petefer1224

I am currently looking at purchasing a Tanning Salon. It is in a prime location in the Chicago land area. It is located near a wealthy high school and is in a very wealthy city. The current owner is the only owner it has had. She had some health issues during the first year and unfortunately hasn't been able to run the salon as she expected. First off she has a few employees that she did not anticipate having until she couldn't work. Next her rent is just under $5k/month which seems high but again the location calls for it. She is spending about $600 month in product. I don't know what the insurance costs are. Due to her illness she has not been able to advertise at all. She is only bringing in on average $6k/month, so she is bleeding money.

The equipment is new. She has 5 beds, 1 stand up, and 1 spray tan. The beds are ETS 648, 548, 542, 442, 332, and 756v. The spray tan is by Versa Spa which she tells me is a good thing to have.

She has 700 clients of which she said 1/2 are regulars. Again there has been no advertising. I called yesterday and found out there weren't even membership options offering unlimited tans or anything like that. It is in a busy, high end strip mall, down the street from a large high end fitness center that doesn't offer tanning, and near a very wealthy high school.

So it seems like the business is sinking. But it is new equipment, in a great location. Could advertising increase the business quickly? How quickly should offering memberships increase the business along with advertising?

Due to the current state of her situation I wasn't going to offer much. But I can't decide if it is worth it if it will take long to turn the ship around.

engfant

$5K/month in rent is WAY TOO MUCH. You have to come up with $60k/year just for rent!!!

RUN!!! RUN!!!

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

Woodlands

I wonder if that fancy new equipment is owned by her. Make sure to check that out. She may not be able to afford to sell it for what she owes :(

petefer1224

I asked today through email whether or not she owned the equipment. I am waiting to hear back.

petefer1224

Just heard back, the equipment is owned.

engfant

$5K A MONTH FOR RENT!!!! Open a pizza place if you are looking to throw around this kind of money.

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

kookyguy

Dont take the owners word that she owns the equipment, make sure you see all the paperwork.

A cat bought a salon a yr or 2 back and 5 months later the bank did a repo on the equipment.

joenba1k

you didnt mention electric/overhead, add that to the 5k per month, is her 6k income during peak season? what are the figures during JASON?

engfant

What the **** is all this "illness" bs? I've been doing this for almost 7years by myself.

No illnesses. No nothing...IN FACT the tanning seems to keep the illnesses away.

She's mostlikely ill cause she's paying $5k for rent and making $6K gross.

That's enough to make me sick.

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

engfant

electricity is probably 6-800/month.

The problem is those beds don't command the money you need to bring in to meet those expenses. $8-16/visit isn't good enough.

$12-$30/visit is more like it and those beds don't make that money. $2500 is the most you should be paying for that spot. I'm next to a very wealthy area and they are the cheapest fools going...which is why they have so much money.

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