" COMPETITION YES OR NO ?????

goldenbabe · 03-11-2006, 09:01 PM

We are looking @ opening a new salon across the street from a one year old salon (they currently have a total of 5 locations).... is this a "good " thing or "bad " thing.... need some input.......

CAYENNE2005 · 03-11-2006, 09:07 PM

Why would you want to open right across the street? Why wouldn't you go anywhere else? I wouldn't. Just out of respect. But, that's me. I would check demos somewhere else first before you jump into that one.

Electric_Sun · 03-11-2006, 09:09 PM

Same worms, different can.

If they have 5 locations they can afford to advertise a lot

Depending on their management you could be in for a price war

They probably will take you opening across the street as an 'Up Yours'

goldenbabe · 03-11-2006, 09:18 PM

Well i can see your guys views....but we are off a main street ...they are in a center where they are not visible from the street.... there is also a high school right behind us .....so we figured that they is more then plenty business for us both....besides we have much nicer beds...our upgraded beds are very nice....and our location will have the atmosphere of a spa not a sterile salon.....

we will also get alot of visibility ?????

Mad Dan · 03-12-2006, 07:38 AM

Quality and hygiene are about the most important aspects. So if the quality and hygiene are the same, people either go where they are familiar or where the price is best.

So I subscribe to the comment 'be careful, you could be in for a price war'... Experience has learned me that a distance between 2 salons of about a minimum 800 meters will take away from the competition aspects, providing that you live in a community with over 40.000 residents... Right across the street is a direct competition approach and you both will battle over the same customers.

mikejones · 03-12-2006, 10:06 AM

Quote:

Originally Posted by goldenbabe

Well i can see your guys views....but we are off a main street ...they are in a center where they are not visible from the street.... there is also a high school right behind us .....so we figured that they is more then plenty business for us both....besides we have much nicer beds...our upgraded beds are very nice....and our location will have the atmosphere of a spa not a sterile salon.....

we will also get alot of visibility ?????

I give this 12 months at best.

mr belvedere · 03-12-2006, 10:41 AM

The one with the deepest pockets usually wins this type of head to head battle. You should sit outside their salon and count the customers for a couple of weeks to see what kind of traffic they have. It's not impossible to make a go of it, but I think the odds of success are probably not in your favor. __________________

SandiGirl · 03-12-2006, 11:36 AM

I'm evil. That's what I did.

The other salon is behind us. My building is on a corner and I'm on one street and they're on the other but our parking lots are pretty much butted up to each other. They had 15 year old beds and was somewhere I wouldn't want to tan so we decided to offer something nicer. They were for sale within a year. He had a realtor phone us and offer it to us for $80,000. We countered with $10,000 and 6 months later he listed it for $49,000. Sheeesh, wish I scooped it at $80K.

Now the new owner has already told one of our customers (who he asked if she was going to come tan at his salon and she said no she tans with us) to let him know if we get posted (Hubby's military) that he'll buy our salon because he can't compete. Uhhhh, didn't you think about that before buying it???

That's my story. I'm evil. I was going to do a Free Tan Weekend when he planned to do an open house because he started putting wipes and deodorant in the room after coming to my salon for a tan.

top250tansyou · 03-12-2006, 01:32 PM

Location right now is not the question. This is already march. Even if you could get up and running in a month - which you probably cannot that puts you into april. The window to open is now or earlier. Try in a month or two and i give you less than 6 months.

DimiXTT · 03-12-2006, 01:50 PM

Sounds like you answered your own question GB.

03-11-2006, 09:01 PM	#1 (permalink)
goldenbabe Join Date: Feb 26 2006 Location: Cali Posts: 34 Rep Power: 0	" COMPETITION YES OR NO ????? We are looking @ opening a new salon across the street from a one year old salon (they currently have a total of 5 locations).... is this a "good " thing or "bad " thing.... need some input....... __________________ *May you always have love to* *share, health to spare and friends that care...*

03-11-2006, 09:07 PM	#2 (permalink)
CAYENNE2005 I love Derf!! Join Date: Jan 31 2005 Location: Around the corner Age: 40 Posts: 2,555 Rep Power: 127	Re: " COMPETITION YES OR NO ????? Why would you want to open right across the street? Why wouldn't you go anywhere else? I wouldn't. Just out of respect. But, that's me. I would check demos somewhere else first before you jump into that one. __________________ http://www.cardomain.com/ride/2454464 myspace.com/350zclubofflorida www.myspace.com/oceanrayz

