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Old 05-25-2012, 05:13 PM   #11 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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Old 05-25-2012, 06:08 PM   #12 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

Your numbers look about right for a new salon with your setup. Now for the bad news they will start going down after June. Then they will go back up next year.

Year over year you can add maybe 20% to the numbers you're doing. Will you ever break even? I very much doubt it. It is a very seasonal business. The numbers spike up as you have seen then drop back down (you have not yet seen how low it will go) But it will suck!

Best of luck to you! :)
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Old 05-25-2012, 07:37 PM   #13 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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Originally Posted by kookyguy View Post
Your numbers look about right for a new salon with your setup. Now for the bad news they will start going down after June. Then they will go back up next year.

Year over year you can add maybe 20% to the numbers you're doing. Will you ever break even? I very much doubt it. It is a very seasonal business. The numbers spike up as you have seen then drop back down (you have not yet seen how low it will go) But it will suck!

Best of luck to you! :)
Thanks for the feedback..... I am prepared for a slow summer as I have definitely been warned about that beforehand so the business does have a nice reserve to ease the blow of a (hopefully) not 2 bad of a summer.... I think I agree that a 20% increase/year sounds right leaving me breaking even during the slow months and down on the slow months.

As I said the plan is a higher end bed to compliment the standup... So you have a base package and a premium package. That is my current plan but do you have suggestions that might be better??

Everyone talks about spray tan but I MAYBE get 2 requests a month. And at $26,000 for a booth. I just can't make sense of this.

Does anyone have any success selling other retail products? And if so what? We're doing lotions body creams moisturizers etc.... Right now.
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Old 05-25-2012, 07:40 PM   #14 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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________________________________________ __________________
It seems you have ALL the answers...why bother anyone here?
It amazes me everytime someone reaches out for help, gets to be a smart a$$ when they don't like the advice they hear
Never said anything like that.... I am on here looking for peer support. I am trying to outline the advantages I see my salon has to allow others to get a more well rounded view of my business.... Don't care for the bashing so keep the comments to yourself if you don't want to have a constructive conversation.
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Old 05-25-2012, 11:02 PM   #15 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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Originally Posted by tanman103 View Post
Thanks for the feedback..... I am prepared for a slow summer as I have definitely been warned about that beforehand so the business does have a nice reserve to ease the blow of a (hopefully) not 2 bad of a summer.... I think I agree that a 20% increase/year sounds right leaving me breaking even during the slow months and down on the slow months.

As I said the plan is a higher end bed to compliment the standup... So you have a base package and a premium package. That is my current plan but do you have suggestions that might be better??

Everyone talks about spray tan but I MAYBE get 2 requests a month. And at $26,000 for a booth. I just can't make sense of this.

Does anyone have any success selling other retail products? And if so what? We're doing lotions body creams moisturizers etc.... Right now.
You will make far more money if you move to a points system, read up on it and talk to others on the forum that have made the switch in the past.

As to spray we had maybe 2 calls per week for spray (not too many right?) then we brought in a new Versa Spa, it paid for itself in the first 5 months. now we are looking for a 2nd spray but we are waiting till a couple of the newer units hit the market to see if any will be better than the Versa.

You are clearly very customer service minded, thats great! However don't let your customers or your competition dictate your policies or you will be failing to run YOUR business.

You are getting advice on this forum that is worth six figures, don't ignore or waste it!
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Old 05-25-2012, 11:17 PM   #16 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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Originally Posted by kookyguy View Post
You will make far more money if you move to a points system, read up on it and talk to others on the forum that have made the switch in the past.

As to spray we had maybe 2 calls per week for spray (not too many right?) then we brought in a new Versa Spa, it paid for itself in the first 5 months. now we are looking for a 2nd spray but we are waiting till a couple of the newer units hit the market to see if any will be better than the Versa.

You are clearly very customer service minded, thats great! However don't let your customers or your competition dictate your policies or you will be failing to run YOUR business.

You are getting advice on this forum that is worth six figures, don't ignore or waste it!
Great input... I am just trying to get my head wrapped around this whole "points" system... essentially you purchase points (100) and each bed will take a certain amount of points for a certain amount of time.... I have done the math and roughly price per minute ends up being kind of the same min vs points... If you wouldn't mind clarifying a bit further on how the point system works and how it benifits the salon owner more then the minute package way?

WOW I guess thats why everyone has spray tan !! lol.... sooo questions for you is... 6th room.... what do I do? another upgrade bed, or, a spray tan booth??

I am not out here trying to reinvent the wheel, just build a great company and make some money ;) I'll take all the help I can get..
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Old 05-25-2012, 11:39 PM   #17 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

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Originally Posted by tanman103 View Post
Great input... I am just trying to get my head wrapped around this whole "points" system... essentially you purchase points (100) and each bed will take a certain amount of points for a certain amount of time.... I have done the math and roughly price per minute ends up being kind of the same min vs points... If you wouldn't mind clarifying a bit further on how the point system works and how it benifits the salon owner more then the minute package way?

WOW I guess thats why everyone has spray tan !! lol.... sooo questions for you is... 6th room.... what do I do? another upgrade bed, or, a spray tan booth??

I am not out here trying to reinvent the wheel, just build a great company and make some money ;) I'll take all the help I can get..
I would go with a spray booth, but wait till the new ones come out just in case there is a new best of breed booth.

The difference in points vs minutes is that you sell the session not how long they go in for. 5 min or 10 min are the same price or in this case number of points.

Points also make it very easy to offer different levels of equipment as points can be used for all equipment, better equipment just takes more points.

When you sell minutes you are selling time, with points you are selling the tan.

There are 100s of posts on minutes vs points, take some time and start reading, then read some more, then re read what you have read and THEN come back with questions and we can help you.

Have a thick skin, we wont sugar coat the data, I would rather hurt your feelings than see you lose you life savings, but like I said the info you can get here and other forums is worth more more than any salon I have ever seen.

Welcome to the world of tanning! :)
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Old 05-26-2012, 08:26 PM   #18 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

Running <$-50K> for the first 8 months going into the slow season.
Spent 150k(?) building out a 6 room salon.
Has no clue what to do.
Priceless
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Old 05-26-2012, 08:32 PM   #19 (permalink)
 
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Re: 8 Months in... Do my numbers make sense?

I would like to hear the story about how your Heartland rep "helped" you get started. Did they ask you about your business plan? or just sell you some equipment?
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