Purchase price for a salon

susanlatte · 09-08-2003, 01:52 PM

I am in the process of purchasing an existing salon. I have seen several methods on calculating a purcase price to offer.

What have those of you who purchased an existing salon done to calculate the offering price?

Thank you.

engfant · 09-08-2003, 08:38 PM

What you took in for the year plus 20%. Actually just made that up. Sounds good though.

susanlatte · 09-08-2003, 09:00 PM

Considering everything that I have heard about calculating an offer for a salon--will add your idea to the group.

What did you do to calculate an offer for your salon?

engfant · 09-08-2003, 10:42 PM

Honestly, I just bought it based on what they supposedly took in (that year). It was about $30K more than I purchased it for. By this time next year the place will be worth 3 times what I paid. Here's a tip for ya. The real reason I bought it was because I walked into an empty place baron of any real thought or effort and they were taking in 80 people/day. I immediately imagined an infinate number of possibilities that could triple the traffic while eliminating the "filler" traffic, mostly the young scavenger teens with no money. If you buy a place that is fully done up it'll be more difficult (and expensive) to change the atmosphere and the value will only make a lateral move. $100 in paint can raise the value of an empty place by the thousands. Here's another tip for ya. Don't go after the teens. Go after their parents. They have the money. In a resession the first to get cut off is the kids. If you win them over then tell them about your "student special" (just make something up) to get the teen. If the parent tans there should be no problems. Last tip. When you write your business plan estimate your costs HIGH (atleast 30% over probable costs or last year's estimates) and your revenues real LOW. As in it's going to snow 360 days next year. I normally don't give out any business info but most of the people on this board don't pay attention to my posts anyway so it's cool.

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09-08-2003, 01:52 PM	#1 (permalink)
susanlatte Waiting Confirmation Join Date: Sep 1 2003 Posts: 231 Rep Power: 0	I am in the process of purchasing an existing salon. I have seen several methods on calculating a purcase price to offer. What have those of you who purchased an existing salon done to calculate the offering price? Thank you.

09-08-2003, 08:38 PM	#2 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,751 Rep Power: 12	What you took in for the year plus 20%. Actually just made that up. Sounds good though.

09-08-2003, 09:00 PM	#3 (permalink)
susanlatte Waiting Confirmation Join Date: Sep 1 2003 Posts: 231 Rep Power: 0	Considering everything that I have heard about calculating an offer for a salon--will add your idea to the group. What did you do to calculate an offer for your salon?

09-08-2003, 10:42 PM	#4 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,751 Rep Power: 12	Honestly, I just bought it based on what they supposedly took in (that year). It was about $30K more than I purchased it for. By this time next year the place will be worth 3 times what I paid. Here's a tip for ya. The real reason I bought it was because I walked into an empty place baron of any real thought or effort and they were taking in 80 people/day. I immediately imagined an infinate number of possibilities that could triple the traffic while eliminating the "filler" traffic, mostly the young scavenger teens with no money. If you buy a place that is fully done up it'll be more difficult (and expensive) to change the atmosphere and the value will only make a lateral move. $100 in paint can raise the value of an empty place by the thousands. Here's another tip for ya. Don't go after the teens. Go after their parents. They have the money. In a resession the first to get cut off is the kids. If you win them over then tell them about your "student special" (just make something up) to get the teen. If the parent tans there should be no problems. Last tip. When you write your business plan estimate your costs HIGH (atleast 30% over probable costs or last year's estimates) and your revenues real LOW. As in it's going to snow 360 days next year. I normally don't give out any business info but most of the people on this board don't pay attention to my posts anyway so it's cool.

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