Does anyone on this forum own a tanning salon? I am looking into buying one. I just have a few questions about what I should be asking the gentleman selling the place. Any help would be appreciated greatly.
Rob
Rob
Anyone own a tanning salon?
- Thread starter nsxlover
- Start date
Don't own one, but have some as clients. Make sure and find out how they guy manages and collects on monthly receivables. Some places are totaly ignorant as to what they could or should be doing, while some are on top of it. Even some of the large franchises don't have a clue, even though it's very important. I did have someone approach me about buying into one of the franchises (Planet Beach), and it sounds like that outfit is doing okay.
This guy wants $50k for the place including all the beds. He has an established clientele, but I don't think he runs the place very good. He does no advertising, and as a result his net income last year was only $40k. I guess with some advertising, I could turn it into an $80 per year net. This would be a part time gig for me. I have my accountant meeting with him next week. I just don't have a ton of time to invest in the place, but with a good manager, I think it can be turned around. He has been in the same location for 18 years. It is in a high rent district so I know the clientele could be there. He has 3 plans as follows:
$69/month unlimited
$29/month and $3/tanning session
$7/tan with no commitment
Any advice would be greatly appreciated. Thanks
Rob
$69/month unlimited
$29/month and $3/tanning session
$7/tan with no commitment
Any advice would be greatly appreciated. Thanks
Rob
How is he collecting on the first two options? Hoping the consumer walks in each month and hands him some cash or what?nsxlover said:
Yes, that is part of his problem, he does not have any commitments more than month to month. I would make a yearly membership and pull directly from credit card or bank account. He says his busy time is between April and July, thus is not getting those customers to pay much in between. Does this sound like a good idea with the yearly membership? How much would be a good price based on the monthly fee to charge for a yearly membership?
Rob
Rob
I worked in a tanning salon through high school, and we were very busy all the time. The way we collected was simple - pay up front for whatever option you choose, with cash, check, or credit card. We then had corresponding cards filled out with the client info and tracked how long their membership was and how often they used it. The biggest profit center for us was selling annual memberships - I think we charged $700 or so for unlimited tanning for 1 year. You charge their card up front, and just like gym memberships, they never use it as much as they think they will.
This is actually a very simple business to operate - keep your equipment in top shape, do a little promoting, and let vanity take over. The accounting and membership management is relatively easy to set up. The key for you will be to get enough recurring clientele to make it worth your while. It wouldn't be a bad idea to have an independent business valuation done (maybe your accountant is doing that for you).
Good luck!
Todd
This is actually a very simple business to operate - keep your equipment in top shape, do a little promoting, and let vanity take over. The accounting and membership management is relatively easy to set up. The key for you will be to get enough recurring clientele to make it worth your while. It wouldn't be a bad idea to have an independent business valuation done (maybe your accountant is doing that for you).
Good luck!
Todd
Not bad ideas, but not the complete solution. Ask yourself what does the YMCA do, and why? Rob, you have a PM.
It amazes me how "tanning salons" manage to still thrive.
My local health club has a tanning capsule and although some customers use it - many simply shake their heads and call it the "cancer capsule."
I guess there's still a lot of people who want to look good regardless of the health implications.
I don't think I could participate in such a business.
Of course, this is my opinion only.
-Jim
My local health club has a tanning capsule and although some customers use it - many simply shake their heads and call it the "cancer capsule."
I guess there's still a lot of people who want to look good regardless of the health implications.
I don't think I could participate in such a business.
Of course, this is my opinion only.
-Jim
Aren't there non-UV tanning beds these days?
There's non-UV booths where you're sprayed with colorant.
Anything else that "burns" the skin runs the risk of being carcinogenic.
Anything else that "burns" the skin runs the risk of being carcinogenic.
Jimbo,
I personally would not tan in a bed. When I was waiting for his wife to come and discuss some details, he offered me a free tan and I told him it is too bad for you. With that being said, there is a lot of money to be made in it. I have researched the spray on tan booth. The go for about $10 to $15k for a nice one. There is also a lot of maintenance that goes along with it. Cleaning the nozzles, rinsing the floor, etc. If I buy the salon, I will buy one of those.
I personally would not tan in a bed. When I was waiting for his wife to come and discuss some details, he offered me a free tan and I told him it is too bad for you. With that being said, there is a lot of money to be made in it. I have researched the spray on tan booth. The go for about $10 to $15k for a nice one. There is also a lot of maintenance that goes along with it. Cleaning the nozzles, rinsing the floor, etc. If I buy the salon, I will buy one of those.
nsxlover,
I think if you were going to go into the business the spray-on technique will be the way to go.
There's a lot of interest in health today and I think you would be on the correct side of the issue and just catching this new spray wave.
I agree there's probably a lot of money to be made.
-Jim
I think if you were going to go into the business the spray-on technique will be the way to go.
There's a lot of interest in health today and I think you would be on the correct side of the issue and just catching this new spray wave.
I agree there's probably a lot of money to be made.
-Jim
Lemme just say this about the health risks of the spray on booths. As of right now there havent been any cases of people having breathing or lung issues with the spray on booths but i have a friend who uses the spray method and during the spray process the dye and fumes in the booth are terrible i heard and you cannot help but to breath some of this in im told.So if i was you id also ask this question ...... what are the long term effects of breathing this stuff in ?
