Are Tanning Salons A Good Investment

Is a tanning salon a profitable business? Tanning salons are consistently popular, making them a potentially profitable business venture. However, there are risks associated with opening any business. A tanning salon's profitability depends on the number of beds, equipment, and the regular customer base. A tanning salon's initial start-up costs are expensive, primarily the tanning beds, equipment, and build-out. These are expensive pieces of equipment, but they can't be overlooked. This means it may take longer to begin to see a profit, as the initial costs were so extensive. As well as the expense of starting up, other recurring costs can make owning a tanning salon complex a great long-term business. Energy and electric bills are extensive, as so much electricity is needed to run a tanning bed. How long does it take for a tanning salon to be a profitable business It should take about a year and a half to two years to start turning a profit on a healthy tanning salon. From there, your salon should be profitable, having the majority of your equipment paid off and many customers. A tanning salon will also see periods where business is slow, as the tanning industry does have seasons. At times in the year, people are just less interested in getting tans. Whether the sun is doing your job for you or winter layers means that people are curious as they wear more clothes, the business will likely go through quiet patches. Diversifying your tanning salon from tanning to red-light therapy, spa services, etc, is essential. Despite the risks, tanning salons have proven themselves to be consistently successful. A golden, sun-kissed tan has yet to fall out of fashion, so business stays steady. A well-established tanning salon, especially one that has developed links with the community, can be an incredibly profitable business. Year-round, there is always someone looking for a tan. A savvy business owner will be able to identify quiet periods and create a plan to deal with them. Also, while the initial beds may be expensive, they only need minor maintenance to run consistently. Tanning salons can also serve several customers in a day. While a hair appointment or other beauty services can last over an hour, only a tiny amount of time is spent on a tanning bed. That means customers can be coming and going all the time. It's a prominent area of expansion. An established business can buy more tanning beds or add additional services to complement them, leading to more profit. As with any business, a tanning salon isn't guaranteed to be profitable. However, it is a consistently popular industry that thrives on returning customers. Once a business has an established customer base, it can continue to turn a profit for years, especially when setting up recurring memberships. How much do tanning salon owners make a year? The amount the owner of a tanning salon makes depends heavily on the number of beds they have. The average tanning bed may make the owner roughly $15,000 - $20,000 a year. Total profit will then increase with the number of beds added. A typical eight-bed salon earns a profit of $65,000 a year. However, this doesn't include the extensive start-up costs. Tanning salons rely on the beds to be making a profit. The average time spent on a tanning bed is fifteen minutes. Even with the time spent cleaning after use, multiple customers can use the bed throughout the day. A popular salon may find that there's little time when the bed isn't in use. The more beds there are, the more customers that can be served, and the more profit can be made. An owner with in-demand beds can charge more per session, and offering a membership option leads to even better earnings. Of course, it's unlikely all the beds in a salon will be kept in constant use. When the bed isn't running, it isn't earning any money at all. Instead, it may be costing money due to the electricity usage. The tanning bed's initial cost has to be considered as well. These beds cost several thousand dollars and only go up from there. Purchasing more tanning beds is a challenging decision, and if profit isn't being made off the current beds, adding a new one won't help. While the best way to expand a salon is by purchasing beds, there are other ways to increase profits. What does a tanning salon sell to be profitable The most profitable tanning salons will sell tanning lotions with a high-profit margin; they will also run an excellent membership program to establish repeat customers and monthly recurring revenue. A tanning salon owner can make much money because tans remain perpetually popular. Although there are quiet patches in the year, someone is always interested in a golden tan. A salon owner can also increase profits by paying attention to events in the area and marketing accordingly. This can help boost the business's profile to maintain a more steady cash flow throughout the year. The typical tanning salon owner may make $65,000 on average, but there are extremes on either side. Large tanning salons will make more money, whereas smaller salons may struggle through hard times. Before opening a salon, create a detailed business plan. This will help you understand your customer base, pricing, and the kinds of profits you can expect. How much does it cost to open a tanning salon? There's no way around it: a tanning salon is an expensive start-up business. Upwards of $150,000 is a standard cost, which can be more than twice that, depending on the business size, build, and more. One of the major expenses when opening a tanning salon is the initial cost of purchasing the beds. And this can't be avoided - no one will come to a tanning salon without any beds because it won't be a tanning salon. But this high cost is also your greatest asset. The tanning beds earn a profit, even if your marketing and customer service keep people returning. Renovating a location is another significant expense. Most business premises will need to be equipped to become a tanning salon. To get your business ready for customers, costs will need to be spent on making everything suitable. Again, you don't want to cut costs here. People come to salons for the experience as well as the end result. A good tanning salon caters to the customer, so they return just as soon as the tan starts to fade. Alongside these high costs, there are small expenses that are essential to the salon. Cleaning supplies, eye protection, towels, bathroom supplies, timers, even a cash register. Without these, it isn't a business. All you have is a tanning bed. There are also initial marketing costs to consider. One of the advantages of beauty businesses is they can attract many customers via social media. While paying for advertising is still a good idea, a smartly run social media account can attract customers at almost zero cost. While the initial expense is significant, anyone looking to open a tanning salon needs to consider the recurring costs. For a tanning salon, the most important consideration is the energy bills. A tanning bed can eat through electricity quickly (although it should make more than it loses). Other standard expenses, such as rent and staff payments, must also be considered. Opening a tanning salon is a costly undertaking. A tanning salon can be a profitable business; just a lot of planning goes into it. The initial start-up costs are extensive but only last for a while. Once the beds have been purchased, they should bring profit. If you intend to start a tanning salon, make a comprehensive plan of what needs to be bought and how you intend to fund these expenses.