Please help! Opening a new salon...

[cando292]

Hi! I am newbie (I have a little bit of experience, worked at a salon throughout college) opening up a new salon in San Diego. I am having a hard time finding out the cost of what the monthly fixed expenses will be, besides rent. This is what I came up with:
Re-up on LOTION/SOLUTION $500
EMPLOYEE(s) $3,500
INSURANCE $200
ADVERTISING $500
MAINT(bulbs/acrylics) $300
PHONE $200
UTILTIES $1,000
MISC (detergent/office supplies/water for cust, etc) $400
CC MACHINE ???

Can someone give me advice?? Am I close?? How much do maint on the beds cost per year? I am going to use Ergoline.

8 or 9 beds + a mystic or veraspa
2-level 1
2-level 2
3-level 3
1-level 4
1-level 5

Thanks sooo much!

	Insurtec

[unity]

Knowing what beds, how many, etc. will help us help you a little better.

[cando292]

Just thought of that too... sorry!

I will have 8 or 9 beds + a mystic or veraspa
Ergoline
2-level 1
2-level 2
3-level 3
1-level 4
1-level 5

[CAYENNE2005]

First thing I noticed was your advertising at $500 per month? Your first few months will triple that and $500 per month to maintain is the bare minimum. Depending on your area and what options you have but, you want to hit every option possible the first few months and maintain in at least 3 or 4 monthly. Advertising is expensive but, that is how you get the "new clients" in daily. Check into that more. (ONE of my monthly ads are $500 per month to maintain)
$500 per month on lotions will depend on season. Mine can be as high as $2,000. Insurance $3500 annual, CC machine...You mean rates? That takes some shopping and tell them you want no batch fees, no monthly fee, no annual fees and make sure you check on fees "per" transaction PLUS rates ....blah blah blah.....sorry going back to my red bull/vodka's.

	Insurtec

[eileen]

The utilities look way low for here. We've never had one month that low for utilities. The phone looks high. Did you included paper towels, baby wipes, deoderants, body sprays, bathroom c-fold towels, t-paper etc. in that supplies total? :)

[unity]

8 or 9 beds? No way you will spend 3.5k on wages. When you first open the owners need to work all the shifts they can. You can spend as little as $600 or up to $1500 a month for help, but this expense is easy to control and should be kept low as possible until established.

[kdhtan]

I agree with those who have posted already...

Advertising $$$ is a little low for just opening up. I think we spent almost $6,000 our first year in avdertising costs, business cards, mailing, press etc...

Our utlities are a bit higher then that as well. You want to figure that out in S.D. where it is almost always 70 degrees you will have you A/C running almost throughout the whole year, that will up that expense. Also the more your beds are being using the more your electric will go up.

Insurance is around $3,500 annually

I would say your cleaning supply monthly cost is a bit low too. You so figure more around $1,000 if you plan on being busy, which we all hope for.

The only way to really make money at owning a tanning salon is to work it yourself. No one is going to run your business and treat your customers the way you will. At least a first you cannot be an absentee owner!

	Insurtec

[Din-Canada]

Your advertising budget should be approximately 10% of your Gross Revenue each year.

If you are budgeting $500 a month for advertising. That means you should expect to GROSS $60,000 a year.

For Grand Opening for one of my locations we spent over $5,000 in advertising.

Every Year on the anniversary we spend about $4000+ in advertising....that that's just for one of the months for the event...send out more flyers than usual.

Do a mailer every month in your area (5,000 postcards at least) and you will see your revenue go up.

yes it may cost you $2000 but the revenue it will bring in constantly going up will be worth it.

So your $500/month advertising is way below realistic for growth potential.

Remember, other than a mailout with a promotion, there are birthday card promotions, Mothers Day, Fathers Day, St. Patricks Day, Valentines Day, X-Mas, New Years, Thanksgiving, Halloween.....etc... that you can capitalize for advertising periods.

Also depends on your size of salon, your area, your population that you are targeting, etc... to distinguish advertising budget.