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General Tanning Industry Discussions Tanning Salon Owners and Professionals in The Tanning Industry Discuss a wide Variety of Topics. |
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10-11-2012, 04:33 PM | #1 (permalink) |
I'm Banned Join Date: Feb 25 2012
Posts: 72
Rep Power: 0 | What's My Salon Worth? Not sure how to delete thread. Thanks for the input. I'm deleting in case my competition is on here I dont want too many details on my salon out there. Last edited by bbare; 10-12-2012 at 11:16 AM. Reason: Never can be sure if your competition is on here! |
10-11-2012, 04:49 PM | #2 (permalink) |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: What's My Salon Worth? Only what a willing buyer is willing to pay. There are many salons for sale, Craigslist is full of them. Three salons near me (Atlanta), have been on Craigs for over a year..all three now closed. NOBODY is buying in this economy, the industry has been on the downside the last few years and getting worse...if you read all the post here on the closing/opening or selling a salon, the tone is the same. To open and sustain a profitable salon, it takes deep pockets Banks are not loaning money to a business/industry that the SBA has declared "high-risk", which they did 5 years ago (they do not encourage or willingly process loans for tanning anymore) If you are seeking an answer for the possibility of selling, you would be better off liquidating. If you call a broker, they will list it and build your dreams of a high sale..it is hog-wash...tanning is not moving anywhere but down |
10-11-2012, 04:53 PM | #3 (permalink) |
I'm Banned Join Date: Feb 25 2012
Posts: 72
Rep Power: 0 | Re: What's My Salon Worth? Not looking to sell, just wondering what my blood, sweat and tears is currently worth. Just off the cuff, if you heard of this salon what would be the first price that comes to mind. |
10-12-2012, 02:19 AM | #5 (permalink) |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: What's My Salon Worth? The only bed of worth, from what you mentioned, is the Cayene...what is the salon worth? Businesses when evaluated are based on the profit...the more profit, the better the value..if it's a dog, expect a 'dog' price, no matter what the salon looks like. It matters little if you cleaned up the storage room and painted...what is the bottom line, is more a buyers concern. If I was to buy this business, will I be spending or making money. Today, and I have said this many times on these boards, and confirmed by many. It takes about 350-500K to open and sustain a profitable salon in today's industry. Many ingredients come into play, equipment value, sales, inventory, competition (which as you know, the Windy City area is overflowing, some well established salons there. Sadly, 5bed salons are not profitable. I am bothered by the fact that you don't know the type stand-ups you have. Why? You should know...tells me, you are not hands-on with the place... |
10-12-2012, 10:42 AM | #7 (permalink) |
I'm Banned Join Date: Feb 25 2012
Posts: 72
Rep Power: 0 | Re: What's My Salon Worth? Oh god, I am here all the time. Just couldn't remember the type of stand ups for the life of me and didn't want to go hunt down the name. I always have Sun Up stuck in my head in regards to those beds and I know thats wrong. What would you recommend to make my salon "worth" more. I'm very happy with what we have done so far (add spray, add efts, almost triple her two previous years)... It's small but our two competitors are relatively the same size. I realize Chicago is a tough market but there is literally three of us in a four mile radius. We have done alot and I have taken alot of your suggestions in regards to increasing business and have been very happy with any specials I have implemented with your suggestions. Thanks for your input. |
10-12-2012, 11:55 AM | #8 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What's My Salon Worth? Your standups are probably TanAmerica SunUpII's - they are the only ones on the market with the HP facials in them. As far as "worth" - as the original poster said - whatever someone will pay for it! You bought it for some price. Someone else might buy it for the same price, more, or less. One note - when you figure in your cost to run it each month - you need to include a cost for payroll. So even if you work it yourself and don't take a check, someone looking to buy will want to consider how much profit AFTER paying all expenses - including payroll. So as you grow, remember that in your expenses. If your costs are $1900/mo for rent and utilities, probably another $2500 in payroll if someone had to pay someone minimum wage to sit there all the hours you are open. That has you closer to breakeven - now. |
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