Profit? - It must be better than this!

SunnyO · 01-09-2005, 12:48 PM

We're in the process of starting a new salon. I've done lots of searches in regards to salon earnings. I've taken your advice seriously: "Tanning is not a quick, get rich plan. Do lots of research. It takes time and dedication to make a successful business".

I thoroughly understand all of your points, as we've owned & operated a small Child Care Center for over 11 years. The same principles apply to this business. Just because you build it, they're not guaranteed to come.

Our first year we lost approx. $6,000.00. Our profits went up slowly year after year. We both work full time at this business, so it is our only income. On a good year we make $50,000.00 together. Enrollment goes down, now we're making $35,000.00 combined. But, not every year is good & there isn't seasons to child care. It can be slow all year. Even when it is slow, our expenses stay pretty level - particularly staffing expenses. Because of State licensing regulations, we are paying 4-6 full time staff members each day - even during slow months or years.

I have enjoyed seeing our business be successful and teaching little ones, but it is time for a change. We plan on starting with a 6 bed salon (room for 7 units). We will be keeping our child care business open for awhile, to give the Salon a chance to get started.

Knowing that we will put the same dedication into the Salon and will make it succeed, is it possible to make more money than we are currently earning? We are not in a big city. Only one competing Salon with 5 ETS units. They charge $30.00/month for their 32 lamp base bed and $50.00/month for their 42 lamp bed. Our rent is $850.00/month.

I know there is no average salon, and situations vary from salon to salon, town to town. I just need reassurance or a warning whether or not this is even realistic.

DWhite6872 · 01-09-2005, 01:00 PM

I think it is important to have more than 7 units....please pm me your address and I can pull your demographics to see how many beds your area could support.....it really depends on your market....you could make nothing or you could make 100k per store sometimes more depending on your market and location....so its a hard question to answer...how many people or rooftops are in your town?

Neon Beach · 01-09-2005, 01:13 PM

Profits! Make a living is more like it.

engfant · 01-09-2005, 01:16 PM

"Because of State licensing regulations, we are paying 4-6 full time staff members each day - even during slow months or years. "

What is this regulation? You HAVE to pay people? I don't even pay myself and I'm my only employee. If you an't do it yourself forget it ESPECIALLY with a 6 bed salon. For that kind of staff I would expect a 20bad salon.

DWhite6872 · 01-09-2005, 01:20 PM

I do not understand? What does it mean you have to pay 4-6 people a day? I think if you are opening a salon now with the curent enviorment it should start with a "2" or have at least be in the teens.....

sun2go · 01-09-2005, 01:47 PM

read a bit here. 4-6 employees is in the child-care business, not the proposed tanning venture.

DWhite6872 · 01-09-2005, 01:50 PM

wow, ....just a question.... but thanks I get it now...

SunnyO · 01-09-2005, 02:34 PM

I'm just trying to compare my child care care business to a potential tanning business. With child care, I have a total of 8 employees on payroll (at any one time 4-6 of them are on duty). With a 6-7 bed salon, I would only need 2 employees (with only 1 on duty at a time). With child care, I pay $1,100.00/month in rent. Tanning salon=$850.00/month. There are supplies, license fees, and many other things I could compare. Anyway, it just seems to me that tanning could me more profitable and possibly less stressful than a 10 hour day with 15 - 3 year olds.

Heh, want to make more money than tanning? I have a child care center to sell you. Hee hee hee. I appreciate everyone's advice & support. I just love this sight! Now I just need to make the right decision. Choices, choices, choices..........

tanu01 · 01-09-2005, 04:32 PM

Any well run salon will make money,even in a small town. But I would suggest build out for atleast 10 if not 20.
Bob

sbtan · 01-09-2005, 04:47 PM

15 3 year olds cant complain as much as 3000 adults, where are you located?

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01-09-2005, 01:00 PM	#2 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	I think it is important to have more than 7 units....please pm me your address and I can pull your demographics to see how many beds your area could support.....it really depends on your market....you could make nothing or you could make 100k per store sometimes more depending on your market and location....so its a hard question to answer...how many people or rooftops are in your town?

01-09-2005, 01:13 PM	#3 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Profits! Make a living is more like it.

01-09-2005, 01:16 PM	#4 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,751 Rep Power: 12	"Because of State licensing regulations, we are paying 4-6 full time staff members each day - even during slow months or years. " What is this regulation? You HAVE to pay people? I don't even pay myself and I'm my only employee. If you an't do it yourself forget it ESPECIALLY with a 6 bed salon. For that kind of staff I would expect a 20bad salon.

01-09-2005, 01:20 PM	#5 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	I do not understand? What does it mean you have to pay 4-6 people a day? I think if you are opening a salon now with the curent enviorment it should start with a "2" or have at least be in the teens.....

01-09-2005, 01:47 PM	#6 (permalink)
sun2go Join Date: Dec 14 2001 Location: Third Rock Posts: 296 Rep Power: 7	read a bit here. 4-6 employees is in the child-care business, not the proposed tanning venture.

01-09-2005, 01:50 PM	#7 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	wow, ....just a question.... but thanks I get it now...

01-09-2005, 02:34 PM	#8 (permalink)
SunnyO Join Date: Nov 23 2004 Posts: 112 Rep Power: 4	I'm just trying to compare my child care care business to a potential tanning business. With child care, I have a total of 8 employees on payroll (at any one time 4-6 of them are on duty). With a 6-7 bed salon, I would only need 2 employees (with only 1 on duty at a time). With child care, I pay $1,100.00/month in rent. Tanning salon=$850.00/month. There are supplies, license fees, and many other things I could compare. Anyway, it just seems to me that tanning could me more profitable and possibly less stressful than a 10 hour day with 15 - 3 year olds. Heh, want to make more money than tanning? I have a child care center to sell you. Hee hee hee. I appreciate everyone's advice & support. I just love this sight! Now I just need to make the right decision. Choices, choices, choices..........

01-09-2005, 04:32 PM	#9 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 3,977 Rep Power: 7	Any well run salon will make money,even in a small town. But I would suggest build out for atleast 10 if not 20. Bob

01-09-2005, 04:47 PM	#10 (permalink)
sbtan Join Date: Dec 2 2003 Location: East Amherst, NY Posts: 648 Rep Power: 5	15 3 year olds cant complain as much as 3000 adults, where are you located?

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