Buying an exsisting salon

[sabotai]

I am looking at buying an exsisting salon in my town. It has been open for 18+ years and has been profitable the entire time. The last 5 years alone the owner has taken home over 70,000 a year. The guy is asking 175,000 for the business and all assests. I can probly talk him down from there. I just wonder if the Tanning business is stable in general, is it something going out the window? There is alot of competition in the general area but none in the immediate area of this place none withing 5 miles. The business has no uv free tanning, wondering if I should add that or not... I would be paying all cash for the business, and for the uv tanning if I added it. I just don't know if buying a like magic tan 3000 or a versaspa would be worth it. I am going into this business new and really wondering what everyone thinks

Just a quick note about the salons current beds.

It has 20 - 30 minute beds
1 15 minute VHR lay down bed
1 12 minute stand up
1 7 minute stand up
With an in house hair and nail salon

Let me know something salon folks

[international]

so this is a 23 unit salon?

[parrot head]

The equipment has to be as old as the salon. Twenty 30 minute beds. You should figure the cost of replacing those 20 beds. They have to be held together with bailing wire and can't have much life left in them. I had 30 minute beds when I opened a salon in 1986. They were SCA wolff beds.

[international]

20 beds is a lot though, its odd to have that many 30 min beds?

[caribbean tan man]

weird setup. only 4 upgrade beds with 20 base...somethings not right.
thats a major issue 30 minute beds are embaressing.

whats the comp got for base beds.

did u say your paying cash for it $175,000.

[sabotai]

I would be paying that much as in no loans for it. I personally think the 30 minute beds seem old and not worth it.

[billable]

I don't care if they are 20 minute, 30 minute or an hour and a half. The question was is $70k a year net income worth $175k? **** yes. You have your money back in less than 3 years.

However, I am skeptical if this is really the case. Verify the numbers. Get your accountant to go over the tax returns for the last 3 years. Don't accept the guys word for it. Look at bank statements. Look at the sales history in the computer.

If everything checks out, then buy it and replace a unit or two at a time just for eye appeal. Do this out of cashflow. As far as how old the beds are, I wouldn't sweat that too much. Tanning beds are just a big box to hold your lamps and ballasts together. Good lamps + good ballasts = good tan. The box should have good eye appeal, but the paint job on the metal and plastic doesn't make it tan any better. Buying bigger, prettier beds are for marketing purposes.

This is the first person that has come on this site looking to buy a salon that the numbers made sense. Good luck.

	Bodi Tox

[besttan]

Originally Posted by billable

I don't care if they are 20 minute, 30 minute or an hour and a half. The question was is $70k a year net income worth $175k? **** yes. You have your money back in less than 3 years.

However, I am skeptical if this is really the case. Verify the numbers. Get your accountant to go over the tax returns for the last 3 years. Don't accept the guys word for it. Look at bank statements. Look at the sales history in the computer.

If everything checks out, then buy it and replace a unit or two at a time just for eye appeal. Do this out of cashflow. As far as how old the beds are, I wouldn't sweat that too much. Tanning beds are just a big box to hold your lamps and ballasts together. Good lamps + good ballasts = good tan. The box should have good eye appeal, but the paint job on the metal and plastic doesn't make it tan any better. Buying bigger, prettier beds are for marketing purposes.

This is the first person that has come on this site looking to buy a salon that the numbers made sense. Good luck.

Good advice. Kathe

	Bodi Tox

[neubie]

If he was bring home 70 the asking price should be alot more. Something is not right.

[JensSunQuest]

I have 2 30 min beds and I was going to replace them. My customers through fits! The 30's are as popular as the 3 10's!! They love the 30 min break all to themselves.
I have customers willing to wait 20 mins on a 30 when a 10 is ready....its crazy but no other salon on this side has 30's so I will keep them in the name of clients who want to escape! I was being shallow and want cool looking beds but Bill is right the Bulbs are everything not the bed.......I learned that quick and am so glad I didn't waste money that I need.......I wish I grossed $70,000 as my salary I'd never complain on here but I am about 13 beds behind that!