Changes in the IRS tax code make it easier and more affordable for salon owners to purchase new spray tan equipment.

Section 179 of the updated IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the current tax year. That means that if a business buys (or lease) a piece of qualifying equipment, it can deduct the FULL PURCHASE PRICE from their gross income.

Simple example: If a business has Gross Income of $50,000 and purchases a new automated spray tan booth for $26,000, the adjust (taxable) Gross Income is reduced by $26,000 to $24,000, which lessens overall tax payment, while allowing the business to invest in itself.

IMPORTANT NOTE: Every business owner should consult with their personal tax advisor to determine how this tax provision will affect their individual business, and whether or not the laws and regulations have changed.

As a reminder, sales/income from spray tanning is 100% exempt from the 10% Tan Tax.

• Why do only 60% of people, eligible for employer-matching 401K programs sign up? It’s free money.
• Why do less than 50% of adults have a will? Seems rational and logical that everyone knows they’re going to die – maybe tomorrow.
• Why doesn’t everyone shop at Walmart for undifferentiated products like Oreos, Jif peanut butter, Advil? Walmart offers the lowest price.  

• Give them a reasonable price for a single session (how likely is somehow to be satisfied and give rave reviews about a salon, when charged $50+ for a single session tan that lasts 5-7 days)
• Give the guidance to make sure they get a great tan
• Have a reasonably priced 2 or 3 tan package, with an extended expiration period – 60 days

• Find out if your doing fewer spray session than your competition
  
• 1,022 salons grew spray sessions 28+% in 2017

• It’s hard to learn the technique
• I’ll have to hire a technician (another employee)
• There’s not much demand for handheld spray sessions (compared to Mystic Tan)
• A new system can be expensive

• Norvell, also owned by Sunless, Inc., performs as many spray tan sessions per year as Mystic Tan – it’s popular because people get a great tan from Norvell trained artists
• Norvell University offers FREE comprehensive training at the premier handheld training program – when a new handheld system is purchased
• Additionally, Norvell offers beginner and experienced technicians 1-on-1, hands-on, on-demand skill training at 20+ salons around the country from certified Norvell Educators. Train whenever you want and often as you want.
• A salon owner or existing staffer can learn to be an outstanding spray tan artist very quickly 
• Norvell has 4 models of handheld system ranging in price from $279 to $999
• Norvell is the #1 Rated sunless tanning brand by Professional spray tan artists/technicians – the brand you can trust

Truth is – every business is a ‘leaky bucket’.

Current customers stop coming and buying – they defect to competition, they move, they die, they stop using the product because it is no longer affordable.

What’s a business to do?

Since every business is constantly ‘leaking’ customers, the business needs to keep adding new customers.

And, you have to add customers at the same rate and value as the ones being lost. For instance, if your salon lost 100 customers last year, it’s not enough to add 100 new customers – the newbies must generate as much or more sales and profit as the ones that were lost. Yes, yes – very basic stuff.

How?

Several of the ‘Hows’ are outlined in other blog posts

• Fix ‘Free Spray Tan Day’
• Introduce simplified (not lower) prices
• Get local bloggers to promote spray tans at your salon
• Learn from McDonald’s, Wendy’s, Chick-Fil-A

There’s more options and to discuss those ideas to build a bigger and more profitable spray tan business – connect with your a Sunless, Inc. representative at 888-974-9977.

Have you noticed that McDonald’s and Wendy’s now have 2 or more drive-thru lanes? Have you noticed Chick-Fil-A has people standing in the driveway taking orders on iPads (even in Winter)?

Must cost a fortune. Or, maybe it pays for itself – those big companies are not in the habit of wasting money on added expenses.

What’s the benefit – to McDonald’s, Wendy’s, Chick-Fil-A —– their customers?

McDonald’s, Wendy’s, Chick-Fil-A

1. They take orders faster than many competitors
2. They get customers their food faster than many competitors
3. They show respect for their customer’s time

 
Their Customers

1. They are given the gift of time and convenience

Sunless, Inc. has performed studies which demonstrate that adding 1 additional spray room to the salon increases sessions by 40%, provided the salon is also charging a reasonable price for walk-in single sessions.

Why would adding a booth increase sessions?

1. Tanners are not kept waiting.
2. Salons give tanners the gift of time
3. Tanners select your salon over your tan competition, and other beauty treatments like nails and wax
   

• 1,022 salons grew spray sessions by 28+%
• Simplified (not lower) price grows sales & sessions