Have Cold Feet About Opening New Salon - tanTALK

tantexan · 03-31-2005, 05:59 PM

I am in the process of opening a new salon. At this point we have not signed the lease on the bldg or bought the beds. That pretty much is our next step. We were rocking along ok until we received some negative feed back. The bank said they have loaned money to past tanning salons that ultimately failed. Our CPA has another customer that owns a salon & to this day has worked very hard for very little profit. One of the strip locations we were interested in leasing said the owner did not want to rent to a tanning salon because in the past they have not been able to pay the rent. Next bit of info... we are going with a total of 7 ergoline beds - 4 Ambition 250, Advantage 400 & 1 Excellence 850 (top of the line). Our break even is 38 tans a day. We live in a town that is 30 south of Dallas. There is another salon in our town that is already open. Their beds do not even compare to ours. There is another salon relocating to our town that will be opening in about a month. I don't know much about them except they definitely don't have the excellence 850.We have about 11.200 in the city limits. That is not including those outside our city borders. If we go forward there is no turning back. My big question is, is there a profit to be made?

ALOHATANCA · 03-31-2005, 06:31 PM

I think that for a town of 11,200 there will not be much $$$ to be made, I am in a town of 36,000 and we have 3 salons, not getting rich !!! This is just my opinion!!!

Neon Beach · 03-31-2005, 06:32 PM

For some yes, for others know, it all comes back to how hard you work at it, how much you are willing to invest in $$ as well as sweat equity. It's a tough game in some markets. Are you prepared to face a competitor that throws $18.88 a month unlimited in your face. Has FREE Tan Weeks and weekends. Sell lotions well below MRSP? Some markets have become more about volume, and that's not easy for some to come to terms with. Hope you have some other form of income too. Good luck!

aaperfecttan · 04-01-2005, 11:35 AM

thats not a lot of people in your area, remember people are not gonna drive miles out of thier way to tan,unlike hair and nail salons where they have a favorite girl to do thier nails and hair.i suggest more of a lower budget salon, there is plenty of cheaper vhr beds and booths out there. keep it simple, keep it clean, keep the bulbs fresh. also maybe incorporate other services ie; nails,massage,swimwear,lots of retail, give customers a reason to come to you.
pick your location carefully, locations with gyms and / or major centers are worth the higher price rent cause its a people draw. GOOD LUCK

lctire · 04-01-2005, 12:30 PM

38 tans a day is break even?.....Ergoline tell you that? With 7 beds maybe 138 people a day might break even and that would take a nice pricing structure. If you really want to make some money I have some Oceanfront property for sale in Arizona...Great beach with 9 foot waves perfect for a Surfing Championship. I think you could also build a 18 hole Championship Golf course on the ajoining property that could break even with 3 foursomes.....38 people a day break even... "give me a break"....Guess the guy that couldn't pay his rent in the strip center fell for it.

tropicaltan7038 · 04-01-2005, 01:31 PM

If i could break even on 38 a day, I'd be a rich man

DWhite6872 · 04-01-2005, 01:59 PM

How much do you want to make a year?

engfant · 04-01-2005, 02:02 PM

45/day to break even for me

Neon Beach · 04-01-2005, 02:22 PM

Quote:
On 2005-04-01 13:59:00, DWhite6872 wrote:
How much do you want to make a year?
$1.79 million Net.

bryman43 · 04-01-2005, 05:42 PM

38 break even on ergo equipment, maybe on the equipment alone. then you have lotion to buy rent to pay power bills employees to pay etc. just my 2 cents

