help me appraise my salon.... - tanTALK

bschooley · 12-27-2004, 10:12 PM

I'm looking at selling my salon in Central Tx (n. of San Antonio).

4 beds, 1 hi intesity, 1 stand up. 4 are from '99, one is from '01, and the stand up is 1 year old.

across the street from the high school, great location, completely remodeled with 6 specialized rooms, meaning each one has a theme - ocean, New York, country, etc....

5 yr. old business, last year did $42k profit, this year is looking like it's on par with that.

what do you think would be a fair asking price? I'm looking to sell it this fall. I'd like to cash out the busy season and then move along - I don't have the time to handle it. Thoughts?

absolutestyle · 12-28-2004, 09:00 AM

WHAT BRAND OF BEDS? ARE YOU COMPUTERIZED? HOW MUCH LOTION?ALSO WHAT FURNITURE &
TAN RELATED EQUIPTMENT, BIG QUESTION HOW MUCH DO YOU HAVE INVESTED?? (NET) IF THAT
DON'T WORK YOU CAN SELL EVERYTHING PIECE BY PIECE GOOD LUCK!

Brandy1 · 12-28-2004, 09:44 AM

There are so many things to consider, you should call one of those guys who sells business. I used one for my newspaper and we got more than we ever thought!

movieking · 12-28-2004, 10:30 AM

2 - 3 times cashflow is normally a good starting point.

bschooley · 12-28-2004, 10:54 AM

approx. $2k worth of lotion inventory
Salon Iris software
Timer system
furniture
freshly painted
3k client database - about 250 active

so you think $90k-$120k????? I'm thinking that might be high just due to the area we're in - small town in Texas. nobody drops 100k on ANYTHING. I was hoping for more around $50k actually.

West Side Tanner · 12-28-2004, 11:02 AM

Bottom line is; it's only worth what someone is willing to pay ! You can come up with a million ways to figure out a price. Bottom line is:..........

Brandy1 · 12-28-2004, 11:10 AM

Where in Texas are you?

bschooley · 12-28-2004, 01:55 PM

i'm in Boerne - just north of SA.

sunshinetanningfactory · 12-28-2004, 01:57 PM

When I was looking at my tanning salon my distributor told me that the only thing that was worth anything was the equipment. Everything else was blue sky. In a way he is right. You can sell the database but each client is not guaranteed to ever come back unless you have a EFT program going and they have a signed contract. I don’t agree with the 2-3 times cash flow, like I said you cant guarantee that the new owners will make that much (unless EFT program) This is just my opinion. Take it as you like, I just wanted you to be aware of other peoples experiences.

engfant · 12-28-2004, 02:33 PM

I'd be willing to state for the record EQUIPMENT IS ALMOST THE LEAST IMPORTANT PART OF THE SALON in terms of REAL VALUE as in, you can fill a small room with $100K worth of tanning stuff but have ZILCH for clintelle that'll pay that kind of money to tan. If the place doesn't make any money BUT has $100K worth of equipment in it, how much is it worth? I can tell you that it would NOT matter if I had $1K beds or $20K beds. My people want to tan here cause I'M the man and I take care of my clients.

Put a price on that.

If I see a potential of $100K/year it doesn't mean that the next guy will make that. How do you know if they are even gunna show up and open the place?

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12-27-2004, 10:12 PM	#1 (permalink)
bschooley Join Date: Nov 8 2004 Posts: 31 Rep Power: 0	I'm looking at selling my salon in Central Tx (n. of San Antonio). 4 beds, 1 hi intesity, 1 stand up. 4 are from '99, one is from '01, and the stand up is 1 year old. across the street from the high school, great location, completely remodeled with 6 specialized rooms, meaning each one has a theme - ocean, New York, country, etc.... 5 yr. old business, last year did $42k profit, this year is looking like it's on par with that. what do you think would be a fair asking price? I'm looking to sell it this fall. I'd like to cash out the busy season and then move along - I don't have the time to handle it. Thoughts?

12-28-2004, 09:00 AM	#2 (permalink)
absolutestyle I'm Banned Join Date: May 26 2004 Location: NASHVILLE,TN. Posts: 110 Rep Power: 0	WHAT BRAND OF BEDS? ARE YOU COMPUTERIZED? HOW MUCH LOTION?ALSO WHAT FURNITURE & TAN RELATED EQUIPTMENT, BIG QUESTION HOW MUCH DO YOU HAVE INVESTED?? (NET) IF THAT DON'T WORK YOU CAN SELL EVERYTHING PIECE BY PIECE GOOD LUCK!

12-28-2004, 09:44 AM	#3 (permalink)
Brandy1 I love Derf!! Join Date: Nov 17 2004 Posts: 3,981 Rep Power: 51	There are so many things to consider, you should call one of those guys who sells business. I used one for my newspaper and we got more than we ever thought!

12-28-2004, 10:30 AM	#4 (permalink)
movieking Team TanTalk Join Date: Aug 12 2004 Location: ITA 2004-2013 / ASA 2013 Posts: 3,444 Rep Power: 30	2 - 3 times cashflow is normally a good starting point.

12-28-2004, 10:54 AM	#5 (permalink)
bschooley Join Date: Nov 8 2004 Posts: 31 Rep Power: 0	approx. $2k worth of lotion inventory Salon Iris software Timer system furniture freshly painted 3k client database - about 250 active so you think $90k-$120k????? I'm thinking that might be high just due to the area we're in - small town in Texas. nobody drops 100k on ANYTHING. I was hoping for more around $50k actually.

12-28-2004, 11:02 AM	#6 (permalink)
West Side Tanner Join Date: Dec 27 2003 Location: Florida Posts: 1,818 Rep Power: 21	Bottom line is; it's only worth what someone is willing to pay ! You can come up with a million ways to figure out a price. Bottom line is:..........

12-28-2004, 11:10 AM	#7 (permalink)
Brandy1 I love Derf!! Join Date: Nov 17 2004 Posts: 3,981 Rep Power: 51	Where in Texas are you?

12-28-2004, 01:55 PM	#8 (permalink)
bschooley Join Date: Nov 8 2004 Posts: 31 Rep Power: 0	i'm in Boerne - just north of SA.

12-28-2004, 01:57 PM	#9 (permalink)
sunshinetanningfactory Join Date: Nov 12 2003 Age: 49 Posts: 58 Rep Power: 0	When I was looking at my tanning salon my distributor told me that the only thing that was worth anything was the equipment. Everything else was blue sky. In a way he is right. You can sell the database but each client is not guaranteed to ever come back unless you have a EFT program going and they have a signed contract. I don’t agree with the 2-3 times cash flow, like I said you cant guarantee that the new owners will make that much (unless EFT program) This is just my opinion. Take it as you like, I just wanted you to be aware of other peoples experiences.

12-28-2004, 02:33 PM	#10 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	I'd be willing to state for the record EQUIPMENT IS ALMOST THE LEAST IMPORTANT PART OF THE SALON in terms of REAL VALUE as in, you can fill a small room with $100K worth of tanning stuff but have ZILCH for clintelle that'll pay that kind of money to tan. If the place doesn't make any money BUT has $100K worth of equipment in it, how much is it worth? I can tell you that it would NOT matter if I had $1K beds or $20K beds. My people want to tan here cause I'M the man and I take care of my clients. Put a price on that. If I see a potential of $100K/year it doesn't mean that the next guy will make that. How do you know if they are even gunna show up and open the place?

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