studio 102

engfant..I have started with that 35K..I do not hype the boards.

navigatin1

Quote: The salon I bought is across the street from a GRAVEYARD and a full shopping center that has septic problems.


I can see why your customers are "dying" to tan with you, and if your very busy, there "Sh*t" out of luck!!!! LOL

JohnnyComeLately

We just closed escrow Friday on ours. The lesson we learned was get a sales report. We kept asking for it and never got it. So we just used last year's CPA-prepared income and balance sheet. We're now seeing they took a $1200 a day business down to sub $300. It's still not "in season" yet, but it's lower than it performed the last few years.

The other thing we learned is to get everything out in the open early. We have people who just enrolled in 6 month plans, last month, and we didn't stick to our guns about getting that money up front. It's unlikely we'll see it, but we did get a quick agreement in the escrow that we'd settle this up. My wife spent last night going through the last 3 months of sales and picking out all the monthly's, multiplying the time left in the plan by the revenue per day (from the plan). It came to about $2k.

We are also having problems swinging over the ACH, or auto debiting. Does everyone else here pay $100 flat fee, plus montly, plus per transaction?? At only $500 a month in income, it sounds hardly worthwhile when you give 25% away in fees. But I'll start my own thread for the remaining issues

John

MJ

$100.00 ummmmmm no I paid nothing to sign up.....and I pay $5.00 a month flat fee, 10 cent per transaction fee. It is a local credit union so keep looking.... you will find one with rates you like.

cmaga

Have you been to the competition? Do they have sunless? Sunless is going to be HUGE!! We have a new custom spray booth. Depending on the competition, it could be paid off in 7 months. email me at Cindy@meinc.org or call us at 866-624-2045 ext 14. Good Luck and MERRY CHRISTMAS!!!

Steve Underhill

Never buy a failing salon unless the salon is capable of being properly up-graded. The equipment is old and out dated, must be replaced. Here are the more important questions. What are the dimensions of the rooms that are there? Is there room to ad additional rooms? How costly to up-grade electrical if needed, and it probably is. What do the demographics look like? Is there adequate parking? How many active names in the data base. With these questions I can very easily evaluate the value of the purchase and income potential.

When purchasing an existing salon you must know that it is for sale because it is failing. You have to approach it just as though you are opening a new one. If you where opening a new salon would you choose this location? You must identify its income potential and things that must be corrected to reach its income potential. What is the cost to do these things along with what you are buying it for will determine the real cost of the purchase? To buy it as it is in its current state it has very little in real assets maybe $6,000 to $8,000 that is a generous estimate, the rest of its value is the location and the database. I would be willing to bet that the gross income has been very little or declining for a number of years. I am not saying this may not be a good purchase I am saying that you must establish what you are actually buying and for how much including your investment to make it a new salon.

Rhino

on Ach's process yourself saves money I know its a bit of work but the money saved is better. I have to have total control don't have to yell at some one if my money doesn't get processed my members like the idea that there number isn't anywhere else besides us a PLUS. FYI

lil_missfit

Steve is right as far as the value of the beds. You can buy these beds all day long for $1500 or less. But, they are great beds and have a lot of life in them. I would offer them a set rate for the value of the equipment and go from there, Don't pay for "blue sky" (goodwill) it probably isn't there. If you have $35K to spend, check around with different disty's and see what they have to offer. You can still buy useds or off-lease beds. Kinda like a car, let someone else drive it for the first year and take the hit on depreciation. I would check into other locations also. If you do buy the existing, definitely change the name and keep the phone number. Make sure that you have something stating you are not liable for the existing owners debts!!!!!

tanu01

Speaking of phone numbers, Most phone company's require a release of the number from the former owner. Make sure you get it!!!
Bob

Steve Underhill

When a tanner comes into a salon for the first time they should feel like your salon is brand new, even if the salon has been there for 10 years. This is something that translates into a great deal of business. This would suggest if there is dirt clean it. If there is a scuff on the floor or in the paint on the walls, repair it.
If equipment looks old (bad acrylics, stickers, pistons etc.) replace it. To compete in today’s market and to give the feel of a new standard in tanning that again translates into income. It is not a good idea to open with old or used equipment. To do so sets the standard of how your salon should be perceived. Packaging and presentation is just as important if not more important than the tan. One of the reasons that many salons don't do more business than they do is based on how the salon looks. A salon can be very clean and still look old tired and worn out. There is no reason for a salon to look any different after years in business than it did the day it opened. Do the right thing don't cut corners, it will pay off in additional income. These are just a few things that must be addressed to create a successful salon. There are dozens of other things that will add to the success of a salon that at least 90% of the salon owners do not think about. Do it wrong and complain about terrible tanning seasons or do it right and prosper and grow. The choice is yours.