The big question on everyone looking to get into the tanning business is how much does a tanning salon make? One word of caution. Don’t put too much faith in the numbers tanning bed distributors are giving you. Why? They are trying to sell you something. While their intentions may be good, a lot will project sales on an ideal scenario. This isn’t to say some do a good job, but be sure to run your own numbers too, so you aren’t overconfident and buying too many tanning beds for your business. The bed distributors are very good about providing demographic reports to base your decision, but be sure to do your homework here too and not let the numbers make you overconfident. You can go to www.freedemographics.com for a second source of data to double check the vendor to be sure your numbers are accurate and become familiar at researching yourself. The site requires a login but is free and will show you the demographics on any address you choose. All of the info from the distributors is good and valuable but there have been a few that inflate the numbers in hopes of the tanning salon owner not verifying the data.
A lot of people researching the tanning bed business ask, “how much money can I make”? Keep in mind this is an impossible question to answer as there are so many variables and even if you had ten people start with the same equipment in the same location, each one would have different results at the end of the year.
With that said here are a few average sales for the tanning salon industry. Keep in mind these are averages we have seen in many markets and will be different for each persons market.
- An average bed should be able to generate $12,000 – $15,000 per year.
- The average person should be spending $5.00 to $9.00 per session.
A couple of other things to keep in mind.
Sales do fluctuate dramatically during the year. The JASON months (July – November) will tend to be the slowest in most areas with November typically being the worst and in some locations this will extend through January but that doesn’t give a nifty acronym. Be sure to project your cash flows to be sure you have enough money to keep the doors open and food on the table during these months.
To stabilize revenues through the slow months many salons have gone to EFT (electronic funds transfer) memberships. While these memberships are lower in overall price than you would get in the peak months, it does keep revenue coming in during the slow ones.