An often asked question is: “Is it profitable to open a Solarium?”
The answer is: Basically yes, despite the general economy slowdown, this kind of service is still increasing in Italy, and it is possible to plan a profitable business.
Obviously it is necessary to make proper investments and the quality of the devices is very important. Smart Solarium, with its devices offers a successful guarantee, but it is not the only ingredient.
First of all, it is necessary to take into account to have the chance to access to a considerable capital; to open a solarium, furniture included, almost between 70000 and 150000-200000euros are required, according to the premises’ measurements and to the devices.
For sure it is a high capital but we should also take into account that solarium centers have a great profitability and also a high margin. The costs of the current, although they have increased recently, have a very low incidence (such as 40.50 per cent for facials and low pressure showers and 1-1,50euros for high pressure sun beds and showers) comparing it to a retail price for every session which often exceeds the 12euros for a high pressure shower and over 20euros for a sun bed.
To have a look at our devices, you can look through the page bronzing sunlamps, where you can find last generation sun beds, sun showers and facial sunlamps which make the difference in a successful activity.
(For synthetic information: bronzing centre-what to know)
Investimenting in tanning salon
For the initial investment it is advisable to be able to afford at least a 40% of the initial amount as own capital (20.000-30.000), in order to face unexpected expenses, deposits and start-up time.
For the remaining part it is possible to have recourse to financial leasing which allows to spread the initial investment even in 5 years, providing a profit net of amortization cost.
It is important to remember that the more the amount which is required to the leasing is high, the more the guarantees this one will give you can be important. An aesthetic centre and solarium, if well located and properly run, could provide you a great cash flow which is able to make you clear the debts with the providers with deferred payments. Try to balance correctly your debts with the providers.
Also remember that all the providers will offer you better conditions (reduction in the price) if you pay ahead of time or on delivery and that these amounts must be paid anyway.
If you have the chance to maintain a good liquid capital reserves and to pay the providers, do it letting the expenses you cannot face to the finance company, whose main goal is to finance.
It is always better to take into account that a not brilliant starting up could get you into trouble in the beginning, exactly when initial capital in fundamental to launch the activity. Starting with a reserve from which it is possible to draw on is a good way to go on surely and increase the job.
Let’s suppose to insert:
2 Gold Sun showers
3 esafacial face tanner Alien 6
The room which could take in 5 machines is between 35 and 50 meters.
A part from the normal advance for the rent, it is necessary to quantify the investment for the furniture.
In this case the amount could be variable according to the level of finishing we want to give to the place.
The amounts for the furniture could be quantifiable from 10.000 to 30.000euros. For a medium value we could suppose 20.00euros (box building, furniture, installation of a false ceiling etc.)
We should also insert in our business plan the electrical system. An electrician with market prices for a similar place may require a price between 8.000 and 14.000 (in this case it is important to clarify what kind of finishing we want, since we can arrange important devices with the electrical system such as led, integrated lights and working points).
The total investment, as previously mentioned, is quantifiable in 70.000-100.000euros.
Saving money could be a good strategy at the beginning, for example choosing second-hand machines or furnishing with low quality devices, but, if it seems to snatch up a bargain in the short time, in the long one it could mean to have serious problems.
Losing clients because your devices are outdated could be a problem. The quality and the new are important, every one wishes quality, remember it when you start your activity.
The profit of the tanning salon and aesthetic centre
First of all it is important to remember how outflows are certain whereas incomes are always uncertain. This obviously is part of the risk every businessman has to run. Anyway, it is possible to find solutions and options which lie at the bottom of a successful activity.
The profit of the solarium depends on the factors which could determine its success or failure. As for any commercial retail activity one of the most important aspects we should take into account is the position of the premises.
A premises situated in a nice position with a good rental contract could really make the difference and make you earn a lot with such an activity.
Malls are good, even if their rental is often onerous. This could increase the risks.
In general, in a place with good attendance, a centre with 5 machines could aspire to have 50.60 customers per day, with peak times dispatched by the 5 machines.
With a medium price of 7euros (supposing 8euros for the low pressure shower and 6 for the esafacial, very down-market prices), the daily medium takings of the solarium will be about 420euros, then we should include the takings of the aesthetic.
The operating costs are quantifiable in almost 50euros, electric current and maintenance works included.
Solarium devices should provide you gross takings of about 700euros per month, from which is necessary to take an amortization quota away which could be almost 1/60 of the solarium price (the medium lasting period before replacement is about 5-7 years).
To them we must add the takings of the aesthetic part which are variable margins according to the treatment, but they complete the offer of the centre and they bring customers.
In general the standard time in which it is possible to recoup the expenses of the investment only of the part of the solarium is about 1 year (6 months in the most lucky cases, 1 year and a half in the more weak cases). An activity which allows to recoup rapidly in one’s costs.
It is important to remember that these numbers could be variable.
An activity such as the one of a small-sized aesthetic centre and solarium (such as the one we examined) must enjoy of the passion of the people who work there, of the courtesy with the customers, of cleaning, of local marketing activities and word-of-mouth advertising. There is no crisis for the ones who are professional and work properly.