Profitability of Sun-bed Centres

[DavidF]

Hi all - this is my 1st day and 1st post - wondering if can you assist. I am considering opening a sun-bed centre - I have what I consider is a superb location (hi footfall and high level of my target market).
I have been searching the threads today looking for comments on profitability as that I presume what we all strive for but no joy. I expect to have 5 beds (mixed) + poss a nail salon area. Finding financial data has proved challenging. I am reasonably well funded and have experience in running buisneses in the past in other industries.
Is anyone willing to give me an idea of what level of sales and what gross profit percentages I should be aiming for in my 1st year or two. ? I can work out the net of course from property costs and wages
If you'd rather send me a private message that would be great too

[email protected]

 

[leonnib]

Hi all - this is my 1st day and 1st post - wondering if can you assist. I am considering opening a sun-bed centre - I have what I consider is a superb location (hi footfall and high level of my target market).
I have been searching the threads today looking for comments on profitability as that I presume what we all strive for but no joy. I expect to have 5 beds (mixed) + poss a nail salon area. Finding financial data has proved challenging. I am reasonably well funded and have experience in running buisneses in the past in other industries.
Is anyone willing to give me an idea of what level of sales and what gross profit percentages I should be aiming for in my 1st year or two. ?
If you'd rather send me a private message that would be great too

[email protected]

tbh i wouldnt really open up a shop just with sunbeds just my opinion. we have a sunbed and its barely used. there is another sunbed shop a few miles away and they have had to really drop there prices ans they were getting really slow also..

i dont think its as popular as its was..

 

[Poshfloss]

Hi,
Can't help with expected targets etc.
But we do have a sunbed shop near to us, they have 2 stand up and 3 lie down, they always seem pretty busy, more so in the evenings, they also do spray tanning.
They have a nail bar ready to open at the end of the month........But I know from experience that it will not do very well, as I rented that same nail room off them a few months ago. This time the salon owners wife is going to give the nail bar a try.
I had followed another unsucessful nail tech in that room.
I would say stick with the beds and spray tanning.
Best of luck what ever you decide. x

 

[Aggy]

'sunbeds only' NOT A GOOD IDEA!!!

I've open my tanning salon a 1 1/2 ago and it doesn’t bring me enough income by itself. I think it used to be very popular years ago but somehow it isn't any more. It’s good that you got experience in running a business, so did I but you would be surprised how little management it requires once you've got good staff employed. If you would be happy with a small profit you can only live on then go for it, but if you're looking to make some money you better reconsider your options before you open! I am currently looking for a beautician to rent one of my rooms and also thinking of renting a floor space for nail technician to increase my turnover. Would also advice on hairdressing, once you have all these options you can attract the customer with many more treatments = more revenue for you! Then your business experience will become handy as managing several people in this industry can be challenging.
Remember that you can always add extra beds to your shop if there is so much demand, otherwise why spend £15,000 on one bed and then be left with massive pressure and costs? You might find that beauty or hair is doing much better and increase these instead…

If you are planning to put 5 beds then you probably should expect to spend about £85,000 - £100,000 if they are brand new of course.

I can give you details of the guy I dealt with from Ergoline if needed.

If you decide to go ahead with it my advice is to open in the beginning of the year as summer is the busiest time so you got enough time to promote your business beforehand!

 

[jes]

Unfortunately, there's not much money to be made in sunbeds at the moment. They've been gradually loosing popularity, but it's accelerated recently due to the hysteria caused by WHO, categorising UV radiation as a 'definite carcinogenic'. The industry's in a bit of a mess at the moment and we have to wait, patiently, for the government to act on the WHO recommendations.

Another consideration is that sunbed uses like courses, but they're wary about making the investment with newly set up salons because so many close down before their course end!. I've been going for nearly a year and people are only just now buying 240 minute courses!

jes

 

[trulyscrump]

We have a stand-up sunbed in our salon and average weekly sales are around £200. We do have some clients that just come in for the sunbed only and they are regulars.

But, we also use it for running offers as the running costs are low and the machine is paid for - higher profits.

To make good money, we would need a constant stream and I am not sure the demand is there. That said, our salon isn't in a position with high footfall.

Not a business I would enter in right now, with a lot of negative commentary. That said, it depends on the area you are in of course.

 

[DavidF]

Thanks for the feedback everyone
in summary it seems
the press has managed to dampen turnover which is down on prev years
don't get too many beds at first add later
vary the income streams (hair, nails etc)
only expect an income to live on

anyone else any similar or contatry views ?

with regard to profitabily my research shows income from say 5 beds unlikley to be more than £50k (£1k per week) and generate some £25k gross profit (before property and wage costs - does this sound about right? Not a lot when you consider the investments needed to fit out an empty premises. Wonder how the franchise buisnesses are growing?

My area is in south wales with lots on benefit and in a high denisty residentail area in a row of thriving shops (inc value for money retailers)

 

[daisyl]

people are becoming more savvy regarding health issues associated with sunbeds which I guess accounts for why they are not as popular as once was! There is no getting away from it - people may not like it or agree with it - but it is what it is, regardless of your own views. So, I would say, the tanning industry will never profit as once did back in the 80's and 90's.

I really cannot for the life of me understand why beauty salons promoting, and responsible for skin health include sunbeds in their treatment menu. Simply does not make sense. I know this view will be unpopular with some geeks, my intention is not to offend, but I really think there is a huge contradiction here.

 

[number1kitty]

There is a significant downtown, and I would never try to justify a sunbed only salon now, instead mix it with other treatments for profit.

Sunbeds have slowed off a bit, however there is nothing wrong with limited and low useage. I have Eczema and have to use them to keep it under control - If sunbeds were banned I would be screwed!

I use them twice a month. The salon I go too is quite busy as are most here but it is dependent on area. Some areas where the younger people still use beds they are busy - if you have an older population they tend to be more savvy now. That said do you want to encourage the younger generation onto beds. How do you control the use?

Good luck with it all x