Business Essentials and Investments
Tanning salons are undoubtedly a good investment, provided you understand how to market and run your business. Starting any new business venture can be a lengthy process. There’s a lot to do before opening your doors. Offer services that set you apart from your competition. On average, a single session at a local tanning salon can cost anywhere from $7 to $25 for a basic tan that lasts around 7 to 20 minutes. Monthly tanning rates for a tanning bed can range anywhere from $20 to as much as $125. Opening your own tanning salon requires good business sense and a commitment to the business. For the tanning, beauty and spa industries, the multiple is usually 2 to 2.5 (X) net profit. Market data shows the tanning salons earn profits of around $65,000 per year.
- Invest in quality equipment: High-quality tanning beds and spray tan machines can attract customers and encourage them to spend more on services.
- Offer package deals: Offering package deals or bundling services can increase customer spending and encourage repeat business.
Profit Factors and Market Overview
When Are Tanning Salons Profitable?
In this article, we will look at factors that can affect the profitability of a tanning salon:
- Location of the Salon
- Targeting the right customer
- Quality of service and equipment
- Regular customer base
Discover the essentials of opening a tanning salon: from market analysis and business planning to equipment selection and regulatory compliance. Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation.
Waxing and Tanning Market Overview
As per IBIS, the waxing and tanning market in the U.S. represented revenue of $4.69 billion in 2023 and is expected to grow to $5.44 billion by 2028.
Income and Revenue
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.
A tanning salon will also see periods where business is slow. Aside from the huge potential for success, as the owner of a tanning salon business, you will help your clients look and feel their best daily.
Sunbed Shop Profitability
Are Sunbed Shops Profitable?
A sunbed shop can be very profitable. In a busy salon, a commercial sunbed could easily take more than £40 per day. After a £250 installation fee, they will take 50% of the bed’s takings each month.
ROI and Location Factor
To see if a sunbed shop is profitable, use a ROI calculator. This calculates how many months until you earn back your investment in the sunbeds. Sunbeds need replacing every 500 hours at around £500. They also depreciate quickly in value.
- Location is key – choose an area with a target market interested in tanning services.
Overcoming Challenges
We opened a two-bed sunbed shop at Christmas. It averages £20 per day income. To break even we need £70 daily. We have tried everything – offers, discounts, price matching, a top-ranked website – yet nothing works.
- A profitable tanning salon depends on a professional, well-informed staff and high-end sunbeds.
- Advertising successfully matters too.
- Consider selling swimwear, jewelry, skin care, and sunglasses too to boost profit.