gass1472

hi, i've been noticing that the local tanning salon has been exceptionally busy around the colder months and still good in the summer.(in Michigan) i noticed when my frined and i went in and i know many girls that go to the salon and say they are just jam packed. so i thought to myself why not open another one in town. I'd just like to know what kind of profits a business like this generates per year and what kind of profit margins there are on the products. also what is a startup cost for something like this with mabye about 15 to 20 stand up/ beds? if anyone can help please let me know.

I KNOW IT ALL

The Industry does not need anymore new salons look into buying one for sale around you.

Neon Beach

Good answer.

And try going back to that salon starting around August, tells us what you see then.

gass1472

how about just an answer to what i asked becuase there is only one in my area so i'd like to compete with it, so buying won isnt really want i want to do. so how about some help on the questions i asked please?

Neon Beach

Plan on spending 250K plus.

river_brat

Don't do it. Thats how about 75% of people get into the business looking at a slaon thats busy. What are the demographics of that area? Are there enough people to support two tanning salons? Yeah you may see they are busy however if the demographics cant support it, neither one of you will make any money. So many people open without doing their market research and gass none of the questions you asked NONE of us can answer. What I do as profit is dependant upon several factors, LOCATIONS, EQUIPMENT, KNOWLEDGE, ADVERTISING, DEMOGRAPHIC, OVERHEAD, ETC. all vary. So comparing what my numbers are to what someone elses numbers are like comparing apples to oranges. What I suggest is that you do some research. Look at your demographics and also look to what age group you think you would be catering to when you look at the reports. And ask yourself the question can the area support 2 salons? Start educating yourself by going to some tanning conventions, start looking at the overall picture. A 15-20 bed salon is a huge investment for a person without any experience. If this is your dream then you know what do it, but if you think this is a get rich quick business you are dead wrong. INvest in real estate if your eager to make some money. Just because a salon is busy doesnt mean they are making money. Do your research first, but asking our profits and spreads on an open forum isnt the first step in the right direction.

gass1472

thanks river

kissfan44

what part of the state are you from?

kissfan44

and what kind of an area is it population wise? low income community? rent or own building? "15/20 tanning beds" equipment alone, at an average of say $5,000 per bed (extremely low, maybe a basic bed) you'd be at $100,000. Then build out - minimum $30-40,000. Electrical work, decorting, computers, inventory, plus a LARGE bank roll to carry you through the slow months. And by slow, we mean june, july, august, september, october, november. What type of equipment does the existing salon have? One high pressure bed alone will cost you $30,000. Stand ups depending on model run up to $18,000 each, if not more. Who will do the maintenance on all of this equipment? Electricians/technicians are expensive? Are you experienced? Are you ready to fund bulb changes on all 20 units every year? Bulbs could be $300-$2,000 per unit each time they are changed. Tanning is not a get rich quick business. Employees/payroll/insurance/high electricity bills/repairs/heating/rent/advertising/etc. will eat up any profits very quickly. Plan on spending your life in your salon. At least 70hrs per week for the owner/operator. And trust me, its not all fun and games. It may look great when you walk in and see someone just standing behind a counter, but they're only there for the few seconds you are. You don't see what goes on for the 20min while you're tanning...work. Are you prepared to clean for 10+ hours per day?

Hank van

it cost at least 250.000 and up depending on the beds you buy. and I think if you aproach that salon owner right now he would probly sell. This business is tougher every year. 15 to 20 beds is going two be expensive, air, electric,walls floors,computers,tmax,lotion,couches,cha irs ect. but michigan is getting very competetive.