Quote:
Originally Posted by hiii98  8 Beds total = $40,000 in beds (used) (3) 10 minutes lay downs (Dr. Kern Beds) (3) 20 minute Lay downs (Dr. Kern Beds) (2) stand-ups (Sun Dome Speed Systems XL48 that was written up 2 years ago. What do you believe these beds are currently worth? Part of me wants to tell him to keep the beds and i'll just sign a lease and buy all new. |
Depends what you are paying for them.
Personally, I would never buy a Dr. Kern bed. Several of the models run particularly hot (e.g. so hot tanners get off early because it is too warm to continue to lay in the bed) so if you have those not a combination with a salon that is 80 degrees to start.
Not sure what a "20 min" vs "10 min" bed is necessarily, but lets assume they are all base beds. You might get $1K each to sell them and you could replace them with GOOD used for $2-3K each. But you wouldn't want to do just base beds, you would want upgrades too. So a CHEAP retrofit of this salon would be to bring in 2 L1 bed for maybe 5K, maybe 1 laydown L2 to go with the 2 Sundomes for maybe 6K, and 2 L3 for maybe 22K total. So 33K investment (plus delivery & install), your quick paint job, new signage and name, maybe move some walls, perhaps an airbrush system or used spray booth..........you invested $45-50K.
Plus what you pay them.
Or - you keep the equipment, and hope somehow you can do double the business of the same equipment that has always been there (which is unlikely....)
$50K/yr in payroll and rent. Other expenses (insurance, advertising, phone, credit card fees, ...) another $10-25K/year.
So call it $75K/yr in expenses. CAN it make enough money to pay you back your 45-50K investment, plus what you pay the landlord ($25K?) AND make more than that so that it actually is a profitable INVESTMENT? How much? How fast?
If you can gross $100K (a 20-30% improvement), then you'll pay back your investment by about the end of year 3 and THEN start making something from it.
If you can gross $125K (remember - I think it is on pace to do $60K this year, so this would be DOUBLE) - you might be seeing profit by Feb 2010 or so.
As for the A/C - if you don't have at least 7 tons, with the beds I'm proposing, you don't have enough. More would be better, but less will never cut it.