apollocreed

I am in the early stages of buying an established salon with 2 locations.

I am essentially buying the equipment and picking up 2 leases.

Equip list:
location_1
3_Tan America 32HVO
7_Tan America 32HO
1_Tan America VIP3000
2_Tan America VIP3200
1_Ergoline 450
1_Ergoline 1050 (leased
1_Dr Kern 5012
1_Mystic Tan
1_Suncapsule VHR 200

location_2
11_Tan America (not sure which kind)
2_Ultra 6000 Flower Power
2_Dr Kern 5012
1_Mystic Tan
1_Ergoline
1_Suncapsule VHR 200

18 machines at each location

I am interested in buying just for the positive cash flow. I really don't know much about the salon business. I would appreciate any help on what these machines might be worth. This is essentially the crux of the whole deal.

Thanks again

Saviisneat

Please do some heavy research on the tanning industry and EVERYTHING about it!

We had a very rich guy buy out our tanning chain and he knows NOTHING about the business. He is an older man and very very sweet, but clueless. He lets the general manager do EVERYTHING. He came into our store and made the customers feel very uncomfortable. He was giving them bad advice and blah blah. I understand he owns the place, but he is hurting the business.

Trust me, you will make more money if you know what you are talking about. You want to get your hands dirty and be in the action. If your employees and managers trust you, then they will work hard for you.

And be careful with just buying the places for cash flow. The tanning industry is tough. AND you will need to think of some ideas to recover some of the money lost to the 10% tanning tax coming up.

apollocreed

Thanks,

Like i said i am in the investigation phase now and not wanting to get reamed on the used beds. The more i save there the more i can put towards marketing and taking care of employees. I truly believe in someone getting good value for their money and i want to a great business with a good reputation.

If you have any comment on the list of equipment I would greatly appreciate it.

Thanks again.

sunsally

There is a "value" to having the equipment already in place, plugged in and ready to go vs. having to buy it, have it shipped & installed, hope it is in good shape, etc - my pricing reflects this.

Be aware that if acrylics need to be replaced, these run from about $200 for a basic bed like a Tan America 32HO to $500+ for something like the Ergoline 450 or 1050.

Not sure what the second bed is that is leased (the unnamed "Ergoline" from Salon 2?) - but don't put a "value" on these, since you still have to pay out on them.

Round numbers:

The Tan America HO's, 3000 and 3200 are ~essentially~ the same bed -- (a couple more lamps, a little newer,..) -- maybe $1500-2000 each.

The TA VHO has 160W lamps in the canopy - a "level 2" type bed -- approx $2000-2500 each

Ergo 450 - $5-6K

Dr Kern 5012 - not sure of this unit - assume a VHR - $4-5K. Same price for Ultra Sun Flower Power beds.

Mystic booth - $5-7K

Suncapsule 200 - there are others better on pricing these - I'd say $4K


Bottom line - probably $40-50K for each location, not including the leased Ergoline 1050 and the other leased bed. Maybe $60K tops if they are really in good shape, acrylics are good etc.

If you have to relamp, expect it to run about $200/TA bed up to as much as $1000 each for the Ergoline, Ultra Sun, Suncapsule and Dr. Kern units.

Hope this helps.

And I would echo what the others said about buying it for cash flow - make sure you can make your investment back quickly and there is a good track history of profitability for the salon before you jump in - no matter how good a "deal" it seems.

apollocreed

Thank you very much!