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Tanning Biz Newbies Are you a future salon professional and new to the Industry?

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Old 04-05-2006, 04:21 PM   #21 (permalink)
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Re: I know you have probabaly heard this before

Quote:
Originally Posted by Parafly9
what kind of operation would you need to run to create > $100,000 net profit margin.
THAT, my friend is the question we are all asking! ;)
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Old 04-05-2006, 04:59 PM   #22 (permalink)
 
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Re: I know you have probabaly heard this before

If you are interested in keeping your costs low and buying existing units, I have a Hex II with attached changing room for sale in Attleboro. I have a small health club and would like the extra space for cardio equipment. Make an offer!
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Old 04-05-2006, 06:11 PM   #23 (permalink)
 
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Re: I know you have probabaly heard this before

IMO, in order to make that kind of NET you'll need to be pulling in AT LEAST $300k GROSS. In order to do $300k GROSS, you'll need a mega salon and be running a lean, tight ship. Demographics in your area is the key. Start with your Chamber Of Commerce web page. Look for population total, age and sex spread, and mean income to start. Look for who your biggest employer's are and the number of employee's.
Did your father ever run a restaurant before?
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Old 04-05-2006, 06:31 PM   #24 (permalink)
 
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Re: I know you have probabaly heard this before

what he said. ^
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Old 04-05-2006, 06:35 PM   #25 (permalink)
 
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Re: I know you have probabaly heard this before

Ya - good luck with that..!
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Old 04-05-2006, 07:09 PM   #26 (permalink)
 
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Re: I know you have probabaly heard this before

In a previous salon that we started, we found a new building that was still renting out spaces and the landlord did all of the build out for us. Look into that option. Also, I have 7,000 sq. ft. ~ half is the tanning salon and half is individual spaces for hairdressers, nail techs, massage, and facialist. They are all independant contractors so they take their own apts, etc.. VERY LOW MAINTENANCE! They pay the overhead, but I can assure you I still don't net $100,000 a year! Oh, I have 10 beds. Hope that helps!
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Old 04-06-2006, 07:11 AM   #27 (permalink)
 
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Re: I know you have probabaly heard this before

Sweeet.... this is sounding mighty difficult unless you get multiple locations running.

My father never ran a resteraunt, but he is German and convinced a German resteraunt would be a big money pot. My take is, how much Bratwurst can we really eat? haha

Still researching .... I have to work it around my day job (project mgr) and my web design company.

Thanks for the advice so far!
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Old 04-09-2006, 07:42 AM   #28 (permalink)
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Re: I know you have probabaly heard this before

We can only eat so much Bratwurst, however ALL of us DO eat -- every single day, several times per day.

Tanners are about 10% of the population - and dropping. Anti-tan sentiment is the strongest it ever has been! We were in Florida last month and my 9 year old was looking a little pink on her shoulders after hours in the pool. I sent her to go put on more sunscreen, noting the pinkness. She looked right at me and said, "Mommy, am I going to die?". I was shocked! You can bet she never got that idea from me, but at age 9, here's what she thinks about sun exposure!

Not trying to "scare off competition" (as you suggested I was doing in another post! :) ), just hate to see people come in thinking it is easy and a gold mine and not realize that those "glory days" are long past, and while there is still money to be made, it is a LOT tougher and you have to be a LOT smarter and well capitalized than you ever did before in most markets.
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