Let’s face the fact that 7 or 8 years ago you didn’t have to be good as a tanning operator…you just had to be open!

Today’s tanning businesses successes are not coming because of luck or that you’re the only game in town. Success comes from 4 critical factors: Salon services and environment, a consistent year around marketing program, a bonded engaged set of “core” employees and living daily with your sales numbers. For the purposes of this article I’ll talk about tracking revenue streams and building your success with the numbers.

Here are some numbers you need to know for every salon:

“PCA”-Per Customer Average This is the total average revenues you derive per each unique customer over a 12 month period. (By the way. It’s not bad to be able to compare your numbers with other similar sized salons in similar sized markets where you don’t have to be concerned with competition issues. But there are so many variances in tanning revenue potentials from even similar market to similar market that these comparisons may not be fruitful. At the very least you should compare a salon’s revenue activity against its own results from season to season, month to month.)

LPPA or lotions per tan average-rank these sales results among your individual employees in descending order, highest to lowest. There are no stronger motivators on this planet than ego and vanity. Most everyone wants to be the “star” and no one wants to be last on the ranking. Those who are first should share their best practices at salon employee meetings. For those who are on the bottom, spend some individual time training, retraining and observing their progress.

PTA or per tanning average-non EFT tanning session revenues. (Employee ranking here is again important. I guarantee that when you start ranking employee performances and making them aware of their individual results versus their co-workers the number will go up-guaranteed!

EFTs conversion rate – How many individual tanners do you convert to EFT’s each year as a ratio of unique tanners who tanned but have not converted.

EFT % customers-how many of your total tanners are on EFT draws? Is this % growing?

Upgrade sales ratio – the ratio of individual tanners (non EFT) that did not ever use an upgrade versus your total pool of unique tanners. The objective here is to view progress on converting level-one tanners to pricier beds or EFT packages. If this ratio stays high it may be making a statement about what is being positively said at the counter.

With so many of our clients, establishing a base line of performance for the salon and for its employees is your first step to success by the numbers. When you raise your total combined lotion and session average per visit by $2-$3 over a season you’ve suddenly found reasons to grow your business, invest in upgraded equipment and actually get paid!

John Farr is President of the Power Group Companies (PGC), a retail tanning consulting firm. John and PGC have consulted more than 100 retail tanning operators from a single owner operator to large multi outlet chains. Mr. Farr was a key note speaker at last year’s Smart Tan conferences and recently over-saw a panel of smaller tanning operators this year at the Smart Tan show in Nashville on the subject of their successes at “expanding their revenues” thru EFT’s.