going to buy a distressed salon

[BIG AL]

Hi, these ladies and guys are trying to help you not make a big mistake. We are not some elite group that wants to keep you out of the club. Look at us, one has there pants half way down their rear, by the way TQ, nice pants, one of them only wears pink bathing suit bottoms to work, and another has stuff going all around in his head. How elite can we be? They are trying to save you from making a big mistake.

There have been scores of people on here that have asked for opinions from salon owners and when they are told how it really is, they think we are messing with them.
Nothing that you have been told here is untrue. Listen to these ladies and guys that are trying their very best to help you and to keep you from making a mistake. If in the end, you still decide to go thru with it, good luck and we hope it turns out well for you.

[Tanning Queen]

What happens if another tenant add something big to draw electric from the overall building? How can you be sure you wont have issues there?

YOu asked many threads ago about the slow season. But you only mentioned the SUMMER. Hate to tell you but the slow season is about to hit us all. So you will be OPENING during the WORST Time of the year. It really doesnt pickup again until March or April in most areas.

Are you prepared to pay for the salon bills, your bills and LOSE OUT on any other potential business that you do since you are in the RE market for a full year at this point?

[Tanning Queen]

I agree AL! IT isnt like we are going to profit somehow if you dont buy it. REally, all most of us want, is to have great salons that are well run and profitable. I really hate to see someone make a mistake and lose it all. We gain NOTHING by hurting you or misleading you.

[Tanning Queen]

Wait a minute...
I went back and read another of your posts. YOu said this place has been open only 3 years. But yet you posted its income from 2002. WHich is it???

[BIG AL]

TQ, I don't know if I can handle all this agreeing with me stuff. I am not used to such treatment. Can you throw in a little "my bed can out tan your bed" banter every once in a while. It would make me feel more at home.

[Tanning Queen]

I knowyou keep bragging that this place grossed $80k one year. Do you know what that really means? Do you understand that it costs at least that much to run a salon each year? Where is the profit from a salon that is well established at this point? 522 accounts? Is that from teh beginning of when they opened or what?

[Tanning Queen]

Can't do that. YOu like my butt.

[Tanning Queen]

Did you get teh 3-5 mil demographics yet? Even if you had to PAY for them it would be well worth it to make sure there are enough people to support the salon.

I would love to know if this landlord went for the $650 with all utilities included when teh previos tenant paid $1200 for the same thing.

Oh, just because the landlord SAYS there is enough electric and AC for what you need, normally they are wrong. I cant tell you how many times we have seen that the landlords dont have a clue about what the requirments of a salon are. They will fight you tooth and nail on it and say you only need what every other space in that place gets.

If you go start from scratch, you normally can get the upgrades done by the landlord and get free rent while you are starting out. BUt I am sure you know that from being in the rental business...

[dbl-a]

Originally Posted by hiii98

so somehow all of this is going to be cheaper if i rent a more expensive place oh lets say normally 1000 - 1300 a month. Then i have oh the no so small cost of rewiring the place for electric ... . Oh lets see, hire a crew to do drywall and remodel THE ENTIRE FACILITY, hire a paint crew. Hire people to build counters desks ect. Buy all cabnets tables chairs desks, tvs and computers. Buy all brand new beds. Somehow buy a 8 ton AC unit then pay someone to install it. Buy a software system and hardware to run it all, pay someone to program it to all work together.... all without having a single fkn client to support in the beginning of the dead season??? I dont even want to imagine what all this startup would cost, and you are giving me business advice!??!

I said go buy a decent salon and make it into a nice one. Don't turn another shithole into a so so salon. And all these posts on here about how you are a businessman yada yada, but you obviously don't know shit about tanning. That may matter to you. If I was you I would take the next month or three and read all the posts on here and learn from the others that KNOW what to and what not to do. That's what I did and I thank each and every person on Tantoday for every post I learned from. I do have a very good business sense, but I didn't just jump into tanning. And I am thankful I didn't buy the 1st or the fifth shithole I looked at. And sir, I must say, that the salon you're talking about sounds like a SHITHOLE!

