What Is My Tanning Salon Worth?

Tanning salons operate on a membership model similar to gyms — monthly autopay revenue is the foundation. Valuations depend on membership count, retention, and whether the business has adapted to include spray tanning and wellness services.

Typical Valuation Ranges

Most tanning salons sell for 1.5x to 2.5x SDE.

Factors that push toward the higher end: Strong membership base with low churn, modern equipment (LED, red light therapy), spray tan and airbrush services, retail product sales, revenue above $200K, prime retail location.

Factors that push toward the lower end: Declining membership, aging UV beds needing replacement, UV-only without spray tan, high monthly churn, short remaining lease, regulatory concerns.

Key Value Drivers

Membership count and retention — active members on monthly autopay are the primary valuation driver. Monthly churn under 8% indicates a healthy, sticky membership base.

Equipment condition — tanning beds and booths are expensive ($10K–$50K each). Modern LED and red light therapy beds attract health-conscious customers and command premium membership tiers.

Service diversification — spray tan, red light therapy, and skincare services broaden the customer base beyond traditional UV tanning.

How to Increase Your Value

1. Add spray tanning. Captures customers who want a tan without UV exposure.
2. Upgrade equipment. Red light therapy, LED beds, and high-pressure tanning attract premium memberships.
3. Reduce churn. Annual membership discounts, tiered pricing, and excellent service retain members.
4. Build retail. Tanning lotions, skincare, and wellness products add high-margin revenue.
5. Secure your lease. Visible retail location with good parking and signage.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.