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Tanning Equipment From Low pressure to High pressure tanning equipment.

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Old 02-14-2008, 10:35 AM   #11 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

Unless they are mint,you have approx $11500 in equipment maximum.
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Old 02-14-2008, 10:54 AM   #12 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

Life expectancy: for as long as you can still buy replacement parts for the bed.

Value/Depreciation: The used-bed market is saturated with as much nearly new equipment as it is with old beaters. "Value" of used equipment is whatever a lender would be willing to finance it for, which is probably twice as much as they could expect to sell it for when they have to repo it and sell it or release it. Looking at what most used equipment sells for in cash deals, you can expect to get 1/3 - 1/4 of what the bed (or closest comparable model) would sell for out of the box.
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Old 02-14-2008, 01:34 PM   #13 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

Those will have a total current value of about $7500.00 dollars.

Beds lose half the value once cracked out of the box and set up then go down from there.
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Old 02-14-2008, 01:43 PM   #14 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

So the lesson is: Never buy new!
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Old 02-14-2008, 02:00 PM   #15 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

Quote:
3 regular beds that are 5 years old, 1 high pressure bed that is 3 years old, and 1 standup bed that is 2 years old.
Quote:
2x Sunstar Speed System ZX30
1x Sunstar Speed System ZX30 3F
1X Sundome Speed System XL48
1x Sollux 40.3
I don't see High Pressure there.

These beds are not going to be of any value in about 2 more years. After they are close 7-8 years old, you can get them for around $300 - $500 ea.
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Old 02-14-2008, 04:45 PM   #16 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

OK - you aren't going to get these beds for $300 even in 2 years, but regardless.

New - they might have paid about $35K tops.

The 3 five year old Sunstars might get $3500 now, but at 5 years old they are probably getting beat up and it can be very hard to find parts for ETS beds 5 years and older so they might wind up being a "throw away" if something goes wrong.

The 2 year old Sundome would probably retail about $4K now.

The 3 year old Sollux 40.3 is not "high pressure", but rather a VHR bed. Not a bed you see in a lot of strong commercial salons. Maybe $3-4K but there are a lot of better VHR beds I would pay $4K for - even with more hours and older (e.g. an Orbit)

$11K but frankly I'd rather have him take the beds with him and do your own mix and selection.
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Old 02-14-2008, 07:11 PM   #17 (permalink)
 
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Re: Life Expectancy of Tanning Beds and Depreciation

TomorrowSun, forgive me regarding the comment about the high pressure bed. I was told there was a high pressure bed, but I didn't have the models at the time.

Brian Oshman, you gave a total estimate value, but can you tell me what you are estimating for each of the beds to reach this value?

sunsally, thank you for your insight into this. It is GREATLY appreciated. Can you give me any other advise regarding how to properly estimate a salon business? The owner who is selling it selling due to management problems (it is horribly run) and he is asking 25K, but that is still very much negotiable. I and my partner are still in the early stages of negotiations, but like I said, I am new to this industry.

Lastly, is a VHR bed considered better than a high pressure bed?
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Old 02-14-2008, 10:43 PM   #18 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

Feel free to call me when you have some time (I'm long winded! :)) and I'll gladly chat about salons with you!


Focus on this a different way. Go at it from the cost angle.

Figure out the rent, utilities, payroll, taxes, licenses, and anything else.

Add in the price he wants for the business

Add in the costs you would have to spend to make the business viable (e.g. a more profitable mix of equipment).

Now get the cost to open this business and the yearly cost to keep it open.

Contrast that to his revenues. Would you cover your operating costs? If so, how much profit would you make - how long would it take to pay back your investment? Then after that is paid back, how much would this "investment" finally get you - and how quickly?


Might be worth 25K. Might not be worth 25 cents. It depends less on what is IN it now or what he is asking, and more on what it COULD do. If it can't be profitable, even if you get it for free, you will be losing money and that makes no sense as an investment.
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Old 02-14-2008, 10:46 PM   #19 (permalink)
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Re: Life Expectancy of Tanning Beds and Depreciation

OH - and VHR vs. High Pressure.


Better?? Generally probably. Just different animals. High Pressure generally commands higher price points, and can generate more revenue. Assuming you know how to sell it.


VHR - simply - are "tube" beds with 160W lamps (or 170W or 180W or 200W or 220W). High pressure are the little lamps behind the square glass - like the .3 in the Sollux 40.3. The 40 are the VHR lamps. But even with the 3 HP lamps - it would be considered a VHR bed.
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