Demographics are the driving indicator as to whether a tanning salon has a chance of making it or not. While there are many other factors that go into having a successful business, the demographics are where you will want to start.
The tanning bed distributors and landlords will provide you with demographic data but there have been times that this information has been padded. Instead, do the research yourself for free. Go to http://www.freedemographicsnow.comand you can search by address in multiple radius from that location.
You are going to be looking at the number of people in a 1,2 and 3 mile radius from your proposed location. The further out the population, the harder it is to draw them in. One thing this research won’t be able to tell you is the number of people working in a certain area. A large portion of people use tanning salons during their lunch hour and after work so sometimes the numbers can be misleading.
With your radius established you want to look at how many white men and women between the ages of 18-44, have an average household income of $50k+ there are, which are published industry statistics. Generally you male to female ratio will be 30%/70% but many vary slightly, but the male percentage has been increasing over the past several years. A rough number to also factor is about 8% of people in the U.S. admit to tanning.
When you get this number, you now have the total market potential for your area. Divide by the total number of salons in a 10 mile radius and see if there is enough people to support another tanning salon. While the distribution won’t be that evenly split, at least you have an educated guess as to whether your salon can succeed.