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03-31-2005, 05:59 PM	#1 (permalink)
tantexan Join Date: Mar 31 2005 Posts: 1 Rep Power: 0	I am in the process of opening a new salon. At this point we have not signed the lease on the bldg or bought the beds. That pretty much is our next step. We were rocking along ok until we received some negative feed back. The bank said they have loaned money to past tanning salons that ultimately failed. Our CPA has another customer that owns a salon & to this day has worked very hard for very little profit. One of the strip locations we were interested in leasing said the owner did not want to rent to a tanning salon because in the past they have not been able to pay the rent. Next bit of info... we are going with a total of 7 ergoline beds - 4 Ambition 250, Advantage 400 & 1 Excellence 850 (top of the line). Our break even is 38 tans a day. We live in a town that is 30 south of Dallas. There is another salon in our town that is already open. Their beds do not even compare to ours. There is another salon relocating to our town that will be opening in about a month. I don't know much about them except they definitely don't have the excellence 850.We have about 11.200 in the city limits. That is not including those outside our city borders. If we go forward there is no turning back. My big question is, is there a profit to be made?

03-31-2005, 06:31 PM	#2 (permalink)
ALOHATANCA Tan Talk Industry Pro member Join Date: Nov 14 2003 Location: CALIFORNIA Age: 65 Posts: 3,455 Rep Power: 24	I think that for a town of 11,200 there will not be much $$$ to be made, I am in a town of 36,000 and we have 3 salons, not getting rich !!! This is just my opinion!!!

03-31-2005, 06:32 PM	#3 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	For some yes, for others know, it all comes back to how hard you work at it, how much you are willing to invest in $$ as well as sweat equity. It's a tough game in some markets. Are you prepared to face a competitor that throws $18.88 a month unlimited in your face. Has FREE Tan Weeks and weekends. Sell lotions well below MRSP? Some markets have become more about volume, and that's not easy for some to come to terms with. Hope you have some other form of income too. Good luck!

04-01-2005, 11:35 AM	#4 (permalink)
aaperfecttan Join Date: Jan 31 2004 Posts: 139 Rep Power: 21	thats not a lot of people in your area, remember people are not gonna drive miles out of thier way to tan,unlike hair and nail salons where they have a favorite girl to do thier nails and hair.i suggest more of a lower budget salon, there is plenty of cheaper vhr beds and booths out there. keep it simple, keep it clean, keep the bulbs fresh. also maybe incorporate other services ie; nails,massage,swimwear,lots of retail, give customers a reason to come to you. pick your location carefully, locations with gyms and / or major centers are worth the higher price rent cause its a people draw. GOOD LUCK

04-01-2005, 12:30 PM	#5 (permalink)
lctire Join Date: Nov 10 2004 Posts: 70 Rep Power: 0	38 tans a day is break even?.....Ergoline tell you that? With 7 beds maybe 138 people a day might break even and that would take a nice pricing structure. If you really want to make some money I have some Oceanfront property for sale in Arizona...Great beach with 9 foot waves perfect for a Surfing Championship. I think you could also build a 18 hole Championship Golf course on the ajoining property that could break even with 3 foursomes.....38 people a day break even... "give me a break"....Guess the guy that couldn't pay his rent in the strip center fell for it.

04-01-2005, 01:31 PM	#6 (permalink)
tropicaltan7038 Waiting Confirmation Join Date: Feb 21 2005 Posts: 39 Rep Power: 0	If i could break even on 38 a day, I'd be a rich man

04-01-2005, 01:59 PM	#7 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	How much do you want to make a year?

04-01-2005, 02:02 PM	#8 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	45/day to break even for me

04-01-2005, 02:22 PM	#9 (permalink)
Neon Beach Join Date: Nov 30 2000 Location: Ontario Age: 61 Posts: 38,594 Rep Power: 107	Quote: On 2005-04-01 13:59:00, DWhite6872 wrote: How much do you want to make a year? $1.79 million Net.

04-01-2005, 05:42 PM	#10 (permalink)
bryman43 Join Date: Sep 28 2001 Posts: 72 Rep Power: 0	38 break even on ergo equipment, maybe on the equipment alone. then you have lotion to buy rent to pay power bills employees to pay etc. just my 2 cents

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