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Old 03-09-2011, 05:29 AM   #51 (permalink)
 
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Re: Do you want to open a salon?

After re-reading this, I am curious if 'His and her Tanning' in Mobile Ala is still in business.
I bet, when they opened up, they had no business plan. Their idea of success is, feed off the crumbs the high-end salons in Mobile discard. And there is some nice high-end (Club Tan) salons there.

If you arestill in biz, how successful have you been??
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Old 07-23-2011, 01:38 AM   #52 (permalink)
 
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Re: Do you want to open a salon?

You can honor his tans, but pay him 75% and at the end of the 1st year minus the electric used + wear on bed per tan that you honored from the balance.
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Old 09-10-2011, 01:11 PM   #53 (permalink)
 
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Re: Do you want to open a salon?

I look at the high operating cost numbers you guys project and wonder how anyone could stay in business with that amount of overhead, my total overhead is a fraction of your projections. I guess all areas are just different. Also, tanning equipment depreciates at such a fast pace that I don't think I'll ever buy new again. It has been my experience that its not the "latest" piece of tanning equipment that makes the difference, its mainly in the lamp quality and maintenance. Also, how you treat customers is more valuable to building your business than having the newest piece of equipment on the block.
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Old 12-09-2011, 02:34 PM   #54 (permalink)
 
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Re: Do you want to open a salon?

I'm looking at purchasing an existing salon and would love feedback from you all, the professionals!

Rent $435
Beds are:
(1) Pro Sun 2870RBX
(3) Pro Sun 2800RBX
(1) Pro Sun 34/3 VHR
(1) Sun Capsule VHR
(1) Ergo Line Classic 450 w/booster
(1) My Mist Mystic w/pump and air compressor
(1) Aqua Massage

There is a detailed list of inventory, including boutique type things that she sells. All furniture, computer and tv are included. It's been in business for years and need to be revamped to be current and trendy.

She now lives in a different city and works a full time job. Therefore, she hasn't done much to promote the business in quite a while and needs to let it go. In fact, her FB page has 438 members and her last post was Sept. 18th. I feel there is growth potential.

Her plan is to shut it down by the end of the year if she doesn't sell it. The agent knows she will take $31K right now. We are thinking of offering $25K.

I'd love ANY and ALL inpute as this is a big decision for us.

Thanks!
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Old 12-09-2011, 05:33 PM   #55 (permalink)
 
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Re: Do you want to open a salon?

Quote:
Originally Posted by TanYaParadise View Post
I'm looking at purchasing an existing salon and would love feedback from you all, the professionals!

Rent $435
Beds are:
(1) Pro Sun 2870RBX
(3) Pro Sun 2800RBX
(1) Pro Sun 34/3 VHR
(1) Sun Capsule VHR
(1) Ergo Line Classic 450 w/booster
(1) My Mist Mystic w/pump and air compressor
(1) Aqua Massage

There is a detailed list of inventory, including boutique type things that she sells. All furniture, computer and tv are included. It's been in business for years and need to be revamped to be current and trendy.

She now lives in a different city and works a full time job. Therefore, she hasn't done much to promote the business in quite a while and needs to let it go. In fact, her FB page has 438 members and her last post was Sept. 18th. I feel there is growth potential.

Her plan is to shut it down by the end of the year if she doesn't sell it. The agent knows she will take $31K right now. We are thinking of offering $25K.

I'd love ANY and ALL inpute as this is a big decision for us.

Thanks!
Did you even READ this thread? or just post in it? Most your answers are in here!
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Old 12-11-2011, 12:04 PM   #56 (permalink)
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Re: Do you want to open a salon?

What does this salon gross?

Net?

Use last three years of tax returns, not so called second books. Also look at electric bills to determine if income jives with usage.

Equipment is Dumpster Food. If it were just the eq I would offer $1,000 and wait for them to close. Look at the current database. How many are current?, not just total names. What is the yearly decline in revenue due to everything being antiques and poor management?

Let's start there.
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Old 12-20-2011, 10:29 AM   #57 (permalink)
 
Join Date: Nov 22 2008
Location: indiana
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Re: Do you want to open a salon?

A few points as a salon owner in the business for 19 years.

Oshman is correct on the start up of a salon. IF you're going to do it right, it is going to cost you $350K to $500K. If you think you're going to be strictly tanning w/7 beds and be successful...good luck. If you think you're going to buy a salon for $120K and throw a little elbow grease in and compete w/those $500K salons...good luck. You can only polish a 'turd' so much. And most importantly....the salon is for sale for a REASON.

The trends are that the financially backed corporate salons are buying up the salons for sale, selling the equipment OFF, then shutting the business down so they have less competition...this is nothing new, but it's happening more consistenly now. Have a professional accountant crunch the numbers for you if you're planning on buying an existing salon...there are a lot of people scheming their way out of ownership of salons, only to pass the damaged goods onto foolish victims.

IF you are pursuing a new salon opening, Oshmans estimates are accurate...I've seen electrical installation range from $55K to $85K. IF you are opening a space w/more than 3000 square foot (18-25 beds) you will NEED to spend $20-$30K on HVAC. NO way around it.

The only good thing about the market right now, is that there is plenty of used equipment out there for pennies on the dollar. Having said that, why do you think this is the case??? Because the industry is being cut in half right now. The small mom/pop shops can not sustain and are going under, as are the people who think they can throw up a salon in a strip mall w/out doin their due diligence.

IF you are basing your business on EFT's you will lose, also. The small business owner can go toe to toe w/the corporate owned franchised salons. Tanning is not like the food industry, or any other corporate owned franchised company. The small business owner who is involved in their business will beat the corporate owned salon who has investors or owners that are never around. It requires loyalty and relationships w/clients and I dont' care what you say, nobody can do that better than an OWNER. BUT, you must do your diligence, as mentioned before...just because you're involved, you still have to have the proper equipment, education, decor, etc.

Personally, I hope that every salon owner attempts to continue on with the EFT's. Our salons destroy our competitors that offer EFT's, with a simple educated conversation w/the client at the front counter (w/out talking down the competitor) on how a salon makes the same if not more money on an EFT and 'locks' in a client like a cell phone service does. Face it, how many peope have been disappointed w/their cell phone service but can't break their contract. Poof = loyalty built, trust built, and no tricks or gimmicks.

My advice to anyone getting into the industry, be cautious, be careful....hopefully you have no debt, and are willing to work 40-70 hrs a week. W/no debt, you can weather ANY storm an established competitor can throw at you. I've seen too many beautiful salons go in and out of business in 12-24 month periods than I can count over the past 3 years. Don't be one of them. just my .02
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