How Much Money? - TanToday - Helping Salon Owners, One At A Time, Since 2000!

Pink · 23rd September 2005, 11:53 PM

When you started in the business, how much did you think you would net in a year? Has it changed? Where your expectations too high? Did you rock out, and make more than you thought?

gottatanfl · 5th October 2005, 11:02 AM

Open 6mos, we have made a profit since the day we opened the doors, this did surprise us. Its not much but it keeps us going. Keep in mind we paid for everything, no lease's, nothing on credit. Even retail inventory we paid for without net terms. No payroll until about 8 weeks ago.
Lots of research and planning went into the opening of salon. We have an excellent location on major 4 lane road, one of three salons in a small college town. We opened with more beds and a price of $1.00 per session lower than the others. We have little to no wait as we have beds with short tanning sessions, this was a major complaint in other salons, long waits, poor tanning results, high prices, high lotion prices and no selection.
Our opening cost maybe a little higher than others but it is working. If we had lease and credit card payments to meet I dont think we could have made it. If you cant open virtually debt free, dont try it. It is to risky. Make sure you have enough left over to cover the slow season.

Angelique · 8th October 2005, 06:14 AM

Financial security is what I was hoping for ... I was hoping I could set money aside each year into a retirment fund and retire early. Through the years of new equipment and remodels I find myself putting any money I do get that would be considered extra cash for retirement funds back into the business. I have been slackin off for the last few years, bought a few things I really didn't need... (anyone want to buy a 27 foot yacht certified cabin cruiser ) I really need to put the past behind and as Alan said in another post "Think outside the box" I would like to sit down and hammer out a really good 5 year plan and see if I can accomplish what I initially set out to do.

Jancy · 27th October 2005, 11:40 AM

We opened during the slow season after buying a failing salon that had a horrible reputation. We sucked wind for the slow season, but like the little engine that could (I think I can, I think I can) we got thru our busy season with enough money left over which we saved to cruise thru to the next slow season.
Then we sold it.Thank Goodness!
However, we kept our other little gem and it's singing all the way to the bank using a business with low base beds, a hole in the wall rat salon, and not a single big name bed and not a single high pressure bed. It's all about presentation and customer service. Maybe next year we'll get all the whistles and bells on the biggest baddest bed I can find... but until then, I'm comfy!

darkriver · 27th October 2005, 02:48 PM

Just about at the end of my rope! Like gottatanfl I paid cash for everything, no leased inventory bought and paid for. Only two other salons in the area, both suffering from poor maintenance, equipment that doesn’t work, buildings that cannot support expansion, and buildings that need major repairs. We’re new building new 400 amp electrical service with lots of expansion possibilities. In 04 we grossed $28k, yep that’s it. Peak season started off looking pretty. April of this year we grossed $10k, almost half of what we grossed our first. We have almost triple our gross revenues over 04 but! The year started looking real good until my landlord went up $1700 a month on the rent. Last night he came back in with 4 of his partners and said he was going up on the rent again on Dec. 1. My two-year lease isn’t up until March of 06, but he’s gone up on the rent twice in less than two years. This latest increase will put my operating expenses over $80k a year with no staff. I work a full time job then work the salon at night and weekends. To avoid hiring people, my partner quite her job to manage the operation. We have the cleanest, most modern, comfortable, professionally operated salon in the region and this latest rent increase may just put an end to it!

If you think you’re going to get rich by owning a tanning salon, you’re going to be extremely disappointed.

Darkriver

Ezliving_Jim · 27th October 2005, 05:15 PM

What the hell kind of building lease did you sign? You are getting screwed blue and tattooed.

darkriver · 27th October 2005, 08:14 PM

Ezling, you know something your right! The original lease was $1700 a months., which is still in effect until March of 06. The landlord sold the building and the new owner has increased the rent twice. The average cost per square foot in the area has increased in the past two years from $15/sq.ft/yr. to $22. There's a new development going up about a mile from me and their leasing units out from 36/sq.ft. plus $6.00/sq.ft for CAM. My better half says just pay the increase and be done with. But I'm NOT giving up without a fight.

