Join The Growing Number Of Salon Owners Who Have Stopped Fearing Competition And Started Embracing It.

When Mark Afanasewicz goes to work every day as a New York City police officer for the city's Harbor Patrol, he is fearless. He has to be; that's his job. And it is with this same confident bravado he approaches running his four Rendezvous salons in New York and Connecticut. "Competition," he contends, "I welcome it." There's no question indoor tanning is a competitive business. And with every grand opening, there's probably a competitor losing sleep and wondering if his days as a small business owner are numbered. Afanasewicz admits a new salon nearby does get his attention, but waste time fearing the unknown? ''Absolutely not. "You cannot prevent another salon from opening," he says. "You cannot always prevent your customers from trying it out. The only thing you can do is react and make your business better." So what's the big deal? Why, then, is competition something we've found salon owners too often agonize over? The word competition conjures up images of two or more parties pinned against one another in a battle of will. And the fight rages on until one ultimately emerges as the winner. But as a small business owner, says Afanasewicz, you have to turn this image on its head. Oh, there can still be a battle but fighting it in your own facility with the goal of bettering your product, service and presentation.

EMBRACE WHO? Competition isn't necessarily a bad thing. In fact, says salon owners we spoke with, a competitive atmosphere fosters overall industry development. "People shouldn't look at it and be afraid of it," says Cindi Reedy, owner of Ultratanz (USA) in Mobile, Ala. "If they are in business to really be in business, they should look at it as an opportunity to step up and improve their jobs and their salon." Taking the fear and anxiety out of looming competition starts with getting rid of the unknowns. Of course you want to focus on your business, but to stay competitive you have to know what you're dealing with. Bill Dueease, successful entrepreneur and co-founder of The Coach Connection (www.findyourcoach.corn), takes this one step further by advising small business owners to literally embrace competition.

"The first thing that you really need to find out is exactly who your competition is," he says. "What happens is that people often miss out on the real competition. It's not necessarily the big gorilla in front of you. You need to find out how they operate; what their strengths are and what their weaknesses are. Basically, what can they offer that you can't, and how can you adjust to it. And find out what you can offer that they can't that you can tout." Sandy Donnette, owner of two Head to Toe locations in Illinois, feels making herself aware of the choices available to her customers helps maintain her competitive edge. She's quick to add that her goals are clear: self improvement and self improvement only. "I check any [new salons] out and whatever I didn't like at their store, I make sure it's not being done in our store," says Donnette, who believes competition reminds small business owners of the importance of providing impeccable customer service.

Realistically, your customers will compare you to the competition - it's human nature. So put yourself in their shoes. "You allow them to compare," says Dueease, who goes as far as advising salon owners to take their competitors to lunch. "You do it before they do. You make it easy. You extenuate the things that you win on. For someone to say that they totally disregard their competitors, that's guaranteed suicide." To better your chances of continuing to thrive as competition heats up, it's important to find your niche. I hear it now: "but I'm just a tanning salon." Oh, really? Last time, I checked, no two salons are exactly alike. And without having an idea of what's out there for consumers, how can you emphasize your uniqueness so you can set yourself apart? While shopping the salon nearby really is important, do not try to "beat" the competition, notes Dueease, because you won't win. Focus on getting better.

"Humans must compare," Dueease continues. "If you're the only tanning salon in 500 miles, unless there's something to compare it to, you'll have minimal business. But if there are two tanning salons, and you are competitors, then both of you are going to make more money.

"I Check any [new salons] out and what ever I didn't like at their store, I make sure it's not being done in our store."' Sandy Donnette, owner, Head to Toe, Naperville, 111.

Developing a niche may be as simple as offering levels of tanning, adding new amenities, an innovative service, changing your public image or focusing in on a particular demographic, Reedy of Ultratanz (USA) specializes in high-pressure tanning and offers an infrared body wrap service. Customers at Ultratanz are treated with top-notch service, says Reedy, in a quiet spa-like atmosphere. She caters to a more sophisticated clientele who prefers a longer tan time and accepts a higher price point for increased service.

