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 08-06-2009, 10:05 AM   #1 (permalink)
 
Join Date: Jul 7 2009
Location: NC
Posts: 46
Rep Power: 0 jensaccord is on a distinguished road
Smile Need to know how to price salon

I am a newbie. I am in the process of trying to buy a salon in my area. It has 5 beds and spray tan . How do you really come up with a fair price for a salon?? How do you know how much beds now are worth?? The beds are as follows


Manufacturer- American Quality (all beds)
(Green bed) model #- 23-46-4vhr
Model name- Perfect Tan Bed
# of lamps- 35 (no facial)
Very good condition, works properly.
May 2004

(Purple bed) model #-23-46-4vhr
Model name- Perfect Tan Bed
# of lamps- 35 (no facial)
Works properly, only thing wrong is lid shock (just needs to be replaced)
May 2004

(Yellow bed) model # 23-46-4vhr
Model name- Perfect Tan Beds
# of lamps- 35 (no facial)
Very good condition, works properly (needs a new top acrylic)

(Orange bed) model # 16-32-1
Model name- Perfect Tan Beds
# of lamps- 28 (no facial)
Very good condition, works properly
Aug 2002

(Blue bed) model #- 16-32-1
Model name- Perfect Tan Beds
# of lamps- 28 (no facial)
Very good condition, works properly
June 2003
jensaccord is offline   Reply With Quote
Old 08-06-2009, 10:29 AM   #2 (permalink)
Din
I love Derf!!
 
Din's Avatar
 
Join Date: Feb 10 2006
Location: Toronto, Canada
Posts: 931
Rep Power: 20 Din is a name known to all Din is a name known to all Din is a name known to all Din is a name known to all Din is a name known to all Din is a name known to all
Re: Need to know how to price salon

salon full of base beds with no facials is worthless when it comes to equipment value. All those beds are worth maybe $3000 total for all 5 beds. (Not each....but total)
__________________

www.ChronosMarketing.com
1-844-CHRONOS

SOME PEOPLE ARE LIKE SLINKIES. NOT REALLY GOOD FOR ANYTHING, BUT THEY BRING A SMILE TO YOUR FACE WHEN PUSHED DOWN THE STAIRS
Din is offline   Reply With Quote
Old 08-06-2009, 10:35 AM   #3 (permalink)
 
Join Date: Jul 7 2009
Location: NC
Posts: 46
Rep Power: 0 jensaccord is on a distinguished road
Re: Need to know how to price salon

I understand that...but where do you get this info?? Is there a resell book. I need to know where or how to get the info so I can inform the current owners that there business is worth X amount of dollars
jensaccord is offline   Reply With Quote
Old 08-06-2009, 11:23 AM   #4 (permalink)
Guest
 
Join Date: Apr 29 2001
Location: Stewartsville, NJ
Age: 55
Posts: 3,121
Rep Power: 0 Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute Brian Oshman has a reputation beyond repute
Re: Need to know how to price salon

What is the gross and net imcome?

What is it for the past three years?

What does the tax returns say, not the owners second set of books?

Beds are Boat Anchors.

How much electric is there?

How much A/C is there?

How much parking?

How many "active" clients are there? not how many in data base but how many that are active?

Have you negotiated a number to honor current packages that owner collected money for?

Do you have any idea how to run a business?

Have you taken a course in management?

How many salons in the area?

Have you run the demographics for the area?

How many years is it in business?

Why are they selling?
Brian Oshman is offline   Reply With Quote
Old 08-06-2009, 03:43 PM   #5 (permalink)
 
Join Date: Jul 7 2009
Location: NC
Posts: 46
Rep Power: 0 jensaccord is on a distinguished road
Re: Need to know how to price salon

What is the gross and net imcome? Her accountant is getting me that info

What is it for the past three years? Same as above

What does the tax returns say, not the owners second set of books? same

Beds are Boat Anchors.

How much electric is there? she doesn't know. How do I figure this out?

