Do you want to know how much money tanning salons make in profit yearly? If YES, here is an analysis of the income potential of tanning salon business owners. A properly tanned body can never go out of style.
Many people in modern America work hard to feel and look healthy and a gold primed body is part of that health regimen. But due to the exorbitant cost of a tanning bed for private use, many people who want their bodies tanned visit a tanning salon.
Although a tanning salon will always have a revolving door of first-time clients, but most tanning salons thrive from their repeat customers. These repeat customers are committed to looking their best and maintaining a golden tan is part of that look.
The huge cost of tanning salons is the equipment. Some salons prefer to lease equipment because of service contracts, convenient terms, tax advantages and rapid technological advances that tend to date equipment quickly. Equipment is a major expense in many salons and the cost is a major drawback to entering the business.
However, the manufacturers of tanning equipment have come a long way in terms of offering enough models to satisfy nearly every budget.
The biggest task of every tanning salon owner, aside from funding, will be to interact with clients. Both personally and online, every tanning salon owner needs to educate consumers concerning healthy skin care and to dispel any myths regarding tanning bed safety.
Profit Potential of a Tanning Salon in the United States
According to reports, the Average Tanning Salon Business Owner yearly pay in the united states is approximately ,000, which is 52% below the national average.
A large share of their income is derived from tanning services. The amount is based on how many sessions are given and what is charged for each session. Another portion of tanning salon owner’s total income is derived from retail sales and from other services they provide.
However, revenue from a tanning booth is generated on per client, per visit basis. Many salons have multiple beds and/or spray tan options available and are priced accordingly. Note that tanning visits last up to 15 minutes per session and will differ based on the client’s specific needs.
Tanning bed sessions range anywhere from $5-$20 each, depending upon the length of the visit and the level of tanning bed used. Spray tans are billed the same, with salons charging about $25-$50 per visit. Tanning salon business owners profit is directly tied to the number of beds their salon maintain and how often those rooms are filled.
On average, each room should generate about $12,000 – $15,000 annually. Each visit will cost $6 – $9 in supplies and energy costs. Some salon owners report making upwards of $58,000 in profit per year, while others claim to have very little left after business and personal expenses. The one item they all agree on is – more beds = more profit.
Tanning salon owners are advised to set a budget for each aspect of the business and account for each separately. This will check the relative profits of each part and illustrate where improvements and adjustments must be made in the merchandising plan.
According to reports, energy bill remains one of the largest ongoing expenses for a tanning salon. Salon owners also report paying anywhere from $500 – $1500 a month. Exact amount will depend upon the time of year, how many beds in the salon, and how busy the salon can get.
Payroll and payroll taxes are also a major expense, which will fluctuate seasonally with the business. Tanning business owners are also advised to set aside at least $200 per month for cleaning and maintaining the beds. Retailing products will set the business profit by another $1,000 per month.
If they decide to do spray tans rather than tanning beds, the inventory costs will be higher, but it can be offset by a lower energy bill.
Tanning businesses who have reported higher earnings offer a variety of tanning options and skin care products. However, not everyone is a tanner. As a salon owner, it’s important to know and understand your clientele. Take your time to market your services to consumers who pride themselves on health and beauty.
This could include hair and nail salon customers, gym members, and people preparing for a special event. Many have found success through offering free initial/consultation visit, which gives you an opportunity to show them why your establishment outshines the rest.