Ashley Martyniak
Mr. Reuter
Econ
11/07/15
High Demand for Indoor Tanning During Cold Seasons
As we all know summer has faded and winter is among us, however, summer isn’t the only thing that has faded this holiday season. Everyone's golden tans from the warm months are no longer visible. Which is why tanning salons are in high demand right now. During the colder months tanning salons become widely popular. The tanning salon industry consists of a free market. Prices vary on each salon and depend on competing salons. For a salon to gain more customers while not lowering their prices they should have a higher supply in products such as variety of lotions and beds to satisfy their client's specific types of skin and an individual's wants. The percent of individuals who have used a tanning bed in the past year was relatively high with 13% adults, 43% college students and 10% teenagers. According to the American Suntanning Association, “38 million Americans are engaging in indoor tanning.” With a majority of these Americans going in weekly during the “High Season” which consists of the months of mid November-beginning of May. Bringing in double the amount of money than in the low months (the rest of the year). Shifting the demand curve to the right as tanning becomes more popular. With indoor tanning being a luxury good it is surprising that the tanning industry makes about 5 billion in total a year.
However the tanning salon revenue has ultimately decreased 3.3% since 2014. Due to the fact that the percent of Americans diagnosed with skin cancer from the UV rays that make up indoor tanning beds increased. This although doesn’t have that drastic of an impact on tanning salons that everyone would think. All because tanning salons also have the option for sunless tanning, such as spray tans and airbrushing. In the next 5 years, 2017, the tanning industry will slowly increase again with a new revenue estimate of 5.2 billion. All in all it's the start of prime indoor tanning season, so expect those goldens tans to gradually come back even though it's about to be winter.
I honestly think indoor tanning is kind of stupid, especially because my mom got skin cancer from it. People should just wait till the summer months in order to tan, or just simply go somewhere warm and get their tan on. I get to go to Mexico and Florida this year, which is where I will get my tan on, not in some stupid booth that is shared among hundreds of people, no thanks. Plus tanning beds make people look like prunes when they get older if they do it too much, so I can see why the amount of people have decreased over the years.
ReplyDeleteI think you chose a good topic because this is something you're interested in. I'm curios as to what kind of market structure these firms would be in. I would think that it could be monopolistic competition because individual firm cannot really differentiate their services too much. However, the cost to start up a tanning salon is probably pretty high due to the need for tanning beds. This being said, the tanning industry may not have a monopolistic competitive market structure.
ReplyDeletePersonally, I use a tanning bed in the winter. And something I have always wondered was to how much they actually make. Such as how much it actually costs them to run the bed throughout the average 15 minute sessions and the cost it is to use the bed. Also, how much it takes for a tanning company to regain the amount spent on the bed.
ReplyDeleteGood topic. However, in my opinion, it seems like indoor tanning has had a lower demand since all of the new facts about skin cancer have been brought to people's attention. Maybe you could have included how this lowered the demand, but since the demand is higher during this time of the month, it balanced back out to equilibrium.
ReplyDeleteIt is something you wouldn't expect to bring 5 billion dollars into the U.S. economy. It sort of seems like a monopoly because I cannot think of that many different suntanning businesses. I can't see the industry rising back up to 5.2 billion dollars because I feel like there is such a high awareness now for skin cancer coming from these machines.
ReplyDeleteI like your choice of topic because it is quite controversial. Although, we all want a nice golden tan year round, I could not find myself to subject myself to that magnitude of UV rays so frequently as some people do. It has been proven that it raises your chance of cancer a tremendous amount and it isn't worth it to me. It surprised me that they make $5 billion each year, I didn't realize how large of an industry it is.
ReplyDeleteI love tanning so I really enjoyed reading about your topic! I found it interesting that less people are actually using tanning beds now because of how high tech they are I figured more would use them. Although, tanning beds are not that best for you and your skin so I realize where some are coming from. I also wonder what the big differences between the beds are that make people pay more for them.
ReplyDeleteI strongly agree with the fact that the amount of people tanning increases during the winter/colder months. This makes sense because people aren’t able to tan outside. During these months, I always see an increase in advertisements for the salons because of the increase in demand. It also makes sense to me why the amount of people tanning might decrease. With more facts on the impacts tanning can have on your health, people have a lot more fear when it comes to artificial tanning. As of right now, I see this market as being a pretty big one especially here in Wisconsin where our summer/ tanning months are limited.
