14. The idea is to demonstrate a service that is based upon sound business practices, and that the three expansion cities, i.e., Up-town Gig Harbor, South Tacoma and Sunset Village Puyallup, are the most promising locations for a high-end, full-service, professionally-operated tanning salon. We wish to plan, design, build, and equip a 16-bed tanning salon capable of gross revenues exceeding $400,000 annually with net income in excess of 38%. Total funding needed is $95,906.51 for each location– My start-up contribution is $110,000 for each location.
15. Tanning equipment lease down payment (See Estimates) $42,000 T-max control, Intercom, and Front Desk Equip. (See Estimate) $3,134 Signage and Furnishings allowance $10,000 Computer and Software $1,500 Tanning products allowance $4,271 Construction Costs (Est. $50 per square ft. at 2500 sq. ft.) $125,000 Working Capital (Lease deposits, advertising, printing, etc) $20,000 Total $205,906 Less my contribution $110,000 Investor contribution $95,906
16. The objective is to stay in the fast-paced and growing tanning industry using the Tacoma location as an expansion platform, by building three new salons. Industry reports *(Sun Times, September 2003, page 14) validate the concept that people will pay more money for higher quality. This project will offer an appealing design, a functional floor plan layout and state-of-the-art tanning equipment not found in Gig Harbor, South Tacoma or Puyallup. We have investigated the market with the help of Ergoline and have determined that the three expansion locations area in STRONG need of a broad-range tanning facility. We find there is a strong need for a salon that offers high-quality, yet affordable tanning. We find the existing tanning salons are lacking a qualified, well trained staff and a high level of customer service. All qualities that already set our business apart from any other!
17. In area tanning salons (only 12 located in all of Tacoma *<Google>), I found a lack of professionalism, a lack of cleanliness and the staff is not well trained. Industry associations such as ITA, SAE and NTTI have demonstrated that an upscale salon with a well trained staff captures customer trust and confidence as well as the lion’s share of the market. These salons tend to resist seasonal fluctuations better than most and return profits in excess of 40% of gross sales. Demographic*(supported on page 36 and supporting exhibits in section B) data shows the three expansion locations have more than sufficient demographics that desires tanning and that have the means to pay for it. I plan to offer levels of upgrades that will include mid-range and high-pressure tanning as well as systems, such as the new Versaspa Spray Tan, offering sun-free tanning without exposure to UV light. I will establish the business as the premier place to tan in all of Tacoma and surrounding areas, and further in the future.
18. Since the late 1970’s, indoor tanning has been a desired practice that keeps on growing in popularity and demand. The Wall Street Journal *(May 5, 2004, page A7) estimated the tanning industry in all of North America and Canada accounts for nearly $9 billion in revenues. Despite hardships in North America at times, tanning is still growing because of innovation, demand, development, and peoples desire look and feel better. So far, 2008 could be another record year in the industry because many tanning salons report more customers and higher profits than in 2006. The industry did a much better job of delivering a professional message about sensible, moderate, and responsible tanning. While we did endure the seasonal attack from the anti-tanning coalition, we also received the highest amount of positive press regarding the benefits of tanning in decades.
19. The tanning market continues to grow at a rapid rate. The market for these products amounted to $4 billion in 1996, a 33% growth over 1994 and has grown to over $9 billion in 2006. For example in 2005, 40% of salons enjoyed annual gross revenues of $300,000 or more compared to only 21% just four years prior. The average number of tanning beds per salon has increased from 6 in 1992 to 10 in 2001. In 2003, the salon size has increased again as Mega Salons entered densely populated marketplaces offering 25 to 50 tanning beds in single location and operators have found success in reducing the waiting lines and in serving more customers. With larger facilities comes an increase in startup costs as well as increased revenues. In today’s marketplace, it is the larger, high-tech salons that enjoy higher earnings and greater stability. The average gross revenues have also increased up from $250,488 in 2003 to $315,828 in 2004. Monthly sales increased from $20,874 to $26,319 for the same period.
