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Old 03-10-2009, 12:38 PM   #1 (permalink)
 
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Want to purchase an existing salon....need feedback

I am wanting to purchase an existing salon here in my city. Great area. It has been in business for 8 years. Even though there is a salon close, she has kept her business going well by not constantly raising her monthly pricing. Has over 4000 customer base. Has about 100 people a day tanning. I am in the very beginning stages. I have yet to go by and look at the salon itself but I know the area and know its a great one. The purchase price of 75k includes everything. Thoughts?
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Old 03-10-2009, 01:08 PM   #2 (permalink)
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Re: Want to purchase an existing salon....need feedback

Need a lot more information before we could offer any guidance.
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Old 03-10-2009, 01:21 PM   #3 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

Could be. What are they grossing a year?

100/day is a lot of people.
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Old 03-10-2009, 01:44 PM   #4 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

Since we are still in the very very beginning stages, I don't know yet. I have to sign a confidentiality statement before they will release that info.
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Old 03-10-2009, 01:56 PM   #5 (permalink)
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Re: Want to purchase an existing salon....need feedback

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Could be. What are they grossing a year?

100/day is a lot of people.
hit 245 yesterday........... 1 store
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Old 03-10-2009, 03:30 PM   #6 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

When I get more info, like the annual gross, I will post and see what you guys think. Thanks so much for replying so quickly today!!
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Old 03-10-2009, 04:08 PM   #7 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

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hit 245 yesterday........... 1 store
How many beds/employees? What's your bed mix like? Thats close to 5 times what we did.
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Old 03-10-2009, 04:35 PM   #8 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

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When I get more info, like the annual gross, I will post and see what you guys think. Thanks so much for replying so quickly today!!
That and how many beds there are and what brand they are. I honestly would rather have beds that can last forever and make good money than expensive beds that make the same money.
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Old 03-11-2009, 12:02 PM   #9 (permalink)
 
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Re: Want to purchase an existing salon....need feedback

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I am wanting to purchase an existing salon here in my city. Great area. It has been in business for 8 years. Even though there is a salon close, she has kept her business going well by not constantly raising her monthly pricing. Has over 4000 customer base. Has about 100 people a day tanning. I am in the very beginning stages. I have yet to go by and look at the salon itself but I know the area and know its a great one. The purchase price of 75k includes everything. Thoughts?
Purchasing An Existing Salon Can Be A Good Investment

A quicker less expensive way of getting into the indoor tanning industry is to purchase an existing salon. However you must be cautious because there are many potential pit falls.

90% of all tanning salons are struggling or failing, typically if a salon is for sale it falls into this category. This alarming statistic is not due to a week industry, instead it is a result of new salon owners not being properly educated and prepared for success.

When evaluating the purchase of an existing salon you must approach it as though you are opening a new salon from the ground up. You must first determine the potential of the salon by evaluating the demographics. If the demographics are good you can now evaluate the salon further. Always look at the parking situation and how easy it is to access the location. You should determine all of the changes that must be made to create a successful salon. To do this you must again have the information and knowledge required to be successful. You must determine the cost associated with making these changes.

You must determine the value of the salon by asking a number of very important questions. Net profit of the salon, equipment value or a combination of both will determine the value.

Very old salons can be a problem because the rooms are typically too small. With proper evaluation, a proven plan for success that the previous owner did not have and the proper funding to make the appropriate changes will allow you to own and operate a successful salon saving a great deal of money over opening a new salon from the ground up. Major mistakes made by people that purchase failing salons: Paying more than the salon is worth, not being any more qualified to operate a successful salon than the previous owner, not identifying or making the changes necessary to create a successful salon, not being properly funded. It is just as easy to succeed as it is to fail, knowledge is power.
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Old 03-11-2009, 12:05 PM   #10 (permalink)
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Re: Want to purchase an existing salon....need feedback

Sound advice, and solid posting ... as always. Thank you, Steve. Thanks for stopping by again. I hope business is good for you, and all of your satisfied customers.

Don't be such a stranger - we value your input. ~Or I do at least!~

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