tansongbird

Hi, I'm new to this site, but I've been reading some posts, picked some good info from here...
Anyway, I started to tan in December, 2003, learned a lot about tanning. Now the owner of the tanning salon I go to is selling it. I know that he's not advertizing at all, he has another business that he makes more money from. He's got like 2 employees and he's never there himself, so he's basically losing money right now. I know for the fact that he lost last year... I know that he's willing to sell it at a very low price, around $40,000. He's got 6 base beds (Perfect tan brand), 1 superbed and 1 Cyclone stand up. The salon is located east of US-1 in Dania, FL. I know my friend and I (we're planning to apply for a loan together) can advertise to increase the number of customers, but it scares me that the location might not be that good. Maybe, that's the reason the present owner isn't doing well. Is there anyone here from South Florida who knows what I'm talking about?
Can you please give me some advice?
Thank you in advance!
Elaina.

jkonturas

First of all, if you know for sure that this salon is losing money, then why are you even gonna bother with it? Do you REALLY think that you and your friend are just gonna waltz into this salon, and into the tanning industry for that matter, and succeed where another has already failed???? Do you have any idea how much work is entailed in running a salon? You think that people are gonna just come because you advertise, and renevate? I would definitely reconsider. Also, when you buy a business you are buying its assets (location, equipment, PROFIT on the books, lotions, merchandise, the rooms, decorations etc....) $40,000 is pretty cheap right?? NOT REALLY...... 6 Perfect Tan Base beds= $14,000 .... Perfect Tan Superbed= $6,000 .... Cyclone Booth= $10,000 .... Now you would be at $30,000 and have BRAND NEW EQUIPMENT, use the other $10,000 to build the rooms, front desk, paint etc.... AND YOU HAVE AN IDENTICAL SALON (except it is BRAND NEW, new location, new vibe,) Think about it before you make any big decisions

studio 102

Very Competitive in S. Fla. A salon on every corner. Go North on US1 into FT Lauderdale and a salon on every corner. I know of 4 salons presently for sale in Pembroke Pines and Coral Springs. What does that tell you??!!

Perfect Tan beds won't compete with the Muellers/Gates at Miami Tan right down the road from Dania on Biscayne Blvd..I'd rethink the idea.

tansongbird

Thank you, Studio 102, for your input. I looked around already, yeah, I know about Miami Tan and others in Fort Lauderdale. I'm definitely going to reconsider, that was just a thought. I know for the fact, a few salons on University Drive are doing well and pretty busy. I actually think I'll get a job at one of them to learn more about the industry and whether I want to get into it!

...jkonturas, don't think I'm some kind of idiot, I know what it involves to buy a business. And that was just an idea, a thought. If I decide to get into this business I'll probably combine tanning with personal training because it's what I already do. Maybe, in a couple of years ...
Thank you, everyone for your responses again.

jkonturas

Now thats a good idea.... If you already have a gym or something, you should just add a small salon to it. You would be allowing your clients to kill 2 birds with 1 stone!!

sunny d

I always look to see that there is at least a 10 to 15% margin of profit after all expenses. I dont know if that is correct. But, it has worked very well for me . I would never even think about a business that is losing money. That does not take in to account all the other things like equipment and location room to expand. What the true value.

tansongbird

....I wish a had a gym..LOL. No, I just train here and there. If anything, I'll need to apply for a small business loan. I'm going to meet the owner tonight to look at the books, so we'll see....

Steve Underhill

Sometimes buying an existing salon can be a great investment. Things that are important. Room sizes. It cost more to tear a room down and rebuild than building it right the first time. Rooms to small will affect business. How much AC and electrical is available. Check the demographics. How is the parking? If certain elements of a salon are in place, it makes no difference if the salon is doing well. I can increase the amount of business done in any salon, you can too. Most salons are leaving a great deal of income on the table. Only 10% to 12% of the salons in the US are maximizing income potential. Remember that when buying a salon you will have to invest in changing the face of the salon as well as how it is operated in order to make the negative view of the existing salon.

tansongbird

Quote:
On 2004-05-04 12:34, Steve Underhill wrote:
Sometimes buying an existing salon can be a great investment. Things that are important. Room sizes. It cost more to tear a room down and rebuild than building it right the first time. Rooms to small will affect business. How much AC and electrical is available. Check the demographics. How is the parking? If certain elements of a salon are in place, it makes no difference if the salon is doing well. I can increase the amount of business done in any salon, you can too. Most salons are leaving a great deal of income on the table. Only 10% to 12% of the salons in the US are maximizing income potential. Remember that when buying a salon you will have to invest in changing the face of the salon as well as how it is operated in order to make the negative view of the existing salon.

Thank you for your advice! The rooms are pretty big. Parking is fine - it's in the Publix shopping plaza. The only bad thing is - you can't see the sign from the road, and there is only one board saying "publix" that doesn't even mention the other stores in the plaza. Also, talking about demographics, there are some bad neighbourhoods just west of US1...I've got to do more research before I make any decisions...

vette5960

Let me know what you guys think of this deal....There is a tanning salon for sale on a major highway, approx. 10,000 cars pass by daily. The salon has 8 beds, 6 reg and 2 standup. Owner says she nets 80 - 90,000/year (cash). It has a small personal fitness gym in the front lobby and the tanning in the back. The beds average 5-7 years old. Beds have 42 bulbs. Comes with all neccessities such as computer (helios 9) washer/dryer for towels, radios/cd in each room, etc... 1800 sq.ft of space. What do you think is a reasonable offer? Thinking somewhere areound 90-95,000. Please post your thoughts.