going to buy a distressed salon

[hiii98]

i dont know but i never saw either cable or internet at the salon.. so i dont know why its billed even once.

[SandiGirl]

Or why it's even THAT much!

[SandiGirl]

Did you make arrangements to get in and view the reports? And does he even have the passwords? You'll need the one that can access all reports. My employees can't access it. So you'll need whoever's password, that is set up for those permissions.

[hiii98]

i want to get the inventory report first and show you guys before recieving any more reports

[SandiGirl]

Of the beds? You should just go an take pics.

[hiii98]

heck no reason i cant do that! Today is a bad day but i will make an effort tommorow. If the employees only knew...i likely will be firing all of them i doubt they'd let me in the door.

[SandiGirl]

And don't forget to see about spending some time in there. You'll need some of those girls to give you all the scoop.

Don't forget to get the prices and packages. And find out how much a/c is there.

[nemisis]

oh queeny, yes i agree with ya about this salon, there needs to be more investigating done thats for sure, almost sounds like some money laundering going on in there.

I know that if ya have the right knowlege, those numbers don't meen squat cause it can be the result of poor managment and owner know how about the business. Whats most important is does the demographics support this salon, is the equipment decent, and can the hydro/ac get sorted out to run a succesful salon. Only the demographics will show if this salon can be profitable. a total overhall on this salon needs to be done, including a profitable pricing structure.

I think that if his pants are on fire, he will have a better chance to make it. So lets look at the positive side and encourage him in a positive direction instead of trying to stomp out his fire. There are some real weird things going on with this place, and i would enter this place with caution, but perhaps if ya pants are on fire, have a look around at other salon options also, perhapts a closed down location with buildout already done, or buying one with a less shady outlook. I would encourage ya to look at demoghraphics that the city posts, and post it here so we can all help ya.

queeny, the tone ya used sounded a bit harsh, albeit all great advice, but my "pants on fire" reaction to ya tone would have been to become more determined to make it work, and less likey to listen to the advice, or miss the advice because now i'm all fired up to prove i can do it.

[hiii98]

Population:	60,268
Population Growth:	1.3%
Residents per square mile Population Density:	2,189
Median Age:	37 years
Median Income:	$49,569
100 = national average, 110 = 10% more expensive Cost of Living Index:	90

roughly 6 established tanning salons in town. 3 other haircut/1-2 bed salons.

As of the census^[8] of 2005, there were 60,483 residents, 23,894 occupied housing units, and 15,746 families in the city. The population density was 2,160.6 people per square mile (834.1/km²). There were 25,083 housing units at an average density of 910.9/sq mi (351.7/km²). The racial makeup of the city was 95.27% White, 1.26% Black or African American, 0.25% Native American, 0.96% Asian, 0.03% Pacific Islander, 1.02% from other races, and 1.22% from two or more races. 2.64% of the population were Hispanic or Latino of any race.
Of the 23,894 households, 32.7% had children under the age of 18 living in them, 51.1% were married couples living together, 10.5% had a female householder with no husband present, and 34.1% were non-families. 27.4% of all households were made up of individuals, with 9.7% comprised of individuals aged 65 years or older. The average household size was 2.45 and the average family size was 2.99.
In the city, the population was spread out with 26.2% under the age of 18, 8.3% from 18 to 24, 31.2% from 25 to 44, 21.4% from 45 to 64, and 12.9% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 95.6 males. For every 100 females age 18 and over, there were 92.5 males.
The median income for a household in the city was $45,961, and the median income for a family was $55,133. Males had a median income of $40,910 versus $26,423 for females. The per capita income for the city was $22,224. About 4.3% of families and 6.5% of the population were below the poverty line, including 7.1% of those under age 18 and 5.8% of those age 65 and over.

[nemisis]

I can tell ya there are too many salons in that population already. that is one I'd walk from. only 10% of the population tans I think thats what it is. im struggling with 4 salons in 69,000 population with a much higher medium income and better age demographics, and im head to head with one other salon being the most popular salon. the one at the bottom is on the verge of closing up.

