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Old 07-27-2009, 10:09 PM   #1 (permalink)
 
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Can any Canadians offer some advice

Hi everyone, i'm new here:)
I do not currently own a tanning salon BUT I am very interested in starting up a tanning salon/teeth whitening studio. I have no idea where to get started and how much start up costs will be. Can anyone offer me any advice/info??? I really appreciate it:)
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Old 07-28-2009, 09:55 AM   #2 (permalink)
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Re: Can any Canadians offer some advice

What city in Canada are you in?
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Old 07-28-2009, 12:08 PM   #3 (permalink)
 
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Re: Can any Canadians offer some advice

Vaughan, Ontario
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Old 07-29-2009, 03:05 PM   #4 (permalink)
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Re: Can any Canadians offer some advice

First thing i say is, Stay away from Vaughan and Woodbridge as it's already congested and there are a lot of salons in those areas that have the best of the best in beds that they have upgraded and brought in over the years. In order for you to compete with them, you'd have to shell out OVER $200,000 in equipment alone not to mention buildout, electrical, a/c etc...you're looking at over $300k investment.

If you really are interested, i'm East of where you are in a high end area just like Vaughan....i'll sell you my salon with all that equipment already in place for much less than that.

Already established, strong marketing behind it and large active clientele database with High pressure beds as well. if you are seriously interested and have the money, come talk to me, i'd be happy to sell it to you if the price was right. All that can be discussed in private if you are ready to buy.

First thing you need to know is that it is not easy to get financing for something that is NEW if you plan on opening from scratch unless you already have the money to back you especially if you're new to the industry yourself. Buying a salon that is established with the revenue already in place, to just walk in and start making money from day one will be the best approach for you.

To start from scratch. here is a rough breakdown of what it will cost you:
A/C will be around $20-$25k
Electrical Costs will be around $25k-$30k
Buildout $20-$30k
Furnishings & Accessories $10k-$15k
Equipment $150k - $250k
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Last edited by Din; 07-29-2009 at 03:09 PM.
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Old 08-25-2009, 10:38 AM   #5 (permalink)
 
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Re: Can any Canadians offer some advice

Am in Edmonton and started from scratch from and empty space to a full tanning salon and it was about $250,000 and i got a small buisness loan thru the gov't which every bank does for small business.

It's hard out there right now though because of the bad media, i would check how the other salons in your neighboring areas are doing first before you jump in and have a huge debit.

just my suggestions.
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Old 10-14-2009, 07:33 AM   #6 (permalink)
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Re: Can any Canadians offer some advice

So basically what is the location you have targeted to start it because that impact a lot
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Old 10-14-2009, 04:58 PM   #7 (permalink)
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Re: Can any Canadians offer some advice

Yes, Bianco,

You need to consider that location, if Din is right, over saturation of the market means disaster for you, the city I am in is bordering on it, everyone and their uncle starts a tanning salon. Within 8 minutes drive of me there is about 12 tanning salons.

Your only hope in an oversaturated market is to show up with the best equipment, and in a newer area, that may not have served the local market just yet. Or in a super convenient location, there is a salon within that 8 minute range, that is full of these OOOOLD sonnenbraun 624 (I think) either way, they have like 5 of these laydowns, that have the old angled (not curved.. like hexagonal shaped) acrylics, a face tanner with one old 4 sided reflector. Probably one of the oldest beds I have seen in operation, yet they have some customers, that I would likely have, except they are next to a pub and across the street from a highschools, on a high traffic road, backing onto residential. So even though I would be emberassed to own the place, they make SOME money.

An interesting point on that, is to look at salons for sale or in trouble these salons are typically because the owner was lazy, they said stupid stuff like
"Oh they are old, but they are the *WORKHORSE* of the tanning industry" (cuz everyone wants to tan in a donkey bed lol) It may be worth looking into solving the problem, if they are lazy enough to run the salon down, but the location is good, you can entertain the idea of buying them out, taking that existing clientelle, and then your startup costs remain mostly the same, but you have existing clients. Then instead of trying to steal clients from that old junky salon, and the other salons, you can put a sign out on the road that says "new management, new equipment arriving soon" and recapture old clients that love the location, and hate the equipment, and almost any existing clientelle are going to like to see new equipment.

Everytime I see another salon its just a new guy, with a lot of debt, cutting every piece of the pie into a smaller chunk for everyone. Because tanners, are ultimately, stupid young girls, who dont know anything about tanning. So its about who they like, who they trust, and who they believe, and whats close for them. So opening a salon doesnt guarantee business even if your equipment is better.

Good luck, let us know how it goes!
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Old 02-09-2010, 05:58 PM   #8 (permalink)
 
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Re: Can any Canadians offer some advice

Whatever you do, DON'T build a new salon... Most Canadian cities are congested with tanning salons now. Although it can STILL be a great business to get into, make sure to buy a salon that has been in operation and has an active clientele. Otherwise you will not only pay to open the salon (and these days to be a competitive newcomer you need to spend more and have nicer equipment than the existing salons or nobody will come to you), but it will take years to establish a loyal and steady clientele.
Long story short, buy an existing established location. if you don't know how to find one contact me (I'm a Realtor and salon owner) and I can show you what to look for, how to know if it's a viable opportunity, etc.
David Mckinnon (905)928-8939 Cell, (905)648-8266, or email: sunbreak@bellnet.ca
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Old 03-20-2010, 07:29 AM   #9 (permalink)
 
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Re: Can any Canadians offer some advice

I agree.. There are so many tanning salons in Canada already. It can be a nice business but it will surely be tough especially when you are new in the salon biz. If you want you can try to look for partners or for salons you can be partners with.
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Old 06-20-2010, 06:52 PM   #10 (permalink)
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Re: Can any Canadians offer some advice

Quote:
Originally Posted by adam.sand View Post
Everytime I see another salon its just a new guy, with a lot of debt, cutting every piece of the pie into a smaller chunk for everyone. Because tanners, are ultimately, stupid young girls, who dont know anything about tanning. So its about who they like, who they trust, and who they believe, and whats close for them. So opening a salon doesnt guarantee business even if your equipment is better.

Good luck, let us know how it goes!
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