20. Referenced sources *(Tanning Times Magazine, April 2005, page 27) agree that the long-term trend is upward. This trend has been toward the purchase and use of high-end tanning equipment, which leads to higher profits, wider customer acceptance and greater insulation from competitors. This equipment offers a lower risk of sun burning and fewer required sessions per month, thereby saving considerable time over the use of conventional tanning. It also offers a more comfortable tanning experience. These are the three primary reasons for the industry’s widely increasing use of mid-range and high-end tanning equipment. After nearly 10 years of publicity, advertising and sales of high-performance tanning units to North American salons, the tanning industry clientele has demonstrated widespread market acceptance of high-output tanning. History has proven that salons who do not employ these new tanning units cannot effectively compete in today’s marketplace and do not achieve the higher income levels other such owners enjoy. Today’s salons are sophisticated in design and marketing. A typical 10-bed tanning salon features 4 base units, 2 mid-range units, 2 high-output units, a standup and a Sun-Free spray booth.
21. Tanning Equipment Selecting the right piece of tanning equipment is one of the most important decisions a salon owner can make. Today's units blend unmatched technology with inspiring elegance. By investing in new equipment, tanning professionals can take advantage of cutting-edge features, ergonomic interiors and eye-appealing exterior designs. Today’s equipment manufacturers realize their customers want more diverse choices in appearance and function. Much like the first automobiles, the first tanning units were primitive and boxy in appearance. Equipment manufacturers became smarter about the science of tanning combining appearance with function as today’s customers are looking for innovations in engineering that result in better tanning, shorter session times and stylish appearance.
22. Equipment manufacturers have revolutionized the science of tanning and in 2004 end users are buying far more superior products than they did nearly 30 years ago. Since purchasing equipment represents such a big investment, today’s buyers are looking for innovations in the engineering of tanning equipment that attract and keep loyal customers. The trend is to offer bigger beds with multiple levels of tanning capabilities. Typically, salons charge a basic fee for the use of the base units then charge an upgrade fee for the use of larger beds which can contribute another 60% to revenues. Tanning has evolved to more than just laying on a low-end conventional tanning unit for 30 minutes for a price of just $3.00-$4.00. Today’s salons employ high-technology, stylish design, advanced management/sales skills and ergonomic tanning units that generate many times the revenues of years prior.
23. In 2001, 25% of the salons surveyed offered tanning for $5 or less and today that number has dropped to only 4%. In 2001, only 26% offered tanning in the $5 to $7 range and today 41% of the salons garner such prices. In 2001, 49% of the salons obtained $7 or more for tanning while today 55% have increased prices to that level. With the introduction of high-end tanning units, tanning customers have more choices. Larger, high-output tanning units offer full tanning sessions in as little as 8 minutes, they require fewer visits per week for maintenance, and they offer a darker, richer tan all of which are hard to resist. Customers have demonstrated a willingness to spend more money per tan if it saves them time or money in the long run. Mid-range and high-pressure units offer faster tanning and quicker customer turns while giving the clients added value for their dollar. Instead of the 30-minute sessions of yesteryear, these new tanning units offer effective tanning in as little as 8 minutes. Considering the busy lives we lead, the tanning public continues to migrate toward faster tan times and less frequent visits. This allows tanning salons to serve more customers in a given day and have shorter waiting lines without having to lease a larger retail space and ultimately generating increased sales.
24. Science and technology in the tanning industry enables the professional tanning salon to offer eye-appealing tanning units with varying levels of tanning power capable of delivering a darker, longer-lasting tan in anywhere from 8 to 15 minutes. With different tanning units targeted toward each need, this variety appeals to those who tan for color, speed or comfort. Equipment makers also continue to fine-tune mechanical features such as piston-lift canopies and contoured acrylics to allow the tanner to tan better and more comfortably during the tanning session. Additional equipment enhancements include advanced lamp and filter systems, digital stereo systems, aromatherapy, massage, cooling mist, easy-touch controls, electronic diagnostics to help the salon staff with maintenance issues, advanced body cooling and integrated ventilation systems.