ReplyDeleteAlthough skin cancer can be linked to the UV rays from the tanning beds, I don't think people will ever stop going, even when the numbers continue to increase. Anything can give you cancer, really. But its no wonder that so many people go to tanning salons specifically; sometimes the sun just can't give a person the perfect tan that they want. Besides the harmful UV rays, I think indoor tanning is an awesome thing for everyone around, as it lets them look the way they want all year round. Awesome topic!
ReplyDeleteI never knew that so many people during the winter spend their money on getting tanned during the winter.I figured that people have to worry about other things such as: warmer clothes, going to Starbucks, and just saving money. And I never really thought that tanning beds were popular to begin with, with all the negative side effects it causes. Especially during the winter months, I would expect the number of consumers over the years to decrease for tanning beds, especially in Wisconsin, since winter here can get pretty bad. And the last thing people would worry about is how tan their skin is.
ReplyDeleteI think it is strange how similar the tanning industry and the tobacco industry are. Not to vilify one or the other but, pretty much everybody knows that both are bad for you, there is empirical evidence to prove it, yet people still do it anyways. While they experience a decrease in demand during the summer, demand increases in the winter as stated in the article but we never see ads or campaigns against it. Food for thought.
ReplyDeleteThis was a good topic to talk about, especially as we are nearing these prime indoor tanning months when the demand of being tan goes way up. I knew that because of the increased awareness of skin cancer caused by these harmful rays that the popularity of indoor tanning would decrease, but it was shocking that only about 3% realized the opportunity cost of indoor tanning. However, the sunless options do provide a healthier substitute, without the companies losing their business. Additionally, prices of these tanning sessions cannot be too high in a free market economy, because not only are these goods and services very elastic, but there are so many other businesses out there that could offer the same thing for less.
ReplyDeleteI love tanning so I really enjoyed reading about your topic! I found it interesting that less people are actually using tanning beds now because of how high tech they are I figured more would use them. Although, tanning beds are not that best for you and your skin so I realize where some are coming from. I also wonder what the big differences between the beds are that make people pay more for them.
ReplyDeleteI found it interesting how much the season changes the amount of people who go tanning. Although, this makes perfect sense that when people can not develop a tan from the sun all year round they have created an alternative which is tanning booths. Even though tanning is not good for your skin many people do it anyways because of the beauty and aesthetics of it. Although, there has been an increase in self tanners with lotions and spray tans because of the increasing knowledge of skin damage. It is very interesting how much people care and how much effort some people put on their appearance.
ReplyDeleteI think it is a great article that you wrote based on how many kids our age relate to this. Since we make up part of the demand for the tanning beds, it makes this article very easy to relate to. I think that it would've been interesting if you found out how the increase in skin cancer has an effect on the demand curve. I know you said that people are aware of this and tanning is still going up in yearly revenue, but it would be interesting to know that. I think that appearance is very valued by society today and that's a reason why tanning beds are so popular as well. Overall great work!
ReplyDeleteI work at a tanning salon and I know it is starting to get more and more busy as it gets cold out. Believe it or not people still come in when it is 90 degrees and spend hundreds of dollars on tanning when the sun is out, which is stupid. A lot of people in the winter come in to get tan for their vacations or just to have some color. During the winter our daily income is usually nearly 4 times as much as we would make in the summer, so as it gets colder the demand for tanning goes up, this means we are much more busy and less time for me to do my homework and watch Netflix like I usually do when I work and it is not busy. Overall I agree that in the winter many more people use tanning booths than they do any other time of year.
ReplyDeleteThis is in fact a great product to sell during the winter. Instead of freezing your butt off outside trying to get your perfect tan you can do it in the comfort of a temperature controlled facility. This is an appealing goods which thrives seasonally and right now is the beginning of said season.
ReplyDeleteI would have never guessed that the tanning industry makes that much money. It makes sense that the colder months bring in more and more people who want to keep their summer tan going. I wonder if the statistics would be the same in places like Florida? are their "cold months" the same as ours or is it a steady around throughout the year? I think that because of the society we live in, appearance is very important to some people so it is not surprising that many spend the extra money for tanning packages.