[Kathe]

Originally Posted by Tanning Queen

Of course I am bitchy. I need to poop 8lbs out of me!

What in the world are we going to do when you are all cleaned out and become so nice? Say it isn't so - we depend on your bluntness!! Maybe I won't let you detox after all.....

[Kathe]

Just wanted to add that there is a difference between being negative and being truthful. Sometimes the truth sounds negative but it will save you in the end. As Queen said, we did fine and are still in business after 15 years but if this board would have been around then it would have saved us a lot of mistakes and a lot of money.

[SandiGirl]

Originally Posted by Kathe

What in the world are we going to do when you are all cleaned out and become so nice?

Then people will mistake her for me.

[Kathe]

Lol

[Tanning Queen]

Thank you for finally providing ACTUAL stats like I had asked for several days ago. Nemisis is right. It is over saturated. There is a reason why those two other owners failed in such a short time. You dont have the population to really make any money.

Unless I am wrong and those are the stats for the 3 mile and 5 mile radius? How close are all of those salons to where you want to be? how large are they and how long have they been in business?

[palmstanning]

As our salon we are the only one in a 7 mile area , and the salon I bought is one of the originals in our town 12k .

[hiii98]

Unless I am wrong and those are the stats for the 3 mile and 5 mile radius?

those are the salons in the entire city including the one i want to purchase... NOT within a 5 mile radius, i'm confused you want me to pay a researcher to do a 5 mile radius survey??.. lol

so a population of 60,000 people and only 5 other salons.

also i have the number and bed types its a big file so be prepared.

[hiii98]

Here is what I was told by the landlord, he said he came across this paperwork while digging through the previous owners old files. I had asked him for a inventory report and he seemed surprised to find this. Supposedly it is 1-2 years old. Also regarding temperature he claims the salon keeps a constant temperature between 75-80 degrees. I dont thats desireable but neither is it it horrendous in my UNexperienced opinion. He also said the AC on the roof is plenty big enough to handle an expansion...for whatever thats worth.

Business Sale Price is $75,00

Lease Terms:

$1200 per month

1.5% annual increases

10 years Lease

Landlord pays utilities:



Membership: Tanning Packages:

71 annual billed $35 monthly Monthly Unlimited $35.00

250 aprox paying via promo package rates Monthly Unlimited Lotion $19.00

10 tans $39.95

20 tans $69.95

Individual Tan $4.50



Financial Summary: Salon opened March 1, 2002

2002 Profit & Loss 2004 Profit & Loss

Income $40,538.88 Income $79,552.77

Expenses $55,654.41 Expenses $62,638.30



2003 Profit & Loss 2005 Profit & Loss

Income $63,064.61 Income $80,087.77

Expenses $69,598.64 Expenses $74,069.21



Payroll is $36,000 a year and is included in the expenses.



Business Assets & Inventories:

8 Beds total = $40,000 in beds (used)

(3) 10 minutes lay downs (Dr. Kern Beds)

(3) 20 minute Lay downs (Dr. Kern Beds)

(2) stand-ups (Sun Dome Speed Systems XL48

Plus other inventory and assets

See details of these assets and values on Exhibit A (4 pages)

