Go Back   tanTALK - Tanning Salon Business Owners Community > TanTalk Central > New To The Tanning Business

New To The Tanning Business Interested or Future Salon Business Owners discuss Topics Here and Ask Questions To The Pros.

Reply
 
LinkBack Thread Tools
Old 08-10-2005, 01:19 AM   #1 (permalink)
 
Join Date: Aug 7 2005
Posts: 6
Rep Power: 0 Southern Newbie is on a distinguished road
I am in Montgomery Alamaba and want to open my own salon. Not a lot of competition here the salon I would be in direct competition with has twelve good beds but the lobby is run down and rooms have lotion on the walls etc. I have chosen three tan america santa barbara's two pacifica's and one matrix to start with and would d]use Euro walls dark cherry modular walls. I want to run an upscale classy salon. I concidered leasing the beds and walls and getting a loan for the remainder of the build out. The space is a graet location but I am concerned about the amount it rents for $3,100 and estimated $3,000 for beds and walls and the bank note and the rest of the operating expenses. Does this sound like it is even possibly to anyone out there? Or am I getting in over my head? I would appreciate any advice as everyone is wanting me to move forward and make a decision.
Southern Newbie is offline   Reply With Quote
Old 08-10-2005, 04:56 AM   #2 (permalink)
 
Join Date: Jul 16 2005
Posts: 283
Rep Power: 19 Tommy will become famous soon enough
It seems to me that a little research on your part is in order.

Spending time producing and understanding your business plan is a very valuable exercise which forces you to take a realistic look at questions you’re asking. Best of all, with the exception of time, (which can be considerable) it’s free. http://www.score.org/ has a free downloadable business plan template. Although it’s not specifically for a tanning salon it’s pretty good and has a lot of supporting spreadsheets and depending of the type of loan you’re looking at, a business plan may come in handy.

Spending time researching and understanding your customers and market which is an equally valuable endeavor, and also free. Prevailing wisdom suggests that the potential tanning customer profile is:
White, 18-44, from an average household income of 50K, living within a 3 mile radius of a particular location.

If the average household income in your area is X% higher or lower national, you can adjust that 50K number to reflect that, also if you’re going after an upscale customer you may want to bump that number up. All this will be more significant when you run the research at:
http://www.freedemographics.com/
You’ll need to sign-up, and you need the zip code(s) for a 3 mile radius of your proposed location. Take a look at all the reports they offer keeping in mind the customer profile above. In general you take [Total Population] * [%White] * [%Household Income] to get [Total Market Size] then [Total Market Size] / [Competitors + 1] to get tour market segment. They offer the ability to download their reports in a spreadsheet format which is handy to add them to your business plan.

I know this isn’t a direct answer to your question, but check into anything you find of value and ignore the rest. I don't know who "everyone" is, but it is a BIG decision, it's your decision, take the to know what you're getting into.

Tom
Tommy is offline   Reply With Quote
Old 08-10-2005, 07:06 AM   #3 (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
$3100 in rent alone is quite a bit for a 6 bed salon. Just estimating, your operating expenses will probably run about $12K/mo, not 6K. This would be factoring in payroll (even if "paying" yourself, should figure it in, in case you would ever NEED to hire help (open probably 70 hrs/wk or more) as well as to figure out if it "makes sense" versus anything else you could be doing with your time! Also advertising (critical in the first few years especially), utilities, insurance, supplies and more. Plus start-up costs - computer, software, buildout (more besides Eurowalls, including lighting, electrical, bathrooms, HVAC, washer/dryer, towels,.....).

There are many posts in this section and others that go into much greater detail - some are "stickied" at the top in this forum, others you would have to search around for.

Also - while the Santa Barbara, Pacifica and Matrix are EXCELLENT choices, you need something else "between" the Pacifica and Matrix. A "Big VHR" (like a Sungate, Ergoline 600, etc) - usually about a 20K bed.


