SteveJes

Hi Everyone, came on this forum a few times, read a lot of posts, everything is extremely helpful and interesting – Thank you all for your feedback.
I decided to signup and ask a few questions.
Listen, I’m a 21 year old entrepreneur, I started a few business in the past (Mainly internet business – marketing related) , I didn’t make a fortune but made me pay my bills – pay a car, etc…
I was interested in jumping in the Tannin Salon business.
1) What’s the average monthly revenue (After expense) your business generates?
2) What was your investment amount? Was it a bank loan?
3) How many beds have you started with?

I’m so sorry for those personal questions, but I would appreciate having some help. At least rough estimates.
I hear that this business is really good but never saw any number.

I’m from Canada and want to open the Tannin Salon in Downtown Montreal, very frequented corner of the city. Just by being in Canada, the lawsuit factor is removed, no worries about that – No one can sue anyone here – crazy but hey! It’s cool.
I want to start with 6 beds and target a higher paying clientele. I want to take a loan for the entire purchase and rent a retail location (Instead of buying one).

I would also love to sell “add-ons” – Hollywood White , Tanning Creams and Health Beverages (Natural juices)… as that must generate a nice revenue too.


Can you please help me out? I would really appreciate it.


Thanks a lot!

- Steve

engfant

Sounds EXACTLY like my situation.

Let me introduce myself: Listen, I’m a 26 year old entrepreneur, I started a few business in the past (Mainly internet business – marketing related) , I didn’t make a fortune but made me pay my bills – pay a car, etc… "

And I'm STILL ain't got no fortune and still am just paying the bills. I have 6 beds. Here's my biggest sugestion. The LESS you borrow the better off you'll be. You can pay the bills 6 months no problemo and be out of business by the 9th month cause you have NO BUSINESS. Talking 15K/month to 3K/month or LESS. (example)
Also you have to plan to do it ALL YOURSELF or FORGET IT.

Neon Beach

That must just be in Quebec, people here in Ontario get sued all the time, or are you just talking about tanning businesses?

Great questions you have there, but you're about to get many different answers. Everything, or almost everything is going to depend on your, demographics and not someone from Alabama. Do your research locally, see what other surviving salons are charging, what their rent and estimated expenses are, look at their equipment and decide whether you want to match them, high-end them or provide a more economical alternative for your tanning public.

As an example, I could fill my salon with $30,000 Ergoline beds and charge $22.00 a session, but in my local market, no one is going to pay it when they can go to Try N'Tan up the road and use a $9,000 ETS for 8 bux. See what I mean?

tanu01

You paid 30 grand for an ergo? with so many other choises!
Flick

Neon Beach

I wish I could afford Ergolines! Some of there stuff is $30,000+ here in Canada. EWE's Silver Bullet is $40,000 here! While American salons are only paying $20,000. (which I still wouldn't pay for a tanning bed) Mystic Tans $50,000 before taxes and shipping!!!!!!!!!

Back to the question, you have to check your local market. See what the competition has for equipment and what they charge. Decide whether you wanna one-up them, equal them (while being more affordable?) or provide a more economical alternative for the tanning public you may have.

Neon Beach

[ This Message was edited by: Neon Beach on 2004-07-18 19:04 ]