Exhibit A



ITEM COST SELLING PRICE ON HAND

Swimsuits
10226 $17.95 $ 53.85 $26.99 $ 80.97 3
10231 $19.95 $ 59.85 $29.99 $ 89.97 3
10613 $18.95 $ 56.85 $27.99 $ 83.97 3
11432 $17.95 $ 53.85 $26.99 $ 80.97 3
11445 $17.95 $ 53.85 $29.99 $ 89.97 3
12631 $19.95 $ 59.85 $29.99 $ 89.97 3
12632 $19.95 $ 59.85 $25.99 $ 77.97 3
13830 $17.95 $ 53.85 $27.99 $ 83.97 3
13831 $17.95 $ 53.85 $29.99 $ 89.97 3
22328 $19.95 $ 39.90 $14.00 $ 28.00 2
22544 $19.95 $ 39.90 $14.00 $ 28.00 2
30333 $19.95 $ 19.95 $14.00 $ 14.00 1
30513 $19.95 $ 19.95 $14.00 $ 14.00 1
33331 $12.98 $ 38.94 $21.99 $ 65.97 3
33580 $12.98 $ 38.94 $21.99 $ 65.97 3
34355 $19.95 $ 19.95 $14.00 $ 14.00 1
42323 $19.95 $ 19.95 $14.00 $ 14.00 1
42552 $19.95 $ 19.95 $14.00 $ 14.00 1
43808 $19.95 $ 19.95 $14.00 $ 14.00 1
80543 $19.95 $ 39.90 $14.00 $ 28.00 2
82021 $22.95 $ 68.85 $29.99 $ 89.97 3
82026 $19.95 $ 59.85 $29.99 $ 89.97 3
83210 $17.95 $ 53.85 $26.99 $ 80.97 3
83222 $19.95 $ 59.85 $29.99 $ 89.97 3
86810 $19.95 $ 59.85 $29.99 $ 89.97 3
86822 $19.95 $ 59.85 $29.99 $ 89.97 3
Totals $ 1,185.03 $ 1,598.49

Accessories

Toe Ring $2.59 $ 77.70 $9.99 $ 299.70 30

Sunglasses CAN NOT FIND ANY INFO FOR THESE!
Marcia will have to do these
ITEM COST SELLING PRICE ON HAND
Lotions
Amaretto $ 17.00 $ 33.00 8
Aqua Tini $ 7.00 $ 21.00 1
Bananaberry $ 12.60 $ 34.00 1
Believe $ 23.00 $ 46.00 6
Bikini Tini $ 20.30 $ 58.00 4
Bombshell $ 28.00 $ 56.00 3
Bottled Blonde $ 6.99 $ 21.00 4
Bronze Blizzard $ 6.99 $ 21.00 6
Choctini $ 11.20 $ 32.00 4
Citrus Tini $ 11.20 $ 32.00 6
Cosmo Tini $ 11.90 $ 32.00 3
Dangerously Dark $ 12.75 $ 42.00 1
Drama Queen $ 11.20 $ 31.00 4
FabBronze $ 7.00 $ 21.00 5
Flare $ 21.00 $ 60.00 4
Freak $ 13.12 $ 38.00 1
Freak Hot $ 13.12 $ 38.00 1
Goddess $ 22.00 $ 55.00 3
Hard Core for Men $ 5.95 $ 24.00 5
High Octane $ 8.05 $ 21.00 8
Hippie Chick $ 10.50 $ 31.50 5
Hippie Chick Hot $ 10.50 $ 31.50 3
Hot Amaretto $ 16.50 $ 35.00 5
Hot Tottie $ 7.00 $ 24.00 4
Hearts Desire $ 22.00 $ 55.00 7
Intimidation $ 17.60 $ 44.00 3
Jaded $ 20.00 $ 50.00 1
Legz $ 6.30 $ 18.00 5
Lipstick Tini $ 19.60 $ 56.00 1
Love Monkey $ 15.20 $ 38.00 2
No Limits $ 7.00 $ 21.00 7
Pink Diamond $ 12.75 $ 30.00 8
Promised $ 16.00 $ 40.00 4
Pure Romance $ 18.40 $ 46.00 3
Ravishing $ 18.70 $ 44.00 4
Ray of Light $ 19.25 $ 58.00 4
Raz Tini $ 10.50 $ 32.00 5
RockStar $ 14.55 $ 41.00 4
Shrine $ 19.25 $ 55.00 6
Stacked $ 17.72 $ 40.00 14
Tabutini $ 20.30 $ 56.00 5
Tao $ 15.75 $ 45.00 6
Thrust $ 12.50 $ 33.00 7
Worship $ 15.75 $ 45.00 1
totals $ 633.99 $ 1,685.00 192

