John B

First let me say sorry if this post is long. I am trying to determine an asking price for my Tanning Salon. We must sell because of Family and medical reasons. I do know that I will be taking a hit in the asking price and that is something I will just have to live with.

I did try to do a search on this site on how to price your salon for sale. I came up with a couple of different views on this subject. One person suggested finding the Net asset value, while someone else suggested taking your net and multiply it by 2-3.

I'll be the first to admit that our numbers are not great compared to some salons in big cities.
We are in a small town with 6 other salons. We have a population of 30,000.

Last year we switched from minutes to sessions hoping to bring more money in and it turned out to hurt us money wise. We ended up losing clients to the minute salons. Seems know matter what you tell them they always want their minutes.

Just a few days ago we got an offer on the salon and the lady even put Ernest money down.
Well, over the weekend the lady thought more about it and pulled away from the deal.
So as you can see I am back to square one.

My Realtor wants to talk to us Friday and I am at a lose with what to price it at now.
We have 8 beds with room for 2 more, and 2000 sqft and the lease is $950 a month.
When you add all the beds up and all the stuff included in the salon its around $60,000

I told my wife that $35,000 for the business is about what we should get. I just need some input on how to price the salon and what to tell my Realtor. I don't want to disclose numbers but she offered us $46,000 and then backed out.

Any input would be greatly helpful.
Thank you,John

caribbean tan man

if the contents are worth $60,000 then start there.

rent is cheap! GREAT SELLING TOOL!

what kind of machines do you have?

how many clinets?

how big is your data base?

how long in business?

__________________
someone PM me when a good tanning topic is posted. :lol:

Mali

I have sold two salons.
They where in different states, and completly different salon.

So it is hard to say. The first salon i sold was In VA. Tanning there is mucg better then North Carolina where I sold my second salon.

The one in VA was a HP salon, although we did have 3 regular 20 minute beds. The salon was 5 years old when I sold it. I got way more for it then I did with my NC salon.

The NC salon was only 2 years old when I sold it, I sold it for what it cost me for startup plus 20% of the Gross sales.

The VA salon I sold for 15 % of Gross sales and 50% of my start up.

Have a Idea of what you'd like to get for your salon.
Have all your start up costs, beds, retail, equipment, make a complete inventory of your salon down to towels and googles. LIST EVERYTHING, plants, computers, radios, refergiratot, I mean every little detail with a value.

When you meet with your realtor he will help you determine a price. Just remember to price high to give room to negogiate.

John B

I can answer a few things...First we had it on the market for $69,900 was told that's to high.
Rent is great we are right near the main avenue.
We have everything from base beds to VHR.
We have Prosun and Puretan beds.
We been in business for 4 yrs now.
As for the data base around 1300 clients.Now I know that isn't alot to some.
Here is what I was told when I started the business.Take the population of town
ie:30,000 x that by 10% thats how many people might tan=3000 then divide by number of salons (6) that gives each salon around 500 to work with.
I just was wondering if there is a rule of thumb on pricing the salon.I can't afford to over price it and lose time. Family is ill.
I think most buyers look at net and gross and expect huge numbers.
If that was the case I would just move back to florida and have someone run it.

Laney

This is John's wife.....Laney...can anyone add to what has already been said? We have to talk to our realtor tomorrow and have already listed everything that goes with the salon. Why the original buyer backed out, we don't know. We could just use a little help if possible. Thanks so much!

pcstutsman

You could always list it for sale on here if you haven't already. Use the For Sale forum and you might get some bites there. Good Luck

movieking

If you ask 50 different people how to value your salon you are going to get 50 different answers so here is how I value a business. Either you have a business that is only worth the value of the equipment or you have a profitable business that can be sold for some multiple of cash flow. Remember a business is only worth what someone is willing to pay so what has value to you may have very little value to a buyer. If you are profitable you should be able to get 2-3 times owners cash flow. If not you and the buyer need to agree to what the value of the FF&E (furniture, fixtures & equiment) is. Four year old beds are not going to be worth a whole lot to most people. JMO

hi-tectanning

Can anyone tell me what a PRYZMA Shadow 1044 VHR tanning bed is worth??

Thanks in advance