bigkato

i appologize if this is a double post...i posted about an hour ago and it never showed up...posted again and it was there instantly...anyways here goes

i meet with the owner tomorrow to get alot of details i will need to get an informed opinion from everyone...but im looking for what questions you personally would ask(ive browsed this board and wrote alot down...im looking for specific question you would ask based on what i tell you) and id love to here everyones initial opinion based on what i know so far.

the price is only $15,000...4 beds a nail station, and 2 hair stations. the owner had a child 2 years ago and has neglected the salon, thats why shes selling...this story jives with the appearance of the salon...its messy cluttered and needs updated badly...paint and new flooring(i can do it all myself) and the beds will need upgraded...it has 2 20 minute level 1 beds 1 20 minute level 2 and 1 12minute level 2...not sure what year or make yet...

she says she doesnt have time to run it all but wants to keep her hair clients...says she would rent the chair off me after the sale for a year or so...we havent negotiated price. rent is only $650...upscale nieghborhood...perfect location on trolley line on busy road with ample parking next door to the most famous bakery in the county.

the bad news is just a stones throw away is a 2 year old salon with 4 state of the art beds and a mystic spray tanner...those owners and i have mutual friends(one runs it) they are making around 3500 a week!!! their packages are nearly $100 for 1 month with no specials ever...and all single rates are outragous also...this place im looking at chatges $40 a month and 75 for 2...i cant remember their smaller packages either.

the salon im looking at has 9000 clients in the database(ill find out current clients and electric and stuff tomorrow)

kind of a bare bones outline but im looking for things to ask and if anyone thinks on the surface this is worth looking into...the rent is dirt cheap...if she will pay close to my rent...i can run the salon part almost for free...and i still have to get a nail tech...i cant imagine $15,000 is too much but tell me what you think

thanks
shawn

caribbean tan man

9000 clients in the database means diddly $hit. find out how many are active in the last year and how many active in the last 3 months. i bet you will be very surprised in the differance. all that means is 9000 people came in that door and tanned atleast 1 time since it was open!

how many moved,died,quit tanning,tan somewhere else,are from out of town,etc...

what does the salon gross per year?
how much is the rent?
how big is the sq ft?
how much AC is there?
whos going to run it? (chances r u will be buying yourself a job)
i could go on but u prob read it all hear previously! LOL

getting clients to come back from the new salon could be hard, especially if they are happy.

The owner wanting to stay as a hairdresser is a sign that the business makes no money but the employees do!

what brand,model is the equipment?
how much electric is in the salon?
do u have enough electric available to add new machines?
most newer machines are also bigger do u have large enough rooms to fit the new bigger machines?
hows the parking?

Have u researched the price of new equipment? if not u definitley need to....that high end salon u mentioned probably payed 15k for their level 1 bed. Can u afford new beds?

then theres the economy...everyone is broke!

i think it all comes down to how much money you are willing to dump into the place to revive it. Then u got to hope your plan works. If not then what?

tanning is in a bad state right now if u ask me. my comp has 18 locations and the one closest to me just closed last week! it was only there 1 year!!!

if u really want to make it easy on yourself ...ask if she will finance it to you herself. If shes motivated she will. and offer her less ofcourse!!

__________________
someone PM me when a good tanning topic is posted. :lol:

bigkato

thanks carribean man...i realize the 9000 are over the span of the business existence...and all your other points are pretty right on..i guess what im really hoping for is this...that i can get it even cheaper than the 15000...perhaps 10000? or should i go lower? im hoping that i can give the place a facelift...maybe add 1 or 2 new machines for now...and advertise and run special out the ying yang..and offer people a more affordable way to tan...remember the new salon charges almost $100 a month...and you said yourself the economy sucks. my goal is not to put anyone out of business or get rich quick...its simply to be my own boss and make a nice second income..my wife already makes more than me hahaha

so obviously ill fill in the blanks tonight after meeting with her...but am i crazy to think that

such a low purchase price+monderate upgrades to machinery+great atmosphere+advertising and specials=decent 2nd income?

the rent is dirt cheap...the location is ideal..im half the price of the new salon...i really want this to happen...so if im looking at things through rose colored glasses please tell me...i realize there negatives...but i just see so much potential.

SandyXyra

If this is your passion, go for it. If it's just to make money I say forget about it NOW. I know that is the reason I opened my salon, that was my dream. If you really want to do this, you are going to need something that makes your different. To tell you the truth I would not tan at a place that does nails and hair. You need something that will make you different from the rest of the salons.

Good Luck!