tataman2001

Hello all,

I am planning to open a tanning salon. I need some advice reagarding to finding the right location for a tanning salon. I have three general questions about location for tanning salons:

1) Which group tan more? Affuent or less affuent people? The reason I am asking this question is because there is a theory that says less affuent people are more likely to feel less secure, therefore they tend to want to look better by using indoor tanning service.

2) What is the order of importance when selecting a location for a tanning salon?
a. Location should be in an anchored shopping center.
b. Location should be visible to the traffic.
c. Location should be close to a high school.
d. Locaiton should be close to a college.
e. Location should be close to a gym.

3) Are tanning salons the destination shops or are they "convinient" shops?


I basically found 3 locations for my salon. I would like to get some advice and different perpective on selecting the right location. Here are the locations I have found.

1) It is located near a big gym. This shopping center is at the corner of a very busy intersection. The shopping center is an older one. The only two negatives about this location is that the gym already has two tanning machine (standup). They are older machine and don't tan very well. The other negative is the average household income in the 3 mile area is only 65K/year. This location is available immediately, hence I can have my salon open before Jan. The rent is low. Less than 3000/month. Is it wise to open a tanning salon next to a gym which already has tanning beds?

2) The second location is not yet built. It will be available in Feb of 2003. It is an upscale, newer neighborhood. The average household income is 115k/year. The shopping center is anchored by a big grocer. The rent is high. It is about 5000/month.

3) The third location is in a newly built shopping center near a big gym and also Walmark. However, it is near a border of low income area (industrial area) and area with houses over 1M dollars. The rent is roughly 4500 - 5000/month.

In all three cases, the visibility for signage is very bad. The only thing I can count on is the traffic flow in the shopping center.

Which one would you choose if it was for you salon?

Any advice regarding this is greatly appreciated.

Bronze Star

Welcome to Tantalk.com!

I moved your topic to the Newbies forum where it can get the attention it deserves.

My responses are not all based in fact or research but my own limited opinion.

1) Neither... they both want to look good and if it's important enough to the individual... they will pay their last dollar to do it.

2) Order? I have no clue. I know that the points are, Highly visible location in an easy to get to location with ample parking. You could be near a gym, school or college but if your parking sucks or no one can see you and therefore doesn't know you're there, then you're doomed to heavy marketing.

3) Destination.

To your additional questions.

1) It's older, but how's business? Increasing, steady or decling? Is the parking lot well maintained. If it's not, then it tells you business is not so good. How new are the stripes in the parking lot. A common area is a reflection of the business inside. Don't pick any business location with a crappy parking lot and weeds growing in cracks, lights that are burned out, etc. As far as the gym... I'm guessing tanning is an after thought for them... not a mainstay of their business. I wouldn't worry about it. They will probably discard them or buy new ones they intend to let go if you choose this location.

2) Personally I wouldn't sign on anything that isn't complete. Even though I don't have experience with renting personally, a good friend and fellow moderator on this board DID have great trouble. Her name is Becky... and thankfully it went okay... but it was a major hassle. Becky, input?

3) Before signing in a plaza with a Wal-Mart, I would make sure they dont' have a contract to get a Celcius tannery built for them in the future. I would also carefully study the lease and have it iron clad so that if they don't have plans for one now, that they nor anyone else can compete with you by offering tanning services. Of the three, this is the best choice, in my opinon from the information you gave.

I look forward to everyone else's response. These were great questions. If you have additional questions, please feel free to start another thread in this same forum for Newbies.

JeffinKC

I would like to make a couple of points. First of all when you are looking at incomes you must also consider disposable income.

You must also look at your competition and the saturation of your market. It may be better for you to buy an existing salon in a good location than to open a brand new one.

The rent you mentioned seems high depending on your area. How many square feet are you looking at?

The Celsius Tannery has no plans to open any more salons in Wal Mart as far as I know at this time. Even if the did they aren't that much competition.

A good anchor is very valuable so I would lean in that direction. Another valuable thing is complimentary businesses like hair salons and nail salons and gyms. Personally I wouldn't care about high schools or colleges since you should target older people who are willing to spend more

fungirlz

JeffinKC has given you excellent advice here..
Laurie has pointed out many things also to help..
I can tell you this..
What feels right to you..
You will have a peace and comfort when you find the "right location".. You will just know that you that you know this is "mine"..
Best wishes..
Keep us posted on your progress.
C

tataman2001

Hi all,

Thanks for giving taking time to response to this thread.

In all three potential locations, the spare footage is roughly 2200 SF. This size will enable me to have 15 beds.

Also, in all three potential locations, the parking areas are exceptionally good. THey are clean and well maintained. The first location near the big gym, has less traffic flow inside the shopping center, however the street intersection is one of the busiest in town.

The reason for me to ask for your advice is because I am bias in my decision. Like most beginners, I tend to lean toward what is the cheapest rent (first location with rent of $2700/month). That is because I fear that the overhead cost is too high to breakeven. However, I also know if by paying more, I can get into a higher income area and newer shopping center.

So the question comes down to, is it worth it to be in a ritzy (high income) area with the rent almost double? Or is it sufficent to be in an average area and rely on good marketing, service, product and price?

As far as competition, it is one of the issues to be face. My stand on that is, there will always be competition. But to me, this issue is a "controllable" factor. I can dictate how I play with the competition. So for now, I consider that to be a non factor.

Any additional comments will be greately appreciated.

Teresa

Almost sounds like the locations of my three salons. The one that is nearest the lower middle class, has lowest rent and sells mid priced packages and lotions. The one that is in HIGH traffic area has HIGH rent....pushes clients through 1 after another, high volume sales of packages & products. And the third is near a grocery store and one the edge of a high end subdivision...does a fair amount of clients & they are the worst to sell to.
But the bottom dollar they all have very similar profit margins. So I would go with the one that YOU like the best.

Becky

Bronze and Jeff both made many good points. About all I can add is the on the disposable income issue. I opened in a new shopping center in a relativley new neighborhood. Some of the homes have been here but the retail is just now getting built up. The newer homes being built are definately higher income. They have a tendacy to spend a little more freely because they do make more, but they also have large mortgages and car notes. It takes alot to keep up with the Jones's.

In the long run, I think the higher income areas will bring in more business but that is just my personal opinion.

Regardless of where you open up just make it a first class clean operation and you will do well!

cutiepup

I tend to disagree with Becky somewhat. I went with a new, upscale location where the homes range from 350,000 to well over
1 million. Income level is highest here in the state. (lake community) The clients who you would think have more $'s to spend are less likely to leave them with you. As Teresa said the higher income clients are the hardest to sell to. Also please take this into consideration, I did not, higher income areas usually mean more home beds.

We didn't consider this much but now that we are where we are we've come to find out that more people in this area have home beds and not just 20 lamp poor output beds. Some of the people here have beds that salons use as upgrade equipment. Just something to think about. Every area is different your higher income area may not be like mine is.

Angie

Bronze Star

Angie has triggered something about our location and who tans with us. We are between several different types of towns (in NJ) and I have noticed that the folks from the smaller areas that make less money, but spend less to keep up with the Jones tend to have more cash on hand and tend to be more faithful loyal clients. We have a number of "ritzy" clients who pay as they go... paying per session, but also tan at several different salons, loyal to none. Just something I noted.

fungirlz

Not everything that glitters is gold..
Sometimes the high end homes are mortgage poor if you know what I mean..