jaosncmt24

Hey guys. I sold my tanning salon for a good profit and now I am looking at buying an exsisting salon for cheat and than flipping it. I found what in my mind is a potential gold mind with only 2 cons. I would like everyones advice.

Salon History - The salon was built by a young guy. He started messing around with the female customers if you know what I mean. The place was booming and a very profitable place. That he started to get a bad rep and business started to fail as Hollywood and other salons moved in. The current owner bought it thinking he could hire a couple females to run it all week, train them and he could just run is hair salon with no effort into the tanning salon. Well we all know how that turns out. Now the place is seeing very poor #'s... Averaging only about 10 people a day. The owner opens and closes when he wants with no regard to the hours.

Salon Demographics - This place is located in a very busy area of the state on one of the most busy highways in the state. With large name shopping malls surrounding it. There are over 60,000 people in a 5 mile radius over 50% being females. Most of the girls currently tan at Hollywood and 1 other local dingy place. There is alot of $$ in this area.

Salon Info. - The salon is located on a 2nd floor in the back of a nice strip mall with pier 1 import as the main anchor. IT is 2500 sq ft and the rent is onloy $2000 per month. You cant get a place on this highway for less than $3000. There are 15 rooms with Puretan beds. 2 Megas and the rest base. There is an airbrush room with a sink, a massage room with a sink and estetitian equpment. The place is all hooked up with Sirrius Satellite and speakers built into the wall at the head of the beds. There is 2 face tanners 1 standup. The electric is 600 amps and plenty of air. The decor is beautiful and it is very large.
I can get this place for $30,000 for everything.....

My Questions - From other experts on this site. Being I have exp. in this business and vast business and marketing skills in your opinion is this worth buying and tryin to turn around going into the busy season? Anyone that feels it is a good investment please give me some advice on how you would market it. Maybe something will pop up that I have not thought of. The beds are all paid for and I of course will add 2 big beds to the mix. The only negatives I see in this place is the 2nd floor back location, but in this area there are a few salons on the 2nd floor because I think the rent is too high for the bottom. Any advice would be appreciated.

Jay

glowtanning530

I think it sounds promising. I probley would change the name so the bad reputation is left behind. No matter what people associate the name with the past. I sould use radio for ad. and I think that its the perfect time to buy... right before the busy season .

clubtan1

It would seem to me the assets are worth over $30K. Buy it, repackage it and let it boom again.

jlucas

I'd buy, work my butt off busy season, hiring help that would be trained with me there all the time. Then when you sell they could keep the staff ( a selling point) If you are showing profit. I wouldn't buy new beds though, just sell months and sessions with lotions with what you have. Make the suggestion to someone who is in it for the long haul, you said your not. Why put extra money that you have to recoup. If you do good in sells duing the next 6 months there is your profit. You could sell for the same price, showing the potential. Or because you have picked up business there is more profit that can be made at sell.
30K selling for 60k is good money for 6 months!!!!
Why buy beds that are going to rack up the profit. Do you think you are going to sell that many session in those new beds???
My first year at my salon, I cleaned it up. Lowered the price to bring in clients, worked my butt off and paid off what I borrowed! Next year bought 2 new beds, raised prices $5 more a month paid them off and made profit, next year bought 2 more beds paid them off with proffit, 3rd year replaced remaining 3 beds, paid them off. Not as much profit that year, but that was circumstances, GOT CANCER.
But we made it thru paid everyone on time, and this year is looking GREAT!

MJ

I am with them... I rarely say this lol...so pay attention..
BUY it and fix it and flip it. As long as it is not strapping you to do all of the above.
JMHO

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