Purchasing a salon. Need info, please. - tanTALK

sunzone · 04-09-2003, 07:24 AM

I am buying a salon in NC. I was wondering if anyone would share info on approximately how much a salon can make in a year. I will have 2 cyberdome2 and 5 genesis beds. My rent will be $2400 per month...is that high?

TikiTan · 04-09-2003, 09:08 AM

sunzone, There are to many factors to consider to give a good answer to this question.. How hard are you willing to work, how much advertising will you do? How good will your salon be? These all factor in to how much will I make...

As for the $2400 a month how much square feet is that for? What kind of traffic does the location get?

sunzone · 04-09-2003, 06:25 PM

I know all of those things factor in. I have been told by a couple people that no matter how much I advertise or how good the location that in general tanning salons don't make money. I happen to think the salon is in a good location and has good beds. I plan to work there from 9am til 9pm during the peak season. I just wanted to know if other people are making a decent living!

Tanfast · 04-09-2003, 08:00 PM

It can be quite a challenge. You have to bring in enough money during those few busy months to carry you over into the slow season. I don't take a salary, just put back into the business. What does everyone else do???

trusno1 · 04-13-2003, 05:58 PM

I would not do it if this will be your only source of income. They can do decent in sales, but overhead is very high. We pay out $100,000 just in rent and salaries.

wickedtan · 04-13-2003, 09:33 PM

wow then why does one get into the salon business? I just resigned from my job of 18 years took a few weeks off and now have an interest in buying a salon and then maybe another in another year or two. This is not good news. I understand a nice salon in a good location and no advertsing can generate $180 to $200+k a year. Yes alot of exspense and maybe pull an income if you must of over $60k or better. anyones else opinion?

Meltdbutta · 04-14-2003, 11:16 AM

I moved this topic over here, I thought it would get more attention..

melty

bsmart · 04-14-2003, 12:37 PM

If you're in the Tanning biz to make money, you gotta be patient. It is NOT a get rich quick business. Like others have said here, I've put all my income back into the business the last 5 years. We have expanded from 4 beds to 9 now. This has kept me VERY busy and continously reinvesting our sales income into the expansion. This is going to be the 1st year that I don't plan to do any additions, that will eat up my income. It will be maintenance only this year. I'm anxious to see what happens at the end of this tanning year. $2400/mo. rent is waaay too much in my opinion. You would need to be inside some posh mall to be paying that kind of rent. I'd likely close my doors if my landlord came by today and said, "$2400 for rent please".
Others have mentioned that you have to save back for the LEAN times. They are RIGHT. This is a strong business for about 4-6 months depending on your area. The other 6 months require something else to do. For us, that something else is video, but that too is a thin margin business these days. It pays the rent in the late fall and winter months.

Operating from 9AM til 9PM isn't likely to cut the mustard in the 'busy' season. You will need to open about 7AM if not earlier and stay available to 10-11 PM. Who can hack those hours on their own?? Nobody I know can hang with this business alone those hours. You WILL have to have a staff, or kill yourself keeping these hours. Best of Luck.

Funinthesun · 04-15-2003, 03:06 PM

From just a plain business standpoint, have you seen the last 5 years records for this existing business, what have they been doing? 2,400? Where in the world is this location. and are you tied to a long term lease? Does your immediate market respond well to the existing business? Lots of questions first!!!

Tamar · 04-17-2003, 12:58 PM

How much per square foot is that rent? I am paying less than $2 per square at each of my stores in high traffic areas (metro-suburban). What will the landlord do to help with traffic? One of mine is an angel, the other is nicknamed "Satan" by all the tenants...trashes his own parking lot after dark with beer cans. That's how we all know he has been by to check on his "investment".

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04-09-2003, 07:24 AM	#1 (permalink)
sunzone Join Date: Apr 8 2003 Posts: 2 Rep Power: 0	I am buying a salon in NC. I was wondering if anyone would share info on approximately how much a salon can make in a year. I will have 2 cyberdome2 and 5 genesis beds. My rent will be $2400 per month...is that high?