ReplyDeleteWhy are people so willing to risk skin cancer just for a nice tan? Its also strange, I thought more teenagers would partake in tanning beds because of the quickness. Honestly I expected college students to be the lower half to almost none. Also what effects do the spray tan and airbrushing do for the skin? Can it also cause problems? Why are people so obsessed with being perfectly cooked,?
ReplyDeleteThis is a very interesting article about what our society could end up benefiting from
I'm surprised that tanning salon's revenue has not decreased that much! It's understandable that more people are going to get their tanning fix during the cold, gloomy months of the year, but I'm surprised that so many people are still doing it regardless of the harmful side effects. I think that if people want to be tan during the winter season, they should opt to get spray tans instead so that they're not putting their skin at risk just for their appearance. Hopefully in the near future spray tanning becomes much more popular than tanning beds so that less people will be susceptible to skin cancer.
ReplyDeleteTanning beds are without a doubt much busier during the winter months especially here in Wisconsin. Everyone is trying to maintain their tan from the summer. I bet the salons make a ton of money during prom season. I know a lot of girls that made it a priority to go regularly during the week in order to be tan at prom. A lot of customers also go tanning indoors before going on vacation to get that base tan. Previous to reading this, I knew indoor tanning was very popular during the winter months however it surprised me that this industry makes a 5 billion dollar profit. I do think the demand will continue to decrease over time though because of the health concerns of the UV rays.
ReplyDeleteIndoor tanning is becoming very popular especially because it's also in some gyms and spas, along with tanning salons. It would be interesting to see how much more revenue a certain salon can bring with the variety of products they have. For example, some salons have tons of lotion and spray tanning options and things such as nail polish, headbands and little accessories! For tanning salons I think it's very beneficial for most of them to do the package deals they give out because then people have to buy the lotion with it or they have to buy the googles in order to go tanning. As for the skin cancer side, it makes sense that less people would go, however for the people still going I don't get why they would want to go so often. Yes, you should get the best from your money, however you should not try to get skin cancer so that's why it's a great idea to have the alternatives such as tanning lotion and spray tans, and even having the limits on the tanning beds make it seem like its a safer environment for all.
ReplyDeleteIt is surprising to see the amount of revenue tanning salons make. It seems like the media is making it aware to consumers , that tanning is bad and can cause cancer. Because of consumer expectations, (staying tan all year round) the salons will continue to make money. Not only do they offer tanning beds, but the offer alternatives so they can appeal to all of their customers. Consumers see the opportunity cost of tanning being that they would rather be tan and have cancer than be pale and not have cancer. Overall I am surprised there is not a decrease in the consumers that use tanning beds.
ReplyDeleteSince tanning salons are a luxury product, it makes sense why the demand is elastic, and why people would tan less, or stop all together, once the health risks of tanning beds became known. Tanning salons most likely would be able to increase demand once again, if they had found a quality way to provide a natural tan, without the risks of UV Rays. Considering the natural sun could be viewed as a substitute for Tanning salons, it is reasonable that they would make larger revenue in the winter months, compared to the summer months.
ReplyDeleteI really enjoyed your topic! Personally I love tanning and can see why it has such a high demand. Although, I was not aware that is brought in such a high revenue. I can see how it would would be because people see tanning as an inelastic service. People believe that if you look good, you feel good and that is why tanning is so popular. I think if companies were to market there spray tanning service they could potentially attract new customers that were against tanning due to health concerns. Overall I thought you had a great topic that really grabbed my attention.
ReplyDeleteI think your topic is relevant considering our cold winter months indoor tanning is defiantly in higher demand then during the summer months. A lot of people are trying to keep up with there summer tans so the demand will increase. In the winter months tanning beds seem to be inelastic considering there are no other substitutes for this service besides possible spray tanning. Over all this is a great topic to consider turning over to the winter months.
ReplyDeleteI was very surprised about how much revenue tanning actually took in. It makes sense that people will want to tan more during the cold weather months. It is colder and tanning makes you feel very warm which is why the demand is high in the winter. I believe, however, as our world modernizes and we discover new things everyday, more people are discovering the effects of UV rays. This could be resulted in less people tanning in the future because of the research we have studied. More and more people won't go tanning if it is correlated with cancer. This could affect tanning companies throughout the country.