How much A/C is there? Same as above

How much parking? Enough

How many "active" clients are there? not how many in data base but how many that are active? 200

Have you negotiated a number to honor current packages that owner collected money for? Will take off asking price

Do you have any idea how to run a business? Sure

Have you taken a course in management? I managed a salon in NY

How many salons in the area? 2

Have you run the demographics for the area? Yes

How many years is it in business? 7

Why are they selling? Owners are in military and say it is to much for them to be over seas and noone here to take care of it.
jensaccord is offline   Reply With Quote
Old 08-06-2009, 03:45 PM   #6 (permalink)
 
Join Date: Jul 7 2009
Location: NC
Posts: 46
Rep Power: 0 jensaccord is on a distinguished road
Re: Need to know how to price salon

In reference to the A/C...how do I figure out how much A/C it has and how much do I need for a 5 bed 800sq. ft place? Also, same question fort he electrical...how do I figure out if the electrical is sufficent??
jensaccord is offline   Reply With Quote
Old 08-06-2009, 04:18 PM   #7 (permalink)
 
engfant's Avatar
 
Join Date: May 20 2003
Posts: 9,301
Rep Power: 29 engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute
Re: Need to know how to price salon

If the place has been in business for more than 2months then it's probably fine. If the place is constantly burning to the ground then I'd look a little further into the situation.

If you are buying a salon and we are talking under $30K or so forgetaboutit with the nitpicking. If the salon was up to standards of having 1000amp electric and 40tons of a/c the place wouldn't be so cheap and/or run beds that are just basic.

You are buying revenue. How you make that revenue is up to you after you buy the place.


as for

"Have you negotiated a number to honor current packages that owner collected money for? Will take off asking price"

That's a bunch of ******** as it costs WAY MORE to gain new clients than it does to just resign the current clients. Are they asking for you to cover their already paid for advertising campaigns and clients they have already paid to secure?

I doubt it. Makes more sense than looking for refunds for current packages in my opinion.
engfant is offline   Reply With Quote
Old 08-06-2009, 04:20 PM   #8 (permalink)
 
engfant's Avatar
 
Join Date: May 20 2003
Posts: 9,301
Rep Power: 29 engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute
Re: Need to know how to price salon

****, you might DOUBLE your clientelle just by relamping the salon with fresh SUPRA tanning lamps!
engfant is offline   Reply With Quote
Old 08-06-2009, 04:26 PM   #9 (permalink)
 
Join Date: Jul 7 2009
Location: NC
Posts: 46
Rep Power: 0 jensaccord is on a distinguished road
Re: Need to know how to price salon

As far as electrical goes....I may be putting a couple of high pressure beds in and want to make sure I have enough juice. How do I find out how much electrical is there?
jensaccord is offline   Reply With Quote
Old 08-06-2009, 04:30 PM   #10 (permalink)
 
engfant's Avatar
 
Join Date: May 20 2003
Posts: 9,301
Rep Power: 29 engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute engfant has a reputation beyond repute
Re: Need to know how to price salon

You don't have enough. A couple HP beds will need 6tons of air and 300amps over what the salon currently needs.

There is no reason to have this in an 800sqft salon that needs maybe 150amps and 3tons of air. That's like having a 800gallon gas tank in a stock bare bones honda civic.

You are talking about $100K in just equipment, a/c if it's even possible. If this place was previously a pizza place or equiv that used all electric ovens/etc then MAYBE it's there.
engfant 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
How to Price a salon 4-sale (help) John B General Tanning Industry Discussions 7 09-26-2007 08:01 PM
Salon Purchase Price cccastle General Tanning Industry Discussions 16 06-07-2006 07:20 PM
What price to sell salon for? tcn813 For Sale - FOR SALON OWNERS ONLY 5 02-23-2004 12:51 PM
Purchase price for a salon susanlatte New To The Tanning Business 3 09-08-2003 10:42 PM
Selling Salon ( WHAT PRICE ) mgtyquin For Sale - FOR SALON OWNERS ONLY 3 11-05-2002 05:17 PM


All times are GMT -5. The time now is 01:35 PM.


Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0
Copyright 2009 - tanTALK.com

click here for advertising info!