03-17-2013, 05:56 PM | #1 (permalink) |
Join Date: Aug 19 2007 Location: midwest
Posts: 120
Rep Power: 17 | Where is business headed? I have an opportunity to buy into a couple of existing stores. My biggest concern is the future of this business. From what I gather, the "hey day" of the tanning industry is probably over, but does this business have enough "legs" to last and be profitable in the nesxt 15 to 20 years? What are your thoughts? |
03-18-2013, 05:33 AM | #6 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Where is business headed? Quote:
This allowed the best - those salons that are well positioned geographically and operationally - to gain quite a bit of ground. I see no reason to think tanning is going to take a huge nosedive - or a major increase - over the next several years. Some INDIVIDUAL salons will do both. So it comes down to - how are THESE particular salons positioned? Things to look at: 1. Are they profitable now? Can you buy them at a fair - or better than fair - price? 2. What would the ROI be if you purchased and they stayed at their same level of profitability? 3. What opportunity do you see to INCREASE the profitability - either through increased revenue and/or decreased costs? 4. How would the purchase of these salons impact your existing salon(s) - if any? Will they give you any cost efficiencies in purchasing, advertising, etc? Help better balance staffing? Have a bigger reach/draw to pull in customers? 5. Will YOU be able to manage the additional stores and your existing business? 6. How is the equipment? Is there need for updating soon? Major or minor? How does this cost (if any) factor in? Is it POSSIBLE to update them (e.g. how are the room sizes, HVAC, electric available?)? | |
03-18-2013, 10:58 AM | #7 (permalink) |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Where is business headed? Aside from the purely business considerations, the legal and regulatory issues surrounding the industry would be the primary concern. They do not look good. If you can make money in the next 3 years, while recooping your investment, it may be worth it. |
03-18-2013, 11:29 AM | #8 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Where is business headed? Quote:
I don't think the climate is SIGNIFICANTLY different. Can't make medical claims - never could. In SOME places - under 18 restrictions -- these have always existed in SOME places - now there are just some more. It isn't as "popular" as it once was - but there is also less competition as a result. People want to look good and feel good. We are a look good and feel good industry. If the numbers make sense, and you understand how to communicate that message and capture the market looking for that, then no reason not to expand. | |
03-18-2013, 12:13 PM | #9 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Where is business headed? Quote:
| |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
| |
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Where are we headed????? | tanningchain | General Tanning Industry Discussions | 9 | 08-25-2008 03:53 PM |
Where is the Economy Headed? | mikeytan | General Tanning Industry Discussions | 53 | 08-10-2007 09:14 AM |
Where do red headed babies come from? | sundude | Say What ????? | 2 | 03-09-2007 08:30 PM |