Agree with everything Tom said above. Research it MUCH more. An established 12 bed salon with good equipment but "lotion on the walls and a rundown lobby" can invest a day's effort and a few hundred bucks in fresh paint and be eating your lunch with an already established clientele, equip that is all or part paid off, and much more "capacity" (more beds) which will allow them to serve more customers and make more profit.
sunsally is offline   Reply With Quote
Old 08-10-2005, 10:03 AM   #4 (permalink)
 
Join Date: Aug 7 2005
Posts: 6
Rep Power: 0 Southern Newbie is on a distinguished road
Thanks for the advice! I said six beds because I didn't want to get in over my head. I am in the process of writin gmy business plan and what a headache that is. I am usind sun power source software that has helped a lot. My landlord is taking care of the bathroom and the air so that helps some. As far as payroll we will be able to cut back a little because I don't get paid anyway. I don't work. My husband is a pharmacist and I am a stay at home mom and am used to not having an income and between my daughter being in school, husbands off days and the mother in law pitching in to watch her I am ready to dedicate my time to working in the salon. I know I won't be able to be there 24/7 and probably won't want to be so I will have to hire some part time help, but here in Alabama minimum wage is sooooo cheap. What I don't know is the success rate of tanning salons. I want to go for it I think I could offer a better service but maybe thats just me. any thoughts? Thanks again for all your replies. Please don't hold back ! I need the honest truth!
Southern Newbie is offline   Reply With Quote
Old 08-10-2005, 11:00 AM   #5 (permalink)
 
Join Date: Aug 7 2005
Posts: 6
Rep Power: 0 Southern Newbie is on a distinguished road
Ok I got some numers from the landlord on th eaverage income. Within a 5 mile radius the average income is $68,532 and the population is 93,983 and estimated growth of 22.71 between 2003 & 2008 I need to find out the age still.
Southern Newbie is offline   Reply With Quote
Old 08-14-2005, 09:25 PM   #6 (permalink)
 
Join Date: Jan 27 2005
Posts: 251
Rep Power: 20 BigLeo has a spectacular aura about BigLeo has a spectacular aura about BigLeo has a spectacular aura about
I think $3100 per month rent in Alabama is a bit much, but it really depends on the location. How many square feet? Does this include property taxes and maintenance? You haven't supplied enough information.
BigLeo is offline   Reply With Quote
Old 08-15-2005, 07:05 AM   #7 (permalink)
 
Join Date: Aug 7 2005
Posts: 6
Rep Power: 0 Southern Newbie is on a distinguished road
$3,100 includes everything and it is 1,472sqft. And yes, I agree that is why I have taken on a consultant to help me out and WOW! there was so much I didn't know and I am so glad I found this website with all this great info.
Southern Newbie is offline   Reply With Quote
Old 08-15-2005, 10:57 PM   #8 (permalink)
Mr. b
 
mr belvedere's Avatar
 
Join Date: May 10 2005
Age: 54
Posts: 7,247
Rep Power: 68 mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute mr belvedere has a reputation beyond repute
Another satisfied member who got helped at TanTalk.com.
mr belvedere is offline   Reply With Quote
Old 08-29-2005, 11:17 AM   #9 (permalink)
 
Join Date: Dec 27 2003
Location: Florida
Posts: 1,818
Rep Power: 21 West Side Tanner has a spectacular aura about West Side Tanner has a spectacular aura about West Side Tanner has a spectacular aura about
We hope! Southern....how is it going?
West Side Tanner is offline   Reply With Quote
Old 08-29-2005, 12:12 PM   #10 (permalink)
 
Join Date: Aug 7 2005
Posts: 6
Rep Power: 0 Southern Newbie is on a distinguished road
Slow! I started back to nursing school after taking a semester off and am trying to juggle school, a two year old and the idea of a new business!
Southern Newbie 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
Tanning Salons Taking a Stand Against False Press BooBop General Tanning Industry Discussions 14 10-20-2006 03:18 PM
Taking over 6 bed salon.... HELP!! glam74 New To The Tanning Business 5 02-14-2002 10:00 PM
When Taking over a salon... Forever Tan New To The Tanning Business 3 06-29-2001 07:28 AM


All times are GMT -5. The time now is 10:04 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!