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nuglow · 16th April 2007, 02:39 PM

OK! So you need to spend money to make money. Got it! Can we talk about the making money for a moment. I am trying to open my first salon and expect to spend 200K min. and plan on no revenue for 6 months. The bed retailers and franchizers throw out numbers that are very motivating, but I just don't see it. I am in an area with good population, med income, etc. However, salons don't seem busy ever! Also, I have checked out a few salons for sale and they all have similar P&L's (gross around 120K). The way I see it, this would not even cover our break even. These salons leave a lot to be desired. Bottome line is I am trying to get "real" revenue numbers from salons that are doing it right: good local, beautiful salon, great equ., great ads and customer service and above all smart pricing.

To reach my min. cash flow goals I need 500 annual members. This is less than 2% of my 3mile pop. If I could accomplish this, how often could I expect my 500 members to come in per week durring high season (med. pressure 12min max)? 3 x wk? This would be 1500 visits a week or 214 per day 7 days per week. When I look at how much of the market I would need to capture this seems very reasonable. But when I walk into salons, I start to feel real doubt. If that suposid 10% fo the population tans, they have to be tanning someware, right?

16th April 2007, 02:39 PM	#27 (permalink)
nuglow Rookie Join Date: Mar 2007 Location: California Posts: 5	Re: Do you want to open a salon? OK! So you need to spend money to make money. Got it! Can we talk about the making money for a moment. I am trying to open my first salon and expect to spend 200K min. and plan on no revenue for 6 months. The bed retailers and franchizers throw out numbers that are very motivating, but I just don't see it. I am in an area with good population, med income, etc. However, salons don't seem busy ever! Also, I have checked out a few salons for sale and they all have similar P&L's (gross around 120K). The way I see it, this would not even cover our break even. These salons leave a lot to be desired. Bottome line is I am trying to get "real" revenue numbers from salons that are doing it right: good local, beautiful salon, great equ., great ads and customer service and above all smart pricing. To reach my min. cash flow goals I need 500 annual members. This is less than 2% of my 3mile pop. If I could accomplish this, how often could I expect my 500 members to come in per week durring high season (med. pressure 12min max)? 3 x wk? This would be 1500 visits a week or 214 per day 7 days per week. When I look at how much of the market I would need to capture this seems very reasonable. But when I walk into salons, I start to feel real doubt. If that suposid 10% fo the population tans, they have to be tanning someware, right?