ReplyDeleteSince indoor tanning is a luxury good, yet people still risk their health in order to have a golden glow, I'm curious to know if there was a recession or a family in particular suffered a decrease in income, what would happen to the demand at a tanning industry. Also, with so much machinery and expensive technology, the start-up cost of a tanning salon is probably very high so I wonder how long it would take for the salon to make profit. I thought the analysis of profit throughout the seasons was very interesting and a great topic to include.
ReplyDeleteI think this topic is very interesting, I am the one who enjoys tanning a lot but not a big sun freak. I like the heat, it makes me sweat which I enjoy because I am able to lose weight for my sport. I have used a sun-tanning machine, but only while I was standing upward and not on a bed. I do believe that I heard some bad reviews because of the rays (cancer). The after feeling however feels really good it last for about 5 hours; It feels like I can be in there for a lot longer. When you talked about demand, it makes sense why consumers demand the price to be lower, they want to look good for the summer by maintaining it during the winter. I guess in a way I would like to have this but the after reading how bad it could potentially be it makes me wonder. Overall I thought you brought good Economic related research into this topic and was very good with winter lastly approaching.
ReplyDeleteWith indoor tanning I did not know that this type of business could produce so much revenue. Most people when they think of tanning they think of going to the beach and laying in the sun for a while. But now people are starting to go to indoor tanning places more and more. I feel like if they produced more advertisements and such that they would increase their revenue double of what they are making now.
ReplyDeleteYour post was very appealing to me as I am one of these individuals who use tanning beds in the winter when I feel disgustingly pale. However, I am not surprised that less people are using these new high tech tanning beds. Cancer rates are significantly raising and tanning in tanning beds are a big contributor to skin cancer. I wonder with the high technology growth if they will make tanning beds that are safe and will prevent against skin disease.
ReplyDeleteArtificial tanning is a great alternative in the winter for a short warm escape, many women do it to relax and why not get a nice golden color while in the process. I am surprised that tanning brings in 5 billion in the economy, I didn't think people used them as much just because of the high risk of getting skin cancer from the artificial UV-radiation. In the introduction you appropriately related the economic terms to the subject of tanning, for example it makes sense now that winter is over the tanning beds would be in higher demand, and that the tanning salon is a free market economy, because they compete with other salons prices, trying to win over consumers. Overall, very relevant topic for this time of year, it allowed us to see that tanning bed business is very beneficial to the economy.
ReplyDeleteI had no Idea that tanning salons were even popular enough that 38 million people would go to them especially when only northern and north eastern states really need them during the winter. But what I don't understand what the point of going to a tanning salon when there are ways to tan at home for cheaper.
ReplyDeleteI feel as though Tanning at home isn't an option in northern states like Wisconsin, so if you want to be tan chances are you have to go to a salon. It's amazing that tanning salons stimulate the economy so much unfortunate I think in the future tanning might just start declining. Melanoma awareness scares a lot of people away from tanning. I feel like tanning has the same future as cigarettes do you either do it because you don't care or do it anyways knowing the harm it can do to your health.
ReplyDeleteSunless tanning would definitely become more popular as the rays of summer start to end. Northern states, such as Wisconsin, would obviously end summer earlier than Southern states which would increase demand even more in comparison.
ReplyDeleteYour blog post was very interesting, as I had never thought about indoor tanning in an economic sense. Aside from some minor grammatical mistakes, the blog post contained proper economic terminology. Also, it could have been interesting to point out the health risks of indoor tanning and the economics behind those risks. I believe that due to the known health risks the demand curve would shift left, so it would be interesting to compare the shifts in the demand curve. Overall, nice work!
ReplyDeleteThis seasonal demand of tanning beds reminds me of how amusement parks and seasonal businesses shut down temporarily for specific time periods. They do this since they would have to offer very low prices that wouldn't cover their variable cost if they operated year-round. I believe that if the tanning salons were only open during the winter months, that the rising rate of skin cancer could decrease slightly and people would be able to have tan skin all year round by only using tanning salons when completely necessary.
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