While Reedy started out in a niche market, she's always tweaking it and suggests all salon owners do the same. "I'm extremely competitive," says Reedy who actually refers customers who may not want to pay her prices or am looking for different equipment to other responsible salons in the area. "If I don't think I'm doing a good job, I do something about it. I'm competitive with myself and my business. This isn't clean enough; we should offer something better or this isn't relaxing enough." CONFIDENCE MATTERS The fear associated with competition often stems from business people who throw menacing daggers with cut-throat pricing. Price wars are nasty and can be devastating, but the golden rule is never lower your prices. Give discounts, feature specials and hand out a free tan or two, but never lower your prices. Besides the obvious reason that you can price yourself out of business, you also have to show confidence in your business, your services and prices. Remember, your customers are watching - and comparing - and if you don't believe your prices have merit, why should they? And besides, says Afanasewicz of Tropical Rendezvous, this kind of competitor may just be a blessing in disguise. Since their pricing limits what they can offer in terms of service and consistency, he says, the tactic usually backfires. "They may pull from some of my customer base for a month or two, but when their lamps are shot and they can't afford to replace them; or don't know better to replace them, customers will come back." Some people do get hurt by competition, he says, that's the nature of the beast. "But people who are in it to make money and really run a successful business, and know what they're doing, change lamps, maintain equipment and provide good service, probably won't be affected." Fear of competition is often in with the arrival of a large chain or franchise. They, after all, have more resources, and so on. This may often be true but why can't you use this advantage? These types of salons blanket the market with advertising which, in Afanasewicz's opinion, indirectly helps his business. It reminds people who haven't been in for awhile to tan and it may even grow the market.

Since there's still such a large centage of the tanning population to pull from, says Afanasewicz, its, better that a responsible and salon educated comes in as opposed to something else. "Franchises and large chains normally don't get into price wars," he notes. "They are more educated, they educate their employees, they are Smart Tan certified and have higher standards. Now you have a small salon owner who never even discussed training or anything like that forced to think about it." Wayne Smeal, president of Executive Tans headquartered in Lakewood, Colo., concurs. Why make large chains and franchises the enemy? You can only learn from them. "The biggest thing is the unknown and, what I call 'the big bad wolf' scenario," he says.

"They think that the big guy is coming into town with millions of dollars - and that's not true. Often they fear that they're going to put them out of business or bury them. As a matter of fact, it's exactly the opposite that's the truth. When we go into a market, a brand new market or one that we already have stores in, the first thing we do is advertise to get more tanners." Smeal, who works to produce advertising that educates the public, suggests independent salons jump on this advertising wave by doing some complimentary advertising of their own. "If I was in the hamburger industry, I would have to try to steal clients from my competition because 99 percent of the population eats hamburgers. There's only something like one percent that doesn't. In tanning, we have an enormous percentage of the population who doesn't currently tan, so I don't have to steal current tanners.

"If a big chain comes in and does tons of radio and television advertising, I would go ahead with a print campaign. The average Joe, especially in the indoor tanning industry-, doesn't realize who is who." "If they are in business to really be in business, they should look at it as an opportunity to step up and improve their jobs and their salon." Cindi Reed, Owner of Ultratanz (USA) in Mobile, Ala.

DON'T FEAR THE FRANCHISE; THERE'S ROOM FOR EVERYONE When it comes to competition, it doesn't seem to get any scarier than if a franchise or big chain decides to open up down the street. And there's no question that, like other maturing industries, this group of salons is growing. But so are independents, and while there are no hard numbers, industry insiders suggest chains and franchises still make up only 20 percent of the market.

"If you look at the hair care industry and all the big chains, they still represent less than 40 percent of the total number of hair salons," says Wayne Smeal, president of Executive Tans headquartered in Lakewood, Colo. "The national chains have three, four or five thousand stores out there and, there are still more coming in, yet all the independents are still growing as well." Either way, competition is competition. And facing a franchise or chain has plenty of positives. For instance, these guys have corporate Web sites and other locations, so you actually have an opportunity to see what you're up against, and figure out what you need to do to extenuate what you offer that they can't. (One salon owner we spoke with adamantly believes independents have one thing bigger chains or franchises often don't have: personality. They have a personal touch. Think about it, if chain wants to make a change it often takes time. An independent, where the owner often still works the counter, can have it fixed tomorrow.) Also, you can't possibly know everything. And with a larger pool of business, marketing and sales expertise, the bigger guys have often figured out a thing or two. Instead of spending time hating them, utilize their knowledge. How do you think other industries have improved? Its okay. Just like you should be paying to a discussion about employees with a local restaurant owner, you shouldn't ignore your competition - no matter who it is.