25. Maintenance continues to be easier in 2008 as more manufacturers are putting their components in trays that slide out of the bottom of the beds-making repairs and cleaning easier. Specially coated finishes allow beds to be more durable and ensure their trendy look much longer. Additionally, manufacturers are offering a bigger selection of colors and designs to better match existing salon decors. Some makers are offering hinged acrylics for ease of maintenance. Vertical units continue to offer appealing features that enhance their marketability. Today's stand-up units offer sleek new looks, novel shapes and ergonomic designs. Manufacturers are offering eye-catching graphics and designs that assist the salon staff in upgrading from more basic units. Customers not only want enhanced tanning performance, they also are after visual incentives that distinguish their upgraded sessions from the basic program.
26. High-Pressure Tanning High pressure equipment today is the mainstay in high-end tanning salons. This equipment got its name because of the lamp technology used. This technology creates the high-pressure spectrum to produce a deeper, darker, longer-lasting tan with a substantially reduced risk of burning. Darker tanning occurs because longer wavelengths of UVA penetrate deeper into the skin and are able to oxidize the melanin granules farther away from the surface of the skin. These deeper oxidized granules take longer to reach the surface of the skin and allow for a deeper tan with a longer life. Today’s high-pressure units are sophisticated engineering works of art. Not only do they tan faster than ever, they add the eye-candy that attracts customers through the door asking “What is that and how does it work?” The purchase price of for the high-pressure bed is still high, but for those who have the intestinal fortitude to acquire them, the payback is tremendous.
27. Sunless The sunless tanning segment of the indoor tanning industry has positioned itself for tremendous growth. In 2004, sunless literally exploded with growth, and that trend continued through 2005. For 2006 it is estimated that 40% of U.S. tanning salons offer at least one sunless booth and 22% offer sunless air brush tanning, a 10% jump over 2005. While sunless provides a new service to existing clients looking to enhance their traditional tanning sessions, it has the potential to expand the tanning populous with new customers who either cannot or choose not to get a traditional tan. Many industry insiders such as, Marc Wilaby from SunCo tanning believe sunless tanning will be the vehicle that drives the indoor tanning industry's expansion because it has the potential to bring billions of dollars worth of additional business. Salon operators offering ancillary services report that their businesses don't suffer the ups and downs of the tanning off-season and many salons report that incorporating sunless into their services has increased traditional UV tanning sessions.
28. Sunless products deliver immediate gratification because they provide a cosmetic, tanned look within a few hours of application and even faster if the solution contains a topical bronzer. Individuals who choose not to use UV tanning devices still can get the desired healthy-looking glow of a golden tan. Salons that recognize this boost profits. Customers use sunless products for a number of reasons including a quick fix when they are pressed for time, a tanning booster between traditional UV sessions, to touch up delicate or hard-to tan areas such as faces, hands and feet and to even out any pressure points, tan lines or uneven spots on the body. It cannot be stressed enough that sunless should be promoted as a complement to traditional UV tanning.
29. Emerging onto the scene a few years ago, spray-on tanning units once were considered taboo to indoor tanning industry veterans. However, today's systems feature sophisticated designs and advanced technology that provide an even, all-over tan to customers and offer tanning salons a whole new revenue center that ultimately will increase traffic and profits. Customers enjoy the privacy of the spray-on booths, as well as the results, while salon owners welcome automated systems that don't consume employees' time with cleaning and setup. Estimated figures, *(California tan, marketing material) reveal that this segment is growing at a phenomenal rate. Since 1999, the number of stand-up sunless units placed in professional tanning salons has grown about 200 percent. By offering these products and delivery systems, indoor tanning salons can satisfy yet another group of potential customers who may never tan indoors. Once those customers use sunless, they most likely will purchase moisturizers and skincare products as well. Additionally, many traditional tanners will use spray-on units for a quick fix or even a nice change to their tanning regime.
