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Old 08-17-2008, 01:17 PM   #8 (permalink)
sunsally
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Re: Pondering buying existing salon

Here is another way to look at it.

1000 people walked through the door (which is good, probably half the tanners in your town tried them!), and spent an average of $70 in the year (again, pretty good - right about the national average).

And yet, they are probably running at a substantial loss.

So, to make it profitable, either costs drop drastically (they "give" you the buildout and equipment for a fraction of what they have invested in it) and/or you get each of them to spend a LOT more than, statistically, you would expect.

CAN happen - but are you willing to gamble with your money that it will?
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