03-31-2011, 01:11 AM | #1 (permalink) |
Join Date: Mar 31 2011 Location: Saint Louis
Posts: 3
Rep Power: 0 | Take Control April 1st Hello, I love the forum. I am NEW to the tanning business. I have started companies from the ground up but never something like this. We had an opportunity to take over a Tanning Salon in Saint Louis. I basically got the business for $8000 and financed $12,000 through the leasing company (They were getting evicted) The tanning salon has 9 beds and a spray tan . 1 stand up, mega, 2 level 2, and 2 level 1. They have two rooms without tanning beds. They had some shaking weight losing thing in one (now gone) and two busted up tanning beds in the other. I negotiated the lease from $2040 a month to $1300 a month and financed the other 12,000 for 5 years @ 6% through my leasing company, plus got two months free rent. In one day I got over $10,000 back in the place without getting the keys yet, The business has been there forever in a very busy strip mall. My question is this. After breaking everything down it looks like each room needs to make $130.00 a week to break even, and $210.00 out of the front room for lotions and stuff (Dont know if anyone considers front room space as money maker like this?) The two rooms that have nothing in them I want to put a red light therapy bed in one, and bring in a subcontracted massage therapist for the other (Other business I started from scratch is a pregnancy pillow I patented for massage therapist) Is this a good combo? What does average Red Light Therapy bed bring in? Should I fix busted tanning bed and make them red light? Anyone doing blue light? Should I do that instead of the massage? I figure I would ask the experts. I would like to take this business and bring it back to life with owners who understand running a business, and not just buy it and they will come. You see tons of opinions on specials, packages, contracts, members, etc.. My philosophy is keep it simple. i would rather have membership tiers 4 tops, and non membership 4 tops, and if I get the red light beds a combo pass. Is that the way to go. Sorry to ramble. I am excited about this opportunity. I got the business for a price that still makes me laugh. I also have 3 teenagers that could be cheap labor :) If I can trust them... Thanks again.. all advice is appreciated!!!! |
04-01-2011, 09:56 AM | #3 (permalink) |
Join Date: Mar 5 2008 Location: Ga
Posts: 156
Rep Power: 17 | Re: Take Control April 1st It would have been better to have picked it up a few months ago as you’ve now missed one of the three best months of tanning. Did you get the information for the past tanners with the business? They would either be in on new client forms and/or in the computer system running the salon. You need to market to these people now. When I say now I mean today… Usually I would recommend a cheap printing place like VistaPrint, but you should have quick results with someone local to print out some cards. You goal should be to have post cards in the hands of prior clients by the end of next week. Do a free tan WEEK with EVERY bed is free. Do this the week after you mail postcards out and make sure it is well seen on the cards… . While you are doing this offer a sale on packages that is too good to pass up. These sales should only be on monthly packages so you lock in the tanners. Find out what your competition prices are and undercut them strongly with the sale. Remember the sale is only for the week and if they don’t buy then the prices goes back up to what ever you’ll normally be charging. I don’t run sales during busy season because it doesn’t make sense. This is different because your chances of missing the busy season are high and you need that income to make it through slow season. Post a thread on lamps here and who to buy from. John @ URI, RokertK, and Brian Oshman are people to approach. Your beds probably need new lamps and you want them running the best the can when people try you for the first time. Look up Solar Meter and buy the 5.0 and 7.0 meters. Use them… Clean the **** out of the place and put up some new paint before the free tan week so its nice looking. Figuring a required income per bed/room probably won’t work. I tried that approach when I purchased my salon and dropped the idea. It isn’t a bad idea to figure out what each session a bed costs you though from an electricity/lamps/overhead view though. You need to focus on getting people in the beds right now. I’d probably create a price structure that is cheaper than the comp and call that the grand opening/ reopening special price. Once you get the idea of what you need you can revisit it. Some may disagree with this, but I feel the most important thing for you right now is to get people in you beds and buyers in my area are very cost sensitive now. Skip red light and other stuff until you have your tanning business running smoothly. The money you spend on that will probably be better used on getting the tanning equipment up and running the best it can and advertising to get people in you door. This is just the start of what I would do in your shoes… You really, really need to focus on getting as many people in your salon this month. That will hopefully give you a decent May and put a little money in your bank for the start of slow season. Money will run dry starting July and you won't see it again until Feb... |
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