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Old 12-17-2007, 10:29 PM   #1 (permalink)
 
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Is this SUICIDE???

New here...please be gentle!! Small town...12,000 people. 2 tanning salons in town. 1 for sale - $100,000 for a ghetto, run down hair salon/tanning salon. The other salon is located in a an apartment complex that has been converted to "businesses." I stopped in today and they have 6 beds...all the same, Wolff somthing from the 1990's. No face bulbs, super small rooms, tacky decor...$3.00 for students and $4.00 non-students.

My question is this. We have a great business plan. Tanning and some spa services. Problem/question...the space we are looking at is literally next door to the the ghetto salon that is for sale!!! Is that suicide??
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Old 12-17-2007, 10:52 PM   #2 (permalink)
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Re: Is this SUICIDE???

if the space you are looking at already has a salon then I am going to assume they have an "Exclusive" on the services they offer and that means you need to look for another space.
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Old 12-17-2007, 10:57 PM   #3 (permalink)
 
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Re: Is this SUICIDE???

They don't...different owners. The space is RIGHT next door...either suicide or goldmine! As I mentioned, the "other" tanning salon is for sale and is NOT something I would actually buy...
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Old 12-17-2007, 11:04 PM   #4 (permalink)
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Re: Is this SUICIDE???

why do you wanna get in to tanning in the 1st place?
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Old 12-18-2007, 04:59 AM   #5 (permalink)
 
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Re: Is this SUICIDE???

There is a market in this town for what we want to do...
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Old 12-18-2007, 07:33 AM   #6 (permalink)
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Re: Is this SUICIDE???

Personally, I'd look real close at your demograpics. 12,000 pop. isn't a real good base of tanners from which to pull your customers and they're all not going to tan at your place. Maybe the reason the "ghetto" is like it is, is because they didn't make enough to support it. You could possibly do well with seven or so beds, but whatever you do, don't go overboard on the salon buildout. I don't think, by building a larger salon, that you could recoup your additional expense.
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Old 12-18-2007, 09:27 AM   #7 (permalink)
 
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Re: Is this SUICIDE???

Dont do it..... Plain and simple. Right now Salon owners are like DJ's, everyone wants to be one. Business is down for tanning, and 12K people is not very much. You will be LUCKY if 1-2% of those people tan at all, nevermind on the regular. Id put your money into something else unless you want to slit your wrists and bleed out slowly like everyone else.
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Old 12-18-2007, 09:30 AM   #8 (permalink)
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Re: Is this SUICIDE???

Well said Extreme!
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Old 12-18-2007, 10:02 AM   #9 (permalink)
 
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Re: Is this SUICIDE???

Point blank, YOU'RE NUTS!!!

If the ghetto salon is selling for 100 large and not selling, there is a reason. In a town with only 12,000 you would be foolish to buy into that mess! ****, I have half those numbers in my data base as it is!

If anything, and you really want into this business, offer the ghetto salon a number for that place, and take the extra money you would have spent on a new place, and gut & remodel that salon instead.
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Old 12-18-2007, 10:31 AM   #10 (permalink)
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Re: Is this SUICIDE???

I'd sell you my newly renovated salon with 16 beds, 12 new with HP for the same price.
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