| Re: Potential Salon Purchase - Need Input
Truth is, not worth the 50-60K price
Beds are useless, out of date, no longer made..
800 REPEAT customers not enough to sustain cash flow..how often do they 'repeat'?
If really interested, wait until she 'folds', closes the place down. Negotiate with landlord for space for a lesser rent.
Keep in mind, additional AC/electric upgrades may be needed for better performing beds..this can cost 25K
You say, the younger people like the lower beds due to cheaper prices..RED FLAG
You can't sustain on 'cheap' prices..and lower 28lamp beds will not tan you
Numbers seem off. 82K in sales and growing with those beds? Doubt it...and 22K earnings? Request to see the last 5 years of tax returns..ask for utility records. If little spent on electric, then obviously beds/AC not being used much.
If 'sold' on this place, offer 10% less her 22K earnings...and that is a lot.
Personally, I would not do it. Her asking price is way to much for what little results are being achieved. I'd look elsewhere. For the 50K you'd spend on this, you could do better on your own |