Do you want to open a salon?

[dsuriff]

I think the desire and determination to open your dream business is great. I do however believe that in todays tanning environment where a franchise could open near many of us at anytime you must have differentiation from the current and potential competition. I have a 1 year old salon and it was a $400,000.00 investment.

You must have High Pressure to fend off competition, I believe you don't need to sweat while tanning and therefore need 18-20 tons air conditioning. I also use the same concept that a big box retailer uses with lotions. I stock and display over 600 bottles of lotion on my display wall which landed over $50,000 in revenue this year.

Again I am new in tanning but an expert in retail and business management and firmly believe $300,000 or more is needed for a salon in todays environment.

[FIT]

Again I am new in tanning but an expert in retail and business management and firmly believe $300,000 or more is needed for a salon in todays environment.

Where exactly is today's environment? What state?

I believe you don't need to sweat while tanning and therefore need 18-20 tons air conditioning

So if you have a 10 bed salon you need 18-20 tons of air? The average base bed needs less than a ton of air. Are you suggesting salons should consist of all big VHR and/or HP?

Again I am new in tanning but an expert in retail and business management and firmly believe $300,000 or more is needed for a salon in todays environment.

So if your demographics would support a 10 bed salon that you can open for $150,000 it's a bad idea? You should spend $300,000 so that you have a debt load you can't service?

Can someone please remove this thread or at least take the "sticky" off it? I'm losing years off my life!

[EliteMike]

You can open up an awesome salon for 150-200k. I'm still waiting to hear my final total from my accountant, I know i could have done it for less too.

[Brian Oshman]

Can someone please remove this thread or at least take the "sticky" off it? I'm losing years off my life!

Nope!

[daredvl_edm]

I am curious on the life span of beds. I am looking into purchasing a salong for 49 900, with 6 beds. The current owner has been there for 13 years, and the beds are 13 years old. I am also curious on the depreciation of the beds.

Thanks

[EliteMike]

You can have lots of fun breaking the lamps out back I'm sure the beds aren't worth jack.

[Tanning Queen]

Yep. Aint worth much. What is the clientele? How many ACTIVE clients in the database? What is the gross profit? What are the demographics? Is there room for growth? Is there enough AC and electric for bigger beds? Will the rooms be big enough for new beds? Is the lease assumable? Will you need a new deposit on the building? What are the terms of the lease? Exclusivity clause in the lease?

Lots more to think about other than the beds, which arent worth thinking about other than how much to replace them all.

[FIT]

Tanning Queen this would be a great time for your "start your own thread" mantra. Why oh why can't this thread just go away!

[dan]

Any thoughts on which tanning franchises are best and any that should be avoided? Who are the biggest and most successful out there?

[EliteMike]

avoid them all Hollwood tans pizza idea may good

[daredvl_edm]

The salon is in a smaller community that is growing rapidly. He currently has 400 - 500 active tanners right now, and 4500 in the system. He owns the building and would allow me a 5 year lease of 1700/month, and is selling it for 49 900. 4 lie downs 2 are Sunal Prof iline 30 lamp, and 2 are Sonnenbraune Klassik, 32 lamp. 2 stand ups Hex 40 lamp. The rooms are big enough to change the beds if needed at some point. The last years profit was just over 90 000. Any advice on any of this would be greatly appreciated.

Thanks all in advance.

[FIT]

The last years profit was just over 90 000

He will show you statements?
Did he charge himself rent?

[daredvl_edm]

he owned the place so was paying a mortgage, and yes he showed me the statements. His expensis are high, however he has meals and entertainment at 6000/year.

[FIT]

Did you mean sales of $90,000? If not what were his sales?

[Isltan]

Do you mean gross profit? What are the expenses? How much of the 90,000 is true profit?

[daredvl_edm]

his sales were 90 000, and his gross profit was 75 000. His expenses were high as he had food, travel, entertainment in this as well.

[brownsuze]

Its malarky. Look what you just posted... Sales at $90k and profit was $75k??? So his expenses were just over $1k a month and you claim that's HIGH? You're mixing up your numbers or you're dreaming....

[Isltan]

Yes,something is wrong with this picture. I would be living high off the hog if my expenses were only 1000.00 a month!!!! Even without rent, he must not have a phone or electric, maint. on beds...what about salaries, taxes and insurance. Better check this out better!

[SunMan49]

My advice: Get a push-cart and sell Hot-Dogs on the main street.

Great deals at any Wal-Mart and a great ROI

[tanit]

Alright, i am new here...as this is my first post. So thanks for having me. My wife and i are in the dreaming phase of starting a tanning salon.
What do you think about this?
I live in a city of 150,000 people, roughly 15 locations to tan. I would be located in a new strip mall in an industrial park that has the following 'brief' stats. Within 3 sq miles there are 45,000 employees. at the intersection i would be on, there are roughly 28,000 cars a day. The nearest tanning location is about a mile and a half from this location, maybe 2 miles.
The building would be 1600 sq ft at $13 per sq ft on the lease. $15 for the build out.
I just want to know if we are crazy for taking this on. I am looking for the pros and the cons. Advice from the more experianced owners would be great. Thanks guys, i really appreciate the help!

...tan it...