[hiii98]

Originally Posted by Tanning Queen

Wait a minute...
I went back and read another of your posts. YOu said this place has been open only 3 years. But yet you posted its income from 2002. WHich is it???

the landlord has taken it over for 2 years possibly 3. It has been open since 2002.. possibly earlier.

[hiii98]

Originally Posted by Tanning Queen

I knowyou keep bragging that this place grossed $80k one year. Do you know what that really means? Do you understand that it costs at least that much to run a salon each year? Where is the profit from a salon that is well established at this point? 522 accounts? Is that from teh beginning of when they opened or what?

I'm confused...what expenses? electricity? already included? Rent?...dirt cheap. Labor? i'm working. Beds? already there. Running out of day to day expenses.. Water? included in rent.. ammm hell i have no more major expenses that come to mind. Just the obvious little stuff like office supplies, some labor, maintinance to the machines from time to time (my brother is a mechanic and has fixed other beds before). ... i'm actually at a loss. If the place did 80k in profit and my expenses are.. freakn low then it should have the potential to make 40-65k in the first year if it were to gross 80k in sales and i was to work full time.

Marketing?... it had none when those numbers were made... ZERO marketing (not that i wont)

[hiii98]

[Tanning Queen]

Because they showed the expenses were $75k. There was NO profit. THis was back when the industry was better overall. IF the landlord has owned for 2 or 3 years (before you said since January...) there should be tax returns for it. From the P&L you showed, it is on track for $60k GROSS.

I dont know ANYONE on this site that works the salon 7 days open to close. MOst have someone that helps out a bit, even if it is a day or a few hours a week. There was no way I could work the salon 100% of the time by myself. And I had an all stand up salon until 2000. Much easier and faster to clean than beds.

YOu need to look at insurance for the salon too. That is at least a few grand a year.

Again, you need to budget for new/used beds, more electric, more AC (DEFINITELY) and advertising.

DId he accept your offer?

[Tanning Queen]

NOt a bad looking salon. But I would do alot to it to jazz it up. It looks like a typical mom&pop salon.

Can bigger beds (VHR) fit in those rooms?

DId you get the dimensions of the entire space yet or the demographics for the 3-5 m radius?

[EliteMike]

Lobby looks like it could potentially be very nice. Beds look ancient to me. Hallway looks like a basement in a scary movie.

[hiii98]

Dunno he called my number to "discuss" the offer. I told my realtor to call him as he should not be calling me direct to discuss negotiations at this point. I may find out later this evening or tomorrow. True true on the insurance. Also i've been self employed for the past 8 years and a total workaholic... i honestly dont know what to do with free time..and the place does close on sunday

[EliteMike]

I work my salon open to close, but I have help. I'm also leaving the salon in a few weeks. It can be done and I think it needed to be done to get my salon on the right track

[hiii98]

Originally Posted by EliteMike

Lobby looks like it could potentially be very nice. Beds look ancient to me. Hallway looks like a basement in a scary movie.

I agree, yes that is cement floor you looking at.. I'm open for advice on how to spruce it up ( I remodel/flip homes for a living now). I want it to have a wow factor from the moment you walk in to when you leave. But now i'm putting the cart in front of the horse. Also i have more pics.

[SandiGirl]

Originally Posted by Tanning Queen

I dont know ANYONE on this site that works the salon 7 days open to close.

Hi, my name is Sandi and I just fired a douche.

[Tanning Queen]

SUndays would be the day you are in there cleaning, relamping, repairing, etc.

I have been self employed since 1997 and have no problem working all of the time. BUT, it comes down to where is my time better spent. Cleaning beds or paying someone else to do it? YOu never want to BUY a job as an investment. Especially not in an industry that is SO seasonal and under attack daily in the media.