And why snub your nose at a blast of advertising a new chain or franchise does on television and radio? Ride the wave, say experts. If they're on the tube, put an ad in the paper. Often times, says Smeal, the consumer doesn't remember who the advertiser is, and it will simply prompt them to tan or investigate possibly tanning.

Another lesson regarding competition - especially with chains and franchises - don't automatically assume they're out to get you. No matter who it is you should always operate on the offensive as opposed to the defensive. (Your customers can see a fight brewing and the smart ones will be appalled and go elsewhere. The others will milk both of you for what you're willing to give away in the name of playing dirty.) "There will be some take away, at first," admits Smeal of Executive Tans whose goal is to garner new tanners when he comes into a market. "'But it doesn't matter if we go in or Sally's Tanning Salon goes in. Any new salon that comes in will get people to try it; thats the nature of the beast. Thats the way it is. But if you don't do it correctly by treating the customers nicely, running a clean facility and so on and so forth, you'll lose that customer eventually anyway. There"s not a whole lot of loyalty unless you do it right." Lastly, be glad that, at the very least, chains or franchises typically run professional organizations with higher standards. The chances that staff is educated, the facility is clean and equipment is maintained are high. And that's a win-win for the industry. Don't forget, when the industry grows, so does your business.

LEARN FROM OTHERS Instead of thinking about the possible negative implications of a new salon in your area, think positive. Learn from them. There may be a possibility that you don't know everything and seeing your business in a new light may prove invaluable. "Re-engineering" a successful program or strategy is done in all industries; that's how industries and products, as a whole, advance.

"You need competition to stay sharp," says Dueease. "A good competitor is going to find your weakness, maybe something that you didn't see. They are going to point it out to you. Then, guess what you can do? Say, "thank you Mr. Competitor, I'll fix it." So what if their prices are low. As they learn hard lessons about not knowing how much a tan really costs them, they'll struggle to keep standards up. In fact, says Dueease, they may provide some of your best business opportunities. When a new customer - or even a customer of your salon who is, taking advantage of a lower price - discovers lackluster service, uneducated employees or poor maintenance, they'll be heading to the salon where those things are an issue. And as consumers discuss their experiences, they'll naturally begin to boast, about your attributes.

Best of all, says Dueease, a professional competitor may introduce you to the next big thing and help you make better business decisions. "We all live in a vacuum and we all live with your own blinders on. And a new competitor can come in with a new idea enabling them to tap into a new market, and so on. Something you never saw." Inevitably, a new competitor will pull the small percentage of your clientele who are always looking for, the cheapest tan or best deal. (Come on, now, all of you have them.) This doesn't have to be a bad thing. If you look at the books, perhaps those customers - who are often fighting for every dime - are a drain on your resources, anyway. Have you actually made any money off of them? Dueease suggests that some of these customers could even distract you from the very important 20 percent of loyal clientele that helped pay for your vacation last year.

Rick Myers, general manager of Tan the Moon in Lakewood, Colo., says loyalty is based on how people are treated, and being faced with increased competition serves as a reminder not to get sloppy. While every customer is treated well at Tan the Moon, neglecting customers who keep the salon's doors open is simply not an option. "We're able to track how much customers spend with us, so for big spenders, we always offer discounts. We're able to offer 10-20 percent discount more than what we offer other customers.

THE BOTTOM LINE Changing how one reacts to competition may be a tough pill to swallow for many salon owners, but the bottom line is negativity gets you nowhere. Other salons will open and they will, in one way or another, compete with you. You can't control that. What you can controt is how you run your business and how you move forward. A smart business owner, says Dueease, channels any negativity into improving their facility.

Afanasewicz of Tropical Rend who has been improving and growing his business since he opened his first location in 1997, agrees. It all boils down to how you operate your business. "You have to take a look at your business as a whole, and really try to adjust to times and how they change. Surviving has more to do about you and the decisions you make than how much competition you have."

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