30. Lotions For the past eight years, the lotion sector has been the fastest-growing segment of the indoor tanning industry. This stands to reason since proper skincare is essential to the overall tanning process because moist skin tans better. Today, lotion sales contribute over $1 billion annually to the tanning industry with an 8-ounce bottle contributing $60-$75 and more in add-on sales. Professional tanning salons such as Urban Tanning Salon, carry a wide selection of skincare products loaded with high-quality ingredients including vitamins, botanicals, essential oils and antioxidants. The range of products allows salon professionals to provide a multitude of products for every client's tanning and skincare needs thus increasing sales in every direction. Research has shown that environmental pollutants can deplete the antioxidant system of the skin, making the skin more susceptible to oxidative damage. Vitamins now are being promoted as an ingredient that can reduce or eliminate this type of environmental damage.
31. New for 2008 are lotion products geared toward the younger tanner with a number of companies launching exciting skincare products targeted directly toward this younger age group. These brightly colored lotions feature lower price-points and carry hip names and cool catch-phrases. 2008 is expected to be a season of change and growth. Many companies have replaced old favorites with updated formulas in order to appeal to consumer demand. Additionally, many lotion manufacturers are marketing product families in order to capitalize on brand-name recognition.
32. Lotion manufacturers are focusing on products that will keep customers wanting more. Many formulas are focusing on anti-aging, firming and toning properties and include popular ingredients such as CoQ10, marine extracts, hemp seed oils, grape seed, jojoba, moringa and other nutrients and antioxidants. Manufacturers continue to capitalize on the popularity of bronzers and shimmers as well as clean and fresh fragrances including fruits and spices. Tingle products continue to hold their ground as avid tanners are demanding the most-intense heat during their tanning sessions. While many manufacturers have beginner, intermediate and expert tingle lotions, a few lotion makers have broken the mold this season and introduced some of the hottest tingle formulas on the market. Cooling tingle products also appeal to those tanners who want to curb some of the reddening and tingling effects on the skin. This concept allows lotion users to try tingling lotion products that promote quick recovery from the reddening agent that promotes faster tanning.
33. Hemp lotions continue to be very popular this season. More lotion suppliers are adding this ingredient to their formulas because its helps to promote deep, dark tanning and excellent skincare. Not to be overlooked are SPF’s. Salons also are finding that it is important to promote responsible tanning whether it occurs outside or inside. This proactive approach to sensible exposure to UV light helps your salon stop bad publicity about tanning as well as secures additional sales of sunscreen products. Professional salons realize the sale of lotion products is not only smart for business, it is also essential to the tanning process and to customer satisfaction.
34. Eyewear Over the years, salon owners have come to realize the importance of customers wearing eye protection while tanning indoors. The dangers of eye injury when tanning without protection are genuine and should not be ignored. In the past, salon owners assumed that protective eyewear lasts forever. Current trends show that industry experts now realize the material used in eyewear does have a tendency to break down over time and eye protection should be replaced annually offering added opportunity for profits. The continued popularity and convenience of disposable eyewear remains a growing trend. These are single-use eyewear with adhesive properties that stick to the skin without straps allow its use in all positions without fear of coming off. Those who use single-sided high-pressure tanning units are assured the protective eyewear will not come off as they turn over at the midpoint of their session.
35. In years past, salons offered community eyewear that was shared among tanners. Although there was some attempt to disinfect the eyewear, studies show this as ineffective in most cases. The professional salon sells eyewear, one for each customer, in order to eliminate the risk of passing eye infections and diseases from one to another. The sale of personal eyewear creates another opportunity to better serve the customer and to generate added revenues plus it eliminates any possibility of repercussion should a client develop tanning related eye disease. At a cost of approximately $5.00 per pair, salons that promote effective education of their clients in the purchase and use of protective eyewear report additional gross annual revenues from $6,000 to $10,000.
