Black Sun

Main ST...Sorry, but those #'s are too far from the truth of things...as far as those beds, the only ones you should keep are the Suncapsules and UB...Believe me, replace those other beds...they are worth a $1500 tops for all 3.

Parrot Head is 100% right-on. The equipment is obsolete, and not appealing. Even if you invested new lamps, the tan results will have folks looking elsewhere.

You came here for advice, take it to heart. I would not give up my day job for this venture. Making it in this industry, as a start-up, takes a good 500K investment....100K at the least if the demographics and competition is not there. BELIEVE ME!!

MainStreetTan

OK..I am going to try to address a few different things here. First, the demographics. Roscoe, Il is a smaller town located just north of Rockford, IL, and is about an hour west of Chicago on the stateline of Il and WI. Here is some data:

Population (By ZIP Code)
Roscoe 14,694
Rockton 8,305 (located due west of Roscoe, no tanning salons)
Wiinebago County 269,977

Median Household Income
1-mile radius of Roscoe Village $82,986

RACE
White 93.26%
Black 2.82%
Other 2.75%

Demographics
Total Population: 15,981
White Population: 15,406
Black Population: 181
Hispanic Population: 295
Asian Population: 151
Male Population: 8,071
Female Population: 7,910
Median Age: 36.8
Median Age of Males: 36.6
Median Age of Females: 37.0


"61073 is a suburban zip code in Roscoe, Illinois. The population is primarily white, and mostly married couples. At $138,100 the average home value here is a bit higher than average for the Rockford metro area."

To sum up, I live in a moderately rich, little white town for people who moved away from the city 25 minutes south. The average woman is a 37 year old white female. Some might say...soccer moms.

Next..the competition. There are two other tanning salons in Roscoe, IL. I am familiar with both of them, and have obtained their pricing list and hours of operation. The competition's prices are a little higher than the price list left behind by the former owners of the salon I have bought. This could easily be attributed to the quality of the equipment offered, I will not need to debate that. There are many tanning salons in the Rockford area, which would not be direct competition. The closest location outside Roscoe would be about 7 miles away.

So, some questions still remain. If I were to eliminate the three lowest quality beds:

1 Miami Sun Turbo (40 lamps/ 4 face)
1 Sunal (30 lamps / 0 face)
1 Sunvision 28LX (28 lamps)

And replace them with:

1 ETS Starpower
1 ETS Sunstar 332 (w/ facials)
1 Sundash 240 G

And keep:

1 Ultrabronz 818 - High Pressure
1 Suncapsule VHR Sixty/Nine (60 lamps)
1 Suncapsule VHR Euro Series (48 lamps)
1 Solaris Speed 175 System (42 lamps/ 3 face)
1 Sonnebraune (32 lamps/ 3 face)

How would you feel about my chances of becoming a modestly successful owner/operator with the demographics and competition info provided? I would be happy with an income in the mid-30's. If I made $40K-$50K, that would be excellent.
If there is no hope, what would be the best way to liquidate the inventory to recover my investment? What would you think would be reasonable prices fro these units?
If there is no money, how do the people responding to my postings get by? Do you have multiple locations? Or do you own salons that generate say $10K-$20K to add to what you make at another job? I'm missing something there...

Black Sun

You will not make 30-40 or 45K with any of the equipment. You don't get it. The industry is on the skid.

Even the beds you want to replace them with will not generate much. The demographics are not the generator. This industry is being hit from many outside forces that are bringing it down. Some of the best industry related companies, from the best bed makers to the top lotion companies, all that have been here since the 80's, have gone bankrupt.

I have been here and on these boards since the start up of tan forums. I pride myself with the knowledge I have. My advice, open a different business. One that is more receptive to the serving public. If you do not have 200-500K to throw into this, WALK! What scares me, I believe you said you spent your last $5,000 on the used beds.

If you don not have a 12 month cash reserve to meet overhead, you will surely go bellyup in 3 months. A reserve to cover not only every day buisness cost, but personal expenses, like rent/mortgage/food/utility/auto..and if you have a family, the problems triple.

Chicago has some of the nicest salons. I frequent often since ny wifes biz takes her there 2x a month, and I usually tag along. When there, I check them all out; from Ultimate Exposure, to Soleil, from Ciecero to the North Side. There are some top salons there. I know where Roscoe is, and frankly, if I was a serious tanner and lived in Roscoe, I'd drive the hour into the Chicago burbs and find an Ultimate Tan Center, which as you know are all over.
You need much better equipment, the replacement mix is just as bad.

