the vendor of this extensive business stared operations in early 1991 by the utilizing redundancy money to purchase a range of sun-beds for home hire. He has built this side of the business to become arguably one of the largest sun-bed rental firms in the u.k. Delivering stand alone vertical and horizontal sun beds to customers’ residence for their flexible home use. The business has hundreds of satisfied customers who regularly return every year to rent the units for anywhere from 1 week to 6 months at a time. The business has enjoyed some high profile celebrity clients over the years, who provide great feedback and testimonials. Not content with establishing and growing this unique cornerstone side to the business, the vendor opened his first shop in the outskirts of west london later that year. The front of the shop unit is devoted to state of the art commercial tanning equipment, with separate rooms for large lay down units, a spray tan unit, and 2 vertical units. At the main premises, there is large storage facilities for the hundreds of rental beds, and a management office to the rear of the building which handles business administration for the company, and logistics of deliveries. From 1995 the vendor expanded further a field, and opened another 3 salons within a few miles radius of the first. He has thus cornered the market for this area of west london, and kept competition at bay. Whilst a couple of firms have tried to move into the territory, they have not lasted, and have failed to dent the market share, with cross-company promotions and loyalty cards driving customers back through the front door time and again. The branding at the high street locations and across the corporate website, is very strong and with a feel in place already of a franchise model, this can be easily expanded. The rental side of the business provides a steady level of income yr to yr, with limited additional overheads, and streamlined management processes in place. Equipment: for the rental market, the business owns approximately:- 100 9-tube single canopy units 75 18-tube dual canopy units 40 vertical units. All are fully maintained, and offer excellent rental yields of up-to £800 per month. In the salons, the business operates with 9 “tan sun” and 2 “ultra sun” vertical units, and 5 “ultra sun” and 1 “ergo line” horizontal lay-down units. There are also 2 new “sunless express” spray booths. There is high quality air conditioning systems in each premises with specific venting for individual tanning rooms. Alongside all the tanning technology, the business has invested in a bespoke integrated software system, that can be reomtely accessed from the head office. This software, automatically handles time under the sun bed once confirmed at the till, air-con, all reciepts, usage hours of bulbs for servicing, loyalty card administration, customer records and added back-office functionality there is racking for retail products, and high quality fixures and fittings through-out to offer customers a professional, clean and pleasant tanning experience. The business leases a delivery van for the rental market, and a number of cars. Customer service: the business has grown through recommendation and referral, this is due to the constant focus on customer service. Offering a friendly welcome to all guests at the salons, and a timely, flexible and courteous delivery service to the home rental market. The customer service is exemplified by the number of clients returning yr to yr to hire beds for their home, and the number of satisfied customers making regular use of their loyalty card . Key strengths: obviously one of the key strengths of the business, is the way it has cornered the market of a large area of west london, offering the customers multiple locations, a range of services, loyalty schemes and competitive pricing that cannot be beaten. The stability and longevity of the hire business is also a great strength, and the business is one of the market leaders, if not the number 1, in this endeavour. The branding is strong, well though-out and has a great internet presence all primed for further growth. Growth and expansion opportunities: the website is well developed, however with further investment the ability to take online ordering of both rental units, and booking salon time would further benefit the bottom line. The business has all the processes in place for further organic expansion by choosing well placed sites for future salons to roll-out the business model across other regions. The rental business, which is obviously the cornerstone of the business, can be also expanded nationally with additional investment in storage and delivery vehicles from an additional base in another region. The branding and presence is well thought out, and there is no reason that one of the units could not be run as a trial franchise for movement in this profitable direction.
| Ownership: |
no |
| Lease: |
yes |
| Lease terms: |
Head Office
As a guide, the rental will be approximately £15,000 per annum, with business rates of around £3000.
Unit B
Current rent is circa £16,000 per annum, with rates of around £7,000 per annum.
Unit C
The rent is around £18,000 per annum, and the business rates are around £5,000.
Unit D
Rent is approximately £12,000 per annum, with business rates of approximately £4,000 per annum. |
| Location: |
All Salons are with a 5 mile radius of each other.
Head Office
The vendor owns the freehold, and will be offering a new renewable lease at the current market value. As a guide, the rental will be approximately £15,000 per annum, with business rates of around £3000.
The salon is the largest in the group and has capacity for 2 lay-down units and 2 stand-up units. There is a small retail counter, and a spray-tan area at the rear of the Salon. Out back, is a large storage room, and a management office with space to sit 5 comfortably. There is also a courtyard with parking at the rear of the building.
Unit B
This unit is leasehold with 2 years remaining on the fully renewable lease. Current rent is circa £16,000 per annum, with rates of around £7,000 per annum. There is a retail counter, separate tanning room with 1 horizontal unit, and 5 vertical units in the main area.
Unit C
This unit is leasehold with 1 year left on the fully renewable lease. The rent is around £18,000 per annum, and the business rates are around £5,000. There is space for 2 vertical units, and 2 horizontal units, housed in their own private rooms.
Unit D
There is 5 years left on the renewable lease. Rent is approximately £12,000 per annum, with business rates of approximately £4,000 per annum. In the Salon, as with the other units is a small retail / service counter with cabinets showing tanning products. There is room for 2 vertical beds, and a separate room with a horizontal bed.
Unit D is the smallest of the salons, and located in a new retail park development.
Each Salon is fully alarmed by ADT, and has multi camera closed-circuit television. |
