Honest Opintion

[SunPerf]

Is it worth opening a tanning salon these days? I know this question has been posted here before, but most people reply with some wise remark. I'm really looking for honest answers with reason backing it up either way. I know salons are not making what they use to and face a lot of resistance but can money be made? I also know there are a lot of other variables (location, market etc) I'm just looking for a general consensus. If you’re currently in the business and successful, what do you think a realistic profit will be (a range would be ok). Again I know my location and a lot of other things will make a difference I'm just trying to understand what the average may be (considering those who fail and those who are very successful.

Thanks!

[Steve Underhill]

Originally Posted by SunPerf

Is it worth opening a tanning salon these days? I know this question has been posted here before, but most people reply with some wise remark. I'm really looking for honest answers with reason backing it up either way. I know salons are not making what they use to and face a lot of resistance but can money be made? I also know there are a lot of other variables (location, market etc) I'm just looking for a general consensus. If you’re currently in the business and successful, what do you think a realistic profit will be (a range would be ok). Again I know my location and a lot of other things will make a difference I'm just trying to understand what the average may be (considering those who fail and those who are very successful.

Thanks!

As with any business, your success will be based on your preparation and execution. Yes you will have struggling salon owners tell you that you can't make money in this industry. They are typically struggling because they do not know how to or willing to make changes required to succeed. They end up blaming their failure on the industry. On the other hand the operators that have a proven business model are thriving and growing.

You can choose to be successful if you are willing to execute a great plan. For those that are struggling, they too can turn things around if they are willing to make the necessary changes and actually make the effort required to implement those changes.

Make sure you are prepared for success.

[peach]

Yes, you can make money in this industry. Is it getting more difficult? yes. Would I do it now? yes, under certain conditions.

I have been in the industry for 21 years now. I have owned multiple salons at times, I currently own 1. Anyone who tellsyou it is a path to insane profits is themselves insane. Unless,you have a lot of money to invest, your choices of location,overhead costs, equipment selection and salon set up will be critical. HOWEVER, do not believe everything the talking heads in this industry tell you. Seek older wiser counsel in terms of how to get into this business. Seek out people who have been at this for a while.

I myself would not go into this in a big way; I would stick my toe in the water in a controlled way. If you like it and it is marginally successful, then expand your store and business. And keep your overhead costs as low as possible.

[sunsally]

Originally Posted by SunPerf

Is it worth opening a tanning salon these days? I know this question has been posted here before, but most people reply with some wise remark. I'm really looking for honest answers with reason backing it up either way. I know salons are not making what they use to and face a lot of resistance but can money be made? I also know there are a lot of other variables (location, market etc) I'm just looking for a general consensus. If you’re currently in the business and successful, what do you think a realistic profit will be (a range would be ok). Again I know my location and a lot of other things will make a difference I'm just trying to understand what the average may be (considering those who fail and those who are very successful.

Thanks!

The "other variables" (location, market) are, at the end of the day, the ONLY variables that make a difference!

I've seen gorgeous, expensive, high end salons in the wrong location...tank. I've seen burnt-to-the-ground-hole-in-the-wall-outdated-you-name-in........in the right market -- make bank!!


Ultimately you need to be in a market where customers tan. Not everyone does. Then you need to be aware of what competition exists - or could exist. Is there enough market for everyone?

Then it will filter down to what sort of a model you set up - equipment, pricing, etc as well as what sort of sales skills are present.

A lot of salon owners have "bought themselves a job". More than a few have bought themselves bankruptcy/relationship distress etc. And some are very, very successful. What THEY have, not everyone else does. And not everyone can. But it is POSSIBLE.

No different than restaurants or any other businesses.

Location
Market/Competition
Model
Execution

[SunPerf]

Thank you for those "real" responses! I'm pretty confident that the location I'm looking at is a good one. The space literally backs up to a High School, is across the street from a pretty big hospital and is 1/2 mile down the street from a very large business complex. The space is small, but I'm glad because I'd like to start small anyway. The equipment that is in there doesn't look to bad, but I'm still researching to find out if its good. (Heartland Ovation 124, a Bravo bed and a VHS 69 booth). I will also be adding Airbrush services as well since I've been doing that for 5 yrs. there is only 1 other salon within a 5 mile radius and they have been there for years. They don't offer airbrush so I think that gives us a slight advantage. Our prices will be a bit lower then theirs as well. We have plenty of parking and I've marketed a business before so I'm confident that I have a good strategy planned. Thanks again for the "real" opinions it's very helpful!

