LouAnna k

anyone out there with a salon? I need some help in making an offer.... This guy is selling his tanning salon & his asking price is $132,500.
He is only "leasing" this space at 1211 sq. feet, he has 2 non facial, 3 w/facial, 1 stand-up, & 2 high intense.. They are GardaSun beds.. & are already 3 to 5 years old (maybe). I have already heard "mixed" feelings about the Garda Sun bds but would like more info.
He is selling all eqmt. inside the salon...the electronics, computer system, ,,everything down to the towels.
I looked online for new "start-up salons" and you can get pkg deals with all your eqmt, including the walls for under $50 grand! Is this a better way to go?
Even though the other salon is already established with a good customer base & in a great location?
I do feel this owner is asking "WAAAY" too much,, any suggestions and what to offer? Thanks, newbie

DB Hottie

We has a few Garda Sun's at one point, I would never buy one again. Cheaply made and at that time, not compatability to the original lamp.

You should provide more info on the equipment. A more educated opinion of your situation could be made.

bronzecafe

That is over priced by at least $100,000. Please do a search on this site for info so everyone dosn't have to type what we have all typed so many times. Like: Why does he want to sell, how much cash do you have on hand, salons are collapsing at a record number, take your money and bet the ponies, etc, etc, etc. Just out of curiosity, you do know that we are in a recession and tanning does not exactly rank with food and shelter as a priority in life.

LouAnna k

thanks for the replies: for DBHottie, the beds are a few yrs old, are in good condition, I am actually a customer of the salon & have used the beds but do realize they will need to be replaced in about a year & have mentioned that to the owner. As for Bonzecafe, I have done much research on this tanning business so I am not "jumping the gun". This guy is a "big wig", has an oil co & also has 2 salons--which of one he is selling-- oil buz has picked up for him and cant be in 5 places at once. I see this as an opportunity,,how long do you think this country will be in a resession? I feel that tanning is an inexpensive treat to oneself and you are right about one thing..food & shelter is important. BUT.. there are people that will still continue to do those "little" things that make them feel good about themselves--including myself. Anyone agree?

engfant

Unless that place is grossing $200K then what you have figured out already is absolutely true.

Beds don't have to be all flash to be worth the money but these aren't 10year beds. They are 5 year at best.

But even so, ANYTHING is worth the money if it makes the money. There are hot dog stands that are worth about $25 in total equipment but cause they are located on the busiest street in the city it's worth millions. (for instance)

__________________
My nose is big. I'm not ashamed. Big like a pickle and I'm still get'n paid.

LouAnna k

"WHAT,,,EVER!!".. I thought being in business for yourself was not just for the money it makes,, but for your own self well-being, satisfaction, happiness, and spending more time with your family--sounds like you are "JUST IT IN FOR YOUR OWN SELFISHNESS AND GO AHEAD AND EAT THOSE HOTDOGS!!"

engfant

What just happened here?

__________________
My nose is big. I'm not ashamed. Big like a pickle and I'm still get'n paid.

LouAnna k

felt like you were being *****y with me,, I am asking for good advice-- to start a new salon I think would be a mistake--buying an established salon with a good customer base may not be-- I dont think it will produce 200k (right now),, maybe in a few yrs when things turn around,, But, happiness and out of the "same ole work force", for the same pay (for now) is worth it.

engfant

I was making a general statement on how to value a business. If it's not making this kind of money how can it possibly be worth $150K? Where's the value come from?

If the beds are only worth $5K then where's the other $145K come from if the revenue isn't there?

Where are you located?

__________________
My nose is big. I'm not ashamed. Big like a pickle and I'm still get'n paid.

LouAnna k

the guy that's selling is asking 132,500 (not 145), my offer to him will be 75,000. The value is the customer base. I am in norhtern michigan and winters are long here so people still tan. His bds are not worth what he is asking I do know that much & from what I've been hearing about the Garda Sun beds,, these bds will need to be replaced but are in good condition right now.I know this because I tan there and I have seen some bds in other salons in the area that are nasty. this salon is already established with clientele-thats worth something isnt it? he is in a good location with lots of traffic, schools, & shopping. He has 2 salons (one he is selling), and an oil buz which has picked up,, who knows, I may even lower my asking price a little more just because of the bed!