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Originally Posted by shuki
With the limited info we have we can get a small view of the picture. If you can ask the owner these questions:
1. Is the lease net or gross?
2. How many years left?
3. Can you extend the lease? Is there an option(s) in place?
4. Try to speak to the strip center landlord too. Make sure the lease is still in good standing.
5. What is there currently in terms of power? Single Phase? 3 phase? Total amps?
6. How many tons of AC are there?
7. Do they use a computer system? If so what software do they run? Can you look at the database etc?
8. What kind of beds and booths?
9. How many hrs of tanning time on each unit.
10. any repairs made to any of the beds? List problems?
11. What inventory is there?
12. What is the gross per month for the last 3 years? 1-12months
13. How many total people in their database?
14. How many active people? Active meaning have tanned in the last 30-90 days.
15. How many daily tanners do they get each month? 1-12
16. What is their price structure like? (we want to see if we can raise it)
17. Hours of operation?
18. Tans broken down by hour. (we want to see if we are open durin important hours etc)
After we collect this data we can see if it makes economic sense.
Also try to get an idea of the $$$ he wants for the place. See if he will take back paper.
Hell if it looks good I may want in with you  |
The lease is for a space in a strip mall... There's a nail salon, a Curve's women's fitness center, a barber shop, a hair salon, a pizza place, an ice cream shop, and another 6 or 7 other stores in this center. His rent is currently $800 a month, and the lease was just renewed in November for another year. Part of the lease deal is that no other place can have a tanning bed, including the women's fitness center. They have exclusive rights to tanning, so long as they stay in the building.
He has single phase power, but says we will need to upgrade if we want to add beds. The place has 4 units now (2 beds, 2 booths), but could probably be made to hold 6 or 7. The place looks drab, though, and I know I could really improve on that. There is no theme, no color scheme, no anything... just walls... purple walls.
He is open from 9AM - 9PM, and he has a few tanning packages:
1 month unlimited for $35
10 visits for $40
2 months unlimited for $50
There may be others, but I can't remember offhand. He also sells single visits for like $6 or $7. Of course, he sells the lotions and accessories, which he said are all marked up 100%, norm for the tanning industry.
The stand up booths have 300 and 500 hours on them. One bed has 500 hours, the other has 1000. He has a computer system, but the beds aren't tied into it. It's just for his own purposes, but it comes with the sale. He has timers for the beds, up by the cash register. All of that is part of the sale as well. He does not have a credit card machine, and does not take credit cards, something that I would definitely change.
That's all I know for sure now... Thanks for your help.