Business Broker.Net | Connecting Business Buyers and Sellers

Asking Price:	$2,000,000 USD USA Dollars
Business for Sale Industry:	Services: Hair, Nails, Spas, Tanning
Reason for Selling:	Personal.
Year Established:	1988
# of Employees:	18 p/t
Yearly Revenues:	$1,715,000
Yearly Cash Flow:	$700,000

Business for Sale Overview:

This multi-location tanning salon chain may very well be Portland’s most established tanning service provider. This operation boasts extremely large tanning facilities, each with an unbelievable number of low pressure tanning options offered at an economical price. The chain likely has a majority market share within its core geographic radius, and offers a new operator a plethora of opportunities for continued growth. This chain is ideal for the aspiring salon operator that seeks to make a giant entry into the Portland market, or the savvy business person that seeks to take advantage of this large client base by cross-marketing complementary services, or the established salon operator that seeks to extract maximum profits out of this chain’s 25,000 client database (including historical clients) by adding the equipment, retail products, and service offering to maximize the average dollar sale per client.

Property Features and Assets:

This chain’s facilities range in size from 2,500 sq. ft, to nearly 5,500 sq. ft., with a total of over 20,000 sq. ft. available. Each location holds a secure lease at a favorable lease rate, with a 5 year option. While most of the 120+ beds are standard low-pressure lay down units, the salon does offer a high pressure; spray tan and stand-up tanning options. All of the equipment is paid off and will be included in the sale.

Market Competition and Expansion:

This tanning salon operation prides itself in the consistent service offering and at remarkably stable price point over the past 20 years. As the greater Portland area becomes a more sophisticated indoor tanning market, competition has increased at the periphery of this chain’s core geographic area; however, new salons have not managed to have any meaningful impact in this chain’s primary market. As this chain is the proverbial “800 pound gorilla” in its territory, few competitors will succeed if they attempt to match this incumbent firm’s service and equipment offering in the general vicinity of its locations. This multi location chain has a very simple and straightforward revenue model – offer clients a consistent, quality service at an economical price. As each of this chain’s locations are enormous, and the overall bed utilization is relatively low by industry standards, a significant amount of upside potential exists for the savvy salon operator who seeks to segment high discretionary income customers via providing high dollar high pressure tanning options, spray booths, or customized spray tan services. Such an operator will likely seek to utilize each facility’s space to their advantage via offering a varied retail offering that may include clothing, swim wear, or complementary services such as body wraps, photo-facials, day spa services, massage, etc. (lease and landlord permitting). New owner will also likely seek to actively seek credit card sales, and implement automatic Electronic Fund Transfer monthly memberships.

Additional Details:

• The property is leased.
• The owner is willing to train/assist the new owner.
• The owner is not willing to work for the new owner.
• This is not a homebased business opportunity.
• This may become a franchise resale opportunity.
• This is not a distressed business or bankruptcy situation.