Go Back   tanTALK - Tanning Salon Business Owners Community > TanTalk Central > General Tanning Industry Discussions

General Tanning Industry Discussions Tanning Salon Owners and Professionals in The Tanning Industry Discuss a wide Variety of Topics.

Reply
 
LinkBack Thread Tools
Old 03-17-2013, 05:56 PM   #1 (permalink)
 
Join Date: Aug 19 2007
Location: midwest
Posts: 120
Rep Power: 17 rjwarner is on a distinguished road
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?
rjwarner is offline   Reply With Quote
Old 03-17-2013, 06:14 PM   #2 (permalink)
Team TanTalk
 
Robert K's Avatar
 
Join Date: Aug 27 2002
Location: East Coast
Age: 56
Posts: 2,888
Rep Power: 22 Robert K will become famous soon enough
Re: Where is business headed?

15-20 years is a long outlook for any small business. If the deals make sense in the 2-4 year outlook that would be a better gauge.
__________________
Robert Klem
Superior UV Technologies
(888) 526-7712 x77
robertk@superioruv.com
Robert K is offline   Reply With Quote
Old 03-17-2013, 07:52 PM   #3 (permalink)
Team TanTalk
 
parrot head's Avatar
 
Join Date: Jul 13 2004
Location: Menomonie, Wi.
Age: 82
Posts: 3,145
Rep Power: 22 parrot head has disabled reputation
Re: Where is business headed?

15 to 20 years, never, 5 to 7 if we're lucky.
parrot head is offline   Reply With Quote
Old 03-17-2013, 07:56 PM   #4 (permalink)
 
Join Date: Aug 19 2007
Location: midwest
Posts: 120
Rep Power: 17 rjwarner is on a distinguished road
Re: Where is business headed?

ok guys, so what is the outlook in the short term for the industry. I am not speaking for this particular case, but for the industry.
rjwarner is offline   Reply With Quote
Old 03-17-2013, 08:20 PM   #5 (permalink)
Team TanTalk
 
Robert K's Avatar
 
Join Date: Aug 27 2002
Location: East Coast
Age: 56
Posts: 2,888
Rep Power: 22 Robert K will become famous soon enough
Re: Where is business headed?

Based on our poll 50% of the people were up last year in $$$....

HOW WAS 2012?
__________________
Robert Klem
Superior UV Technologies
(888) 526-7712 x77
robertk@superioruv.com
Robert K is offline   Reply With Quote
Old 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 sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute
Re: Where is business headed?

Quote:
Originally Posted by rjwarner View Post
ok guys, so what is the outlook in the short term for the industry. I am not speaking for this particular case, but for the industry.
The downturn in the economy "shook out" a lot of salons. And nobody was lending money, so at the same time some closed, very few were opening at the same time. The "saturation" has decreased considerably. Not necessarily in ALL markets, but for the industry as a whole.

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?)?
sunsally is offline   Reply With Quote
Old 03-18-2013, 10:58 AM   #7 (permalink)
 
Join Date: Mar 18 2005
Location: GA
Posts: 1,153
Rep Power: 20 peach will become famous soon enough
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.
peach is offline   Reply With Quote
Old 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 sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute sunsally has a reputation beyond repute
Re: Where is business headed?

Quote:
Originally Posted by peach View Post
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.
I disagree.

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.
sunsally is offline   Reply With Quote
Old 03-18-2013, 12:13 PM   #9 (permalink)
 
Join Date: Mar 18 2005
Location: GA
Posts: 1,153
Rep Power: 20 peach will become famous soon enough
Re: Where is business headed?

Quote:
Originally Posted by sunsally View Post
I disagree.

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.
You don't think the legal and regulatory issues surrounding the indoor Tanning industry are significantly different and therefore unpredictable?
peach is offline   Reply With Quote
Old 03-18-2013, 12:34 PM   #10 (permalink)
Team TanTalk
 
Robert K's Avatar
 
Join Date: Aug 27 2002
Location: East Coast
Age: 56
Posts: 2,888
Rep Power: 22 Robert K will become famous soon enough
Re: Where is business headed?

Same issues and battles over the last 2 years.
__________________
Robert Klem
Superior UV Technologies
(888) 526-7712 x77
robertk@superioruv.com
Robert K is offline   Reply With Quote
Reply

Bookmarks



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

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


All times are GMT -5. The time now is 05:41 AM.


Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0
Copyright 2009 - tanTALK.com

click here for advertising info!