LiveTanLove

yes we run into some snags as well but it's also been a fun ride. I have opened other salons so I came across some expected issues. The only difference for me at this point is a new territory. Electrical is expensive which is why we made sure to include that in our lease etc so we didn't have to come out of pocket for it. What kind of beds did you get? I'd love to chat!!

gravesmc

Thankyou so much for the reply!!

We purchased our beds from Tan America.
3 -santa Barbara 20 min
4 -Pacifica 12 min
1 -6400 12 min
1 -sundazzler standup 9 min
Mystic Spray 2010

How do you do your pricing? Minutes, sessions? I am going to charge $6.00 level 1, $8.00 level 2, and $10 level 3. The Mystic is $23.00. There are 2 larger Salons in town, so I am staying in the middle for pricing. We give a break on prices for how many sessions are purchased. Selling minutes seems easier, but I've read on this site that that is not the best way to go. What do you suggest for a grand opening special. We are thinking about free tans for one day to get people in to see our salon, or maybe free tan with purchase to at least make them buy something from us. We are in the best location as far as the others on a busy intersection, but our competitor is only blocks away and they are the cheapest for prices, but the place could use some updating. The owners are from out of town and don't spend much time there at all. They sell minutes, which is another reason for us not to. Customers won't get to compare pricing so easily. They sent us a horrible email stating they will gaurentee putting us out of business!!
We have rented out a part of our building to a tattoo service. They do get alot of traffic through our front door, interesting crowd too!
I would LOVE to get some feedback from you! We've never owned a business before, so alot to learn..

sunsally

Wow.............

I say this constructively, not trying to rain on your parades........

But as a long time salon owner, consultant, equipment leasing VP and active member on these sites..........I'm worried for you both unless you have TONS of extra money put aside!!


GravesMC -

Your equipment is fine. But opening a few blocks down from an already established competitor -- WHY??

They have all the advantages of customers that are already walking in the door, equipment and location paid off (probably), etc

You have tattoo customers walking through your front door??? That you yourself describe as "interesting crowd"?? Some of your prospective tanners may be fine with that, but others will find that a negative!

Your pricing is NOT enough for you to be profitable. You have GOT to have the pricing right or you won't make money. And definitely - for NO reason whatsoever - sell minutes.


LiveTanLove -

Equipment alone will NOT get everyone to switch over to your salon!! They are "comfortable" where they are now - people don't like to change as a general rule. And if you are still working on buildout in mid-December....you are behind the 8ball already to opening in time to capture the bulk of the "season". Your competitors will be locking them into packages and memberships while you are busy stenciling and getting the doors open.


Not trying to be negative - being realistic. If you both have PLENTY of cash set aside (NOT including the money to open) -- as in 50-100K --- then you may be ok. But it is VERY tough - today - in this tanning environment and in this economy -- to be a "single" salon opening brand new and hit the ground running right off the bat. To do that - you need to put a LOT of money and effort into your initial advertising and opening, know how to SELL, have your pricing designed to retain long-term customer commitments, etc

Hopefully you are on top of all of that already. If not - there is a LOT of good information on this site to help!

SprayRayz

This is all very intriguing for me to read, as I just celebrated 6 months of owning my own tanning salon and many questions/ideas you are having are similar to mine only 9 months ago.

I purchased an existing salon with a good reputation in my home town. Before even talking to a loan officer I studied the past 3 years of the business's financials, the demographics of the location and the UV/Sunless industry. When it came time to make an offer, their asking price was worlds different then my offer.

Long story short, I've spent the past 6 months learning the daily operations, marketing a new business (I changed the name to couple with my already existing mobile spray tan business), troubleshooting electrical and maintenance issues, handling employees, reviewing and editing procedures, cleaning, doing laundry, cleaning again and most importantly....paying bills.

I have learned a lot in the past 6 months and know that I've only hit the tip of the iceberg for knowledge and experience. All the visual ideas and dreams I held in the beginning have been put on a backburner to focusing on daily operations and building a strong clientel that continues to return.

