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sunsally · 08-02-2005, 06:46 AM

Rent appears to be about $20/s.f. Not outrageous depending on your market, but about as high as you would want to go for a tanning salon. Does it make sense given what you pay?

Payroll calculates out to paying someone $7/hr for 16 hrs/day as well as minimal owner salaries ($350-400/wk). With that size salon and traffic, I'm sure that means the owners put in significant hours but have extra help during busy season (would probably have at least 3 on some shifts for busy season) and probably someone to cover a decent chunk of the weekends/evenings during the rest of the year. Ask to be sure, but I'd bet they have a full-time "job" for that 20K each.

Find out when they change lamps. Agree with others - 1x/year is probably letting them go way too long with this kind of traffic, giving a poor result. It's based on bed usage hours, but I'd bet on at least 2X/year.

Missing stuff?
1. Shop supplies - TP, papertowel, laundry soap, cleaning products, tisses & wipes, ...
2. Other utilities/monthly charges - gas, water, internet access (?), salon software support (?), mag subscriptions for lobby,
3. 6K in lotions translates to about 20K retail sold (max). That would be a VERY low amount of lotion sold for this total revenue. Most salons aim for at least 30% of retail sales being product - in this case, more like 50-60K (which would cost 15-20K)
4. The BIGGIE - there are NO advertising costs shown at all!!!! Would expect to plow back at least 5-10% of revenues toward advertising normally -- another $10-20K.

Hope this helps! PM me with any other questions if you want.

08-02-2005, 06:46 AM	#10 (permalink)
sunsally www.highlinecapital.com Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 2,508 Rep Power: 8	Rent appears to be about $20/s.f. Not outrageous depending on your market, but about as high as you would want to go for a tanning salon. Does it make sense given what you pay? Payroll calculates out to paying someone $7/hr for 16 hrs/day as well as minimal owner salaries ($350-400/wk). With that size salon and traffic, I'm sure that means the owners put in significant hours but have extra help during busy season (would probably have at least 3 on some shifts for busy season) and probably someone to cover a decent chunk of the weekends/evenings during the rest of the year. Ask to be sure, but I'd bet they have a full-time "job" for that 20K each. Find out when they change lamps. Agree with others - 1x/year is probably letting them go way too long with this kind of traffic, giving a poor result. It's based on bed usage hours, but I'd bet on at least 2X/year. Missing stuff? 1. Shop supplies - TP, papertowel, laundry soap, cleaning products, tisses & wipes, ... 2. Other utilities/monthly charges - gas, water, internet access (?), salon software support (?), mag subscriptions for lobby, 3. 6K in lotions translates to about 20K retail sold (max). That would be a VERY low amount of lotion sold for this total revenue. Most salons aim for at least 30% of retail sales being product - in this case, more like 50-60K (which would cost 15-20K) 4. The BIGGIE - there are NO advertising costs shown at all!!!! Would expect to plow back at least 5-10% of revenues toward advertising normally -- another $10-20K. Hope this helps! PM me with any other questions if you want.