Do you want to open a salon?

[Kathe]

Already answered you in your other thread.

One thing I want to add is that you need to LOVE this business. If you don't you will end up hating your decison.

Kathe

[bronze desire]

YES!! I want to open a tanning salon. I worked in one years agao and I attend the every year faithfully, and have been an entrepenur for the past 3 years.. and I have decided to follow my heart. I love the relaxing atmosphere and I would like to expand my vision on a higher end salon. Which my city lacks.. Theres aloty of cutesy joints around which are well CUTE.. but I want to have a classy spa feel to mine.. so I am going for the gold..

Now I have been reading these blogs and understand there are risks involved.. But hell if we were all afraid of risks there would be no sucess in this world..

So with all said,, Now my questions.. has anyone heard of CanTan or UVA LUX aka. ETS?? they are apparently a consulting company which helps people like me get started... are they any good?? or can anyone suggest another company...

keep in mind I am in alberta canada

I looked over thier business presentaions which both look very appealing to me. but I just don't want to get screwed.

I could do this all on my own which could take me a few years to gather all the research on everything.. or I could put my faith into one of these companies..

which is best??

as well I am clueless when it comes to bed and stand ups , spray tans ets... how on earth would one go about knowing which is the best vs crap?? I want to know all this before I invest of course..

and I keep hearing that have min 1000sq ft.. so that would only really give me about 7-8 beds, 1 stand up and a spray tan. I also want a beauty area and good size front end etc.. so what would be the best space to go with??

what would be the best way to obtain a demographic study of the area I wish to place my business??

I am ever so greatful for any input I can get.. even if it's harsh because i am the stupid newbie..LOL..

but keep in mind you were once in my shoes too!! so be nice!!

but honesty is respected!
Warm Regards
Pamela

[EliteMike]

stay away from anything that is associated with ETS, they will not only do you a disservice by selling you their stuff, you will do everyone in the industry a disservice by supporting them.

Talk to Stephen Underhill, he'll take care of you. Keep reading on here, lots of info.

[Glowtanning530]

There is definately alot of good info and advice on here. Take some leave some, ultimately its your decision. I think often people base there opinions on the tanning industry on whats happening only in there area. There are alot of sucess stories here, and alot of not so successful ones. Everyone has a different way of getting to their goals. I dont think there is any right way or wrong way for opening a salon. You need to really know your area, what you expcet to acheive from your endeavor, and how much you are willing to give up to get it done.

[Brian Oshman]

Another reply to an E-mail:

Good afternoon Mr. Brian Oshman,



I found your name and contact info on TanToday.com

I read the advice that you gave to a tanning salon owner hopeful. The title of the blog was “do you want to open a salon”

For a while, I have been toying with the idea of opening a tanning salon in a market that I feel would be successful.

I have not yet done extensive research, but the market I am considering seems to have all of the attractive features I am in search of.

Here is the issue I am having. I am young, in my early 20’s. I have good credit and a full time job but currently only make $45,000/yr due to a recent job change.

I have less than $10,000 liquid and no property in my name. Would it be completely out of the question to get a loan that would sustain opening and initial operating for a tanning salon?

I would appreciate any information you can offer.



Thank you in advance and I look forward to hearing from you soon.

The industry is in turmoil right now. I would not invest one penny into opening a salon right now.

You seem to have a decent job so you should stick with that for now. 10K will really get you nowhere in starting a tanning salon. If you really want to plunk down your life savings, go into serious debt, work 80+ hours a week for let's say less then half of what you are making now for a good 3-4 years then go for it, but I would strongly suggest that you don't. You do not have enough working capitol to do this right and will just lose your shirt.

If you must do a tanning salon, see if you can find one in your area that is trying to sell and make them an offer of 5-10K. Keep in mind that a purchase like this will get you in the door with a complete salon but it will need some serious resuscitation to make it profitable. You will most likely need to remodel, re-lamp, and add some newer beds which used will still cost a good bundle of money. Don't forget utilities upgrades too if there is not enough power or A/C or both.

It will be very tough for you to get a loan if not impossible with only 10K collateral. Do you own a home? If not, there will be nothing substantial that a bank would be willing to place a risk on. Startup loans are nearly impossible to get for tanning salons as they are tough enough for established businesses.

