judy1818

I am thinking of buying a tanning salon that has 7 tanning beds in that are 13-14 years old but according to him work great (5) 30minute beds & (2) 20 minute beds, 2 hair stations and 2 nail techs in it with room for a couple more techs. The rent is $1500.00/month, hair & nail tech pay $105.00/week to rent the space. Owner putting new flooring in now. Reason for selling is he has another business and 3 children and its too much. It seems like the salon has potential.

The current owner wants 75,000 for it. I need to know if I should replace these beds or keep them (they look rusty but work great) or just get rid of the worst looking one & replace it with a turbo and keep the rest of them.

Please help me with these questions. I don't know if this is a good deal or not. He says he has 500 clients, 4-5 employees, grosses 150,000/year, nets 40-45,000/year but can only prove 30,000......Thanks in advance!

lil_missfit

Do your homework. In my eyes $75 is way too much. I learned the hard way. Find out the value of the equipment and that is all that you will want to pay for. Never pay for "goodwill or blue sky". You will want to replace the 30 minute beds, with 20 min or less beds. You may be better looking for some off-lease equipment and starting fresh, I know that I would have. Figure what your overhead will be and what you will need to make a year. With rent and utilities, you are looking at $30,000 less your renters, that doesn't include any bed maintenance, insurance or employees.

salonpro

That price does seem a little steep to me. Ask for depreciation list on all equipment,fixtures,etc and go from there.

Sonshinetans

I did the same thing last year. Bought a salon with 5 beds, 4 hair techs, 1 nail tech.
Ended up within 2 weeks having to get rid of all hair techs, sale the equipment and spent 10k more on build out. 75k is way too much money, your techs can leave you at anytime and take their following with them. Pay only for what the tanning is worth, I would think about 25-30k

staticHnTLounge

Do not count on the stylists. I am a sytlist and I see this happen all the time, as soon as you buy it they are gone. Not always, but I would not bank on it. Start fresh.

TANQUEEN

IT ALL DEPENDS ON SALES,EXISTING CUSTOMER BASE,LOCATION AND GROWTH POTENTIAL. I SOLD ONE SALON LAST YEAR FOR $4OO,OOO AND SOMETIMES I WISH I HAD IT BACK. OK, LET`S START. WHAT ARE THE TANNING SALES FOR 2 YEARS?

TanningEmporium

You need to see the books for the last 2 years, ask for tax returns, ask to see the client list active and non. The 5-30min beds would need to be replaced, you would want to figure to try to get them out by the second year..if you can afford the 75g you could start small and have a brand new salon. Its alot to think about..do your homework first.

TANQUEEN

GOOD ADVISE TE . HOMEWORK TIME. AND DEFINITELY GET RID OF THE 30 MIN. BEDS, OVER TIME.