ENERGY TANNING Formula for Success by John P. Ribner A sound business model, top-notch training and strong customer service help make Energy Tanning a thriving five-salon chain based in Phoenix, AZ.

STATS: Locations: 5 Years in Business: 4 Tanning Systems: 59 Employees: 19 Other Services: Sunless Spray Booth, Airbrush Tanning

Energy Tanning of Phoenix, AZ is aptly named – what started as a single salon became a five-location chain in four years. It all started when Mike Knies took a friend’s advice and purchased a tanning salon. Loving the idea of being his own boss, he purchased four more, all the while perfecting his business model. To keep the momentum going, he utilized the latest in Internet technology to help keep Energy Tanning fresh in the minds of Phoenix tanners. And now that his five-salon empire is thriving, Mike continues to put his energy into Energy Tanning by upgrading equipment, training employees and anything else to make his business better.

How Things Change …
It was never Mike’s dream to own and operate a tanning salon. Instead, he was pursuing what he thought was his dream – being part of Corporate America by working for a telecommunications software company. As Mike soon discovered, though, this wasn’t to last forever. “After the events of September 11, our business began to suffer so much that the company started laying people off, and I was among those who lost their job,” recalled Mike. “At that point, I really didn’t know what I wanted to do, so some friends who owned Energy Tanning told me that they were looking to get out of the business, and suggested I buy it.”

While he never before considered a career in indoor tanning, the idea of being his own boss seemed exciting. To find out whether it was something he’d want to do, Mike took a job working behind the counter at Energy Tanning. After about four months, he decided to purchase the business. “I saw a great opportunity here and I didn’t want it to pass me by, so I bought the salon in January 2004,” he added.

Good Decisions
While Mike might have been new at salon ownership, he did have many years experience in Corporate America, and it helped. Through a series of solid business decisions he was able to put Energy Tanning on the fast track to success. “My goal was to create a salon that offered a value-based program designed for long-term tanners, rather than a business that was only concerned with the now,” he explained. “Since the salon already had a good name in the community, I focused on making more substantial changes to its business model. I hired staff that was more mature and had previous management experience, and trained them in the four specific areas of service I wanted to focus on – tanning levels, pricing menu, tanning products and how to get the best from our program. I felt that this would make the business strong.”

Training is important at Energy Tanning, and Mike says he has the perfect person for the job – training manager, David Payment. “He came to us in June 2004, and he has about 20 years of experience in the indoor tanning industry,” he explained. “Having a staff that’s both professional and personable is a big part of a salon’s success, and David does an excellent job training and bringing out the best in them. I’m very thankful to have him as part of the Energy Tanning team.”

With Energy Tanning’s internal workings squared away – business model, training, etc. – Mike began to look outward. How would he market and promote his salon to the public? “Having a strong Web presence was very important to me, so I built a website and paid for very good search engine placement,” Mike explained. “When anyone in our area does a Web search for tanning in the vicinity, our site is the first to come up. We also offer coupons on our site that our clients can print and bring into the store, and that works out well. We’ve also bought advertisements in local and community newspapers and money mailers, and those have worked well, but our website has been the best by far. Now, we average at least 200 hits a day!”

Fully Loaded
When Mike purchased it, Energy Tanning had just eight tanning units but under his ownership, that number doubled. “My theory regarding tanning equipment is that a salon should always have more upgrade units than base units,” he commented. “The idea here is to get your clients into upgrades as much as possible – they’ll experience better results, and the salon owner will earn more revenue.” Keeping with that theory, the original Energy Tanning features two SunDash 226, two puretan Aruba, a puretan Ellipse, a puretan Cal 30, a Tanses T-32, one ETS SunDome, an ETS Solaris, one Mega Max by Mega Sun, a SonnenBräune Prisma, one SunCapsule Super Sonic, a Dr. Muller Orbit, an Ergoline 650 and an Ergoline 600 AvantGarde. The salon also features a John Abaté International turbine sunless spray unit, and operates using Helios software system.

In addition to Satori Sol products, Energy Tanning sells lotions by Devoted Creations, with whom the salon enjoys a special relationship. “We love Devoted Creations because their lotions have superior tanning and skincare ingredients, and the company stands behind its products,” Mike commented. “We have a great relationship with Devoted Creations and they’re willing to help us with co-op advertising, customer appreciation days and any other way we wish to promote our business. Lewis Henry (Devoted President) is great to work with; he’s always there to listen and understand a salon owner’s perspective, and we appreciate that.”

Expansion Plans
Five months after taking control of his first Energy Tanning salon, Mike saw an opportunity to acquire his second store, and wasted no time. He bought the salon – another existing store with an owner looking to retire – and quickly began renovations. “At the time of purchasing it, the salon had eight units, and six of them were base beds,” Mike said. “This didn’t leave clients much room for upgrading, which is where salon pros should be driving their customers because of the superior results and increased session revenue.” Mike quickly fixed that situation – his second facility has nine units representing four levels of tanning, plus a Magic Tan sunless spray booth.
The purchase of his second salon gave Mike the momentum to increase his chain to a total of five locations. His third he acquired in October 2004, while the fourth was purchased in November 2005. Mike’s fifth and final (for now) Energy Tanning was acquired in October 2006. “I looked at a lot of salons while contemplating the purchase of my other four stores, and I didn’t just buy every one that was available,” Mike commented. “It had to be the right fit, and having a good location and a decent reputation in the community were big factors.”

Future Growth
After building a five-salon empire in four years, some might wonder what would be next for Mike and Energy Tanning. Surprisingly, his future plans are not about streaking through the sky in a blinding flash of light; instead, he plans to take things a bit more slowly. “There’s no such thing as an ‘overnight millionaire’ in this industry; you have to work hard to get where you want to be,” he said. “Our top priority is to constantly upgrade the tanning units in all of our stores. I’ll also be on the lookout for possible new locations, but it has to be the right fit. Most importantly, I plan to stay involved at all the salons because I believe that a business with an involved owner is better because of it.”
While Mike admits that being a tanning salon owner wasn’t his original idea of a dream job, five salons in four years have definitely changed his outlook. “I love what I do!” he exclaimed. “This is a fun business that allows me to meet some very friendly people. I enjoy our customers and I’ve gotten to know many of our regular clients at each of our stores. There’s no other job like it!”