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[tamarababy]

Is there a lot of competition nearby. That is your first factor in succeeding. Don't open in a saturated market. How many tanning salons are there in a 5 mile radius? It is a quickly declining industry. Don't put all your eggs in this one basket. If that is what your are going then walk away. I also recommend in looking at buying an existing one rather then opening a new one from scratch.

[peach]

Even in markets that have tanning salons already in them, look closely at what they offer and what they charge. If you are going to compete successfully, you have to offer customers something that the others do not. That can be better hours, pricing, selection of products, packages, equipment, childcare-anything that will separate you from your competition.

[Black Sun]

Originally Posted by SunPerf

Thank you for those "real" responses! I'm pretty confident that the location I'm looking at is a good one. The space literally backs up to a High School, is across the street from a pretty big hospital and is 1/2 mile down the street from a very large business complex. The space is small, but I'm glad because I'd like to start small anyway. The equipment that is in there doesn't look to bad, but I'm still researching to find out if its good. (Heartland Ovation 124, a Bravo bed and a VHS 69 booth). I will also be adding Airbrush services as well since I've been doing that for 5 yrs. there is only 1 other salon within a 5 mile radius and they have been there for years. They don't offer airbrush so I think that gives us a slight advantage. Our prices will be a bit lower then theirs as well. We have plenty of parking and I've marketed a business before so I'm confident that I have a good strategy planned. Thanks again for the "real" opinions it's very helpful!

First off, being by a high school is no longer a recipe to success. While this industry, at one time, thrived on high schoolers, new state/local laws have been indoctrinated that restrict tanning (for teens) with/without parent consent...so do not bet the bank on, "...space literally backs up to a High School..." for paying the bills.

Same with the hospital. Why does being by a hospital make you think that it would be good for a salon location? With all the bad press generated the last few years on the dangers of tanning, the last place you will find tanners is within the medical industry.

Also, those beds are totally useless. An upgrade would be needed. That equates to money, not only for better beds, but possibly upgrade space/AC/Electric requirements to meet the demand that newer beds will generate.

By planning on offering 'lower prices' than your nearest competitor is the best form of business suicide. Lower prices equate to lower services. It is all psychological. If your service menu is 'cheap', that is how your business will be perceived by the buying public.

The long of this as I have said repeatedly on these boards, To make it in todays environment, an outlay of 350k-500k is needed to open the doors, and more to sustain the first 3years before a profit is realized.

You will NEVER find a bank or anyone willing to handout a loan for a tanning salon. It takes very deep pockets of your own expendable cash. Without it, there is little hope of success.

[peach]

I do not agree with most of the above comments; you do not necessarily need 300-500k to start a salon. It really depends on who you are competing with and where. Even where you have high dollar competition, you can be a low cost niche alternative to them. Many on this site speak as though there is some one size fits all correct approach to being in this business; there is not.

That is not true for the tanning industry, just like it is not true of any other business industry. Even the biggest fish in the retail sea(walmart, apple,) have competitors above and below them that do just fine. The only thing that may be true is that loans for any business are hard to come by. All the more reason to not sell your equipment; use it to make money, and reinvest part of what you make. Remember, the performance of your beds is more a function of your bulbs, than the beds themselves.

[Steve Underhill]

Originally Posted by peach

I do not agree with most of the above comments; you do not necessarily need 300-500k to start a salon. It really depends on who you are competing with and where. Even where you have high dollar competition, you can be a low cost niche alternative to them. Many on this site speak as though there is some one size fits all correct approach to being in this business; there is not.

That is not true for the tanning industry, just like it is not true of any other business industry. Even the biggest fish in the retail sea(walmart, apple,) have competitors above and below them that do just fine. The only thing that may be true is that loans for any business are hard to come by. All the more reason to not sell your equipment; use it to make money, and reinvest part of what you make. Remember, the performance of your beds is more a function of your bulbs, than the beds themselves.

It is true, you do not have to spend $300K to $500K to open a successful salon, however to create a niche within an already niche industry is a mistake. To give yourself the greatest chance for success in this industry is to be a full service salon that targets 100% of the tanners in your chosen market. Compete based on what tanners are looking for. The best tanning experience at a great value. This never suggest giving tanning away or basing your business on being the cheapest. Yes the lamps tan you but your equipment beyond performance is part of the tanning experience. Knowledge of every aspect of how to be successful and effectively executing a great plan will ensure your success. Lack of knowledge is the downfall of most operators. Cutting corners in creating the best tanning experience and trying to make up for a substandard salon by cutting prices is not a formula for success.

Every salon has room for improvement in maximizing income potential some a great deal more than others. Be aggressive in improving your situation and make needed changes. Or get it right in the beginning when you are opening your salon. There is as much bad advice on these forums as there is good. Determining which advice is good can be a challenge.