chiefrakka

My group is doing a case analysis in my MBA Finance class. The scenario is that a current salon owner needs to diversify revenue streams due to increased competition. On the request of current clients, she is exploring adding tanning to her salon. We're going to keep it simple and assume that she has extra space in her current salon to add 2-3 beds. I've looked through the threads and online elsewhere to find some stuff, but need a little help with some things.

1) Can anyone give a rough estimate on average bed utilization rates? I know it fluctuates greatly depending on the season, but a yearly average would help.
2) I saw on here that insurance averages about $200/bed per year. Is that accurate?
3) Estimate on lotion and extra sales, maybe on a per customer or per bed basis and a typical margin?
4) How much does the management software cost? I checked a few sites but didn't see prices.
5) Is it even worth it for only 2-3 beds? Any current hybrid salon owners out there have an opinion?

Thanks in advance.

-Chris

engfant

funny my friend just did his final paper on my place. "how to increase revenue by 5%".

Nice.

__________________
"And shut your mouth pussycat e fammi un macchiato, pronto!"

http://www.youtube.com/watch?v=UhHhXukovMU

eyecandytanning

I am doing my thesis on my tanning salon! Where do you go to school?

Info regarding numbers will vary on location, size and bed mix. Is it possible to find a salon you can use as a basis for your research? Maybe a salon in your area? They wont most likely wont give you numbers, but it will give you a base to start.

__________________
"Well-behaved women seldom make history." --Laurel Thatcher Ulrich

chiefrakka

I go to University of Colorado in Colorado Springs. You? Nice to be able to research your own business! For this class I just need to put together some mock financials, so the numbers are what I need. I know the numbers are specific to market, salon size and many other things...but anything would help. :-)