How Much Do Tanning Salons Make? A Realistic Look at Startup Costs, Revenue & ROI

Tanning salons have been a beauty industry staple for decades, and will continue to be so for many more years to come. But is owning a tanning salon profitable? Is it more a side hustle or a stable career? While it depends on a few key factors, like location, business model, or startup costs—market data shows that tanning salons continue to yield a high profitability.

Join us as we take a closer look into some general tanning salon industry facts, startup costs and maintenance expenses, and even some marketing tips to help boost your bottom line.

Introduction to the Tanning Salon Industry

The tanning salon industry has established itself as a profitable business venture, offering a wide array of services that go far beyond traditional UV tanning. Many tanning salons now provide spray tanning, airbrush tanning, and even red light therapy, catering to a diverse clientele seeking both beauty and wellness solutions. In addition to tanning, salons often expand their offerings with spa services and other beauty treatments, making them a one-stop destination for self-care.

Understanding current market trends and identifying your target market are essential steps when you start a tanning salon. Operational costs, such as maintaining high-quality tanning equipment and managing staff, play a significant role in determining your profit margin. For example, a typical eight-bed salon can generate impressive revenue, with the average tanning salon making anywhere from $200,000 to $700,000 per year, depending on location, services, and marketing strategies.¹

Tanning salon owners who invest in efficient equipment, offer a variety of services, and stay attuned to customer preferences are well-positioned to maximize profits and build a thriving business in the competitive tanning salon industry.

Creating a Business Plan for Your Tanning Salon

A well-crafted business plan is the foundation of any successful tanning salon. This essential document should outline all anticipated expenses, including startup costs, salon construction, and the purchase of tanning equipment. It’s also important to factor in the costs of hiring and training staff, as well as ongoing marketing and advertising efforts to attract and retain customers.

Your business plan should detail how you’ll manage bookings, maintain customer satisfaction, and adapt to market trends within the tanning industry. Many tanning salon owners leverage specialized salon software to streamline operations, making it easier to handle appointments, track inventory, and communicate with clients. By thoroughly understanding your market and planning for every aspect of your business—from equipment investments to advertising expenses—you’ll be better equipped to control costs, increase profits, and set your salon up for long-term success.

How Much Do Tanning Salons Make?

When considering how much a tanning salon make, tanning salons in the U.S. typically generate between $40,000 to $250,000+ in annual revenue, with profitability hinging on factors like location, service variety, pricing, and customer volume. The tanning salon's profitability is also influenced by operational efficiency, strategic investments, and the range of services offered. After covering startup and ongoing operational costs, many salon owners report net profits ranging from $20,000 to $70,000 per year, highlighting the potential to make good money in this industry.¹

However, salons that expand beyond basic tanning beds—offering services like spray tanning, red light therapy, retail skincare products, and monthly memberships—can see those numbers climb significantly and make more money. In fact, well-managed salons in high-traffic areas can earn well over six figures in annual profit, especially when they focus on repeat business and diversified income streams within the tanning salon business.

Tanning Salon Startup Costs

Starting a new business and opening a tanning salon requires careful planning and a clear understanding of the financial commitment involved. One of the first questions you may have is, "How much does it cost?" Starting a tanning salon isn’t cheap, but with the right planning, it can be a worthwhile investment. On average, you’ll need between $60,000 and $145,000 to get your salon up and running. This investment includes expenses such as leasing a commercial space, purchasing equipment like a tanning bed, tanning booths, and tanning machines, renovating your space, and stocking up on products.

High-quality tanning beds alone can cost $10,000–$20,000 each, depending on the model and features. Renovation and initial setup are also major expenses that can significantly impact your total investment.

You’ll also need to budget for licensing, booking software, insurance, and marketing, all of which are crucial to launching successfully. Entrepreneurs on a tighter budget can lower costs by buying used equipment or starting small, but it’s important to avoid cutting corners in areas that affect client experience and safety.

Hiring and Training Staff

Hiring and training the right staff is a cornerstone of running a successful tanning salon. Salon owners should seek out team members who are not only experienced but also passionate about delivering excellent customer service. Proper training ensures that staff can confidently operate tanning equipment and provide a full range of services, including UV tanning, spray tanning, and airbrush tanning.