Think long and hard before you take a plunge like this. Do you like your spare time? Well that will be gone too. Weekends and all. Owning your own business is not as glamorous as it seems, especially in this industry. The market is so saturated right now and there are tons of places going under and the potential tanning population is decreasing too.

Save your money and save your a$$. This is a seasonal business that only generates real money three to four months out of the year while the rest of the time you are left sucking wind, struggling to make ends meet and struggling to capture a piece of the ever shrinking pie.

Sorry to be so gloomy but tanning is in trouble right now.

Hope this helps,

Brian

[sunsally]

Man........now I'm depressed.

Anyone want to buy mine??

[daredvl_edm]

I am a new salon owner as of Nov 1 and I am seeing good things here. In alberta, the profit is going strong. I had a good month and its my first month, and i see good things. Its too bad that the tanning industry in other areas are dieing. Here in Alberta, its strong and doing well from what I have noticed and seen.

:-)

[thelightguy]

Originally Posted by Brian Oshman

The average number is 100 a day in busy season. July through Nov. is dead time. Prepare for this. Most do not tan all year.

I will soon open a salon in an area that has a population of 160,000 in a 15 mile radius. No salons have anything better than a 5yr old ergoline. Most have 10 yr old beds that are low level 1 and very small rooms, no sales training, very little business sense and nasty environments. The three busiest salons do about $200K a year but make very little profit, unless you include the owners salary. Go figure. The top three salons also have 150 -200 people walking in thier doors in Jan to May; 50-75 a day the other months. The demographics are 90% white and a med to high income. Status is big and everybody has to have the best. I feel I have the chance to be the first tanning business in the market with a high-end salon that incorporates the same type of beds that the big boys are using.I plan on spending $350 to open with 10 romms full and 4 rooms for expansion. I have an additional $100K available for the equipment expansion. Everything will be paid for with cash, so there wont be any loan paments. I am available to work half days.... 12 hrs a day. We have two successful businesses currently that have a 10yr history of success. I have been researching the business for 2 yrs. I don't trust Disti's, but value thier advise. I believe you have to listen to all opinions and try to come up with the most credible answers.

Can anybody tell me that I shouldn't open a salon in my area and that it will not succeed. I really want to know if you vets on here can tell me I'm crazy.

[SunMan49]

My advice to 'Bronze Desire': Take Brians' advice. If you have a 45k a year job, stay with it. You will never make that in 5 years with a salon.
10K would not re-lamp a 10 bed salon,let alone open the door for a new one.
You could never compete in this world of coporate franchise greed. Read: Deep Pockets.
For a 'new start-up' to even survive, a good 250-500K would be needed..plus more to remain open.
A good 10 beds would cost that much. One good 50+ lamper of any good brand would be at least 45K. 4-5 base beds of good quality would cost 60-80K.
Take your 10K and invest it in Mutural funds, long-term investing. Your money would grow faster, earn more and you will not only sleep better at night, but have a healthier life.

[uv2021]

Is that 350$ to open 10 rooms or 350 k?

[thelightguy]

Originally Posted by uv2021

Is that 350$ to open 10 rooms or 350 k?

$350K, But that does include an advertising budget for the first year.

[SSmith]

It also depends were in Canada, some area's are really doing well and some salons are closing left and right. It is a tough business and dont expect to make a tonne of cash
Do your research, just because you put in better equipment does not mean you will do better.. (Build it and they will come, does not work in this industry) There are a lot of other factors you have to consider. The disty's in Canada are great and listen to them, why would you not trust them?
Is 350K your first yr of over head + build out + equipment? When are you planning on opening, there are a lot of other factors involved besides the other salons and your demographics..

[TangerineTan]

I guess my ? is , IF THE tanning BUSINESS IS AS BAD AS Brian oshman says it is , Why the hell are you all still in it ? Makes no sense to me on you guys telling all the people that its truelly that bad of a business to be in , but you all are still in it ? As for what I have seen ,and no, its truelly a great business .if you go about it in the right ways .

[Tanning Queen]

BEcause some people have been in it so long they dont have the overhead like newbies do. THey can afford to handle the downturn a little better. BUT, many are getting out that have been in for years. I did in 2005. Was in biz for 10 years. Glad I am out now lookin at the trend. It is ALOT harder to make good money in this industry than it was even 7 y ears ago. On average, it takes more money to start a decent salon now, and yet the average tanning price has stayed the same or is even lower than before. Now you ahve competition on the internet for the ONE thing you could really make a decent mark up on. The only thing you cant get on the internet is a tan. But everyone still thinks it should be $19.99 a month to tan.

