Business for Sale Overview:
This San Jose tanning salon offers a buyer a diversified revenue stream derived from both indoor tanning services as well as a formidable retail boutique sales operation. The savvy sellers had shifted a large portion of their indoor tanning client base to participate in the recurring monthly package system, where the owners are able to automatically charge patron’s credit cards for their membership packages each month. The salon, which has a strong built-in client base, offers it loyal clients a varied mix of high, medium and low pressure tanning beds, a medium pressure stand-up unit, and a spray tan booth, in addition to a fashionable seasonal retail clothing and accessory inventory line to choose from.
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Property Features and Assets:
This salon is attractively priced to achieve an immediate sale. The asking price, which is essentially $155,000 since it includes approximately $35,000 in inventory, should allow a working owner to achieve a positive return on their investment in an amazing 1.5 years. The coveted location occupies 2,800 square feet and leases for $2,600 per month including common area maintenance (CAM) on a lease valid until September 2014. All of the salon’s furniture, fixtures, equipment and inventory are paid for and will be included in the sale.
Market Competition and Expansion:
The greater San Jose market is considered a moderately competitive tanning market due the great market dynamics including a nearby university, and image conscience high discretionary income residents. This salon’s unique location provides it a unique sustainable competitive advantage over other locations or potential industry entrants.
This salon has done everything right to make it the successful operation that it is. That said, new owners may seek to implement a customized airbrush tanning option, expand the retail product offering, or introduce complementary services such as massage, body wrap, photo facials, etc. to further increase the salon’s profits.
Reason for Selling:
Personal
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.
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