This is the future
 

The cost of opening your __________ location depends on many variables. The costs of a new 2500 to 3200 -Square-Foot, 21 Bed Location as follows:

FRANCHISE FEE – $30,000

SALON BUILD-OUT/LEASEHOLD IMPROVEMENTS: $120,000 - $265,000

Your actual cost will depend on materials, square footage, layout, fixtures, number of landlord-provided tenant improvements, and the construction manager and vendors you hire to complete the work.

TANNING BEDS/EQUIPMENT: $158,000 – $310,000

This range is based on our recommendation of 2-3 super high-pressure beds, 3-4 medium-pressure beds, 5-6 conventional and one sunless Spray Booth. Typically this cost requires a down payment allowing the balance to be financed.

ADDITIONAL CONSIDERATIONS: $138,696 - $219,850

This can include such things as prepaid rent and security deposit, POS systems, professional services, utility deposits and permits, Grand Opening marketing and advertising materials, initial training, satellite music, security systems, insurance, lotion orders, supplies, furnishings, washers and dryers, working capital, etc.

This is what the industry is up against folks. 1) Most us couldn't afford this, 2) How would you like to compete with someone with these kind of deep pockets? and 3) How would you compete if you had to? If you haven't thought about it, you had better start.

Re: This is the future
 

My first question is, what is medium pressure equipment, there is no such thing.

In todays market in most markets under 2,000 square feet is more than enough.

Typically a landlord will provide a minimum of $15 to $18 psf TI allowance in addition to other compensation.

Build out for a salon starting from a vanilla shell is between $40 to $60 psf for a very up-scale salon.

Security deposits can be negotiated to no more than equal to one month rent.

Equipment cost is determined by mix as well as if you choose new or used.

Why would anyone pay a $30k franchise fee?

Never open any business under funded

A good equipment mix is as follows:

It is very important to understand that there are only three distinct performance levels of UV tanning equipment. There is also UV free spray tanning. While many salons refer to every type of equipment they offer as a different level there are basically three types.

Level1. 100/120 watt tanning equipment: This level of equipment will produce a base tan in five to seven sessions depending on skin type.
Level2. VHO – VHO reflector tanning equipment: (140/160/180/200/220 watt) this level of equipment will generate as much color in one session as two to three sessions on level one equipment. This level also has features like HP facial lamps, shoulder tanners, aroma therapy and spray mist.
Level 3. High Pressure Tanning equipment: This level of equipment will produce an excellent tan in three sessions, and requires only one session every seven to ten days to maintain the tan.

The additional levels that are sometimes created in salons are a combination of level 1, 2 and 3 or may be a booth as opposed to a bed.

Within these levels there are many different models to choose from.

Recommended Equipment Mix:
The recommended equipment mix for any size-tanning center is no more than 20% level one equipment, 30% to 60% level two equipment, and 10% to 30% level three equipment. In centers where there are only two levels of equipment, the mix should be 30% level one – 70% level two that can actually be marketed on multiple levels. Because of the shorter exposure times on the level two and three systems, an equal number of tans can be achieved each day with all three levels of equipment. An important statistic that supports these equipment mix recommendations is that 20% to 30% of all tanners are base tanners or value membership tanners; however a large portion of these tanners can be converted to up-grade tanners. Over the years up-grade tanning has become the standard. Tanning is a niche business, therefore it is important to structure your salon targeting all segments of an already limited demographic.

There can be different types of equipment within each level with the same use values.

You can also offer a variety of ad on services, however be very careful, space is valuable and should not be wasted on services that do not consistently generate revenue.

Re: This is the future
 

Many of todays successful operators and chain owners, find existing salons where the owner has given up, purchases them restructures making changes that are needed to be successful and spend half as much as buying new and starts with a client base.

Again it is all a matter of making good business decisions finding the best opportunities, controlling start up cost while not compromising your product.

It is not all gloom and doom.

Can you open a salon and compete when under funded? Not likely. Can you take advantage of already owning a salon and making changes to become more successful? Yes, and the cost of doing that is a fraction of starting a new salon or buying an existing salon.

Anyone that already owns a salon is almost there.

Re: This is the future
 

Agree

Re: This is the future
 

Steve, you are priceless!!!!!!!!!!!!!!!. I just love it. This is proof that ANYTHING that I post on this site is immediately jumped on by the tanning know-it- all's; who proceed to tear it to shreads, without thinking about or researching a thing.

....Just for the record, Steve, I took this information straight off of Palm Beach Tan's web site, WORD FOR WORD. Remember, the company that you said had a "great business model" a couple of days ago on this site?

If you ever had any creditability on this site and in this industry, it just went to 0.

Re: This is the future
 

Those numbers are low-balled. Buildout will run well above $250k for anything that can compete in a larger market, and equipment would start at $300k, though that cost can be offset with a lease.

Re: This is the future
 

You could buy a McDonalds franchise cheaper than that.

Re: This is the future
 

He didn't tear it to shreds, he actually added to the conversation without really addressing your concerns at all. In fact, he confirmed exactly what I've been saying which is for a new owner to open a vanilla shell is ludicrous.

If he is supporting PBT as a good business model, that's a different issue. Your concern about PBT numbers is valid.

I am curious as to why you're concerned about someone else following this model. Is the concern that a PBT opens up next to you following their crazy model, possibly shutting you down, and then eventually shutting themselves down in the long run because of the crazy model, and then you have 2 ruined businesses?

Re: This is the future
 

I have been arguing that this model, and its assumptions (which is the standard industry model) is driving us away from our customers, not towards them. This high overhead, over the top approach, is leaving most of the middle class behind.

I do not worry about PBT; I worry about the whole industry that is being told that this is how you do the Tanning Business. "Doing it this way", is shrinking our industry.

As for me, I already compete with PBT; I have 2 within 5 miles of me. Doing fine.

Re: This is the future
 

It's admirable to take on the mantle of saving the industry, but I still don't see how an owner over spending on a tanning salon following a crazy model affects your salon.

Are you saying that a client who overspends on spaceships at a PBT 5 miles away from your salon will eventually leave that salon and leave the tanning industry forever and never have the idea of going to your salon who kept things steady, consistent, good tans, good customer service?