I wish you the best of luck...consider another business if your heart is set on being a biz owner..OR...take the advice, re-coup what you can from the beds and be happy some friendly strangers prevented you from years of debt.

Business and 'soccer-moms' will not flock to the place. Believe me!

MainStreetTan

No, it was not my last $5K. I have some reserves still, but what you are describing would require around $90K.

It is not that I don't get it, but more so that I am willing to work to find a way to make it happen if possible. I am not committed to anything at this time more than the $5K I have in. I can do whatever I want with the equipment, and associated inventory. If that is liquidation, so be it. I asked before, what would be your opinion of the best way to dispose of the inventory. Even at the most rock bottom prices imaginable! I have local resources for moving and storage if need be.

Someone had said that besides the stand-ups and HP bed, that the other machines might be worth $1500 total. Fine. What are the rest worth? If they are worth $2000 or more apiece, I can still profit on this. There are other inventory items that might be worth about $500 or so total. Those things can go on Craigslist.

Black Sun

How old is the UB?
Suncapsules? What models?

One thing about standups..industry stats prove that less than 10% of tanners prefer standups, over lay downs. If you were to do this, get rid of the worse/oldest Suncapsule.

I am the one who said the beds are worth $1500. The Sunal about $400, if you are lucky, the Sonnebraune actually about $1100..the Miami Sun..no idea, but since no longer imported (parts etc), probably $900 tops. I'd PM Brian..he is on here as a moderator..he could tell you exactly.

Or you can keep the Miami Sun, depends on looks/condition etc. Does it use 160 lamps or 140's? The older models were 140's. They were good beds in its time, but went bankrupt at least 10 years ago.

Craigslist would be the best to advertise, or ebay. Just keep in mind, advertise as 220w needed for the beds. The Sunal would make a good home-unit, so advertise as such.
Unfortunately, no salon owner would buy the Sunal...maybe the Sonnebraune..The Suncapsules have a better chance for a salon to purchase.
Good luck

rrm44

I think to sum up a lot of what black sun is trying to tell you is that there is no way in **** that you will gross $45k your first year. period! The tanning industry is not what it use to be. Lots of people are opening up, not knowing anything about tanning or the industry and then selling 6 months later. Beyond the equipment (not an expert there) you have to think about advertising, education, various start up costs, etc. If you do not have the time to devote to this business because of your son you shouldn't open. Being completely honest here. You will have to spend every day at the salon putting in more than 8 hours a day(depending on your hours). If you hire 2 employees in the start it's going to eat up what you make. Trust me, you can't open your doors and expect the people to come. Its not a "if you build it, they will come" business. I know nothing about the equipment mix you have, listen to the other people, but I do know that if you open, this salon will be your 2nd child that will take up just as much if not more time then you already spend with your son!

MainStreetTan

But really, $35K would be fine! It's more than I make now. I have considered advertising costs, and have estimated to spend more than the former owner reported as part of my projected budget.
Truly, I could reopen with a business license and a credit card machine. Virtually everything else is in place.
I have joint custody of my 5 year old son. On the weeks that he stays with me, I would expect to put in a bit less hours. The hours of operation I have planned, and the number of hours I would need to have worked by someone other than myself are also factored into my projected budget.
The former owner owned two locations, and this was likely the better of the two. Between two locations she was reporting over $213,000 in sales volume. If you were to say that the salon I now have was the little brother at $100,000, then you would have over $8000/mo in average sales. At $8000/mo minus projected budget expenses, the salon would earn about $35K/yr. If the salon were indeed mis-managed, than there should be potential to increase the sales volume by advertising and salon upgrades. If the gross volume sales was increased by only 10%, the salon could generate a $45K income.
Still many unanswered questions. Still listening to everyone's input. Thanks!

Black Sun

MAN>>>YOU DON'T GET IT>>>>I doubt she had a salon making over 200k in sales...did you see the records on both salons?

You know what, my friend...GO FOR IT!!!

Best of luck...

I am finished here

rrm44

Yeah... thats what I was going to say. Good luck, Hope everything works out for you but I think you are aiming a little too high for your first couple of years. Maybe in the future you can do $35k but Its not going to be this year.

rrm44

and think about it.... if she had $200k in sales, why did the bank repo the beds? isn't that what you said in the beginning? Something doesn't make sense....