[thelightguy]

The disty's in Canada are great and listen to them, why would you not trust them?
Is 350K your first yr of over head + build out + equipment? When are you planning on opening, there are a lot of other factors involved besides the other salons and your demographics..[/quote]

I would like to clarify that I don't totally distrust Disti's, but they have an agenda. So I believe it is important to take everything with a grain of salt, as I do with advice on this site.

This is my opinion of the industry.
I believe tanning is in the middle of a paradime shift. The small salons will not make it very long because they have not kept up with the industry. They are sitting on old equipment and bulbs until they get complaints. I really believe, especially after being on here and tantalk that most are tanners that got into a business they like for cheap and aren't ready for the shift. If you are not ready to upgrade your equipment, then get out while you can. Take a look on the internet and see what the big chains are doing. In specific, check the one that have a large number of corporate stores.

Why would any company that is ran well and kept up with the trends be afraid of competition. I am not afraid of the big guys with deep pockets coming in. I will be a big guy with deep pockets and multiple salons. I do plan on making lots of money.

I have two other businesses that are mature enough to run themselves. I am happy to get new competition. they give me the opertunity to show the value of my service and most of the time raise my rates. If somebody can't deal with competition they need to change. That is the only constant of a successful business. Change.

My 2 cents...well, maybe a bit more since the cdn exchange.

[Brian Oshman]

Originally Posted by thelightguy

Take a look on the internet and see what the big chains are doing. In specific, check the one that have a large number of corporate stores.

They afford to target the market but the indivdual salons are usually run much better and cleaner then the chains. Chains are mills and they mill the employees as much as the clients.

I know what's under your bed.

[mlopatnikov]

Hello everyone. This is my first visit to this great site and of course my first post. Brand new to the business, please bare with me.

I am looking to open my first tanning salon in Brooklyn, NY area. There are quite a few salon already, but population is huge, really huge. People with money too (every other car is bmw and lexus). Also lots of building, more building and some building. Lots of young people that love to tan... yes including my wife, which has really started this whole idea.
I am looking into franchising (Hollywood Tans) there at least another 8 of them in the 10 mile radius. Unfortunately, I don't know any of the owners to get some insider info.

I spoke with Hollywood Tans rep. yesterday and this is what they're offering as a package.

$35,000 Franchise fee
$250 - 13 machines, computers, furnure - basically turnkey .

I guess my real question is -
Hollywood Tans - Can anyone tell me what you think of them. Real experience if possible, but at this point I will take anything.

Is franchising a BIG NO NO ?

Any other info will be highly appreciated.

Liquid cash $100,000 - will be financing the rest.
Have two sisters that need jobs - staffing wouldn't be a problem

Thank you all, this site is a great source for newbies like me

[Tanning Queen]

Read the links about Hollywood Tans and talk to the pissed off franchisees. Franshising is stupid really when you can open your own place with equipment and lotions YOU want and price it the way YOU want and dont have to split any money with anyone else.

[thelightguy]

Originally Posted by Brian Oshman

They afford to target the market but the indivdual salons are usually run much better and cleaner then the chains. Chains are mills and they mill the employees as much as the clients.

I know what's under your bed.

I believe youcan learn alot from the big guys. You have to learn from your biggest competition and make it better. Take the things that they do well and add in the great service and personal feal to the salon.

About franchising....I agree to some extent. There are many franchises out there that are crazy. I would not personally open a tanning franchise and I own seven figure restaraunt franchise. Most people can build a tanning salon with some good old research and help from a distributor or a consultant like Stephen Underhill. But, there are the people that need thier hands held the whole time and need to get common sense from a franchisor. Unfortunately, those that need that much help are the kind of people that wont admit it.

[thelightguy]

Ok, I am a newbie to the tanning business still and need to continue that line of questioning. I have a hard time not multi-tasking. Back to my questions. Is there anybody out there that can give me a good explanation of location importance. My salon will be leaps and bounds over any current salon and I don't think they will be able catch up very quickly. If my salon is that much better will people cometo me to some extent? Or do I need to pay the $30 per square foot plus to be in the busiest shopping centers.

Thanks for all the help.