Salon Purchase Price

cccastle · 06-05-2006, 08:53 PM

For all you owners out there that purchased a existing Tanning Salon, what was a fair buying price? Two times net? Three times net? Or how did you determine your purchase price?

vegeman · 06-05-2006, 09:07 PM

At this time of year 1xgross minus 50%. Give or take. Got some lean months ahead of us! But truely there are many factor that go into purchasing an existing salon and what you actually pay for it. Tell us some more about the salon? If you have one in mind.

cccastle · 06-05-2006, 10:04 PM

2004 net sales 114000. 2005 net sales 147000. Net profit for 2005 would be 55000 to 70000 depending on accurate payroll. Previous owner is paying employees under the table so I added payroll. 2005 looks like a good year compared to 2004 and 2006 is down about 25% in sales partly because of a very long rain through easter.

tanning goddess · 06-06-2006, 12:43 AM

If the previous owner is paying payroll under-the-table, there are probably many things that aren't being paid or maintained. Add a worker's comp policy, sales tax returns, personal property taxes, liability insurance, bed maintenance, facilities maintenance, etc. The payroll thing is pretty big -- definitely shows he's willing to color outside the lines.

Ezliving_Jim · 06-06-2006, 02:12 AM

Quote:

...willing to color outside the lines.

That was delicate.

Hank van · 06-06-2006, 08:59 AM

I have sold three salons that are still sucessfull . IF THE SALON maid 400,000 I sold it for that price. if it did 300,000 I sold it for that price. but when a salon only does 100,000 to 150,000 its not werth buying. well most of the time. I bought a salon that has 24 rooms for 72,000 that I would not sell but that was luck, most salons are for sale for a reason.

cccastle · 06-06-2006, 10:56 AM

When you say it maid 300000 or 400000, and that is what you sold it for, was that net sales or net profit?

Hank van · 06-06-2006, 06:43 PM

Neon Beach · 06-06-2006, 07:00 PM

Anyone who buys a tanning salon now should be chased with a net.

mr belvedere · 06-07-2006, 12:10 AM

Lookit - ~oh geesh~ selling or buying any business second-hand depends on two things only: value of the business to the seller, desire of the prospect to own the business. Ok three things - payment terms. Ok 4 - how despearate are the parties to make a deal. Wait ... 5: no, only 4. Good luck. -Belvy

06-05-2006, 08:53 PM	#1 (permalink)
cccastle Join Date: May 11 2006 Posts: 7 Rep Power: 0	Salon Purchase Price For all you owners out there that purchased a existing Tanning Salon, what was a fair buying price? Two times net? Three times net? Or how did you determine your purchase price?

06-05-2006, 09:07 PM	#2 (permalink)
vegeman Join Date: Sep 29 2004 Posts: 203 Rep Power: 4	Re: Salon Purchase Price At this time of year 1xgross minus 50%. Give or take. Got some lean months ahead of us! But truely there are many factor that go into purchasing an existing salon and what you actually pay for it. Tell us some more about the salon? If you have one in mind. __________________ This stuff is the best for early mornings or late nights.

06-05-2006, 10:04 PM	#3 (permalink)
cccastle Join Date: May 11 2006 Posts: 7 Rep Power: 0	Re: Salon Purchase Price 2004 net sales 114000. 2005 net sales 147000. Net profit for 2005 would be 55000 to 70000 depending on accurate payroll. Previous owner is paying employees under the table so I added payroll. 2005 looks like a good year compared to 2004 and 2006 is down about 25% in sales partly because of a very long rain through easter.

06-06-2006, 08:59 AM	#6 (permalink)
Hank van Join Date: Nov 23 2003 Location: michigan Posts: 398 Rep Power: 5	Re: Salon Purchase Price I have sold three salons that are still sucessfull . IF THE SALON maid 400,000 I sold it for that price. if it did 300,000 I sold it for that price. but when a salon only does 100,000 to 150,000 its not werth buying. well most of the time. I bought a salon that has 24 rooms for 72,000 that I would not sell but that was luck, most salons are for sale for a reason.

06-06-2006, 10:56 AM	#7 (permalink)
cccastle Join Date: May 11 2006 Posts: 7 Rep Power: 0	Re: Salon Purchase Price When you say it maid 300000 or 400000, and that is what you sold it for, was that net sales or net profit?

06-06-2006, 06:43 PM	#8 (permalink)
Hank van Join Date: Nov 23 2003 Location: michigan Posts: 398 Rep Power: 5	Re: Salon Purchase Price net

06-06-2006, 07:00 PM	#9 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: Salon Purchase Price Anyone who buys a tanning salon now should be chased with a net.

06-07-2006, 12:10 AM	#10 (permalink)
mr belvedere DERFERATOR Join Date: May 10 2005 Age: 38 Posts: 8,474 Rep Power: 52	Re: Salon Purchase Price Lookit - ~oh geesh~ selling or buying any business second-hand depends on two things only: value of the business to the seller, desire of the prospect to own the business. Ok three things - payment terms. Ok 4 - how despearate are the parties to make a deal. Wait ... 5: no, only 4. Good luck. -Belvy __________________ "A dusty bible leads to a dirty life ..." -Synonymous

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