salon is worth ?

[TangerineTan]

Thats what this one is at , net almost 20k but thats with no employes and gross 65k .

[Tanning Queen]

ok, here is a number for you to think about then:

if you will be open 360 days a year (closed for holidays etc) and you are open 12 hours a day that is a total of 4,320 hours.

Take that $20k net and divide it by the hours open and you make $4.63 an hour. THat is YOU working the entire time from open to close with 5 days off a year. Lets say you are able to double that NET in a year. YOu are still not even making $9.50 an hour. MInd you, you still have to pay taxes. And any loan payments, repairs, upgrades, etc.

Just something to think about.

[rcknep3]

Originally Posted by TangerineTan

Thats what this one is at , net almost 20k but thats with no employes and gross 65k .

See something sounds odd there then. How could the net be 20k with no employees? Someone had to run it, if it was the owner then is the 20k what s/he paid themself? Like I was told, you are buying a salon not a job. why pay 20-30k to make 20k plus all the risk of being an owner plus upgrading at some point. Net should be after payroll to cover all the hours it is open. So they had sales of 65k then paid all their expenses, then paid all their payroll, and had a net profit of 20k?

In my case, the net was after all payroll. I bought mine thinking I should be able to increase net to 25k with minor changes. It's location was a main drawing point and it has a built in growth potential as they are building more dorms for a university 1 block away. I also bought it knowing it will never be a main source of income or make me rich, but a profitable side business my wife will run that also gives her flexability to be home with our kids if something comes up.

[Brian Oshman]

Originally Posted by TangerineTan

yes there is enough electric , as I am an electricion by trade

Sure you are.

[Brian Oshman]

Originally Posted by TangerineTan

6 beds , 4 32 lamp stage one 1 54 lamp stage 3 and a stage 2 stand up .

You got about $10K worth of Boat Anchors® there.

[Tanning Queen]

I forgot about you bein an electrician. Are you willing to give up that job inorder to make less than $10 an hour? Remember, YOU will have to work the salon the entire time to make that. Can you pay the salon and your personal bills with that?

[TangerineTan]

well my wife make 78k a year , I guess my ? to you is can I make this salon worth our time ? can I get 40k net ayear out of it ?

[Tanning Queen]

I dont know. That would be up to you, your marketing skills, sales skills, etc. You have to put in the hours to make it work. Are you willing to work the hours 100% of the time? Be open no matter what, even if you or the kids are sick? If not, you have to have an employee. Then you will have to pay wages, unemployment insurance, taxes, etc. So that will cut out of the potential profit.

You say they net $17k or something like that with NO advertising and a whopping $25k if they dont have employees. Here is where your costs will have to go up. You will need money for advertising, lotions (if they dont sell them now), staff. NOw, you SHOULD make more money if you advertise and sell better lotions and offer upgrade beds, etc. BUt that isnt guaranteed. You have to get them in the door and then sell them on your place. THen you have to KEEP selling them on your place.

Do you make more than $40k now as an electrician, working a normal work week, with normal hours?

[Carrie]

My broker says it's 1 times gross or 2 - 2 1/2 net profit.

[brownsuze]

What if gross is $120k but net is $8k? Is it $120k or $24k?

[TangerineTan]

no I donot make 40k , I make around 28k , and I work in the freezing cold and hot ass sumer . It sucks , It has upgrade beds . So are you suggesting I raise the price ? or should I start some sort of EFT ? i have my tanning session posted in another thread .

[Tanning Queen]

But do you work 12+ hour days 7 days a week? YOu still make more than you would at this salona nd work less hours.

I think you work for the wrong company. Electricians I know make WAAAAYYYY more than $28k a year.

[Glowtanning530]

are you a licensed electrician?

[TangerineTan]

Ya but with an economy the way it is makes it hard for us to get raises , plus its a myth not all electricians make great money . especially if there is no work .

[TangerineTan]

no I am not licensed need to have 5 years in I am 7 months shy.

[SandiGirl]

Originally Posted by TangerineTan

no I donot make 40k , I make around 28k , and I work in the freezing cold and hot ass sumer . It sucks , It has upgrade beds . So are you suggesting I raise the price ? or should I start some sort of EFT ? i have my tanning session posted in another thread .

Huh? What you would do, you mean?

You go back and forth from owner to buyer and I can't keep up.

[Glowtanning530]

Originally Posted by TangerineTan

Ya but with an economy the way it is makes it hard for us to get raises , plus its a myth not all electricians make great money . especially if there is no work .

Tanning salons have the same myth.

[brownsuze]

Originally Posted by TangerineTan

oh ya they pay to employes 8hr , with out them the net is 25012 this year .. ?

Originally Posted by sunsally

Payroll - at $7/hour, for 70 hrs/week, including taxes, etc -- is about 30K. So now you are at $6K.

.

Originally Posted by TangerineTan

sunsally , you speak it how it should be , .

Originally Posted by TangerineTan

Thats what this one is at , net almost 20k but thats with no employes and gross 65k .

Originally Posted by rcknep3

See something sounds odd there then. How could the net be 20k with no employees? Net should be after payroll to cover all the hours it is open. So they had sales of 65k then paid all their expenses, then paid all their payroll, and had a net profit of 20k?

.

~~~~

[brownsuze]

Originally Posted by TangerineTan

so what do you mean buy net profit ?so if I net 13,000 I would times it buy 2 ?

Originally Posted by TangerineTan

well net is around 17500

Originally Posted by TangerineTan

oh ya they pay to employes 8hr , with out them the net is 25012 this year .. ?

Originally Posted by TangerineTan

.it also brings around 13500 a year , ,

Originally Posted by Tanning Queen

You say they net $17k or something like that with NO advertising and a whopping $25k if they dont have employees. ?

You have their net somewhere between $13,500- $25,012. Do you actually know what the net is?

[SandiGirl]

I'm dizzy.