Darkriver

neon beach · 27th October 2005, 11:48 PM

Quote:

Originally Posted by Jancy

We opened during the slow season after buying a failing salon that had a horrible reputation. We sucked wind for the slow season, but like the little engine that could (I think I can, I think I can) we got thru our busy season with enough money left over which we saved to cruise thru to the next slow season.
Then we sold it.Thank Goodness!
However, we kept our other little gem and it's singing all the way to the bank using a business with low base beds, a hole in the wall rat salon, and not a single big name bed and not a single high pressure bed. It's all about presentation and customer service. Maybe next year we'll get all the whistles and bells on the biggest baddest bed I can find... but until then, I'm comfy!

But the ghosts didn't help.

samthethreedman · 28th October 2005, 01:59 AM

Wow!!!!!!!!!!! Thanks For The Motivation, I Will Focus On The Present And Creat A Five Year Plan. Best Of Luck.

Sam

Ezliving_Jim · 30th October 2005, 03:22 AM

I know there are attorneys in MA. You need to put your's to work or out to pasture.

If your current attorney can't enforce your lease, find one who can.

darkriver · 1st November 2005, 01:37 PM

Hey Jim,

Your right about my lawyer, and I have already put him out too graze. I think the landlord is getting the idea though, two of the businesses in my complex told him that they are gone Dec,31. He came into my place to ask me if I would be interested in one of the places when it becomes vacant. I told him sure, if he pays to have the $30k, 400 amp. 3 phase electrical system moved, and he allows me and the other remaining tenet to reveiw and approve a budget for the CAM. The guy is worse than a used car salesman.

Darkriver

BigLeo · 10th November 2005, 09:23 PM

Did I rock out? What kind of lingo is that? Are you in the tanning salon business or disco business?

sol sister · 12th November 2005, 12:17 AM

Disco business obviously, are you on the right site?

Pink · 12th November 2005, 11:31 AM

The 80's was the best decade ever! Would Blow me be better?

Sun shine · 6th July 2006, 09:13 PM

Think of it this way it takes money to make money and if you think your going to get ritch over night you got a other thing comming the frist year you will lose the 2end you come close to clean the 3rd year is where you start to make some sort of cash

GOOD LUCK

Stephen Underhill · 10th July 2006, 01:34 PM

It is very important to have a realistic view of the potential income and operating cost of a tanning salon. Some salons take off in the beginning and never look back. Others have a much slower steady growth, and than there are those salons that are doomed from the start.

What is the key here? Know exactly how to maximize your potential income based on your particular market. With this information you can project with reasonable certainty the outcome of your investment. With this type of information going in you can decide if this is a good investment.

Yes there are a lot of variables, but if you have a great proven plan, are properly funded and have chosen the best possible location, you can be successful. To what degree is determined by your plan, how effectively you carry out the plan, and most importantly the demographics surrounding your location. Always determine these things up front and there will be no surprises.

gottatanfl · 11th July 2006, 06:28 PM

Quote:

Originally Posted by Stephen Underhill

Always determine these things up front and there will be no surprises.

Yeah there will be NO surprises, and then you get hit by the Hurricaine, or a major employer closes causeing severe strain on the economy, or gas prices climb to an all time high, a family member dies, a nuclear bomb hits.... hey you dont have to worry about any of these things. NO SURPRISES.

Sorry Steve but you can not say there will be no surprises.
Maybe we can limit them and with the knowledge of everyone on this site we can help each other overcome them but no one can do away with surprises.

