HELP!! Looking to purchase tanning salon...help me decide if this is a good deal

mstimthop · 03-14-2005, 06:19 PM

I am looking to possibly purchase a local tanning salon. It is in a great area of a fast growing part of the town. It is in a strip mall across from Wal-Mart supercenter and a new Lowe's is being built nearby. The purchase price of $30,000 includes 4 PureTan TanScene 36 beds that were manufactured in 2001. This price also includes the whole inventory of tanning lotions. There are 5 rooms set up currently for tanning, one of which does not have a bed in it at this time. There is also a back room that I would like to eventually put a Mystic Tan booth in. The lease on the building is $1000.00 a month. Does this sound like a good deal? Are these good quality beds? What questions should I ask the shop owner to find out more needed information on customers and sales? Also, how much do new Mystic Tan booths cost and can you lease them? Thanks so much for any info you can give me.

DWhite6872 · 03-14-2005, 06:22 PM

It is not about the beds...they are worth nothing now. What is their database? How much a month do they have in EFT's?

Steve Underhill · 03-15-2005, 10:17 AM

IF A SALON IS FOR SALE IT IS FAILING! When purchasing a new salon you must approach it as though you are opening a new salon. You should do many of the things that the current salon owner did not do. Do a demographic evaluation to determine the potential of a salon at this location. A salon is typically worth 2 to 2.5 times the net profit of the previous year. As far as equipment, it is worth no more than about $12,000. You have to also consider the amount of money that must be spent to correct the problems that are causing this salon to fail. The decline of this salon if in the proper location can be corrected but you must have a plan to do so before you consider purchasing it.

West Side Tanner · 03-15-2005, 04:20 PM

"If a salon is for sale it is failing" I disagree. There are many reasons a salon is for sale other than failure!

talldarkandblonde · 03-15-2005, 05:37 PM

I am in this process rightnow of buying a salon. If the asking price is $40,000- find out how much the beds are worth now-used and how many EFT they have, offer them less and go from there-that will get you to square one.

BigLeo · 03-15-2005, 05:55 PM

Just watchout that Wal-Mar doesn't open a tanning salon inside their store. It's coming.

ramcat · 03-15-2005, 06:33 PM

I just bought a salon. And personally, Steve Underhill is all wet. This salon was doing fine. There were personal reasons the owners sold.

Anyway...The data base is very important. The number of active customers is worth money. If they do EFT's that is also worth money. No EFT's does not mean it is a bad investment either.

Look at their sales records, Did they turn a profit in the past few yeas? What is the inventory worth? Make sure you use their cost and not retail. Are the beds working? When was the last time they changed bulbes? Is there a record of maintenance? Even though the beds are only worth about 1/4 or less of their original price, they are still the money makers in the salon.

You have extra rooms to grow? Whether you buy a Mystic, Magic, Celebrity Tan, Cal Tan or any other sunless booth, make sure you have the power.

These are just a few things. There are more things to consider.

Ezliving_Jim · 03-15-2005, 09:38 PM

Quote:A salon is typically worth 2 to 2.5 times the net profit of the previous year.

That is a seller's dream, not a buyer's reality!

totaleclipse1 · 03-15-2005, 10:32 PM

if wal mart does that for get it we are all doomed!

tropicgirl · 03-16-2005, 09:09 AM

Oh yes, and if Wal Mart goes UV, we are all doomed!!

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03-14-2005, 06:19 PM	#1 (permalink)
mstimthop Join Date: Mar 14 2005 Posts: 1 Rep Power: 0	I am looking to possibly purchase a local tanning salon. It is in a great area of a fast growing part of the town. It is in a strip mall across from Wal-Mart supercenter and a new Lowe's is being built nearby. The purchase price of $30,000 includes 4 PureTan TanScene 36 beds that were manufactured in 2001. This price also includes the whole inventory of tanning lotions. There are 5 rooms set up currently for tanning, one of which does not have a bed in it at this time. There is also a back room that I would like to eventually put a Mystic Tan booth in. The lease on the building is $1000.00 a month. Does this sound like a good deal? Are these good quality beds? What questions should I ask the shop owner to find out more needed information on customers and sales? Also, how much do new Mystic Tan booths cost and can you lease them? Thanks so much for any info you can give me.

03-14-2005, 06:22 PM	#2 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	It is not about the beds...they are worth nothing now. What is their database? How much a month do they have in EFT's?

03-15-2005, 04:20 PM	#4 (permalink)
West Side Tanner Join Date: Dec 27 2003 Location: Florida Posts: 2,548 Rep Power: 5	"If a salon is for sale it is failing" I disagree. There are many reasons a salon is for sale other than failure!

03-15-2005, 05:37 PM	#5 (permalink)
talldarkandblonde Join Date: Feb 25 2005 Location: Hot ***, Texas Posts: 204 Rep Power: 4	I am in this process rightnow of buying a salon. If the asking price is $40,000- find out how much the beds are worth now-used and how many EFT they have, offer them less and go from there-that will get you to square one.

03-15-2005, 05:55 PM	#6 (permalink)
BigLeo Join Date: Jan 27 2005 Posts: 243 Rep Power: 4	Just watchout that Wal-Mar doesn't open a tanning salon inside their store. It's coming.

03-15-2005, 06:33 PM	#7 (permalink)
ramcat Join Date: Oct 26 2004 Location: Florida Posts: 3,224 Rep Power: 7	I just bought a salon. And personally, Steve Underhill is all wet. This salon was doing fine. There were personal reasons the owners sold. Anyway...The data base is very important. The number of active customers is worth money. If they do EFT's that is also worth money. No EFT's does not mean it is a bad investment either. Look at their sales records, Did they turn a profit in the past few yeas? What is the inventory worth? Make sure you use their cost and not retail. Are the beds working? When was the last time they changed bulbes? Is there a record of maintenance? Even though the beds are only worth about 1/4 or less of their original price, they are still the money makers in the salon. You have extra rooms to grow? Whether you buy a Mystic, Magic, Celebrity Tan, Cal Tan or any other sunless booth, make sure you have the power. These are just a few things. There are more things to consider.

03-15-2005, 09:38 PM	#8 (permalink)
Ezliving_Jim I love Derf!! Join Date: Mar 12 2002 Location: Virtual Reality Posts: 2,423 Rep Power: 10	Quote:A salon is typically worth 2 to 2.5 times the net profit of the previous year. That is a seller's dream, not a buyer's reality!

03-15-2005, 10:32 PM	#9 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 31 Posts: 1,942 Rep Power: 11	if wal mart does that for get it we are all doomed!

03-16-2005, 09:09 AM	#10 (permalink)
tropicgirl I love Derf!! Join Date: Jul 13 2003 Location: middle america Posts: 1,018 Rep Power: 8	Oh yes, and if Wal Mart goes UV, we are all doomed!!

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