Tanning Salon Startup
Starting a tanning salon? Here are some computations and associated graphs to help explain
the common tanning salon revenues and expenses. This is a basic model that does not show all
detail such as marketing costs, build-out costs, furnishings or other related costs you may incur,
but rather operating costs once your salon is up and running. The costs and revenues are
assuming your salon runs at 50% of maximum. Reasoning: This is a realistic basis at which your
salon is profitable. A 100% basis is ideal, but only theoretical. To take this a step further, you
could assign a usage factor to months of the year on the amounts below and arrive at projected
revenues and expenses per month as they vary with the tanning season.
the common tanning salon revenues and expenses. This is a basic model that does not show all
detail such as marketing costs, build-out costs, furnishings or other related costs you may incur,
but rather operating costs once your salon is up and running. The costs and revenues are
assuming your salon runs at 50% of maximum. Reasoning: This is a realistic basis at which your
salon is profitable. A 100% basis is ideal, but only theoretical. To take this a step further, you
could assign a usage factor to months of the year on the amounts below and arrive at projected
revenues and expenses per month as they vary with the tanning season.
Tanning Salon Operating Expenses
Assumptions made are outlined below in detail. Note that Electricity and Lamp Costs are factored
at a usage rate of 50%. As your usage of equipment rises and falls, so does your electricity costs.
This makes it easy to calculate costs for both based on usage rates that vary month by month.
All other costs are fixed, with labor being the exception, but OK to use as an average amount.
at a usage rate of 50%. As your usage of equipment rises and falls, so does your electricity costs.
This makes it easy to calculate costs for both based on usage rates that vary month by month.
All other costs are fixed, with labor being the exception, but OK to use as an average amount.
Labor Costs:
Assume 2 people 10 hours/day x 30 days/month x $9/hr = $5400/mo
Equipment Costs:
Assume 8- 36 lamp 100 watt units, 2- 52 lamp 160 watt medium pressure beds.
5 year lease payments of $1358/mo
Building Lease Costs:
Assume 2000 square feet @ $1.50/sq ft = $3000/mo.
Electricity Costs:
Assume [8 beds x 4000 watts] = 32KW + [2 beds x 10,000 watts] = 20KW. Then, 32KW + 20KW = 52KW x
10hrs/day x 30 days/mo x $.09/KWH x 50% usage factor =$702/mo
Utilities:
Include phone, internet, building electric charges.
$500/mo (estimated)
Lamp Costs:
Assume 288 - 100 watt lamps lasting 1000 hrs using 20 minutes/session x $12.50 each =
(100 watt) $3600/lamp change. Then, $3600/lamp change/10 months/lamp change =$360/mo
Lamp Costs:
Assume 104 VHO lamps lasting 600 hours using 12 minute sessions x $20 =
(160 watt) $2080/lamp change. Then, $2080/lamp change/8 months/lamp change = $260/mo
Total Lamp $360 + $260 =
Charges $620/mo
Assume 2 people 10 hours/day x 30 days/month x $9/hr = $5400/mo
Equipment Costs:
Assume 8- 36 lamp 100 watt units, 2- 52 lamp 160 watt medium pressure beds.
5 year lease payments of $1358/mo
Building Lease Costs:
Assume 2000 square feet @ $1.50/sq ft = $3000/mo.
Electricity Costs:
Assume [8 beds x 4000 watts] = 32KW + [2 beds x 10,000 watts] = 20KW. Then, 32KW + 20KW = 52KW x
10hrs/day x 30 days/mo x $.09/KWH x 50% usage factor =$702/mo
Utilities:
Include phone, internet, building electric charges.
$500/mo (estimated)
Lamp Costs:
Assume 288 - 100 watt lamps lasting 1000 hrs using 20 minutes/session x $12.50 each =
(100 watt) $3600/lamp change. Then, $3600/lamp change/10 months/lamp change =$360/mo
Lamp Costs:
Assume 104 VHO lamps lasting 600 hours using 12 minute sessions x $20 =
(160 watt) $2080/lamp change. Then, $2080/lamp change/8 months/lamp change = $260/mo
Total Lamp $360 + $260 =
Charges $620/mo
For 100 watt beds: 8 beds x 10 hours/day X 2 sessions/hour x $5/session x 30
days/month x 50% usage factor = $12,000/month
For VHR Beds: 2 beds x 10 hours/day x 3 sessions/hour x $12.50/session x 30
days/month x 50% usage factor = $11,250/month
Lotion revenues: Estimated at 35% of tanning revenue.
days/month x 50% usage factor = $12,000/month
For VHR Beds: 2 beds x 10 hours/day x 3 sessions/hour x $12.50/session x 30
days/month x 50% usage factor = $11,250/month
Lotion revenues: Estimated at 35% of tanning revenue.
Profits, Revenues and Expenses
Break Even Analysis
| To break even using the figures above: Total Expenses: $11,578/month Revenues Needed: (100 watt beds) 31 tans x $5.00/tan = $155/day x 30 days/month = $4650/month (3 tans per hour) (VHR Beds) 11 tans x $12.50/tan = $137.50/day x 30 days/month = $4125/month (1 tan per hour) (Lotions) $8775 x .35% (lotion Factor) = $3071.25 Totals $4650 + $4125 + $3071.25 = $11,846,25. |
| This tool allows you to enter in your own figures for finding your break even point |
How many sessions before I pay off my investment?
How much must I charge to recoup my investment?
What are my electricity and lamp costs?
How much must I charge to recoup my investment?
What are my electricity and lamp costs?
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Tanning Salon Revenue
A1 Tanning Supply.com
"I LIVE in my tan!"