mbmrmc

Hey guys. I'm looking at purchasing a tanning salon that I have been going to since it opened in 2002. The owner says the sales for the last 3 years were approx. 155k and it cost approx 70k to operate and pay the supplies and bills, In 2008 50k was spent updating the beds and he cleared approx 86k each year for the last 3 years. It has 7600 clientale The salon has the following beds employes 3 people (that cost is included in the 70k). He is asking 170k for the business.....advice on a wise buy or not? Its a very well taken care of salon and in a great location (a strip mall with a Kroger, restaurants etc)

7 20 min.beds
2 15 min. bronzing beds
1 12 min. stand up bed
1 13 min. high intensity bed
1 12 min. high intensity bed
1 spray on bed

sunsally

1. Don't base your decision on what the owner "says" it did and "says" he spent. Get copies of the last 3 years of tax returns and if they have a computer system, computer stats on how much in revenues and how many tans.

2. Ditto expenses - get copy of rent statement to verify rent (or call landlord) and electric bills.

3. The way you have described the equipment doesn't mean anything. Find out exactly WHAT beds he has - the manufacturer and model. The year would also be helpful.

4. Find out how many ACTIVE customers - not total in database (the 7600). That is - how many "unique" customers tanned there within the past year. How many are they seeing per day right now? How many do they see per day in September?

5. Do they have membership/EFT customers?


You need this information before you can even begin to evaluate if it would be a "good" purchase

glowtanning530

Without actually knowing the make and model of the beds its hard to adequetly tell you if its good or not.
I would say if hes selling and its making money look very very close at the P&L report and tax returns dont buy into that cash crap. If its not reported it doesnt exist

mbmrmc

I understand completely and thanks for the suggestions. I do havefor verified tax returns and computer stats, rent statement and electric bill statements...all if verified that it actually takes about 70k to operate and the income was 155K for the last 3 years. I'll get the make/model year of the beds, the active customer #and how many per day, especially in sept. I do know that have mbmship pkgs, unlimited tanning each month, and set prices for set number of uses in a certain bed.

Stick with me and I'll get the other info for you . Thanks again....talk with you soon.

mbmrmc

Here is all the information I will be able to provide. Thanks so much for your input.

The leasing agreement goes until 2014.
150 active tanning customers They do around 20 to 25 thousand tans per year.
More people buy pkg's than the 1 year memberships.

7 20 min. beds 2008 models by Prosun
2 15 min. bronzing beds 2004 models by Prosun
1 12 min. stand up 2004 model by Prosun
1 13 min. high intensity bed 2004 model by Prosun
1 12 min high intensity bed 2008 model by Prosun
1 sun sun spritz spray-on 2005 model by Heartland

a lady who comes in and does airbrush for us by appointment. (we split the fee 60/40). We also have 2 empty rooms for growing.

sunsally

1. How much is the rent?

2. They do 20-25K tans/yr...so they are seeing over 100/day this time of year and about 25/day in the fall?? And they have only 150 active tanners? Of 7600 in the data base?

3. Is ALL the equipment paid in full? No leases or loans you have to take over?

4. What is the local competition? How many salons, how many beds each, how close to you? How many people live within 5 miles of this salon?

Tanner123

caribbean tan man

i wouldnt suggest anyone buy a salon right now, there i so much bad press lately and now the 10% tan tax is coming...lots of salons 4 sale right now because of these issue.

dont be the fool who buys a salon from the current owners who know they aint going to survive the tough times ahead and are looking 2 bail

__________________
someone PM me when a good tanning topic is posted. :lol:

jkonturas

Agreed...... Tanning Salons are Sinking Ships right now... Dont be a fool and invest money to lose it.... Theres alot better businesses right now....

__________________
http://www.extremetanri.com

CrystalSS

There is going to be an incredible thinning of the herds in the next year or so. But, it is not exclusive to the tanning world. So do you take advantage of clearance sales or do you hold? MMMM..wish I had a crystal ball.

If we own the business now we have to weather the storm.

Despite the adversities to ALL people that own a business right now most of us are in for the long haul. It is do or die. I love it, I believe in it and will go down with the ship if that is the hand I am dealt.

The upside is there is always going to be a demand for our industry. Those of us still standing will be okay in my opinion. With the amount of closures in my city I am already making gains.

My POINT is....It will not be poor management/economics that shuts us down, but it will be big government and special interest propaganda. So in essence, THAT is what REALLY needs to be considered the most in my opinion. That needs to be your BIGGEST concern right now if you are considering our world.

Oil is a valuable commodity and a solid investment..BUT I would not invest in off shore US drilling right now as the future is on precarious ground. Who knows what the future holds? It really is a GAMBLE for many arenas right now.

If I were standing in a position at this moment looking for a business to buy...knowing what I know as of today....WELL?
Times have changed and as a result we have to change our approaches. I remain ever optimistic. This is my world and I will fight to the death for it.
Just really do your due diligence outside of the textbook business box too. Best wishes.