Why Buy a Tanning Bed? Return On Investment Information

       The prices for tanning session fees vary from region to region across the country from $5.00 per session to $10.00 and up. Salon owners usually offer a monthly, quarterly or yearly "package" of tans at a reduced price.

       Salon owners project their return on investment by calculating the typical yearly income new tanning customers might bring to their business. For example, if the average tanner pays about $400.00 a year for tanning services, then just 20 tanning customers would generate $8,000.00 of new annual revenue for the salon owner and 50 new tanners would generate $20,000.00 of new revenue.

       Return on Investment "break-even" is also easy to project. Usually, a quality commercial tanning system can be leased for about $3,500.00 a year and at the end of the lease, the equipment can be purchased for a $1.00 buy-out option. Therefore, the Return On Investment projection is simple. If just 10 steady customers pay $400.00 a year for tanning services, that equates to $4,000.00 of annual revenue which will cover the lease cost of the equipment -with profit.

       Another way to project "break-even" income is to make a conservative projection of usage per day. For example, if the tanning fee is, let's say $4.00 per session, and the equipment is used just 8 times a day out of an eight hour day, then the daily revenue is $32.00 a day, which equates $832.00 a month for a 26 day month, which is more than enough to pay for the cost of the equipment lease and leave a nice profit for the salon owner. Now you can see why so many salon and club owners all over the country offer tanning services! Break-even is easy to obtain and substantial new profits are the reward for making the investment.

Revenue Projections
( Based on a 26 day month and per session fees ) *
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Price Per Session Sessions/ Day Monthly Income Annual Income
$ 4.00 4 $ 416.00 $ 4,992.00 **
$ 4.00 8 $ 832.00 $ 9,984.00
$ 4.00 16 $ 1,664.00 $ 19,968.00
$ 4.00 32 $ 3,328.00 $ 39,936.00
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Price Per Session Sessions/ Day Monthly Income Annual Income
$ 5.00 4 $ 520.00 $ 6,240.00 **
$ 5.00 8 $ 1,040.00 $ 12,480.00
$ 5.00 16 $ 2,080.00 $ 24,960.00
$ 5.00 32 $ 4,160.00 $ 49,920.00
* Revenue Projections for planning examples only.
** Adequate annual income to recoup the cost of the equipment lease with profit.
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