Archive for May 27th, 2010
Determining Operating Costs for Your Tanning Business
When you start a tanning business, it seems relatively simple at first blush, but there are several variables to consider when determining the operating costs. Everyone knows that they will have to invest in an applicator and tanning solution, but do you know how much solution you need? How much are you going to spend on gas, insurance and additional supplies?
Every new applicator will cost from $200 to around $500, but this is a one-time purchase; determining the volume of solution, lotion and other products is more difficult. About two ounces of solution should be used on each tan, meaning that the solution costs per tan should be about $2-3. The one cost that is often overlooked with mobile tanning companies is gas and insurance for vehicles. While applying each tan itself may be relatively inexpensive, getting there may not be. It is important to determine an epicenter and maximum radius you are willing to travel to keep these costs at a minimum.
