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03-01-2011, 09:01 AM | #1 (permalink) |
Join Date: Jun 22 2010 Location: Rhode Island
Posts: 28
Rep Power: 0 | Buying an existing salon as opposed to opening a new one.. opinions From what I've read on here, it seems like it's not recommended at all to start from scratch and open a tanning salon. Since I most likely won't get into the tanning business unless I buy an existing salon, is it recommended to buy an existing established salon? I know that it depends on the salon - how long it's been established, location, revenue, etc. - but just in general, if I can find an established salon with existing customers and everything, what are your professional opinions on this? Input is greatly appreciated! |
03-03-2011, 06:37 PM | #2 (permalink) |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: Buying an existing salon as opposed to opening a new one.. opinions In Rhode Island? Looks like the laws are about to become restrictive http://www.jsyk.com/2010/05/19/thirt...more-to-follo/ |
03-04-2011, 09:22 AM | #3 (permalink) |
Join Date: Jan 25 2010 Location: Ancaster, Ontario, Canada
Posts: 22
Rep Power: 0 | Re: Buying an existing salon as opposed to opening a new one.. opinions there is no guarantee either option will be a viable one. Updating an existing (successful) salon will be the best bet. I've done both, and would never build new again. It takes too long to develop the clientele, whereas purchasing existing you can assess the (recent) client visits, revenues, etc... "Build it and they will come" doesn't work very well with the number of salons in existence. However if somebody is selling their salon (in most cases) it's because it's failing so be very careful! :) |
03-05-2011, 08:57 AM | #4 (permalink) |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: Buying an existing salon as opposed to opening a new one.. opinions Craigslist has many salons for sale. Problem is, if they are selling it is because they are not profitable. Not to say, they could not be turned around. However, not as easy as just 'taking over'. You could pretty much expect to throw as much as half the cost of buying it into getting it up to standards. Lamps would need replacing almost surely, physical upgrades to the interior/new paint/upgrade/equipment upgrades/restock inventory/ AC/electrical/software/advertising/name change sign change and much more, whereas, it is like starting new. Good chance many customers lost in rumours of biz closing/for sale etc. It would be hard winning back customers who re-established down the street. Keep in mind, any biz for sale has been a decision made by current owner months before the 'for sale' sign goes up. In the process their 'love' for the biz dissolves..it shows in what little investment they are putting back into it, upkeep of place/equipment maintenance, customer retention and general attitude. All they are concentrating on is 'dumping' it... |
03-06-2011, 11:04 AM | #5 (permalink) |
Join Date: Sep 17 2005 Location: Southeast
Posts: 374
Rep Power: 19 | Re: Buying an existing salon as opposed to opening a new one.. opinions Both are good, depending on the situation. We use a combination of both, building and acquisition. Over the years, we are about half and half. Half we built and half we bought. Obviously, research why they are selling, look at tax returns, bank statements, and POS Reports, see if they are selling because a BIG BOY is coming, etc. etc. |
03-17-2011, 02:05 AM | #6 (permalink) |
Join Date: Jun 20 2010 Location: colorado
Posts: 33
Rep Power: 0 | Re: Buying an existing salon as opposed to opening a new one.. opinions i built mine from scratch because i thought it was cheaper .. boy was i wrong ! ive invested over 130,000 into it so far ... my break even point is about 8,000 per month ... ive been open for 6 months now and my efts are up to 2,500 , im not sure if im doing good or bad .. what i can tell you is it sucks trying to built clientele from scratch ... i have 400 people in my database when i need 4000 |
03-17-2011, 04:57 AM | #7 (permalink) | |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: Buying an existing salon as opposed to opening a new one.. opinions Quote:
You need help...$8K a month break even??? On what?? Certainly not electric with only 400 customers in data base. You are spending $$ on inventory you should sell only when the tan biz profits...I told you, get different beds and concentrate/market tanning only. A good salon in your market should have 4,000 in the data base as you state, profiting, not spending 8k monthly | |
03-17-2011, 10:47 AM | #8 (permalink) |
Join Date: Jun 20 2010 Location: colorado
Posts: 33
Rep Power: 0 | Re: Buying an existing salon as opposed to opening a new one.. opinions lets do the math einstein , 3,100 for rent , 2,500 for payroll , about 500 for electric , give or take about 500 for lotions , teeth whiteners , and skin trinkets ;) about 1000 a month for google clicks because im being outbid by itan solariums , and 600 per month on other advertising . Now maybe YOU know that some of my beds are outdated , customers dont know that , in fact do you believe that new beds do a better job than old beds ? The beds have gone from metal to plastic value . I was in atlanta georgia a month ago , EASY market ! Cheap rent , white people with money , less competition , no **** beach ... like i said before in another post , WEST COAST is wayyy different than east coast buddy . Thanks for all the positive thoughts |
03-17-2011, 10:25 PM | #9 (permalink) |
Join Date: Nov 19 2010 Location: GA
Posts: 933
Rep Power: 14 | Re: Buying an existing salon as opposed to opening a new one.. opinions First off..The name ain't Einstein. But thanks for the recognition. I do not know where in Atlanta you were, but this is not an easy market. There are salons closing weekly, one in every strip mall, on every corner. In fact one of my salons is one of four all within walking distance. My base beds at that location are all Orbits. The rest HP beds...so competion is keen. Rent is not cheap;$26-42 a sq ft depending on location. Atlanta is no small 'hicksville'. There is a population of 4million people in the metro area, and yes, plenty of white people with money. They know what they want and know how to shop and buy for it..which adds to the competition. I do agree, old beds can be as good as new. depends on how you care for them, and type. However, san Diego is not an easy town either. Shoppers are hip to what is around. I know several salons (former mods on this and other tan forums) were BIG in San Diego. many top salons with HP only. So any serious tanner looking to spend is smart enough to know beds. Don't cut your customers short. Many are impressed with the new 'WOW" factor todays bed offer and shop for it. I do not see how you could be successful with only $500 a month in electric. I spend more in my home. My salons run me about 14K a month (3 salons/HP beds). Your payroll @ $2500 is 5 times more than the electric, which tells me you are paying people to wait around for tanners to show. You seriously need to re-vamp your business plan. Spending $1600 for advertising ($1000 for google/$600 ads), but not enough to generate more of an electric bill? Your electric should be what you gauge the biz on. In the tanning biz, you want to see a high electric bill each month. Running AC/Lights/computer/W&D/beds should be more than $500. Something is wrong... .I will not reply anymore. Best of luck to you.. |
03-18-2011, 01:31 PM | #10 (permalink) | |
Join Date: Mar 17 2011 Location: Wildwood, MO
Posts: 84
Rep Power: 0 | Re: Buying an existing salon as opposed to opening a new one.. opinions Quote:
i have added almost 500 new clients in 4 months doing an employee incentive. i give each one of my employees approx. 50 new client cards each month, whoever brings in the most new clients in a month wins that month and gets a prize. my new client cards are good for 5 tans in any bed, which expire after 30 days, this is also good so clients will know which bed they like & which levels they can afford. it also keeps people coming in (opposed to 1 free tan), to be able to sell product! my girls love doing this! its healthy competition & it gets them involved more! and based on the new clients they have brought in, i can't tell you how many of those new clients have referred people! | |
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