03-11-2006, 09:09 PM	#3 (permalink)
Electric_Sun Just chill out, will ya! Join Date: Feb 27 2006 Location: BFF Field Office #2 Posts: 587 Rep Power: 76	Re: " COMPETITION YES OR NO ????? Same worms, different can. If they have 5 locations they can afford to advertise a lot Depending on their management you could be in for a price war They probably will take you opening across the street as an 'Up Yours' __________________ Ban Virgin

03-11-2006, 09:18 PM	#4 (permalink)
goldenbabe Join Date: Feb 26 2006 Location: Cali Posts: 34 Rep Power: 0	Re: " COMPETITION YES OR NO ????? Well i can see your guys views....but we are off a main street ...they are in a center where they are not visible from the street.... there is also a high school right behind us .....so we figured that they is more then plenty business for us both....besides we have much nicer beds...our upgraded beds are very nice....and our location will have the atmosphere of a spa not a sterile salon..... we will also get alot of visibility ????? __________________ *May you always have love to* *share, health to spare and friends that care...*

03-12-2006, 07:38 AM	#5 (permalink)
Mad Dan Join Date: Mar 11 2006 Location: Norway Posts: 4 Rep Power: 0	Re: " COMPETITION YES OR NO ????? Quality and hygiene are about the most important aspects. So if the quality and hygiene are the same, people either go where they are familiar or where the price is best. So I subscribe to the comment 'be careful, you could be in for a price war'... Experience has learned me that a distance between 2 salons of about a minimum 800 meters will take away from the competition aspects, providing that you live in a community with over 40.000 residents... Right across the street is a direct competition approach and you both will battle over the same customers.

03-12-2006, 10:41 AM	#7 (permalink)
mr belvedere DERFERATOR Join Date: May 10 2005 Age: 38 Posts: 8,384 Rep Power: 52	Re: " COMPETITION YES OR NO ????? The one with the deepest pockets usually wins this type of head to head battle. You should sit outside their salon and count the customers for a couple of weeks to see what kind of traffic they have. It's not impossible to make a go of it, but I think the odds of success are probably not in your favor. __________________ __________________ "A dusty bible leads to a dirty life ..." -Synonymous

03-12-2006, 11:36 AM	#8 (permalink)
SandiGirl OFFICIAL BFF member Join Date: Jan 2 2005 Location: BFFland Posts: 3,331 Rep Power: 36	Re: " COMPETITION YES OR NO ????? I'm evil. That's what I did. The other salon is behind us. My building is on a corner and I'm on one street and they're on the other but our parking lots are pretty much butted up to each other. They had 15 year old beds and was somewhere I wouldn't want to tan so we decided to offer something nicer. They were for sale within a year. He had a realtor phone us and offer it to us for $80,000. We countered with $10,000 and 6 months later he listed it for $49,000. Sheeesh, wish I scooped it at $80K. Now the new owner has already told one of our customers (who he asked if she was going to come tan at his salon and she said no she tans with us) to let him know if we get posted (Hubby's military) that he'll buy our salon because he can't compete. Uhhhh, didn't you think about that before buying it??? That's my story. I'm evil. I was going to do a Free Tan Weekend when he planned to do an open house because he started putting wipes and deodorant in the room after coming to my salon for a tan. __________________ ~I'll try to be nicer if you try to be smarter.~

03-12-2006, 01:32 PM	#9 (permalink)
top250tansyou I love Derf!! Join Date: Jan 1 2004 Location: little rock Posts: 2,237 Rep Power: 6	Re: " COMPETITION YES OR NO ????? Location right now is not the question. This is already march. Even if you could get up and running in a month - which you probably cannot that puts you into april. The window to open is now or earlier. Try in a month or two and i give you less than 6 months.

03-12-2006, 01:50 PM	#10 (permalink)
DimiXTT Join Date: Oct 16 2005 Location: florida Age: 41 Posts: 46 Rep Power: 0	Re: " COMPETITION YES OR NO ????? Sounds like you answered your own question GB.

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