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Entrepreneur Takes The Heat From Tanning

Filed Under (Customer Service, Planning) by Jeff Stripp on 20-06-2007


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todd beckmanTodd Beckman, president and founder of The Tan Company, has constantly fought negative press about the $5 billion industry and now faces a summer slowdown, but he insists his business can survive the intense heat.

Despite Beckman’s assertions, for an industry that is highly subjective to fads, seasonality and growing concerns about the dangers of ultraviolet (UV) exposure, the future of indoor tanning is not bright.

Beckman, 42, has been touting tans for a long time. He launched what was originally called The St. Louis Tan Company in 1994. After overwhelming customer demand at the time, he opened a superstore later that year with 30 tanning beds.

Now the Tan Co., whose competitors include Planet Beach, Hollywood Tans and Palm Beach Tan, has 72 locations in 12 states and expects to grow to 100 locations by the end of this year. According to the company, salons had average revenues of $550,778 and an average profit of $213,278 in 2006 - making it one of the industry’s major players.

Beckman hopes that as long as some fashionistas and socialites like Paris Hilton are sporting dark tans, customers will return to the salons. “There’s always someone out there in the limelight that’s tanning,” Beckman said.

And to survive the summer months, when business falls 30 to 40 percent as customers opt to lie by the pool instead, the Tan Co. relies on annual membership fees to boost revenue during the off season.

CNN Money

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