Calculating Tanning Salon Start Up Costs
Consider these tanning salon start up costs in your quest to open a tanning salon.
How much does it cost to open a tanning salon? Some answers below...
Be realistic about your lease. How much do you expect to pay per square foot in your area? $3 or $4? $6 or $8? Also, does your lease include CAM charges? These are fees in addition to your base rent, which many 'newbie' lease negotiators forget about. CAM charges can be significant. For example, if you are lucky enough to get a $3 per square foot lease in a high traffic area, don't' be surprised if they include another $1-$2 per square foot for CAM charges.
And on top of that, you will have to put down a security deposit, plus first and last months rent. But, keep in mind, everything is negotiable.
When it comes to tanning salon start up costs, negotiating your lease is crucial, and it's an art form in itself, requiring very solid negotiating skills. Negotiating successfully can save you thousands of dollars.
Thousands that can be fed right back into your salon.
For negotiating your lease and saving money on your tanning salon start up costs, I suggest you read and implement the strategies in this book.
Tanning salon start up costs will include everything from build-out (the actual building of your tanning salon), tanning beds, spray tan equipment, all the way down to bathroom and tanning salon supplies.
Surprise expenses will pop up, and you should have a small fund to cover them. We were caught off guard many times. For example, one surprise was a deposit that PG&E required because our power usage is high. So they required almost $2000 for one salon.
Another surprise expense in your tanning salon start up costs might be extra venting and air conditioning build-out for your tanning beds and air conditioning. Also, computers and printers not functioning properly will eventually bite you, so either have back ups ready, or have money ready.
And yet more surprise expense could be security cameras (get a good system first and don't make the mistake we did...going cheap because three systems later we are finally up and running properly). Every salon has their own set of unique surprise expenses, so be prepared.
Your selection of tanning beds will be a major tanning start up expense. But it's one of the foundations of your business. So don't be cheap because another salon will look to pounce you out of business once they see your weakness. That's our opinion, but it's based on experience.
So How Much Will A New Salon Cost To Start Up?
Here is a more solid answer to...
how much does it cost to open a tanning salon? That is not an easy question because it all depends on where you are going to put your salon, what you can afford, and how much space you will have, amongst other things. I know salon owners who said they started their tanning salon with just $50,000. And others put as much as $500,000+ into their salon.
Some of the main tanning salon start up costs will be put toward build-out, tanning beds, furnishings, computers, software, phone equipment, signage, and insurance. But there are many other smaller expenses not shown in this article that will ad up to several thousand dollars as well. And in each major start up expense are areas of planning that can save you thousands.
If you had to pin me down on a number I would say that a very average salon with decent equipment would run about $150,000. But you don't want an average salon if you are going to compete with a saturated market. Plus, if you can, you want to create a salon that scares potential competitors away. So I would say $250,000 and you're heading in the right direction, and this assumes you are aggressive in planning, negotiating, and budgeting.
Again, those numbers are just basic tanning salon start up costs, and they don't take into account other important factors that require more detail and explanation. For example, this also does not include 6 months of operation costs and a marketing budget. You don't want to be out of money on your first day of operation, right? You need to keep the business running and get people in the door which costs a significant of money.
The goal of this article is to get you thinking more realistically about your salon and how to get it started right. Good luck!
The answers to how much does it cost to open a tanning salon can't be answered in one article. This ebook is highly recommended: Tanning Salon Secrets -- How To Open And Run A Successful Tanning Salon That Attracts A Constant Flow Of Foot Traffic!
This article discusses the in's and outs of a tanning salon franchise. It might interest you if you are looking at a franchise opportunity.