36. Software Computers and timer control systems use specialty software for tanning salons. When used in conjunction with each other, it gives the salon owner absolute control over unauthorized use of the tanning equipment. Those who do not computerize their salon face long lines at the front counter during the peak season along with staff and customer frustration with the apparent lack of efficient operation. In addition, one of the most beneficial aspects of computerization is the ability to control and account for sales transactions and to gather information that help owners make management and marketing decisions. Today’s software sellers are able to support their salon clients on a number of different levels. A recent study *(Tanning Times magazine, January 2005, page 8) of the top 756 salons in the country indicates that 96% of them are computerized. The percentage of computerized B and C grade salons is much less which leads one to conclude computerization enables salons to enjoy growth and prosperity to a greater level. The more information you have about your business and your clients the better you will be able to predict change and respond to it.
37. Training Studies of salon businesses nationwide found in Tanning Trends Magazine July, 2003 show that salons whose owners and employees are educated on all aspects of tanning, including the biological tanning process itself, generate higher revenues than those with little or no knowledge. This is a key point in addressing the shortcomings of competitors in Tacoma and surrounding area. Promoting responsible tanning through educating clients will enable Urban Tanning Spa to increase customer satisfaction, customer loyalty, and to increase credibility as salon professionals. If client are aware of your status as a formally trained tanning professional, they’ll respect the salon more than your competitors.
38. Other studies conducted by Ergoline, Inc., the largest tanning bed and lotion wholesaler in the world, show that the number one reason tanning salon clients choose one salon in favor of the others is due to outstanding customer service and customer appreciation. In their study, salon businesses where employees are trained on an ongoing basis in exceptional customer service, including how to qualify and best satisfy the needs of the tanner, capture and retain customers more effectively. There are a number of certification classes that can be taken both on-line and at any of the National tanning conventions held annually at several locations.
39. The National Tanning Training Institute (NTTI) provides the indoor tanning industry with valuable, affordable and convenient tanning salon owner/operator training and certification. The tanning industry has grown in direct proportion to consumer confidence and that confidence has been gained by knowledgeable owners and operators who have the utmost welfare of the tanning consumer in mind. Online Training through NTTI is ...Fast, Easy and Secure 1. Choose a course. 2. Pass the post-test. 3. Register and pay on our secure server. 4. Print your temporary certificate.
40. International Smart Tan Network Basic Operator Certification has been the benchmark for professional indoor tanning training since 1991 with the highest qualification standards in the industry. Recognized nationwide and approved in all states that require training, the Smart Tan Certification program is updated annually and is internationally recognized as an excellent resource. The knowledge that every tanning operator needs is included: Tanning History The Science of Tanning Ultraviolet Light and Health Minimizing the Health Risks of Tanning Indoor Tanning Equipment Tanning Law Salon Professionalism
41. Marketing/Advertising Objectives Urban Tanning Spa’s overall advertising and promotional objectives are to: Position Urban Tanning Spa, as the leader in the market for: tanning, spa services and specialty lotions. Unique customer service will increase company awareness and brand name recognition among the Tacoma and surrounding communities. I will use my creative expertise in marketing to use my employees and my off time for viral and guerilla marketing, i.e., “knock on doors” and “work the street.” My employees and I will conduct intercept mall surveys and offer deals to attract new clients. This will help contribute to the traffic through the proposed locations. We will also go through neighborhoods, leaving door hangers and talking to residents of homes and condos to spread brand awareness. Penetrate the huge market of those stationed in Western Washington
42. Market Penetration There are several existing models employed by industry professionals that forecast expansion in the United States tanning markets. Many of these models were built to address the shortcomings prevalent in the tanning industry today along with placing emphasis on the habits of Fortune 500 companies and how their successes may relate to small tanning businesses. For example, in many of these models, a stagnant, low yield outcome from business practices observed by many tanning salon operators today is quickly reworked favoring a focused, education-oriented, forward thinking marketing model that is conducive to today’s tanning market. It is the goal of Urban Tanning Spa to ration expenses on sales and promote marketing events designed to significantly increase the efficiency of our marketing efforts, to strengthen sales productivity and reduce the impact of competition.