04-09-2003, 09:08 AM	#2 (permalink)
TikiTan Join Date: Jul 27 2002 Posts: 630 Rep Power: 22	sunzone, There are to many factors to consider to give a good answer to this question.. How hard are you willing to work, how much advertising will you do? How good will your salon be? These all factor in to how much will I make... As for the $2400 a month how much square feet is that for? What kind of traffic does the location get?

04-09-2003, 06:25 PM	#3 (permalink)
sunzone Join Date: Apr 8 2003 Posts: 2 Rep Power: 0	I know all of those things factor in. I have been told by a couple people that no matter how much I advertise or how good the location that in general tanning salons don't make money. I happen to think the salon is in a good location and has good beds. I plan to work there from 9am til 9pm during the peak season. I just wanted to know if other people are making a decent living!

04-09-2003, 08:00 PM	#4 (permalink)
Tanfast Join Date: Feb 28 2003 Posts: 119 Rep Power: 22	It can be quite a challenge. You have to bring in enough money during those few busy months to carry you over into the slow season. I don't take a salary, just put back into the business. What does everyone else do???

04-13-2003, 05:58 PM	#5 (permalink)
trusno1 Join Date: Apr 4 2003 Location: Marysville, OH Posts: 149 Rep Power: 22	I would not do it if this will be your only source of income. They can do decent in sales, but overhead is very high. We pay out $100,000 just in rent and salaries.

04-13-2003, 09:33 PM	#6 (permalink)
wickedtan Join Date: Mar 19 2003 Posts: 13 Rep Power: 0	wow then why does one get into the salon business? I just resigned from my job of 18 years took a few weeks off and now have an interest in buying a salon and then maybe another in another year or two. This is not good news. I understand a nice salon in a good location and no advertsing can generate $180 to $200+k a year. Yes alot of exspense and maybe pull an income if you must of over $60k or better. anyones else opinion?

04-14-2003, 11:16 AM	#7 (permalink)
Meltdbutta Join Date: Feb 10 2002 Posts: 1,267 Rep Power: 23	I moved this topic over here, I thought it would get more attention.. melty

04-14-2003, 12:37 PM	#8 (permalink)
bsmart Join Date: May 2 2002 Location: 2621 W Main Suite 9 Posts: 616 Rep Power: 22	If you're in the Tanning biz to make money, you gotta be patient. It is NOT a get rich quick business. Like others have said here, I've put all my income back into the business the last 5 years. We have expanded from 4 beds to 9 now. This has kept me VERY busy and continously reinvesting our sales income into the expansion. This is going to be the 1st year that I don't plan to do any additions, that will eat up my income. It will be maintenance only this year. I'm anxious to see what happens at the end of this tanning year. $2400/mo. rent is waaay too much in my opinion. You would need to be inside some posh mall to be paying that kind of rent. I'd likely close my doors if my landlord came by today and said, "$2400 for rent please". Others have mentioned that you have to save back for the LEAN times. They are RIGHT. This is a strong business for about 4-6 months depending on your area. The other 6 months require something else to do. For us, that something else is video, but that too is a thin margin business these days. It pays the rent in the late fall and winter months. Operating from 9AM til 9PM isn't likely to cut the mustard in the 'busy' season. You will need to open about 7AM if not earlier and stay available to 10-11 PM. Who can hack those hours on their own?? Nobody I know can hang with this business alone those hours. You WILL have to have a staff, or kill yourself keeping these hours. Best of Luck.

04-15-2003, 03:06 PM	#9 (permalink)
Funinthesun Join Date: Apr 15 2003 Posts: 3 Rep Power: 0	From just a plain business standpoint, have you seen the last 5 years records for this existing business, what have they been doing? 2,400? Where in the world is this location. and are you tied to a long term lease? Does your immediate market respond well to the existing business? Lots of questions first!!!

04-17-2003, 12:58 PM	#10 (permalink)
Tamar Join Date: Aug 15 2001 Posts: 1,906 Rep Power: 23	How much per square foot is that rent? I am paying less than $2 per square at each of my stores in high traffic areas (metro-suburban). What will the landlord do to help with traffic? One of mine is an angel, the other is nicknamed "Satan" by all the tenants...trashes his own parking lot after dark with beer cans. That's how we all know he has been by to check on his "investment".

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