How to Open a Tanning Salon

Part 1 - How to start a How to Open a Tanning Salon business - Background

A golden-tanned body never goes out of style. Many consumers work hard to feel and look healthy and a bronzed body is part of their health regimen. Most, however, don’t have the funds or space to purchase a tanning bed for their private use, making the tanning salon a more viable option.

Our guide is in 3 parts:

• Part 1 - How to start a Tanning Salon business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a tanning salon?

First, you’ll need to decide if you want to have tanning beds or spray tanning available for your clients. This will help in determining the type and size of space you need. Once you’ve secured a space, it’s time to start purchasing supplies.

Spray tan machines cost anywhere from $500-$5,500, while UV tanning beds can cost upwards of $10,000 each. Both can be found used for a moderate price.

Once these important purchases have been made, you’ll just need a few basic items, which will run you approximately $4,000:

• Lamps

• Lotions

• Eye protection

• Timer system for each bed

• Cleaning supplies

• Signs and brochures regarding tanning bed safety and UV ray exposure

• Upgraded electrical for tanning beds

• Cash register and credit card machine

• Marketing products

Read our tanning salon purchasing guide to learn about the materials and equipment you’ll need to start a tanning salon, how much to budget, and where to make purchases.

What are the ongoing expenses for a tanning salon?

Your energy bill will be one of your largest ongoing expenses. Salon owners report paying anywhere from $500 – $1500 a month. Exact amount will depend upon the time of year, how many beds you own, and how busy you are. Payroll and payroll taxes are also a major expense, which will fluctuate seasonally with the business.

Budget for at least $200 per month for cleaning and maintaining the beds. Retail products will set you back another $1,000 per month. If you decide to do spray tans rather than tanning beds, your inventory costs will be higher, but can be offset by a lower energy bill.

Who is the target market?

While you will always have a revolving door of first-time clients, most tanning salons thrive from their repeat customers. These individuals are committed to looking their best and maintaining a golden tan is part of that look.

How does a tanning salon make money?

Revenue from a tanning booth is generated on a per client, per visit basis. Many salons have multiple beds and/or spray tan options available and are priced accordingly. Visits last up to 15 minutes per session and will vary based on the client’s specific needs.

How much can you charge customers?

Customers are charged per visit. Tanning bed sessions range anywhere from $5-$20 each, depending upon the length of the visit and the level of tanning bed used. Spray tans are billed the same, with salons charging between $25-$50 per visit.

How much profit can a tanning salon make?

Your business’ profit is directly tied to the number of beds you maintain and how often those rooms are filled. On average, each room should generate between $12,000 – $15,000 annually. Each visit will cost you $6 – $9 in supplies and energy costs. Some salon owners report making upwards of $58,000 in profit, while others claim to have very little left after business and personal expenses. The one item they all agree on – more beds = more profit.

How can you make your business more profitable?

Tanning businesses who have reported higher earnings offer a variety of tanning options and skin care products. If you’re looking to increase your business’ profits, consider including the following in your business strategy:

• Stock your shelves with skincare and tanning products

• Become certified

• Offer both airbrush tan and UV tanning

• Offer a mobile service for spray tanning

• Set up membership options, with each tier offering different incentives

• Offer additional spa services. If customers only have to go one place for multiple services, they’re more likely to return

Day-to-Day and Growth

What happens during a typical day at a tanning salon?

As the owner of a tanning salon, your biggest task will be to interact with clients. Both personally and online, you’ll need to educate consumers regarding a healthy skin care regimen and to dispel any myths regarding tanning bed safety. The tanning beds will need to be maintained and salon product inventory should be kept up. Since the business can be seasonal, you’ll also need to spend part of each day analyzing and tweaking your marketing strategy to ensure you reach your target audience year round.

What are some skills and experiences that will help you build a successful tanning salon?

As the owner of a tanning business, you’ll need strong business skills. Your work will require you to interact with clients and staff regularly, so strong interpersonal skills are critical. Many consumers have been taught that tanning is bad for the skin, so an understanding of the effects, as well as skin care will also be beneficial. The National Tanning Training Institute and Smart Tan offer both educational and networking opportunities that can prove invaluable to your business’ success.

What is the growth potential for a tanning salon?

Typically, tanning salons remain small, serving those in their community. If your goal is to build a larger business, consider starting your own franchise or partnering with a franchised company such as Sun Tan City.

How and when to build a team

Your team will be an integral part of the business’ success. It’s important to employ individuals who are well-groomed and professional. Many of your customers will turn to your team with questions regarding the risks of using a tanning bed as well as proper protocol.

Read our tanning salon hiring guide to learn about the different roles a tanning salon typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Part 2 - Is a How to Open a Tanning Salon business the right fit for you?

Part 3 - Action plan to launch your How to Open a Tanning Salon business in 90 days