43. The core of the model for market penetration is comprised of four stratagems: Increase awareness of latest tanning technologies in the market area. Capture the entire tanning market by offering multiple equipment choices. Educate and train its salon professionals to increase credibility, increase sales and promote responsible tanning. Create loyal customers by providing an unexpected high level of customer service at an attractive yet affordable price range.
44. The tanning industry as a whole is more mature each year, but most new tanning technologies are not implemented in existing tanning facilities. These vast market segments are underdeveloped in Tacoma vicinity. This presents opportunity for Urban Tanning Spa to employ extended advertising campaigns designed to raise awareness of the new tanning technology only found at Urban Tanning Spa. I will begin to develop and hone these emergent tanning markets in Western Washington, extending the reach of Urban Tanning Spa to surrounding communities, ultimately leading to market dominance and greater revenue. Multiple equipment choices exist for Urban Tanning Spa adding to its arsenal. In an effort to capture the entire tanning market, Urban Tanning Spa will offer multiple levels of tanning. This is marked by including various equipment pieces that offer distinct, comprehensible differences in their feature/benefit offering to clients. The goal is to have something for everyone that will fit all budgets. This is the first step in effective market penetration into the Tacoma and surrounding tanning markets.
45. From the beginning, Urban Tanning Spa has been a highly visible company known as the market leader in the tanning industry. We will develop, refine and market our salon like we have been in Tacoma, as a dominant leader in this new market. We expect sales will exceed $400,000 per year with net income anticipated to be in excess of 38%. We believe our first responsibility is to the customers who use our products and services. We will work hard to earn and keep their loyalty and will direct our customer service efforts toward this end.
46. Because I feel that it’s so important to give back to the community - I will: Give at least $500 dollars worth of giveaways to anyone requesting items for: church, schools, or charity auctions. Offer discount tanning for school cheerleaders and students with USB card. Offer health, dental, 401K and profit sharing to Urban Tanning Spa employees. For employees that are in school, I will work with them to accommodate their schedule. Hire employees from the community. Pay employees for community service – 8 hour maximum per month.
47. We believe that I can offer services that will help set Urban Tanning Spa apart from any other tanning salon in Washington State (and further). With the help of my design committee, we will design and implement 4 new ideas to this business. Massage Services I will hire a certified massage therapist and dedicate one room to massage type services like: aromatherapy, hot rock, and reflexology. Average cost per hour will range between $65 and $120 per hour. Vichy Shower Never done before, Urban Tanning Salons will incorporate have a Vichy Spa. The shower’s body spray and hydro-message temperature treatments include custom shower heads and body sprays that rejuvenate the body, mind and spirit through the power of water.
48. Hydration Station Urban Tanning Spa, first of its kind, uses this anti-aging and anti-wrinkle hydration station to promote a deep tan and leave the skin soft, subtle, and radiantly beautiful. It combines radiant heat and steam and takes the richness of the tan to the next level. Teeth Whitening Our one hour Spa White teeth whitening service dramatically improves the smiles of our customers. Urban Tanning Spa is the only tanning salon to take it to this next level in tanning and spa services.
49. In order to accomplish the goals and objectives of our new business venture, Urban Tanning Spa will do the following: Provide innovative, practical and top-quality products and services that save time and improve the way people tan. Treat our employees with respect giving them training, encouragement and recognition for their efforts. Provide them leadership opportunities. Follow the philosophy that our customers are the ones who make our business possible and without them our business would most certainly fail. Be considered a good steward in our community giving employment and advancement opportunities.
