Steve Underhill

When buying an existing salon you must approach it just like opening a new salon. How much business that is being done in the salon is not as important as how much business can potentially be done? You must evaluate the demographics and determine how much business can be done in a salon that size if properly operated. You must evaluate how much additional cost is associated with making the needed changes. The equipment and the net annual profit will determine the value of the salon. There are a great many other things you must look at. For the salon to be worth $75K the equipment must have a current market value or the salon must have a net annual income of $37,500. Please email some additional information including the address of the salon and I will pull a custom Tanning Salon demographic report for you

tnally

I wanted to run by a little of the info I have found out on my own. We still have not asked to see the books because the owner is out of town. We know the rent is 1200 a month and we found out that if we get a loan for the 75K the payment will be around 800. So right off the bat that is 2000 not including electricity, insurance, wages, etc (ya'll know all the rest). This scares me to begin with. The population is around 3000 that are within reasonable driving distance. I think there may be room for 1 more bed, maybe 2. I saw that the 20 minute beds have "Sunvision" on them, and the 10 minute bed had "Blue Dream" on it. Is this good or bad? I have no idea! Trying to decide whether it would even be worth asking to see the books. She did tell us that she makes her money on selling the lotions and the pocket books, and not on the beds. Does that sound right? I am also scared that she is doing something bad because she has LV and Kate Spade pocket books for $90. Does anyone know if it is illegal to sell knock offs? Something doesn't feel right? Anyone have any input on whether to proceed?

DWhite6872

Okay...take the rent and multiply it times 4...that should be your total monthy fixed costs and variable...if you are doing better ....good for you! With your 1200 a month in rent...you should have expenses of about 57,600 a year...this is just an easy way to calculate it and see how you are performing!

Steve Underhill

This salon is not worth 75K

Steve Underhill

This salon is not worth 75K. Based on the equipment that was purchased the owner cut every corner. There is probably not enough AC and I would look very close at the available electrical. The salon design and finish-out is probably barely adequate. This is the norm when you see ETS and Dr Kern equipment.

mikeytan

I do not necessarily agree that based on the equipment in the salon that every corner in the salon was cut. ETS and Dr.Kern are lower priced equipment and while I do not know much about ETS I can tell you that Dr.Kern has had their problems but the beds tan very well. Customers will be very happy. Listen to DWhite when she says multiply rent by 4 to get monthly expenses. That is pretty much right on. In my opinion $1200 rent seems a bit high for the population. Does that include utilities? How big is the salon? I would check and see what size air conditioning you have and how old are the mechanicals. This could affect your utilities. In my opinion 450 customers in 2 years seems a bit low. Is she marketing properly? or at all? I definately would not give her $75,000. Good Luck!

candie

Based on the equipment, size of the town and client base, I would say they are asking too high. 6 beds and 450 clients...NO WAY! The salon I bought had 14 beds...now I have 10, and about 1500 clients in a town of over 100,000 and I bought them out for about $65,000. Just to give you an idea...

soapking

75K is her 'reaching for the stars" price. I would not offer more than 35K, start at 25K.
She needs to sell. The biz has her worn out..she can make more as a nurse. This tells me she is making very little at the salon. She moved to a larger place, you say. Why only 6 beds?

Dr Kern beds run very hot. The side railings are nortorious to feel hot to the touch. Almost like a hot iron. Bad beds. ETS beds are good, but only the Commercial Division. I can guarantee she has Sunvision beds by ETS. These are 24-28 lampers made for home use. They won't tan, nor take the salon abuse.

It sounds to me, she is desparate to close. Offer 25K. Take it or leave it. If she refuses, tell her you will (wait for her to close) open your own