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Old 07-04-2005, 10:56 PM   #7 (permalink)
sunsally
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There is a VERY good post from "Sparky" regarding this topic from another website (TSO).

As he points out, the "pay-as-you-go" programs have a "catch" which is there is a minimum hours. So yes - when you ARE pumping people through there - no problem. But in October? Still owe the minimum hours, even if it sat empty.

Using his numbers, it comes out to $850/mo minimum, with a lease length going as long as 5 years (20 hrs/mo minimum for 1200 total hours) or a total of $51K. Given that you have to be an applicant with "excellent personal credit", you might be able to get that same bed on a 3 year lease for a total cost of probably $42-45K or take out an equity line on your house for perhaps as little as $38K.

SO - not a "bad" deal, just a "different" one. All depends on your situation and goals. If you can't afford $850/mo for it to sit unused, don't even think about it!

p.s. As you figure your revenue potential for these kinds of situations, keep in mind that not everyone will pay walk-in price. Also, if you let staff tan for free or you tan, those will also be counted "hours"

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