Purchasing an existing salon...
 

Alright, my fiancé has talked me into checking out what could be a great deal, or could be a disaster.

tanning Salon has been in business under two different names for 8 years. Owner died, equipment up for auction, no information on past revenues, etc.. I cannot get great information on equipment until the day before auction, but this is what I do have:

(5) Soltron XXS, (1) Blue Dream, (1) T-Max leg machine, (1) Royal Sun Turbo VHR, (1) Royal Sun stand-up capsule, (3) Mega Sun. Tanning lotions & misc products, 16 chairs, nice reception counter, product shelves/counters, sinette set, TV's, Dell computer, refridgerator, microwave, Washer & dryer, several large animal figurines and lots of office bric-a-brac!

All equipment seems to be at least 10 years old, but still works. Bulbs changed in beds 6 months ago.

Computer has "Helios"? software, beds have fans and timers.

Rent - 850 a month. Electricity AVERAGES 275 a month. Hours have been 10-7, no sundays. Only salon within 5 miles and located in the higher end part of town. Large Rural town/city, 50,000 people. 2 other comparable salons. One salon much nicer.

I have read many suggestions here regarding spending $$$ on upgrades to electrical, etc. That's not happening. At least for a while.

I think I can get this equipment for pennies on the dollar, so start up costs will be minimal. Thoughts?

Re: Purchasing an existing salon...
 

Found out from Electric company:

3 phase
240 V
320 Amp self contained


No idea what any of that means, but I know it was asked of others, lol

Re: Purchasing an existing salon...
 

Do you know much about the other salons in town? Are they busy? Go park you *** outside them from 4-7pm and see what is going on. What are they charging? What equipment do they have? I do not think 50,000 pop supports 3 salons.

Re: Purchasing an existing salon...
 

I am actually going to visit the other two salons with my fiancé this afternoon, get prices, etc.

She worked at the one I am thinking about purchasing for the last few years. She says they averaged between 20-30 tans a day with a bad reputation, often drunk owner and no advertising. One salon a few miles away closed down the last year.

Re: Purchasing an existing salon...
 

They are not making money at that level.

Re: Purchasing an existing salon...
 

Hence the auction, lol. T

hey were trying to sell it 6 months ago for 40K after the drunk owner died, but couldn't get the financials together to get any rational person to actually purchase it, especially for that amount. I am able to view the items and get hours/model numbers, etc. but auction is Saturday. Supposedly an out of state buyer has put in a minimum bid for the beds only, but I can't imagine it would be that much when you take into account crating/transportation.

All evidence of viability is anecdotal since I don't, and won't, have gross receipts/tax returns since it is an auction. This would be mostly a lark for my fiancé with the hope she can turn it around with advertising, actually being run well, etc. . That's why I came here for advice :) thoughts on that?

Re: Purchasing an existing salon...
 

That describes 99% of current salon owners.

Re: Purchasing an existing salon...
 

Alright, update - 3 other actual salons in town - Clearly most of the equipment in the one I am looking to purchase is subpar to the others. Here's is what we have in town.

1) Very nice, pretty upscale in shopping center in main shopping cooridor. 6 lo pressure, 3 medium, 2 hi and 1 hi pressure stand up. 3.5 miles from our location

2) Sort of Nice, in off the road a little bit shopping center, 3 low pressure, 1 medium pressure, 2 high pressure and one hi pressure stand up 4 miles from our lcoation

3) Decent, 6 lo pressure 1 vhr and 1 stand up (basically same as our current location, but newer beds by a few years) - also includes toning equipment

So the shop I'm looking to buy is the oldest and most run down of all the others.

Benefits: Closer to lots and lots of upscale residential, cheap rent - 1368 sq ft for $850 a month, in an upscale shopping center on a busy road. Probably can get all the equipment for a very reasonable price

Drawbacks: needs new higher end equipment, too many tanning beds in town already? costs of rebranding, set back a bit off the road, signage sucks and cant be changed.

Re: Purchasing an existing salon...
 

Interesting salon 2 would have 2 HP's...are you sure they are HP, and not vhr with HP facials being sold as 'hp'?

..anyway, I think you summed up the place you are considering in your opening statement referring to the equipment as subpar. This place you are considering sounds like a major overhaul would be needed: better beds, upgrade AC/electric..and more..would cost $$$$..I say walk away from it

Re: Purchasing an existing salon...
 

Have you and your fiancé made a decision? My husband and I went through the back and forth also when we bought our salon last February.