Maniac · 27th July 2006, 11:57 AM

Hello everyone, I am new to the site. I need a little advice. I have found a nice salon with 12 beds, 2000 sq ft. It has one high pressure bed, a spray on tan booth that allows you to walk in and the machine does everything. The place is very nice and modern. He only wants $19000. Says it netted him 39,900 last year and did $180,000 gross. He has another salon but it is not close to this location. Their is an LA Fitness in the same area, but a Palm Beach Tan just went in closer to the gym. I think he must see trouble and it trying to bail out. What do you think? For 19,000 it sounds like it may be worth making a run at. Of course all the beds are leased.

Tanning Queen · 27th July 2006, 12:02 PM

Then what are you buying for $19k? Goodwill? Tell him you will buy it for the $19k if he pays off all the equipment and you are free and clear to take over the place. If not, tell him $5-10k at teh most and you take over everything. Goodwill and past clients arent worth much. People come and go every day, even loyal clients...

Maniac · 28th July 2006, 01:25 AM

Thank you. That sounds like good advice. I actually have not spoken with the owner. I am speaking with a business broker. I did go by the salon. Is the fact that there is another salon in the area a major concern? It would seem to be, but I was told by the front test help when I posed as a customer that the prices are comparable at the other salon. I would think that customer service then comes into play.

Can a salon in a hole in the wall place make it if there are nice beds and great customer service?

Thanks for the help. I want to make a good investment. I am spend what little reirement I had manged to accumulate.

23rd September 2005, 11:53 PM	#1 (permalink)
Pink Princess Pink Join Date: May 2005 Location: Florida Posts: 792	How Much Money? When you started in the business, how much did you think you would net in a year? Has it changed? Where your expectations too high? Did you rock out, and make more than you thought?

8th October 2005, 06:14 AM	#3 (permalink)
Angelique All Star Join Date: Sep 2005 Location: Oregon Posts: 171	Then and Now... Financial security is what I was hoping for ... I was hoping I could set money aside each year into a retirment fund and retire early. Through the years of new equipment and remodels I find myself putting any money I do get that would be considered extra cash for retirement funds back into the business. I have been slackin off for the last few years, bought a few things I really didn't need... (anyone want to buy a 27 foot yacht certified cabin cruiser ) I really need to put the past behind and as Alan said in another post "Think outside the box" I would like to sit down and hammer out a really good 5 year plan and see if I can accomplish what I initially set out to do. __________________ __________________________ Thinking Heavenly Thoughts... ~~Angelique~~ aka Jaime B. Salon Owner Since 1993, Retired, but not dead! ______________________

27th October 2005, 05:15 PM	#6 (permalink)
Ezliving_Jim Arbiter Elegantiarum Join Date: Nov 2004 Location: Virtual Reality Posts: 4,143	What the hell kind of building lease did you sign? You are getting screwed blue and tattooed. __________________ ObamaNation. Sing with the children. Drink the Kool-Aid. si vis pacem, para bellum "The Meek Shall Inherit Nothing." -Frank Zappa. "I inhaled frequently. That was the point." - Barack Obama. "Even if we win, we will have just eked out a victory, and we can't govern." - Barack Obama. www.GunBanObama.com *sui generis*

27th October 2005, 08:14 PM	#7 (permalink)
darkriver All Star Join Date: May 2005 Location: Massachusetts Posts: 50	Already had tatto's Ezling, you know something your right! The original lease was $1700 a months., which is still in effect until March of 06. The landlord sold the building and the new owner has increased the rent twice. The average cost per square foot in the area has increased in the past two years from $15/sq.ft/yr. to $22. There's a new development going up about a mile from me and their leasing units out from 36/sq.ft. plus $6.00/sq.ft for CAM. My better half says just pay the increase and be done with. But I'm NOT giving up without a fight. Darkriver Last edited by darkriver : 28th October 2005 at 10:03 AM.