50. Aaron Delatorre - Owner/Operator I have over fourteen years experience in sales and marketing. I have a consistent ability to turn a low volume business into a highly profitable, successful operation. I consider myself well-organized and feel I possess a track record acknowledged by my peers for being self-motivated and persistent. I hold a reputation for driving sales up while maintaining excellent customer service. I have been heavily involved in areas of recruiting, vending, merchandising, and training. I am highly adaptive to new environments, grasp new concepts with ease, prioritize tasks and execute my plan for completion while achieving unparalleled results. I have mastered my ability to listen to my customers needs in order to better serve them.
51. I work well, both independently and as part of a team, and when given the choice I would rather lead the team. Having a strong sense of direction, solid communication and presentation skill, and a commitment to success has earned the trust of others within the company. In the first three years of my twelve year experience linier, I owned a house painting franchise (College Pro Painters). I consistently employed 15 employees and was ranked number #3 out of 700 franchise owners across the United States and Canada. I attended Central Oregon College between 1994 and 1996 and took mostly Business Administration classes. The skills, along with over fourteen years experience in the business industry makes me ready to expand Urban Tanning Spa, taking full responsibility for my inevitable success.
53. Ergoline-Supplier/Consultant I have chosen Ergoline Distributors to guide us through the start-up and completion of this project. The Ergoline Distributors team has helped determine the feasibility of this project, has helped to determine the best location considering demographic data and other considerations, will help design the floor plan for functionality and profits, will supply the correct equipment for our market, help determine our pricing structure, supply our retail products and help develop our marketing plan thereby assuring our success. They will then provide ongoing support in the years to come to guide us toward growth and greater profitability. Ergoline Distributors consists of key individuals plus their support staff and their combined backgrounds consist of more than 57 years of related experience. With this team in place, we now have the management manpower to sustain our growth for the years to come.
54. The financial projections indicate that even during the slowest periods of the year, Urban Tanning will remain solidly able to meet its obligations. We plan to internally finance opportunities as cash permits, but hold accelerated loan repayment as our top priority. Considering the growth within this industry and current economic trends, we anticipate revenues and expenses to be as follows:
55. The above financial projections have been derived from historical data from Urban Tanning Spa and the seven Paradise Bay salons owned and operated by Marc Wilaby and from review of the financial track records of start-up clients like ourselves. This represents estimates based upon the performance of similar salons, with similar equipment choices, in a similar demographic, at similar centers.
56. Tacoma, Puyallup and Gig Harbor represents a strong market with a population average population of ? within a 5 mile area in 2007. ?% of this population is male and ?% are female. Historically 70+% of the tanning customers are female, and this strong presence of female population is forecasted to increase our business success. Within the Tacoma, Puyallup and Gig Harbor community, ?% are Caucasian and the area boasts an average household income of $?. ?% of the population is within the age group that enjoys tanning the most while ?% are between 21 and 44 years of age, the age group that spends the most on tanning according to our research.
57. We feel the Tacoma, Puyallup and Gig Harbor area is a market overlooked by other salon owners. Residents have a limited or NO selection of any tanning units much less high-quality tanning units. The closest tanning salon is ? miles from blank, blank, and blank. Local salons serving Tacoma seemingly have not placed cleanliness, professionalism and outstanding customer service as priorities and we will no doubt set a new standard in this area of salon management. The market for mid-range and high-performance tanning is strong which is evidenced by the number of people demanding this level of tanning at similar tanning facilities. To use this kind of equipment, residents must now travel out of this immediate area. The tanning industry enjoyed rapid and substantial growth in the use of these types of tanning units in 2007 with strong demand continuing through 2008. We can adequately service this untapped demand by including the proper number of these tanning units.
58. EXHIBITS Exhibit A-Financial Projections Exhibit B-Demographics Exhibit C-Equipment Exhibit D-Corporate Dashboard Exhibit E-Estimate of Equipment and Products