Samples
Amaretto $ 2.00 $ 5.00 6
Bananaberry $ 1.75 $ 5.00 7
Bikini tini $ 2.45 $ 7.00 10
Bottled Blond $ 1.50 $ 3.00 12
Bronze Blizzard $ 1.50 $ 4.00 17
Bombshell $ 1.50 $ 4.00 10
Choctini $ 2.50 $ 5.00 16
Citrus Tini $ 2.50 $ 5.00 7
Cosmo Tini $ 2.50 $ 5.00 19
Drama Queen $ 1.88 $ 4.00 13
Fab Bronze $ 0.96 $ 3.00 5
Flare $ 2.50 $ 7.00 6
Freak $ 3.00 $ 6.00 28
Goddess $ 3.30 $ 7.00 8
Hot Amaretto $ 2.40 $ 6.00 9
Hard Core for Men $ 1.05 $ 4.00 6
Hearts Desire $ 3.50 $ 7.00 7
Heartbreaker $ 3.00 $ 5.00 14
High Octane $ 1.62 $ 5.00 20
Hippie $ 2.25 $ 5.00 10
Hippie Hottie $ 2.25 $ 5.00 23
Hottie Tottie $ 1.05 $ 4.00 8
Intimidation New $ 2.00 $ 5.00 10
Old Intimidation $ 1.88 $ 4.00 6
Jaded $ 2.40 $ 6.00 3
Legz $ 1.50 $ 5.00 5
Lipstick Tini $ 2.10 $ 6.00 4
Love Monkey $ 1.92 $ 4.00 5
Love Junkie $ 1.88 $ 5.00 7
Pink Diamond $ 1.80 $ 5.00 12
Promised $ 2.50 $ 5.00 5
Pure Romance $ 2.20 $ 6.00 4
Raz Tini $ 2.25 $ 5.00 6
Ravishing $ 2.23 $ 5.00 9
Ray of Light $ 3.48 $ 7.00 11
Rock Star $ 2.55 $ 6.00 15
Shrine $ 3.30 $ 7.00 13
Sunburst Sorbet $ 1.50 $ 4.00 17
Tabu Tini $ 2.10 $ 6.00 7
Tao $ 2.70 $ 6.00 17
Thrust $ 1.75 $ 5.00 11
Worship $ 2.70 $ 6.00 6
totals $ 91.70 $ 219.00 434

Office Equipment Price/unit total price # of units
File Cabinets $ 2
Computers and software
Storage Cabinets 9
T-max units 6
Misc. office supplies
Shelving
totals

Misc. Price/unit total price # of units
Light bulbs 325
towels 41
Chairs 6
Googles 8
signs 8
pillows 8
stools 4
rugs 10
radios 9
Light fixtures 12
Pictures 7
Portrait 1
rug 1
totals

Totals

Apparel on hand selling price cost

apf visor 3 17.99 $ 7.00
apf orange shirt 1 NO INFO FOUND
apf v-neck shirt 8 19.99 $ 66.88
reebok shirt 4 19.95
reebok pants 3 21.95
champion pants 5 21.95
bathing suit forms 11 $ 56.54
Clear Hanger 100 $ 49.75

Items
deodorant spray 17
face wipes 30
sanitized signs 8
goggle 8
winkease 1 box .50 /pair
waiting area chairs 3
head pillows 6
wicker chairs 6
towels 41
wall radios 7
floor radio 2
rugs 8
Rug 1
small trash cans 10
large trash cans 2
stools 3
wicker table 1
1 picture 1


computer monitor 1
cpu 2
keyboard 1
printer/fax 1
mouse 2
credit card machine 1
tmax 1
filing cabinet 2 large

[SandiGirl]

Business Assets & Inventories:

8 Beds total = $40,000 in beds (used)

(3) 10 minutes lay downs (Dr. Kern Beds)

(3) 20 minute Lay downs (Dr. Kern Beds)

(2) stand-ups (Sun Dome Speed Systems XL48

Brian will love that.

[SandiGirl]

8 beds but only 6 T-max timers?