How low is low?

newbiemo · 01-15-2006, 03:25 PM

Okay everybody... I have finally managed to nab the active client list for the salon I've been looking to buy. Gut instinct is to pass but I suppose I need your validation. Here's the nuts and bolts:
Salon is in its 5th year
Small town (5000people max)
No competition
5 beds (2-'96 Mullers, 2- '00 Sundash 232, 1-'02 Sundash Competition)
Current owner has ruined the business by changing prices and hours
Now: client list: 125 with packages or points currently purchased, 74 of which purchased since she took over the business and only 75 have tanned in the past 45 days.

Asking price: she is down to $42000, I'm thinking more like $15,000 or pass.

What do you think??????

Ezliving_Jim · 01-15-2006, 04:27 PM

Client list is a start. What about the financials?

Please, learn to use the search function. It's educational and fun.

Based on the info you offered, it may be worth $10K. Maybe. Do an asset based valuation.

tnannie · 01-15-2006, 04:38 PM

What he said^^^ Wow, $42,000 is way too high IMO.

SandiGirl · 01-15-2006, 05:43 PM

I've been open a year and a half and I just set my software up 2 days ago. I already have 169 people entered and have stacks to go. Out of those, 90 are active so far.

It seems a bit low but maybe you can do a big promo. The price seems to high for the amount of customers.

Neon Beach · 01-15-2006, 06:33 PM

Let it die, and start a anew.

lady bug · 01-15-2006, 08:47 PM

DITTO, WAY too high!!! Start NEW

Neon Beach · 01-15-2006, 08:51 PM

Quote:

only 75 have tanned in the past 45 days.

OMG, that's even worse than me. Pass.

Rodney · 01-15-2006, 09:40 PM

Quote:

Originally Posted by newbiemo

Okay everybody... I have finally managed to nab the active client list for the salon I've been looking to buy. Gut instinct is to pass but I suppose I need your validation. Here's the nuts and bolts:
Salon is in its 5th year
Small town (5000people max)
No competition
5 beds (2-'96 Mullers, 2- '00 Sundash 232, 1-'02 Sundash Competition)
Current owner has ruined the business by changing prices and hours
Now: client list: 125 with packages or points currently purchased, 74 of which purchased since she took over the business and only 75 have tanned in the past 45 days.

Asking price: she is down to $42000, I'm thinking more like $15,000 or pass.

What do you think??????

RUN RUN and do it fast

suntanzbypru · 01-15-2006, 10:07 PM

Okay, this is the scoop, I bought a salon couple years ago with same problems, beds were dinosaure sundash, painted blue and yellow... gross right...... I bought the buisness not the building.... 13,000. I re decorated, bought 2 ergoline beds, and today, I'm in a new location (not my building, but brand new, built for my buisness) with one fantasitc salon... 7 beds now,,, still 2 ergoline 300's and bought 5 new ambitiom 250's and have room for 1 more, I have a spray room, laundry area, and an office,,,,,my town is about 6500 population, and there is one other tanning place here,,,,, I say,,,, competion is good,,, My advice is to go out on a limb, and get your own place. The people there are ready to have a Salon instead of a tanning place..... It took me about one year to build back the buisness to actually compete with the other place, had to be consistant on hours, and customer freindly....... Do it...... just take a chance and you'll see that you will get the bulk of the buisness in your town......... I did, and I should've done this a year ago.................... good luck and if you have any ? feel free to ask, I wish I'd known this site existed 2 years ago.... lol

MJ · 01-16-2006, 02:19 AM

Quote:

Originally Posted by newbiemo

. Gut instinct is to pass but thinking more like $15,000 or pass.

What do you think??????

There..a little cut and pasting...and I answered your question with your own words...listen to your gut more often you will be fine!

01-15-2006, 03:25 PM	#1 (permalink)
newbiemo Join Date: Dec 12 2005 Location: OK Age: 39 Posts: 68 Rep Power: 0	How low is low? Okay everybody... I have finally managed to nab the active client list for the salon I've been looking to buy. Gut instinct is to pass but I suppose I need your validation. Here's the nuts and bolts: Salon is in its 5th year Small town (5000people max) No competition 5 beds (2-'96 Mullers, 2- '00 Sundash 232, 1-'02 Sundash Competition) Current owner has ruined the business by changing prices and hours Now: client list: 125 with packages or points currently purchased, 74 of which purchased since she took over the business and only 75 have tanned in the past 45 days. Asking price: she is down to $42000, I'm thinking more like $15,000 or pass. What do you think?????? __________________ Happy Tannin'

01-15-2006, 04:27 PM	#2 (permalink)
Ezliving_Jim I love Derf!! Join Date: Mar 12 2002 Location: Virtual Reality Posts: 2,136 Rep Power: 10	Re: How low is low? Client list is a start. What about the financials? Please, learn to use the search function. It's educational and fun. Based on the info you offered, it may be worth $10K. Maybe. Do an asset based valuation.

01-15-2006, 04:38 PM	#3 (permalink)
tnannie I love Derf!! Join Date: Aug 16 2004 Location: nunya Age: 43 Posts: 3,215 Rep Power: 93	Re: How low is low? What he said^^^ Wow, $42,000 is way too high IMO.

01-15-2006, 05:43 PM	#4 (permalink)
SandiGirl OFFICIAL BFF member Join Date: Jan 2 2005 Location: BFFland Posts: 3,331 Rep Power: 36	Re: How low is low? I've been open a year and a half and I just set my software up 2 days ago. I already have 169 people entered and have stacks to go. Out of those, 90 are active so far. It seems a bit low but maybe you can do a big promo. The price seems to high for the amount of customers.

01-15-2006, 06:33 PM	#5 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: How low is low? Let it die, and start a anew.

01-15-2006, 08:47 PM	#6 (permalink)
lady bug Join Date: Mar 7 2005 Posts: 589 Rep Power: 8	Re: How low is low? DITTO, WAY too high!!! Start NEW __________________

01-15-2006, 10:07 PM	#9 (permalink)
suntanzbypru Join Date: Dec 13 2005 Posts: 60 Rep Power: 0	Re: How low is low? Okay, this is the scoop, I bought a salon couple years ago with same problems, beds were dinosaure sundash, painted blue and yellow... gross right...... I bought the buisness not the building.... 13,000. I re decorated, bought 2 ergoline beds, and today, I'm in a new location (not my building, but brand new, built for my buisness) with one fantasitc salon... 7 beds now,,, still 2 ergoline 300's and bought 5 new ambitiom 250's and have room for 1 more, I have a spray room, laundry area, and an office,,,,,my town is about 6500 population, and there is one other tanning place here,,,,, I say,,,, competion is good,,, My advice is to go out on a limb, and get your own place. The people there are ready to have a Salon instead of a tanning place..... It took me about one year to build back the buisness to actually compete with the other place, had to be consistant on hours, and customer freindly....... Do it...... just take a chance and you'll see that you will get the bulk of the buisness in your town......... I did, and I should've done this a year ago.................... good luck and if you have any ? feel free to ask, I wish I'd known this site existed 2 years ago.... lol

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