30th October 2005, 03:22 AM	#10 (permalink)
Ezliving_Jim Arbiter Elegantiarum Join Date: Nov 2004 Location: Virtual Reality Posts: 4,143	I know there are attorneys in MA. You need to put your's to work or out to pasture. If your current attorney can't enforce your lease, find one who can. __________________ ObamaNation. Sing with the children. Drink the Kool-Aid. si vis pacem, para bellum "The Meek Shall Inherit Nothing." -Frank Zappa. "I inhaled frequently. That was the point." - Barack Obama. "Even if we win, we will have just eked out a victory, and we can't govern." - Barack Obama. www.GunBanObama.com *sui generis*

5th October 2005, 11:02 AM	#2 (permalink)
gottatanfl Moderator Join Date: May 2005 Location: unknown Posts: 1,537	Open 6mos, we have made a profit since the day we opened the doors, this did surprise us. Its not much but it keeps us going. Keep in mind we paid for everything, no lease's, nothing on credit. Even retail inventory we paid for without net terms. No payroll until about 8 weeks ago. Lots of research and planning went into the opening of salon. We have an excellent location on major 4 lane road, one of three salons in a small college town. We opened with more beds and a price of $1.00 per session lower than the others. We have little to no wait as we have beds with short tanning sessions, this was a major complaint in other salons, long waits, poor tanning results, high prices, high lotion prices and no selection. Our opening cost maybe a little higher than others but it is working. If we had lease and credit card payments to meet I dont think we could have made it. If you cant open virtually debt free, dont try it. It is to risky. Make sure you have enough left over to cover the slow season.

27th October 2005, 11:40 AM	#4 (permalink)
Jancy "Does not play well with others." Join Date: Jul 2005 Location: Los Angeles Posts: 197	We opened during the slow season after buying a failing salon that had a horrible reputation. We sucked wind for the slow season, but like the little engine that could (I think I can, I think I can) we got thru our busy season with enough money left over which we saved to cruise thru to the next slow season. Then we sold it.Thank Goodness! However, we kept our other little gem and it's singing all the way to the bank using a business with low base beds, a hole in the wall rat salon, and not a single big name bed and not a single high pressure bed. It's all about presentation and customer service. Maybe next year we'll get all the whistles and bells on the biggest baddest bed I can find... but until then, I'm comfy!

27th October 2005, 02:48 PM	#5 (permalink)
darkriver All Star Join Date: May 2005 Location: Massachusetts Posts: 50	Just about at the end of my rope! Like gottatanfl I paid cash for everything, no leased inventory bought and paid for. Only two other salons in the area, both suffering from poor maintenance, equipment that doesn’t work, buildings that cannot support expansion, and buildings that need major repairs. We’re new building new 400 amp electrical service with lots of expansion possibilities. In 04 we grossed $28k, yep that’s it. Peak season started off looking pretty. April of this year we grossed $10k, almost half of what we grossed our first. We have almost triple our gross revenues over 04 but! The year started looking real good until my landlord went up $1700 a month on the rent. Last night he came back in with 4 of his partners and said he was going up on the rent again on Dec. 1. My two-year lease isn’t up until March of 06, but he’s gone up on the rent twice in less than two years. This latest increase will put my operating expenses over $80k a year with no staff. I work a full time job then work the salon at night and weekends. To avoid hiring people, my partner quite her job to manage the operation. We have the cleanest, most modern, comfortable, professionally operated salon in the region and this latest rent increase may just put an end to it! If you think you’re going to get rich by owning a tanning salon, you’re going to be extremely disappointed. Darkriver

28th October 2005, 01:59 AM	#9 (permalink)
samthethreedman Rookie Join Date: Aug 2005 Location: brooklyn N.Y Posts: 14	Wow!!!!!!!!!!! Thanks For The Motivation, I Will Focus On The Present And Creat A Five Year Plan. Best Of Luck. Sam

