tanTALK - Tanning Salon Business Owners Community - View Single Post - Life Expectancy of Tanning Beds and Depreciation

sunsally · 02-14-2008, 10:43 PM

Feel free to call me when you have some time (I'm long winded! :)) and I'll gladly chat about salons with you!

Focus on this a different way. Go at it from the cost angle.

Figure out the rent, utilities, payroll, taxes, licenses, and anything else.

Add in the price he wants for the business

Add in the costs you would have to spend to make the business viable (e.g. a more profitable mix of equipment).

Now get the cost to open this business and the yearly cost to keep it open.

Contrast that to his revenues. Would you cover your operating costs? If so, how much profit would you make - how long would it take to pay back your investment? Then after that is paid back, how much would this "investment" finally get you - and how quickly?

Might be worth 25K. Might not be worth 25 cents. It depends less on what is IN it now or what he is asking, and more on what it COULD do. If it can't be profitable, even if you get it for free, you will be losing money and that makes no sense as an investment.

02-14-2008, 10:43 PM	#18 (permalink)
sunsally Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 3,136 Rep Power: 25	Re: Life Expectancy of Tanning Beds and Depreciation Feel free to call me when you have some time (I'm long winded! :)) and I'll gladly chat about salons with you! Focus on this a different way. Go at it from the cost angle. Figure out the rent, utilities, payroll, taxes, licenses, and anything else. Add in the price he wants for the business Add in the costs you would have to spend to make the business viable (e.g. a more profitable mix of equipment). Now get the cost to open this business and the yearly cost to keep it open. Contrast that to his revenues. Would you cover your operating costs? If so, how much profit would you make - how long would it take to pay back your investment? Then after that is paid back, how much would this "investment" finally get you - and how quickly? Might be worth 25K. Might not be worth 25 cents. It depends less on what is IN it now or what he is asking, and more on what it COULD do. If it can't be profitable, even if you get it for free, you will be losing money and that makes no sense as an investment.