lotusgirl

Hi there, I am prospecting a few I am looking at a couple in my county. One is in a town with 42,000 population and is the only tanning biz in town.
The equipment is really old, the place is decent, and has tiny bit of room to expand. I will probably need to replace the beds VERY soon. The other for sale has all new equipment
is very nice inside, but carries no retail except for lotions,(the other has small boutique). The nicer newer salon has a Planet Beach right around the corner. I wonder if this is the reason for the sale. Both salons have about the same adj. net.
The nicer salon actually has lower revenue. Probably because they are not selling anything except a couple of lotions. Does anyone have a salon within a block of a franchise? If so how did it affect your biz?
Thanks for the help!

JohnnyComeLately

I'd say buy the new, since it has more potential than a salon with already dated equipment. However, this is basd solely upon all other factors equal. Do the demographics and see if the market can support two, and then look at competitive advantage. If you don't have something, yes, the chain will eat your lunch (in the long term) due to purchasing power, mature marketing, etc.

clubtan1

Do your demographics for both locations.
Do some recon at both locations. Try to find out the real reason they are selling. Do your "Due Dilagence". Get their daily records for the last, say two years and have your accountant look at them with you.
You might find out that opening a brand new salon somewhere else will be better for you.

tanrep04

you will need to teach your customers about lotion and they will listen you will be able to sell it. i'm a local lotion distributor. email me i can send samples and educational material for you. debbie-sunbed service tanrep04@yahoo.com