1st November 2005, 01:37 PM	#11 (permalink)
darkriver All Star Join Date: May 2005 Location: Massachusetts Posts: 50	Hey Jim, Your right about my lawyer, and I have already put him out too graze. I think the landlord is getting the idea though, two of the businesses in my complex told him that they are gone Dec,31. He came into my place to ask me if I would be interested in one of the places when it becomes vacant. I told him sure, if he pays to have the $30k, 400 amp. 3 phase electrical system moved, and he allows me and the other remaining tenet to reveiw and approve a budget for the CAM. The guy is worse than a used car salesman. Darkriver

10th November 2005, 09:23 PM	#12 (permalink)
BigLeo All Star Join Date: Jul 2005 Location: St Petersburg, FL Posts: 55	Did I rock out? What kind of lingo is that? Are you in the tanning salon business or disco business?

12th November 2005, 12:17 AM	#13 (permalink)
sol sister Veteran Join Date: Feb 2005 Location: CA Posts: 322	Disco business obviously, are you on the right site?

12th November 2005, 11:31 AM	#14 (permalink)
Pink Princess Pink Join Date: May 2005 Location: Florida Posts: 792	The 80's was the best decade ever! Would Blow me be better?

6th July 2006, 09:13 PM	#15 (permalink)
Sun shine Rookie Join Date: Jul 2006 Location: waterloo Posts: 22	Think of it this way it takes money to make money and if you think your going to get ritch over night you got a other thing comming the frist year you will lose the 2end you come close to clean the 3rd year is where you start to make some sort of cash GOOD LUCK

10th July 2006, 01:34 PM	#16 (permalink)
Stephen Underhill Veteran Join Date: May 2005 Location: Frisco, TX Posts: 381	It is very important to have a realistic view of the potential income and operating cost of a tanning salon. Some salons take off in the beginning and never look back. Others have a much slower steady growth, and than there are those salons that are doomed from the start. What is the key here? Know exactly how to maximize your potential income based on your particular market. With this information you can project with reasonable certainty the outcome of your investment. With this type of information going in you can decide if this is a good investment. Yes there are a lot of variables, but if you have a great proven plan, are properly funded and have chosen the best possible location, you can be successful. To what degree is determined by your plan, how effectively you carry out the plan, and most importantly the demographics surrounding your location. Always determine these things up front and there will be no surprises.

27th July 2006, 11:57 AM	#18 (permalink)
Maniac Rookie Join Date: Jul 2006 Location: dallas Posts: 2	Hello everyone, I am new to the site. I need a little advice. I have found a nice salon with 12 beds, 2000 sq ft. It has one high pressure bed, a spray on tan booth that allows you to walk in and the machine does everything. The place is very nice and modern. He only wants $19000. Says it netted him 39,900 last year and did $180,000 gross. He has another salon but it is not close to this location. Their is an LA Fitness in the same area, but a Palm Beach Tan just went in closer to the gym. I think he must see trouble and it trying to bail out. What do you think? For 19,000 it sounds like it may be worth making a run at. Of course all the beds are leased.

27th July 2006, 12:02 PM	#19 (permalink)
Tanning Queen Moderator Join Date: Nov 2004 Location: Six degrees left of nowhere Posts: 5,008	Then what are you buying for $19k? Goodwill? Tell him you will buy it for the $19k if he pays off all the equipment and you are free and clear to take over the place. If not, tell him $5-10k at teh most and you take over everything. Goodwill and past clients arent worth much. People come and go every day, even loyal clients...

28th July 2006, 01:25 AM	#20 (permalink)
Maniac Rookie Join Date: Jul 2006 Location: dallas Posts: 2	Thank you. That sounds like good advice. I actually have not spoken with the owner. I am speaking with a business broker. I did go by the salon. Is the fact that there is another salon in the area a major concern? It would seem to be, but I was told by the front test help when I posed as a customer that the prices are comparable at the other salon. I would think that customer service then comes into play. Can a salon in a hole in the wall place make it if there are nice beds and great customer service? Thanks for the help. I want to make a good investment. I am spend what little reirement I had manged to accumulate.

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