Do you want to start a tanning salon business and want to know the cost? If YES, here is a cost breakdown to open a tanning salon and the profit margin / ROI.

The tanning salon industry includes companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services. Some operators in this industry are also involved in running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al.

Research conducted by IBISWORLD shows that Ultraviolet (UV) tanning generates about 50.9 percent of the industry’s revenue. UV tanning can be done in tanning beds or in tanning booths. One advantage of tanning booths is that they take up less space; typically 10 to 15 square feet, which is about half the room needed for a tanning bed.

As a result of this, companies can install a greater number of units and maximize their number of customers. Furthermore, tanning booths are sometimes preferred because they are more hygienic. Tanning booths or beds are outfitted with fluorescent lamps that emit UV in a similar spectrum as the sun. The average session lasts between 10 and 20 minutes.

The tanning salons industry is very open to any aspiring entrepreneur who has acquired the required training, skills and perhaps professional certifications to start his or her own business. Just ensure that your salon is located in an environment with the right demography and you will be fine.

The Estimated Cost Breakdown to Open a Tanning Salon

When it comes to opening a tanning salon, the major areas that you should look towards spending the bulk of your cash is in renting or leasing a standard facility, converting it into a tanning salon and equipping the salon with the needed UV tanning equipment, Spray – On tanning equipment, tanning airbrush, Computers and receipt issuing machines, Sound System (For playing music), Point of Sale Machines (POS Machines), CCTV Cameras and Flat Screen TVs.

Aside from that, you are not expected to spend much except for paying of your employees and utility bills and stocking up on inventory. These are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the united states of America – 0.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the tanning salon in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring a business consultant including writing a business plan – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for renting or leasing a space or warehouse that will be converted into the tanning salon and that can accommodate the number of customers per time (Re – construction of the facility inclusive) will cost – $80,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for start-up inventory (stocking with amino acid tyrosine to produce melanin and other related tanning supplies) – $15,000
  • The cost for the purchase of storage hardware (bins, rack, shelves, case) – $3,720
  • The cost for counter area equipment (counter top, receipt issuing machine, etc.) – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $4,750
  • The cost of purchase and installation of CCTVs: $2,000
  • Equipping the tanning salon with (vertical solarium tanning bed / tanning machine / solarium device with 48pcs Germany UV lamp tubes, furniture (table, stools and sofas), telephones, filing cabinets and TV et al) will cost – $80,000
  • The cost of launching a website: $600
  • Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of two hundred and ninety – eight thousand nine hundred USD ($298,900) to establish a medium – scale but standard tanning salon business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a tanning salon to go to the market or directly contact wholesalers and suppliers of the types of vertical solarium tanning bed/tanning machine, UV lamp tubes, flat screen TVs, sound system and related gadgets they want to have in their tanning salon in order to get the real time prices of these items.

The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Joy Nwokoro