![How to plan and track the budget of your tanning salon [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-8_0c22a7d1-d6a9-490d-8b29-cec6f80df824.png?v=1715856521&width=1100)
If you don’t plan and track your tanning salon budget properly, you're setting yourself up for failure.
When we developed our strategy pack for tanning salon owners, we saw a lot of salon owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having a steady stream of clients.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your tanning salon's finances around and set you on the path to success!
Get the budget tracker tailored for tanning salons
Most tanning salon owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for tanning salons
Here is an example of a (very) detailed budget for a tanning salon, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for salon space | $3,000 | $36,000 |
| Electricity | Power consumption for tanning beds and lighting | $1,200 | $14,400 |
| Water | Water usage for showers and cleaning | $150 | $1,800 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Salon Manager | 1 | $3,500 | $3,500 | $42,000 |
| Receptionist | 1 | $2,000 | $2,000 | $24,000 |
| Tanning Consultants | 3 | $2,000 | $6,000 | $72,000 |
| Cleaning Staff | 1 | $1,500 | $1,500 | $18,000 |
3. Equipment & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Tanning Bed Maintenance | Regular maintenance and bulb replacement | $500 | $6,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $200 | $2,400 |
| Lotions & Tanning Products | Inventory of tanning lotions and products | $1,000 | $12,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of salon equipment | $300 | $3,600 |
| Uniforms | Staff uniforms | $100 | $1,200 |
| Licenses & Permits | Business licenses and permits | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
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We have studied the strategies of the best tanning salons in the world. Replicate them now!
What are the biggest expenses for a tanning salon?
Be mindful of these significant expenses. Here are five major costs every tanning salon owner needs to consider, along with some tips on how to manage them effectively.
- Equipment and maintenance costsYour tanning beds and booths are the heart of your business, but they come with a hefty price tag. Regular maintenance is essential to ensure safety and efficiency. To keep these costs in check, invest in high-quality, durable equipment and schedule regular maintenance to prevent costly repairs. Avoid overspending on the latest models unless they offer significant benefits to your clients.
- Staffing your salonYour staff is crucial for providing excellent customer service and maintaining the salon. Wages, benefits, and training can add up quickly. Optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, ensure your staff is well-compensated and not overworked to prevent high turnover and maintain a positive work environment.
- Rent and utilities of your salonPrime locations can attract more clients but come with higher rent. Utilities like electricity, water, and HVAC are essential for a comfortable environment but can be costly. To manage these expenses, negotiate favorable lease terms and invest in energy-efficient lighting and climate control systems. Overspending often occurs when choosing a location that's too large or luxurious for your needs.
- MarketingGetting the word out about your tanning salon is crucial, but advertising can be expensive, whether through online ads, social media, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Product inventoryLotions, tanning accelerators, and aftercare products are essential for your clients' experience but can be costly. To manage these expenses, keep a close eye on inventory levels, negotiate better prices with suppliers, and avoid overstocking. Overspending can occur if you purchase too many high-end products that don’t sell quickly.
How to spend less with your tanning salon?
Here are practical tips to help you, as a tanning salon owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Product Costs | Partner with local suppliers for bulk discounts on tanning lotions and skincare products. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient tanning beds and LED lighting to reduce electricity costs. |
| Marketing | Run social media contests for your tanning salon and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain hygiene standards. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of tanning beds and other equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging for retail products and offer discounts for customers bringing their own bags. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on best practices. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle where possible. |
| Technology | Invest in multi-functional tanning beds and utilize salon management software for appointments and customer records. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable towels and sheets. |
| Advertising | Use digital advertising boards or QR codes for promotions to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes for product restocks to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital appointment systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage of products. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music to create a relaxing atmosphere for clients. |
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Expenses that are just useless for a tanning salon
Yes, some expenses for your tanning salon are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Tanning Salon Expense | Reason It's Useless |
|---|---|
| Luxurious Waiting Area Furniture | Overly lavish furniture in the waiting area doesn't necessarily attract more clients and can be a drain on the budget. |
| High-End Tanning Lotions | Unless you cater to a very exclusive clientele, most customers are satisfied with mid-range options. |
| Excessive Tanning Bed Options | Having too many types of tanning beds increases maintenance costs and can confuse customers. |
| Top-of-the-Line Tanning Beds | High-end tanning beds are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your tanning salon. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Tanning Products | Using rare products can inflate costs and complicate supply chains. |
| Costly Decor | High-end decor is not always appreciated by customers and can be a significant expense. |
| Custom Printed Towels | Personalized towels are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Equipment | Luxury equipment is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Brochure Designs | Frequently redesigning brochures is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Spa Equipment | Specialized spa equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your tanning salon!
Managing a budget for a tanning salon when funds are tight can feel overwhelming. It's like being trapped where any unexpected expense can set you back significantly.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your salon.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of tanning salons just like yours. Get them now!
Make your tanning salon more profitable
We have studied the strategies of the best tanning salons in the world. All their tactics are explained in our pack!
