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Old 08-28-2007, 10:54 AM   #1 (permalink)
 
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Which salon to buy 35K vs. 75K

I decided not to get the 14 yr old salon. I found 2 other salons closer to my home for sale. I don't know which one I should invest in.

The first one has been in business for over 20years. The salon has been totally remodeled & the beds upgraded. Total of 7 beds running with 2 empty rooms to add addtional beds with one being wired already. There is a high pressure bed in this salon. I was told that bed alone generates about 30k yr. The other beds consist of 3 regular beds, 2 super beds, 1 Turbo. She is the 3rd owner of this salon. She's not able to supply me with tax returns b/c she said she didn't file them on the business. She's had it for 2yrs now. She printed off reports for me while I was there. She went to the old boxes and pulled out reports from the previous owner. The reports all the way back to 2003 show a gross sales of 120K. Her report 2007 to date is 90K. The salon is completely computerized. She is willing to do part owner finance for me. Rent is 1233/mo. More than enough a/c. She pays 3 pt employees.

The second has been in business for 6 years with 7 beds. 5 regular beds, 1 super and a spray tan . No rooms to add add'l beds. Her gross for this year to date is 54K. The asking price is 35K and she's willing to do part owner finance as well. This person took over this salon and doesn't have tax returns either. Rent is 1600.00/mo and 1200.00 for Dec. Jan. Feb. Her expenses run about 25K with her paying 2 part time employees.

I really like the first salon with the HP bed. I want to get some opinions for the experts.
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Old 08-28-2007, 12:25 PM   #2 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

#2 is garbage. Spray tan is trash.

The first one is better. You have an established place that's been there forever and has been upgraded. I'm thinking their return on the money they spent on upgrading hasn't been what they were hopeing and now they need to leave.

ONLY THING IS make sure they don't have FAT TONY gunning for them cause they have outstanding loans, etc. Also,

do you have any idea on what the beds are?

PM me if need be.
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Old 08-28-2007, 12:33 PM   #3 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

Yes. I've actually looked at these beds also. The oldest is the Sunvision Elite she said she was going to upgrade that one also but the clients seem to like that bed therefore she kept it.

1 UWE Corba 15 minute – 3 High Pressure Facials
1 Sunvision Elite 15 minute – 3 High Pressure Facials
2 Mega Power 28M 20 Minute – 100 Watt
1 Mega Power 32M 20 Minute – 100 Watt
1 Sunliner 5000 160 Watt – 15 minute
1 Sunsport 2021 1000 Watt – 30 Minute High Pressure Bed
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Old 08-28-2007, 01:12 PM   #4 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

No FAT TONYS..LOL The current owner has another salon that is more like a spa. She's putting all of her attention into that one right now and going back to school.
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Old 08-28-2007, 01:45 PM   #5 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

Spray tan as in booth or airbrush ? Booths are not the way to go, airbrush is!!
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Old 08-28-2007, 01:48 PM   #6 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

It's a good deal...but not for $100K. Don't know how much they are looking for but this will make or break it IMO.
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Old 08-28-2007, 01:51 PM   #7 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

Oh $75K.

Hmmmmmmmmm.
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Old 08-28-2007, 01:54 PM   #8 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

I think I've asked her every possible question I can think of. Any advice of questions a newbie may not know to ask. Is 75K a good price?
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Old 08-28-2007, 01:55 PM   #9 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

The other salon is a spray tan not a booth
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Old 08-28-2007, 01:58 PM   #10 (permalink)
 
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Re: Which salon to buy 35K vs. 75K

That spray nonsense is worth $0. NEW it would only be a couple hundred.

It is good if you can come up with $75K and the beds aren't one step away from blowing up or the building isn't falling down. Owner financing smells fishy to me.
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