|
Tanning Salon Management Salon management help here. |
| LinkBack | Thread Tools |
05-05-2013, 05:29 PM | #1 (permalink) |
Join Date: Sep 26 2011 Location: Longmont, Colorado
Posts: 89
Rep Power: 0 | What To Do!!! Need Advice My lease is up June 30, my market is so oversaturated with tanning for such a small town. 7 salons all with in 5 miles of each other. Each year my numbers are down more and more. My landlord is willing to drop my rent if i stay and sign 5 more years. To be honest my salon still needs lots of work ( beds outdated but they have good lamps, flooring needs redone all and all its needs a major makeover) Question is do i buck up and sign or sell out, or pull and move. |
05-06-2013, 09:17 AM | #5 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What To Do!!! Need Advice Quote:
2. How much is he willing to drop the rent? 3. When you consider a "major makeover" - how much do you think that would cost? 4. If you decide not to renew - what do you think you could get today either to sell it to a prospective new owner - or just to liquidate? | |
05-06-2013, 09:24 AM | #6 (permalink) |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: What To Do!!! Need Advice It is doubtful that you would succeed in any demographic area with 7 salons within 5 miles of each other. I would; 1) move to a location with better odds or 2) sell out, or 3) Store it and wait for some market consolidation to occur. |
05-06-2013, 09:25 AM | #7 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What To Do!!! Need Advice In terms of Option #3 - moving - you would have to consider: 1. Cost to move 2. Cost to set up a new location Assuming you would move OUT of that highly saturated market - you would be going to a new market - and therefore you shouldn't consider that any of your current customers/revenue would follow. So treat any thoughts of MOVING your salon like you would starting over from scratch (other than what pieces of equipment, if any, from your current salon, you would keep) |
05-06-2013, 01:13 PM | #9 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What To Do!!! Need Advice Quote:
How much has Planet Fitness impacted you? They offer tanning for $10/month. If their equipment performs as well (or better) than yours, then if I'm a tanner I only keep going to your place if I don't ALSO want a gym membership. But since the gym and tanning combined is only $20, if the equipment is similar or worse, I'd join the gym and tan there, even if I didn't want to workout there. Makeover for $5000? For new floors, "major makeover" and new equipment installed? I think you may be low on your estimate. For the 5 year lease - do you have to Personally Guarantee it? So that if you close the business, you are still personally responsible for the balance of the lease? 5 years is a VERY long time in a market that is oversaturated and declining.......... | |
05-06-2013, 01:34 PM | #10 (permalink) |
Join Date: Sep 26 2011 Location: Longmont, Colorado
Posts: 89
Rep Power: 0 | Re: What To Do!!! Need Advice Planet Fitness has better equipment and have made and impact of about 32,000 a year My Uncle Does hard wood floors, and my electric is done for free. But even at that with impovement i dont think i would come out making a profit, since i dont have the best beds in my market. |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
| |
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Advice | agirlwithagun | General Tanning Industry Discussions | 1 | 04-14-2011 11:45 AM |
Need Advice | Rejuvenations | General Tanning Industry Discussions | 8 | 03-01-2006 01:02 PM |
ADVICE | glowtanning530 | General Tanning Industry Discussions | 9 | 02-14-2006 04:33 PM |
i\'m new to this... need some advice | nostalgia | Skin Care | 1 | 09-28-2004 11:32 PM |
Way TOO tan !! Need Advice | K lee is Tan | General Tanning Industry Discussions | 17 | 07-20-2004 07:36 AM |