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 09-09-2005, 11:50 PM   #1 (permalink)
 
Join Date: Sep 9 2005
Posts: 1
Rep Power: 0 caseyc is on a distinguished road
Hi - I am new to this forum. would like to get some inputs from the experts here.

I am interested in buying a salon in town. It's been serving a growing suburb 4.5 years. It has 12 beds with a Peacock Stand Up system and a Water Massage Bed. A New Spray tanning booth has just been added. 2004 Tower computer system, washer & dryer, CD player, nice decoration. The client list is over 4,500.

Asking price is $60K, cash flow $30K. It's currently close on Sunday. Owner doesn't do a whole lot of agressive marketing and promotion. I think it has the potential to grow..

Is it worth pursuing?
Thanks!
caseyc is offline   Reply With Quote
Old 09-10-2005, 12:05 AM   #2 (permalink)
I love Derf!!
 
Ezliving_Jim's Avatar
 
Join Date: Mar 12 2002
Location: Undisclosed Secure Location
Posts: 2,636
Rep Power: 21 Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future Ezliving_Jim has a brilliant future
Not enought information to make a buying decision.

What were the annual sales for those 4 years?

Client database of 4500 is as good as a 2 year old phone book. How may clients tanned in May? 300-400, maybe.

How many sessions were served in May? In the last 12 months?

Competition within 3-5 miles?

Population within 3 miles?

What other equipment does he have? What kind of spray booth? If his premier equipment is a Peacock and a water massager, run, run, run away.

_________________
Jim

"Entrepreneur Extraordinaire Since 1953"

Read "Why Sunshine Is Good For You And Why Doctors Don't Want You To Know"
[ This Message was edited by: Ezliving_Jim on 2005-09-10 00:09 ]
Ezliving_Jim is offline   Reply With Quote
Old 09-10-2005, 08:28 AM   #3 (permalink)
Team TanTalk
 
Join Date: Nov 23 2004
Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 20 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
Agree - get more info. How much is the rent, are all the beds paid for (no leases to assume)?

Exactly WHAT equip does it have? Brands, specific pieces, years -- that will tell a lot about 'worth'.

See more specifics on the "cash flow". Did they bring in 150K, expenses were 120K and they made 30? Or brought in 75K and they're telling you they netted 30K. How much in payroll - were they "paying themselves" if they worked hours, or do you have to factor that out of the "profit".

$60K is pretty low -- lower than you can go build something, put in 12 beds, come up with 4500 addresses of known tanners, etc. So it COULD be a good opportunity. But need more info first to be sure!
sunsally is offline   Reply With Quote
Old 09-10-2005, 12:37 PM   #4 (permalink)
 
Join Date: Dec 27 2003
Location: Florida
Posts: 1,818
Rep Power: 16 West Side Tanner has a spectacular aura about West Side Tanner has a spectacular aura about West Side Tanner has a spectacular aura about
Have YOU looked at the bank statements?
West Side Tanner 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
When Buying An Existing Salon Steve Underhill New To The Tanning Business 5 08-16-2005 03:42 PM
Manufactur's tanu01 General Tanning Industry Discussions 17 12-14-2004 09:31 PM
buying a salon - some advice.... bschooley New To The Tanning Business 13 11-16-2004 02:06 PM
Need advice on a business opportunity (buying an existing tanning salon) tansongbird New To The Tanning Business 11 06-12-2004 04:47 PM
cost of buying a salon wickedtan New To The Tanning Business 11 05-03-2003 01:53 PM


All times are GMT -5. The time now is 10:54 PM.


Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0
Copyright 2009 - tanTALK.com

click here for advertising info!