Buying a 14 yr old salon

ltaylor · 08-21-2007, 01:46 PM

I am considering buying an existing tanning salon. It has been in business since 1993 and has a well established client base. The owner has started over 20 salons and sold them. She has held on to this location the longest of any other location. The salon has 10 beds consisting of 7 reg beds 2 super beds and 1 stand up bed. The salon brings in over 90K in sales and nets about 40k. Asking price is 55k. Does this sound like a good deal?

engfant · 08-21-2007, 01:56 PM

If you are extending yourself to get it then no. You are going to need dough to freshen up the place a bit. Any tanning bed over 10years old will need to go mostlikely.

Also "super bed" is a relative term.

dcjjp2 · 08-21-2007, 02:03 PM

Only brings in 90K per year for being in business for 10 yrs??? RUN.

engfant · 08-21-2007, 02:10 PM

yeah but this person is in Georgia. That's huge money to them peoples.

dcjjp2 · 08-21-2007, 02:24 PM

true dat.

ltaylor · 08-21-2007, 02:40 PM

Some of the beds have been upgraded already. You think 55K is too much for this salon? What would you suggest that the offer be? I'm thinking the salon is established the owner is not active in this salon and pays 3 employees and is still able to turn a profit I thought that was pretty good. Am I wrong in assuming that?

caribbean tan man · 08-21-2007, 02:46 PM

what kind of beds, years? how much electric? how much ac? how many clients? what kind of comp? room sizes?

the problem with old salons is they are built around old equipment. old equipment is usually smaller and uses less power. when someone buys a older salon they usually end up needing to change out equipment and open a can of worms in doing so, when they find out the rooms are 2 small and the electric needs upgrading.

did u see tax returns proving those numbers?

engfant · 08-21-2007, 02:52 PM

Quote:

Originally Posted by ltaylor

Some of the beds have been upgraded already. You think 55K is too much for this salon? What would you suggest that the offer be? I'm thinking the salon is established the owner is not active in this salon and pays 3 employees and is still able to turn a profit I thought that was pretty good. Am I wrong in assuming that?

No, actually I'm just waiting to tell you it's a good idea if you have no rent payment (you own the building correct?)

(OH CRAP that's someone else. Nevermind that.)

It depends on how you are going to buy it. If it's EQUITY LOAN BS then forgetit. If you have the money then I'd get it.

I bought my place based on revenue alone and it's doing just fine going into my 6th year.

ltaylor · 08-21-2007, 03:08 PM

I am getting the tax returns this week. I can ask the owner the other questions as far as room size etc? That's why I wanted to post this b/c I needed to know other questions to ask the owner. I would be using home equity for this purchase. So...Is it better to try & buy a newer salon instead of an older salon?

engfant · 08-21-2007, 03:13 PM

No. Pretend the economy SUCKS and no one has a DIME to their name after filling up the tank.

Now, can you survive on little to no revenue (which is what we get on the off season which is now till about February) or are you tapping yourself out and in trouble and will be living off the revenue of the salon?

Really has nothing to do with make/model of the beds. Just what you can afford.

08-21-2007, 01:46 PM	#1 (permalink)
ltaylor Join Date: Jan 5 2006 Location: georgia Posts: 54 Rep Power: 0	Buying a 14 yr old salon I am considering buying an existing tanning salon. It has been in business since 1993 and has a well established client base. The owner has started over 20 salons and sold them. She has held on to this location the longest of any other location. The salon has 10 beds consisting of 7 reg beds 2 super beds and 1 stand up bed. The salon brings in over 90K in sales and nets about 40k. Asking price is 55k. Does this sound like a good deal?

08-21-2007, 01:56 PM	#2 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,573 Rep Power: 12	Re: Buying a 14 yr old salon If you are extending yourself to get it then no. You are going to need dough to freshen up the place a bit. Any tanning bed over 10years old will need to go mostlikely. Also "super bed" is a relative term. __________________ The #1 cause of death is natural causes...but where's the ribbon? http://mercola.fileburst.com/Flash/A...wsubscribe.swf

08-21-2007, 02:03 PM	#3 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 5,237 Rep Power: 13	Re: Buying a 14 yr old salon Only brings in 90K per year for being in business for 10 yrs??? RUN. __________________ Jeff

08-21-2007, 02:10 PM	#4 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,573 Rep Power: 12	Re: Buying a 14 yr old salon yeah but this person is in Georgia. That's huge money to them peoples. __________________ The #1 cause of death is natural causes...but where's the ribbon? http://mercola.fileburst.com/Flash/A...wsubscribe.swf

08-21-2007, 02:24 PM	#5 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 5,237 Rep Power: 13	Re: Buying a 14 yr old salon true dat. __________________ Jeff

08-21-2007, 02:40 PM	#6 (permalink)
ltaylor Join Date: Jan 5 2006 Location: georgia Posts: 54 Rep Power: 0	Re: Buying a 14 yr old salon Some of the beds have been upgraded already. You think 55K is too much for this salon? What would you suggest that the offer be? I'm thinking the salon is established the owner is not active in this salon and pays 3 employees and is still able to turn a profit I thought that was pretty good. Am I wrong in assuming that?

08-21-2007, 02:46 PM	#7 (permalink)
caribbean tan man DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 32 Posts: 5,059 Rep Power: 30	Re: Buying a 14 yr old salon what kind of beds, years? how much electric? how much ac? how many clients? what kind of comp? room sizes? the problem with old salons is they are built around old equipment. old equipment is usually smaller and uses less power. when someone buys a older salon they usually end up needing to change out equipment and open a can of worms in doing so, when they find out the rooms are 2 small and the electric needs upgrading. did u see tax returns proving those numbers? __________________ someone PM me when a good tanning topic is posted. :lol:

08-21-2007, 03:08 PM	#9 (permalink)
ltaylor Join Date: Jan 5 2006 Location: georgia Posts: 54 Rep Power: 0	Re: Buying a 14 yr old salon I am getting the tax returns this week. I can ask the owner the other questions as far as room size etc? That's why I wanted to post this b/c I needed to know other questions to ask the owner. I would be using home equity for this purchase. So...Is it better to try & buy a newer salon instead of an older salon?

08-21-2007, 03:13 PM	#10 (permalink)
engfant FREE ENGFANTUCATION Join Date: May 20 2003 Posts: 8,573 Rep Power: 12	Re: Buying a 14 yr old salon No. Pretend the economy SUCKS and no one has a DIME to their name after filling up the tank. Now, can you survive on little to no revenue (which is what we get on the off season which is now till about February) or are you tapping yourself out and in trouble and will be living off the revenue of the salon? Really has nothing to do with make/model of the beds. Just what you can afford. __________________ The #1 cause of death is natural causes...but where's the ribbon? http://mercola.fileburst.com/Flash/A...wsubscribe.swf

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