Good luck with all your endeavors! Also my lawyer, accountant and banker have been worth every penny.

__________________
"Work smarter, not harder"

gravesmc

This is definately going to be a competitive business for us. The tanning salon down the street is constantly running sales - buy 100 min, 200 min, 300 min, get the same free, since they are so determined to put us out of business before we even open! We won't be able to do those prices, but we are cheaper than Tanworld here in town. I will be happy if we can just break even for the first year, really.
Does anyone have any ideas for our grand opening? Free tans for 1 day? Anything to get people in our door at least, even if they have packages elsewhere. I think our salon is decorated the nicest, so maybe they will switch over.
I'm also thinking about adding some retail to the business, such as sunglasses and hand bags and totes to get people to come in. Should we offer 10% off to all students? Any feedback will help. After reading some of the responses I have gotton, I feel as though it will be a struggle to keep my head above water, and the feeling is sinking me.

sunsally

Gravesmc -

If you try to compete on price alone - you will never make it.

Tan World is an established salon with many locations, years and years of experience, advertising push behind them, etc. You aren't going to take their customers away by being a dollar cheaper.

The other salon is just down the street and has already told you right to your face - they will do whatever it takes to keep you from succeeding. And honestly - if YOU were the established business and someone new tried to open right down the street from you - wouldn't you feel the same way??

What was your business plan initially? What made you think this was a good idea? Why this location, why this equipment mix, etc etc etc? You indicated you have never owned a business before -- what made you decide to start one now in this economy, and in tanning of all things?


Again - I've helped 100's of salon owners, so when I read "I think our salon is decorated the nicest, so maybe they will switch over" it give ME a sinking feeling for you too!

Think about your habits --- do you go to businesses because they are "decorated the nicest" of the other choices in that category? Would you change hair salons if a new one opened that had nice wall paint color? Would you shop at a different grocery store because they had chandeliers in the aisles? Do you shop and use the Wal-Marts, Home Depots, Walgreen's, McDonald's, Outback, Starbuck's, Dairy Queen, Chipotle, etc of the area or do you use all the small, independent, tucked away, cute boutique shops and restaurants? Are you willing to pay more for the same thing because the shop has nicer floor coverings?


Honestly - if you are already $120K in, and can't get out of it, you have to get serious REALLY quickly or you will lose all that and more (did you sign personally on the building lease so that even if the store closes you are personally responsible for the rent?).

Are you quitting jobs to run this salon? One or both of you? Have you trimmed all your personal expenses as low as they can possibly be - already? Have you committed that your holiday gifts this year will be NOTHING because the salon is your gift?

Do you already have a sign in the windows saying you are "COMING SOON"? Do you have a website and have that address in the windows so they can see pics of your equipment and read about what you have planned? Are you passing out business cards everywhere you go nearby (grocery store, restaurants, etc) with an offer for when you open?

Have you read this site for HOURS AND HOURS AND HOURS?! Going back a year, two years, 5 years. When things were better. Doing a "search" on topics (like "Grand Opening" or "Free Tans" or "Pricing",....) to see what others, who may not be on here currently, have said for ideas?


You haven't failed yet, so there is still an opportunity - don't lose hope yet! But you have to approach this as if you have every penny of your life savings invested in it and your life depends on it being a huge success - because it probably does, and unless you are making it the number one priority in your life and have a very strong idea of what you need to do to succeed, it will not.

SprayRayz

Don't be discouraged but keep a realistic view of the whole situation. Too often, we get so caught up in our dreams and ideas that we loose focus of the day-to-day operations and keeping the bills paid. It is not a "get rich quick" industry and if you can't survive personally without a pay check for months, then I'd build your savings up for awhile longer. Your decor is not going to be the primary reason people visit you. Customer service, prices and bed quality will keep them coming back.

Be aware of your competition but not obsessed. Do not base your moves around what the competition is doing. Correct me if I'm wrong, but you will be one of the lucky ones if you break even your first year. I am still a newbie in this business but from my research and what others have told me, breaking even the first year is rare.

__________________
"Work smarter, not harder"