tan_newby_101

Ok full disclosure here. I purchased a salon but found that it was a wreck after purchase. I didn't do my due diligence. I know. This is my fault. Spent tons on new units replacing stuff etc. A lot of deferred maintenance.

We have ten beds, not as updated as most salons but its a nice place with a solid clientele.

Sales are dropping fast and we have tried everything from free this to free that, buy this get this, sign holders, email, money and mailbox mailers, efts and nothing is working. For September I'm looking at negative 1,500.00 dollars on day one. Three months from now its a blood bath. We have jobs so we can't work it.

Landlord lowered rent slightly not much help. Lowered hours, and commissions. Not much else to do.

Need an intervention before I breakdown! ASAP

Steve Underhill

How many times i have posted the following. The salon can be saved, unfortunately, because you did not follow the advice below, you probably paid too much for the salon. Let this be a lesson for others that want to purchase a salon. Now it's time to restructure this salon in time for the up coming season.

Purchasing an Existing Salon Can Be a Good Investment

A quicker less expensive way of getting into the indoor tanning industry is to purchase an existing salon. However you must be cautious because there are many potential pit falls.

Some salons that are for sale are profitable and ready for a new owner with minimal changes required. A large percentage of all tanning salons are struggling or failing, typically if a salon is for sale it falls into this category. This alarming statistic is not due to a week industry, instead it is a result of new salon owners not being properly educated and prepared for success.

When evaluating the purchase of an existing salon you must approach it as though you are opening a new salon from the ground up. You must first determine the potential of the salon by evaluating the demographics. If the demographics are good you can now evaluate the salon further. Always look at the parking situation and how easy it is to access the location. You should determine all of the changes that must be made to create a successful salon. To do this you must again have the information and knowledge required to be successful. You must determine the cost associated with making these changes.

You must determine the value of the salon by asking a number of very important questions. Net profit of the salon, equipment value or a combination of both will determine the value.

Very old salons can be a problem because the rooms are typically too small. With proper evaluation, a proven plan for success that the previous owner did not have and the proper funding to make the appropriate changes will allow you to own and operate a successful salon saving a great deal of money over opening a new salon from the ground up. Major mistakes made by people that purchase failing salons: Paying more than the salon is worth, not being any more qualified to operate a successful salon than the previous owner, not identifying or making the changes necessary to create a successful salon, not being properly funded. It is just as easy to succeed as it is to fail, knowledge is power. Get qualified assistance or become a part of an alarming statistic.

__________________
Stephen Underhill
Consultant
steve@smuconsulting.com

House of Tan

Your biggest issue is; can you make it until peak season?

You can try mining the data base using e-mail or post card mailer. In general; marketing to get new people in this time of year is very difficult at best.

__________________
Startbucks

sunsally

Post (or pm or email me - Ann.Wiggins.Noe@gmail.com) your current pricing and equipment - there are probably things to do there.

Without seeing that, in general:

1. Agree with House of Tan - mine your data base! Cheapest way to "reach out" will be a) have your staff call and leave messages (if they are slow they have time on their hands). Can email if you have good email addresses. Or text. To do this - have to first have a GOOD offer (see below...) to get their attention.

2. Do some "cash flow generating" short term specials. Suggestions include (and not all may work for your particular situation...) --
a. "Tan til the end of the year" (for X price - like $99)
b. "Week unlimited" at a teaser rate - maybe $9.99 on base beds
c. BOGO - month or week (again - this is the slowest time of the year for tanning - a bogo can get those who wouldn't buy to buy because it is "such a good deal"

3. On-site promotions - window signs/paint, sandwich board out front, "yard signs" around -- this is to perhaps attract new customers -- again with an "offer" (see #2)

4. Referral program promotion - for those that ARE coming in - get an incentive going for them to refer others. Free upgrade with every referral. Or a referral contest - person with the most gets a free month - or lotion.


If "nothing is working", there are several possibilities:

1. Your offer is bad
2. The way you are promoting your offer is bad
3. Your follow through in the salon on the offer is bad (e.g. don't close the sale, don't upgrade them to other things above and beyond the offer)
4. Your salon is bad (customer service, equip performance, experience,...)


Take a hard look and drill down to see what changes you need to make - now!

Black Sun

One of the biggest problems; "We have jobs so we can't work it. "

When you wish to become a successful business owner, you can not work elsewhere 40hours a week. Those who work your biz, have no real personal investment in it, take advantage of it. Your time into the new business is limited, you become complacent and the neglect turns into disaster.

This is not to say it can't be done, or hasn't been done. Once the biz is working, and the proper management in place with trustworthy employees, then the owner has the freedom to pursue other interest.

Obviously, not much thought and planning went into this, "I didn't do my due diligence. I know. This is my fault. " Have you even prepared a business plan prior to jumping into this? I'd guess not.

Brian Oshman

Who removed the truth?