I have been offered another salon

[smileysnob]

I can see what you mean - the minutes are prob cheap, that is why they love it!! I as a salon owner (if that happens) would prob raise prices on the packages, or get rid of them - but you cant do that so fast after the clients (who most are regular) are used to that! does that make sense?

[Brian Oshman]

I know this type of booth. Has two high B medical lamps in each corner and regular type lamps in the rest of it. The ones I've seen don't even have any cooling fans, just an open top.

This is the last time I am giving advice on these dumps. If that money is burning a hole in your pocket so bad, then go for it. It will be however a big mistake. I wouldn't give him 5K let alone 75K for this place.

Post some pics of these antiques. 100 watt booths with medical lamps in the corners. Are they maybe San-I-Tan?

Boat Anchors®, Dumpster Food®, Minutes are Death®.

[smileysnob]

They have fans up top, not open... I will see if I can get pics...

[sunsally]

Originally Posted by Brian Oshman

Minutes are Death®.

Earlier, I used a variation of this trademark phrase without proper attribution or reference.

I want to apologize to avoid the wrath of the Czar of Trademarks!

[smileysnob]

I dont know if I did it right...

[smileysnob]

The standups are shown with the door open. There is another door in there to shut once you get in the actual booth, it has reflectors all the way around.

[phattmatt]

It doesnt matter how much the equipment is worth what did he gross for 2006?

From the pictures you posted. $20k tops and you would have to have money for new equipment.

A tanning salon should never have more stand ups then laydowns unless you want to lose money every year to the nice new upscale salons that will open up around you.

Queen had a tanning salon with most stand ups but at least she didnt have those B bulbs in the corner of each booth.

Hopefully 2 of those stand up rooms can turn in to 1 laydown room after you demo it.

[Glowtanning530]

75k he is smoking crack.
Sorry. I paid way less

[MacDaddy]

I have a feeling the KOP of Pa. area is the next area to boom with a bunch of tanning salons. Getting very populated and businesses galore. JMHO.

[smileysnob]

There is def room to get rid of 2 booths and put a bed in there place. He told me to make him an offer and we could negotiate. I am sitting on this for a while, maybe a month +. he will sit on it.

[Stephen Underhill]

I can only assume this salon has old equipment, therefore the salon is worth 2 times net profit based on 2006 tax return.

Ask these questions:
How many tanning systems in each salon

Type and description of each tanning system and manufacture date.

When did the salon open

How many active clients in the data base (tanned in the past 12 months)

Gross & Net income for 2004, 2005, 2006 based on tax returns.

What percentage of gross where lotion sales

Complete tanning price structure in detail

How many tons of AC in each salon

What type of advertising do you do and how often

How much did you spend on advertising in 2006

What type of signage do you have in your salon?

What is the dimension of each salon?

What are the dimensions of each tanning room?

What is the monthly rent?

How many months left on the lease?

[brownsuze]

What did he net the last 2 years? Offer him slightly less than the average of the two.

See when the units have zero value, all you're really purchasing is the client base & buildout. So no way should you even think about offering more than his P&Ls reflect.

Keep looking -- call some business brokers and see what else is on the market. There have got to be at least a half dozen or more salons for sale in the burbs this time of year...

[love sun]

I know of at least four in/around K.O.P....Do you know the competition?

[brownsuze]

Originally Posted by Stephen Underhill

I can only assume this salon has old equipment, therefore the salon is worth 2 times net profit based on 2006 tax return.

It's worth whatever someone is willing to pay for it. IMO, it would be less than smart for anyone to pay 2x net for a business where the main source of income (tanning units) have zero value on the open market.

[smileysnob]

I do know the competition...

I know alot about the bills (since I used to do them) and the booths, and beds. I do not know what he grossed and I will look into all the questions, they are all great

[CIT]

Pay 10k to Brian Oshman and he will go and negotiate for you and get that salon for you for another 5-10K. lol

[Din]

Originally Posted by smileysnob

I do know the competition...

I know alot about the bills (since I used to do them) and the booths, and beds. I do not know what he grossed and I will look into all the questions, they are all great

Smiley's Nob,

"Doing" the bills and making the money to "DO" the bills is 2 different things. An 8 year old can write out the checks to pay the bills. But the owner makes the money to pay YOU to write out the checks.

There is a difference. A BIG one.

Not knowing what he grossed means....you didn't have access to reports to say how much he made which leads me to believe that you didn't have signing authority on his bank account. Which leads me to believe that "Doing the bills" meant, when the mailman dropped them off, you put them in a drawer for him to pay. Maybe you opened them and looked at them....at most.

Am i way off on that?

[smileysnob]

ohyea, I didnt say I knew them all b/c of that!! no no

[smileysnob]

I signed the checks if I needed to and he wasnt aroudn to.

[Tanning Queen]

You were right. Made in a garage! LOL!

My bet is that they arent legal. If this state ever gets regulated, you are shut down!

Just so you have an idea. I bought my salon for $10k back in 1997. Came with 6 booths and all the crap as far as decorations and stuff. It also included the deposit on the building of $2600. So in reality, I paid $7400 for a salon that had been open since 1985. It included WAY more than what you are looking at. SInce those booths arent real. Dont include them since you will have to chuck them when an inspector comes thru...