Newbie looking to buy salon - tanTALK

immikhan · 02-21-2005, 10:33 PM

A Salon just came up for sale in my area; it has twelve beds, all Tan America, about 5 years old. One is a stand-up, two are high intensity. Annual sales volume is 110,000. Rent is 2000/mo. Owner claims a cash flow of 42,000 (including her own salary of 14,000). There are two other salons in the immediate area. She wants 170,000. Is it worth looking at, and if so, at what price??

Thanks in advance

sunsally · 02-21-2005, 10:48 PM

High intensity - the DelRay's, Matrix,...?? What is the full equip lineup? At 5 years old, the beds (esp TA) certainly have much "useable" life left, but from a "value" standpoint, they would be worth very little if you had to sell them on the open market.

How many customers?

Could you build out locally at that same rent cost? How good is the location?

At current profit rate, would pay off in 4 years - then you would START making money. Is that worth it to you?

In general, with this much info, sounds quite overpriced... I'd be thinking half that or less.

baltimore1920 · 03-01-2005, 10:14 PM

We have a family owned salon for sale as well. We have 5 Tan America beds, one standup booth, displays, etc. We'd be willing to sell our business for $100,000. Annual sales volume is 100,000. Rent is 1500/mo. Hundreds of customers. 10 years in business. We love our customers and they love us, only it's time to retire. We will also sell the beds individually. That may be a cheaper option for you. For bed information, you can view my web page at:

http://faculty.sxu.edu/~rorer/TanningBeds/index.html

We have a complete salon worth of goodies for sale, however we'd love to sell the business as a whole to keep our customers happy!

Thanks!

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02-21-2005, 10:33 PM	#1 (permalink)
immikhan I'm Banned Join Date: Jan 20 2005 Posts: 4 Rep Power: 0	A Salon just came up for sale in my area; it has twelve beds, all Tan America, about 5 years old. One is a stand-up, two are high intensity. Annual sales volume is 110,000. Rent is 2000/mo. Owner claims a cash flow of 42,000 (including her own salary of 14,000). There are two other salons in the immediate area. She wants 170,000. Is it worth looking at, and if so, at what price?? Thanks in advance

02-21-2005, 10:48 PM	#2 (permalink)
sunsally Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 3,136 Rep Power: 25	High intensity - the DelRay's, Matrix,...?? What is the full equip lineup? At 5 years old, the beds (esp TA) certainly have much "useable" life left, but from a "value" standpoint, they would be worth very little if you had to sell them on the open market. How many customers? Could you build out locally at that same rent cost? How good is the location? At current profit rate, would pay off in 4 years - then you would START making money. Is that worth it to you? In general, with this much info, sounds quite overpriced... I'd be thinking half that or less.

03-01-2005, 10:14 PM	#3 (permalink)
baltimore1920 Join Date: Jan 27 2005 Posts: 21 Rep Power: 0	We have a family owned salon for sale as well. We have 5 Tan America beds, one standup booth, displays, etc. We'd be willing to sell our business for $100,000. Annual sales volume is 100,000. Rent is 1500/mo. Hundreds of customers. 10 years in business. We love our customers and they love us, only it's time to retire. We will also sell the beds individually. That may be a cheaper option for you. For bed information, you can view my web page at: http://faculty.sxu.edu/~rorer/TanningBeds/index.html We have a complete salon worth of goodies for sale, however we'd love to sell the business as a whole to keep our customers happy! Thanks!

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