases your tan salon revenue and grows your business.

What if you could add an extra $20 per member per month in addition to your monthly revenue, how much more would your business earn?

  • For a tanning salon with 50 members, it’s $10,000 more annually.
  • For a tanning salon with 75 members, it’s $18,500 more annually.
  • For a tanning salon with 100 members, it’s $24,000 more annually.

If your salon is not already working to increase revenue per member, you leave a lot of money on the table. Let’s take a look at 6 ways to capturing revenue and grow your tanning salon business.

– Retail Sales

Selling retail items is one of the easiest and best ways to capture your revenue from your existing members, and using your software for tanning salons, you have the tools to do so. With industry markups as high as 100%, there’s plenty of money to be made in retail sales. Plus, many tan salon owners find that retail is the easiest way to make additional money. Once you stock the items, they sell themselves.

Whether it’s eyewear, lotions, drinks, clothing, or gift cards, your members will appreciate the convenience of buying these things from you. Also, if you’re selling it, they know you’re endorsing it. 

– Additional Services

Another easy way to boost revenue without selling new memberships is to offer additional services that compliment your tannings and skincare products. Many tanning salon owners are moving toward a wellness or spa section within their salon to provide a more rounded approach from offering: Red Light Therapy, Facials, Massage, Spray Tanning, etc., to help compliment the UV tanning services. Adding additional services like this will allow you to generate more revenue from your existing member base. 

– Offer Premium Style Memberships

If you do not offer tiered membership options and pricing, it’s time to start; rather than forcing your members into a one-size-fits-all model, start structuring pricing for EFT memberships around their needs and preferences, allowing members to upgrade. 

After tracking purchases and attendance in your tanning salon management software, you can use reports to investigate spending patterns and identify popular services. For example, your members may fall into categories from members that spend the most, attend the most, etc. 

Once you’ve categorized members and have set your pricing model(s), you can easily send targeted promotions to each group to upgrade their membership package.

– Reduce Payment Declines

According to Visa and Mastercard, an average of 15% of recurring payments are declined, but the rate can be double that for some industries.

Placing this in perspective, if you have 100 members paying $65/month, you’d expect to receive $6,500 in monthly membership recurring revenue. However, credit card declines will cost you $650 to $1,800 per month. That’s $7,000 to $20,000 in lost revenue each year.

Credit card declines will prevent loyal members from paying their dues. These payments were not lost to poor customer service or low-quality services, nor high prices. These losses are entirely out of your control—that is, until you put a simple process in place to help avoid payment declines.

Using a combination of technology and customer service processes to recover declined payments and add back revenue to your bottom line. Choose a tan salon software solution that offers payment reminders and automatic retries after failed payments.

– Use Paid Trials or Sessions

Most tanning salons offer a free trial, free tanning session, or guest pass to prospective members. Some of the freebies do pay off when they result in new members; however, sometimes, you end up spending money to help support non-paying guests who eventually never return.

Paid trials seem to help secure an actual return on your investment, not to mention are more serious about keeping initial appointments or memberships. They’re more invested in learning about your tanning salon, understanding the salon’s value, and ultimately building relationships with your staff.

Start to offer a combination of free and paid trials in a way that makes sense for your business. For instance, you might offer a free trial of your basic tanning services but a paid trial for your premium services or tanning products.

– Sell Advertising

If you are looking for an out-of-the-box way to increase tanning salon revenue, try selling advertising space in your salon or email newsletters to local businesses. If you’ve done an excellent job building your member base, you’ll have a health/beauty-conscious audience that’s attractive to an array of advertisers. Create a list of specialty shops, gyms, spas, venues, and restaurants that might be interested in your new advertising opportunity.

Go beyond marketing and retention to increase tan salon revenue through alternative revenue streams, new services, and operational efficiencies. In doing so, you’ll allow members to strengthen their relationships with you, giving your tanning salon its most significant potential for growth.

Start increasing your tanning salon revenue today! Learn how Tan-Link Tanning Salon Software can help by Scheduling a Free Demo. 

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