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Old 02-13-2008, 09:30 PM   #4 (permalink)
sunsally
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Re: Life Expectancy of Tanning Beds and Depreciation

In general, no, 15 - 20 cents is not nearly accurate.

Most models see an initial "drop". From there, some continue to drop, others stabilize and hold. There are some 1999 beds I would buy today, and some 2005 I wouldn't bother with.

Makes and models are critical. Also hours of use is helpful as one indicator of "condition" and "use".

Of course, the value of the BEDS may or may not equate to the value of the SALON. If you are buying a salon, you may consider it a straight asset purchase (e.g. just equipment value0 or you may be buying the business. However, even if just buying the assets, if the salon is not set up to succeed, then you should avoid it, even if it is a good buy on the beds.
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