PipelineTanningCo

I'm opening my first salon hopefully right around January after college christmas break. Constructive criticism is welcome, in fact, bring it on! I have a presentation for a loan Wednesday,

The salon will be targeted for the younger tanner on a college budget because a major university with 19,000 undergrads between the ages of 17 and 24 are less than a mile away (so basically 52.3% of the tanning population will be within walking distance of my salon. The salon will be in a rennisancial downtown area loaded with trendy shops and restaraunts, and across the street from the most popular in the city in a 1,500 sq ft store with a glass storefront.

The decor will be tropical, but not like a cheesey *** typical salon with grass skirts everywhere. It will be called Pipeline Tanning Co, named after the worlds largest surfing spot in Hawaii, and will be like a sophisticated surf shop. My dad owns a glass store, so all my hallways will be glass. More details about decorations if y'all want...

8 total beds, 6 of which being the same base level beds the most upscale salon in the city has, sundash 232c's, 1 ergoline advantage 400, and 1 sundash stand-up. The salon will offer unbeatable monthly packages, realizing that the key to success is dollars per customer, and the more they are in the salon, the more they will be opt to check out specials, upgrades, and using lotions. Student specials such semester and school-year packages will be pushed to college cliebts. Lotions will be targeted to younger buyers, like emerald bay by cal-tan, but also have some upscale lotions for the rich people living in the many,many new loft complexes, such as Supre and Swedish B.

The competition in the downtown area is very feeble, with only one other salon by the university, and it so happens to be a total $hit-hole, where you have to even clean your own bed. My beds will be better, in an awesome atmopshere (think flatscreen TVs with "the real world" and "the o.c." along with surfing dvds) and trendy music that will be high-energy (a one last stop before you hit the over 20 downtown clubs within walking distance!)

Sun Ergolines Break-Even Anylasis projected my salon breaking even within the 1st year if I loaned 125,000. 60,000 is going to be used for the beds, and I will spend every penny necessary to make the salon a must-see place, even if you're not a tanner. The idea is to be like Abercrombie and Fitch owned retail store Hollister, a trendy tropical place for college kids that promotes a "popular" lifestyle and is affordable.

Well, whattya think?

......Before you start with the bull$hit "you need to check out available amps, tons of a/c, blah blah etc....trust me, the research has been done, and I have EVERYTHING I need...well besides the loan approval
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[ This Message was edited by: PipelineTanningCo on 2004-09-19 02:14 ]

PipelineTanningCo

Oh I forgot to mention...I'm only 18

ZABAZU

All your ideas sound really great! Location great, Opening date perfect...Jan. not too busy so that you will be overwhelmed but just in time for the busy season to come.

18...? You sound too smart for 18...Who is this? one of Chunn's kids?

studio 102

I can't believe you would base your success on Ergolines', or any distributors' "brek even analysis"..Trust me, the #'s are inflated. There is no way any one can predict exactly. If I was to call them, they would hand me the same BS.

I am not trying to 'bust your chops', but rather, awaken you. There are many things which determine the success of a salon, or any business. If you are going to base it on a salesman who is basing his commission on the fact you will be impressed, you will soon find how 'off' they are.

Many factors come into play. The ergo rep is clueless to your enviroment. They will tell you what you want to hear. That is their job.

That said, from what you described, the location sounds ideal. But remember, do not expect to make much money on college students. Why?? College students, by nature, are cheap. They live on a tight budget. They live on loans. They live on parents money. Disposable cash does not come easy for them. Also, they are more seasonal than the industry itself. When semester is over, school breaks, summer/winter vacation, and they have time on their hands, they go home. They won't be coming to tan.

I had an ideal location picked similar to yours. Directly across the street from an all womens College, One of the oldest in the country. The salon was going into a converted warehouse loft. I studied the demographics. The place was ripe, so I thought, until I realized what a ghost town it was during spring break, (they all go to Florida), and holidays..in fact talking to other business owners in the area, their biz was slow during those times..so I moved on.

Just some thought. Best to Ya'

ZABAZU

I agree with the chop busting part of what studio102 told you as well...But like I said before, you have some great ideas!

DWhite6872

Could you please give me the address,city and state please? It sounds like we should open there and get the heck out of Ohio Good Luck.
It dosen't matter how old you are as long as you watch your shop and have passion.

Neon Beach

Ahhhhh to be young and a dreamer. Sounds great! Realistic is another thing. Best of luck.

engfant

Get a second opinion from PC Marketing. Do some searching around here about Ergoline. I don't trust any bed that don't use cosmedico.

TanningEmporium

PP, I was just in Springfield over the Labor Day weekend. My husbands family is from Spf, Bolivar, st james, and rolla areas. You are brave, I have seen the salons in that area, and you are looking at alot of compt. I noticed 3 salons opening while I was there. The breakeven analysis you have is the same I had 3 years ago, and yes it says you will profit your first year. Hate to be the one to burst your bubble, but with the compt you have in springfield you may not see the numbers you are looking for. I can tell you this, you better have some extra capital hanging around just in case you dont hit the breakeven on the mark. Good Luck to ya, and happy tanning.

PipelineTanningCo

Thanks for all the replies! Trust me, my head is not totally up the Ergo Rep's ***, but the goal is to make the bank think that the break-even anylasis is very realistic, and tack on lotion sales and paying off the salon in the first year would be a sinch.

However, I know that its not going to be easy as Im making it sound, you cant make people tan at your salon, especially college kids on a tight budget.

MY SALON WILL HAVE EVERYTHING THE COLLEGE TANNER OR HIGH-CLASS DOWNTOWN RESIDENT WILL NEED.

I'm not worried about competition IN MY AREA at all. The only other salon is terrible in all aspects, especially customer service. Its an old dumpy place with stained purple carpet and when I visited the salon to check it out, the salon ASSistant turned her back on me and continued to talk on the phone.... In my report for my presentation, I have interviewed several college students, like myself, about why the tanned at the competition, and 100% of the responses was "Because its close to campus." Well, Im closer, trendy, have better equipment and for the same prices.

I know my salon could not compete with the AWESOME south-side salons...especially the one I work at, but I'm 10 miles away and cater to a group that is totally underestimated.

As for being skeptical to catering to the college student? Im not. Im offering student specials they wont be able to refuse. On top of the semester and school year packages (if you want prices, ask) I'll offer a summer package to commuter students for an unheard of price that Daddy's money or their minimun wage job on campus cleaning up beer stains from the dorm carperts could pay for.

Thank you.

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[ This Message was edited by: PipelineTanningCo on 2004-09-19 19:53 ]