It’s equally important for staff to be knowledgeable about skincare products and other beauty services offered by the salon. Investing in comprehensive training helps boost customer satisfaction, which in turn leads to higher profits and a loyal customer base. Many tanning salons also implement loyalty programs and offer discounts to reward repeat clients and attract new customers. By prioritizing staff development and customer care, salon owners can create a welcoming environment that keeps clients coming back.

Product Offerings and Services

The variety and quality of product offerings and services can make a significant difference in a tanning salon’s profitability. Many tanning salons go beyond basic UV tanning to include spray tanning, airbrush tanning, and red light therapy, appealing to a broader range of customers. Offering high-quality skincare products, such as tanning lotions and moisturizers, not only enhances the customer experience but also provides an additional revenue stream.

Expanding into spa services and other beauty treatments can further boost your profit margin and help your salon stand out in a crowded market. Staying up-to-date with the latest market trends and consumer preferences allows you to continually refine your service menu, attract more customers, and increase overall revenue. By diversifying your offerings, your tanning salon can remain competitive and profitable year-round.

Ongoing Costs and Monthly Profit Potential

Once your tanning salon is up and running, you’ll face regular monthly operating costs that can range from $5,000 to $12,000, depending on the size of your business and staffing needs. Common operating costs include rent, utilities (which are higher due to bed usage), payroll, inventory restocking, and ongoing marketing efforts to attract customers and keep new clients coming through the door.

That said, a well-positioned salon offering a mix of services—like UV tanning, spray tans, memberships, and other services—can bring in $10,000 to $25,000 in monthly revenue. After expenses, many salon owners report net profits between $2,000 and $8,000 per month, with top-performing locations clearing even more. Maximizing recurring income through subscriptions, upsells, and other services is key to staying profitable long-term.

Fostering a Positive Customer Experience

Creating a positive customer experience is essential for the ongoing success of any tanning salon. Salon owners should focus on making their space inviting and comfortable, ensuring that every customer feels valued from the moment they walk in. Providing high-quality services with efficient tanning equipment and attentive staff is key to achieving high levels of customer satisfaction.

Many tanning salons use social media platforms to engage with their audience, promote special offers, and showcase their services. Offering discounts and loyalty programs can help build a strong customer base and encourage repeat visits. Listening to customer feedback and making improvements based on their suggestions will help your salon stay competitive and profitable. By prioritizing customer experience, you’ll not only increase profits but also benefit from positive word-of-mouth and a steady stream of new customers.

Marketing Tips to Get the Word Out

Tanning salons can still be a highly profitable business in 2025, especially when owners adapt to current trends and consumer preferences. Success comes from more than just offering tanning beds—it’s about creating a modern, recurring-revenue model. Salons that offer memberships, spray tanning, red light therapy, and even retail skincare can diversify income and boost retention, which is especially important during the summer months when demand may fluctuate.

Combine that with smart cost control, forming local partnerships with nearby businesses to enhance marketing efforts, and a strong client experience, and a salon can generate steady monthly profit and long-term growth. The most profitable salons today are those that prioritize experience, convenience, and wellness-focused upgrades.

Is a Tanning Salon Right for You?

You don’t need a huge budget to market effectively—you just need strategy and consistency. If you’re starting a tanning salon as a small business, focus on social media to showcase your results, promote specials, and connect with local customers. Tanning transformations, limited-time offers, and behind-the-scenes content work well on platforms like Instagram, TikTok, and Facebook. Pair this with Google Business optimization so you show up in local searches. Consider partnering with nearby businesses for cross-promotions, and remember that having your own tanning salon allows you to build unique relationships and brand identity. As a salon owner, your decisions directly impact business growth and success. Always encourage referrals and reviews. Don’t forget to build a client list for email and text campaigns—it’s one of the easiest ways to drive repeat visits and fill slow days.

Final Thoughts

Is a tanning salon the right entrepreneurial path for you? As we've explored, the profitability of tanning salons hinges on careful planning, market positioning, and adapting to modern consumer demands. From startup costs to ongoing expenses and revenue potential, the numbers show that well-managed salons can not only cover their costs but also thrive in today's competitive landscape. By focusing on diverse service offerings, smart marketing strategies, and a commitment to client satisfaction, you can build a sustainable business that not only shines financially but also becomes a cherished part of your community.

Whether you're considering it as a side venture or a full-time career, the key to success lies in seizing opportunities, nurturing client relationships, and continuously evolving your tanning salon business strategy.

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Sources

1. https://tan-link.com/