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Old 12-05-2017, 02:16 PM   #11 (permalink)
 
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Re: WHAT A SALON IS WORTH

No reason to buy it, you're going to need all new equipment, I would guess you need to redo the electrical etc.

It sounds like you would be starting from scratch even if you bought the place, so why not just start from scratch with a new place.

Since there is no other salon in the market, you could close him down in a season or two.
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Old 12-11-2017, 11:23 PM   #12 (permalink)
 
Join Date: Jan 20 2013
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Re: WHAT A SALON IS WORTH

Boy, good question. Considering the things you describe, I would tend to walk away. Amazing how much a good modern bed costs new and how little they get when selling used. People are looking for new style stuff like the new improved Versa Spa, the Ergoline Sun Angel, etc.
I see couples sinking their life savings into a salon only to find out that the real money is selling beds, parts and repairs. I'm ashamed at how the owners are treated by dirt bag repair companies in my area. There is no honesty involved here, making a customer keep a popular bed down for 2 weeks then charging them $100 an hour for crapy work.
Between these folks, power bills, insurance, unneeded government oversight, building lease payments, wages, commissions, material theft, etc I'm always surprised anyone would want to spend 7 days a week 16 hours a day in this business.
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Old 01-08-2018, 02:10 PM   #13 (permalink)
 
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Re: WHAT A SALON IS WORTH

A quicker less expensive way of getting into the indoor tanning industry is to purchase an existing salon. However you must be cautious because there are many potential pit falls.

Some salons that are for sale are profitable and ready for a new owner with minimal changes required. A large percentage of all tanning salons are struggling or failing, typically if a salon is for sale it falls into this category. This alarming statistic is not due to a week industry, instead it is a result of new salon owners not being properly educated and prepared for success.

When evaluating the purchase of an existing salon you must approach it as though you are opening a new salon from the ground up. You must first determine the potential of the salon by evaluating the demographics. If the demographics are good you can now evaluate the salon further. Always look at the parking situation and how easy it is to access the location. You should determine all of the changes that must be made to create a successful salon. To do this you must again have the information and knowledge required to be successful. You must determine the cost associated with making these changes.

You must determine the value of the salon by asking a number of very important questions. Net profit of the salon, equipment value or a combination of both will determine the value.

Very old salons can be a problem because the rooms are typically too small. With proper evaluation, a proven plan for success that the previous owner did not have and the proper funding to make the appropriate changes will allow you to own and operate a successful salon saving a great deal of money over opening a new salon from the ground up. Major mistakes made by people that purchase failing salons: Paying more than the salon is worth, not being any more qualified to operate a successful salon than the previous owner, not identifying or making the changes necessary to create a successful salon, not being properly funded. It is just as easy to succeed as it is to fail, knowledge is power.
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