Buying the competition - tanTALK

extreme · 01-29-2005, 08:02 AM

Briefly..we entered into the tanning biz last Nov, purchased exsisting salon that is upper end for our smaller community. We have 2 other competitors, 1 being lower end beds/lower end price, and the other one that is to be heard around town as in default. We are wondering if it makes sense to look into purchasing the lower end salon that is for sale (for sale due to husband being promoted and wife not needing to work any longer-that's their story but who knows) This salon was really the first in our town..some 14 yrs ago..so it does have good location, and following as we were told by owners it does grosses 100k. I'd like to wrap up some more market share that we wouldn't get at our current salon. They are about 5 min apart on either ends of town..seperated by a very busy road. (High school is on their side) Let me know what others think..obviously there is lots that needs to be looked into..but..in general terms..any thoughts on having opposite ends of the spectrum salons in the same town?

tanu01 · 01-29-2005, 08:09 AM

It would all depend on what their willing to sell for. You said its 14 years old,that tells me some major remoldling will have to done to accomandate todays newer units. I have my market surrounded and adding one my just to tie up a loose end. Is there property you can aquire and open more cheaply with less work ?
Bob

extreme · 01-29-2005, 09:30 AM

tanu01, well..we were told..70k..yes..some floor work would be necessary..as well as negotiating a new lease..not many strip malls..so rent is high..there is like 1500 sf of space..and rent is like 1700 mo

engfant · 01-29-2005, 09:32 AM

Sometimes bad competition is good for business.

extreme · 01-29-2005, 10:01 AM

well..they aren't bad competition..just lower priced..meaning that they appeal to a different social-economic base than our salon does..we wouldn't probably change much other than the upkeep/cleaner, and change the bulbs properly..in fact..we know that our old salon owner used to sell her extrememly tired old bulbs to this salon for their new bulbs..

engfant · 01-29-2005, 10:09 AM

that's good then.

X-Treme Tropix · 01-29-2005, 10:18 AM

Quote:
On 2005-01-29 09:32:00, engfant wrote:
Sometimes bad competition is good for business.

That's true in which clients feel the difference. I just had one come in this morning who says her salon is closed so she came to see me and also heard good things about our salon. I put her in our HP bed and she came out saying, "wish I came here first" She has 12 more sessions left at the other place and I think I'll be seeing her soon. She was alot darker leaving my place than what she was coming in (and she states she tans all the time??)

sizzlestan · 01-29-2005, 10:21 AM

I say Buy The Salon and keep the name. Change the decor and mail bomb that 14 year old database. I hope they are computerized.

Ezliving_Jim · 01-29-2005, 10:31 AM

70K is their blue sky hopes and dreams that somebody naive and mathmatically challanged will buy them out for more money than they made in the last 3 years combined. Negotiate hard or pass.

sizzlestan · 01-29-2005, 10:48 AM

Obviously they wouldnt just jump at the price. Move numbers around and believe nothing they say. Look at the salon from here on out, not the past 14 years. The database is probably their best asset.

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01-29-2005, 08:02 AM	#1 (permalink)
extreme I'm Banned Join Date: Nov 28 2004 Posts: 17 Rep Power: 0	Briefly..we entered into the tanning biz last Nov, purchased exsisting salon that is upper end for our smaller community. We have 2 other competitors, 1 being lower end beds/lower end price, and the other one that is to be heard around town as in default. We are wondering if it makes sense to look into purchasing the lower end salon that is for sale (for sale due to husband being promoted and wife not needing to work any longer-that's their story but who knows) This salon was really the first in our town..some 14 yrs ago..so it does have good location, and following as we were told by owners it does grosses 100k. I'd like to wrap up some more market share that we wouldn't get at our current salon. They are about 5 min apart on either ends of town..seperated by a very busy road. (High school is on their side) Let me know what others think..obviously there is lots that needs to be looked into..but..in general terms..any thoughts on having opposite ends of the spectrum salons in the same town?

01-29-2005, 08:09 AM	#2 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 4,015 Rep Power: 23	It would all depend on what their willing to sell for. You said its 14 years old,that tells me some major remoldling will have to done to accomandate todays newer units. I have my market surrounded and adding one my just to tie up a loose end. Is there property you can aquire and open more cheaply with less work ? Bob

01-29-2005, 09:30 AM	#3 (permalink)
extreme I'm Banned Join Date: Nov 28 2004 Posts: 17 Rep Power: 0	tanu01, well..we were told..70k..yes..some floor work would be necessary..as well as negotiating a new lease..not many strip malls..so rent is high..there is like 1500 sf of space..and rent is like 1700 mo

01-29-2005, 09:32 AM	#4 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	Sometimes bad competition is good for business.

01-29-2005, 10:01 AM	#5 (permalink)
extreme I'm Banned Join Date: Nov 28 2004 Posts: 17 Rep Power: 0	well..they aren't bad competition..just lower priced..meaning that they appeal to a different social-economic base than our salon does..we wouldn't probably change much other than the upkeep/cleaner, and change the bulbs properly..in fact..we know that our old salon owner used to sell her extrememly tired old bulbs to this salon for their new bulbs..

01-29-2005, 10:09 AM	#6 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	that's good then.

01-29-2005, 10:18 AM	#7 (permalink)
X-Treme Tropix Join Date: Dec 22 2003 Location: MO Posts: 274 Rep Power: 21	Quote: On 2005-01-29 09:32:00, engfant wrote: Sometimes bad competition is good for business. That's true in which clients feel the difference. I just had one come in this morning who says her salon is closed so she came to see me and also heard good things about our salon. I put her in our HP bed and she came out saying, "wish I came here first" She has 12 more sessions left at the other place and I think I'll be seeing her soon. She was alot darker leaving my place than what she was coming in (and she states she tans all the time??)

01-29-2005, 10:21 AM	#8 (permalink)
sizzlestan Join Date: Jul 25 2004 Posts: 446 Rep Power: 20	I say Buy The Salon and keep the name. Change the decor and mail bomb that 14 year old database. I hope they are computerized.

01-29-2005, 10:31 AM	#9 (permalink)
Ezliving_Jim I love Derf!! Join Date: Mar 12 2002 Location: Undisclosed Secure Location Posts: 2,636 Rep Power: 26	70K is their blue sky hopes and dreams that somebody naive and mathmatically challanged will buy them out for more money than they made in the last 3 years combined. Negotiate hard or pass.

01-29-2005, 10:48 AM	#10 (permalink)
sizzlestan Join Date: Jul 25 2004 Posts: 446 Rep Power: 20	Obviously they wouldnt just jump at the price. Move numbers around and believe nothing they say. Look at the salon from here on out, not the past 14 years. The database is probably their best asset.

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