The TanWall Blog

This year, building up a tanning salon will be even easier thanks to the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.” Provisions in the new tax code allow for generous depreciation benefits when it comes to buying modular salon walls. Allow us to explain.

Basically, when it comes to tax depreciation (the time it takes to recoup costs of purchased business property in the form of tax savings), there is real property and personal property. Real property, which is basically land based property and immovable, such as hard construction, takes 39 years to depreciate. Personal property on the other hand, is generally movable property or equipment, which takes only 7 years to depreciate.

Modular construction usually happens to fall under the category of personal property, which allows it to depreciate faster, thus allowing you to recoup your costs in tax savings faster than if you were to use hard construction. This is a major plus when it comes to purchasing modular walls for your salon.

Changes in this year’s tax code could make those benefits even more attractive.

Previously, in the course of a depreciation schedule, a piece of personal property allows tax savings worth 50% of the original cost of the property in the first year. In every subsequent year (within a 7 year period), that percentage decreases, until the value of the property is recouped.

However, according to the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010,” bonus depreciation in the first year has been increased to a full 100%. That means the cost of a property bought by a business to be used by that business can now be recovered in one year!

Qualifying businesses can couple this bonus depreciation with the updated Section 179 code: Businesses can expense up to an increased maximum of $500,000 for qualifying property in the 2010 and 2011 tax years. Over 2 million dollars in purchases will lower that expense amount however.

One thing to keep in mind is this: at the beginning of the 2012 tax year, the section 179 deduction amount will be reduced to $125,000. The phase-out begins with $500,000 in property purchased. Also, 179 applies to a business’ taxable income, so if a company is losing income or has very little, 179 does not help.

This is a great time to expand you business or simply build up/remodel your tanning salon. Now when you buy a modular tanning booth wall, the cost of that purchase can be recovered via tax savings in not just 7 years, but 1 year. However, there is a small window when this is possible. This tax break is effective for property bought and put to use between September 8, 2010 and December 31, 2010. After that period is over, bonus depreciation during the first year goes back to 50%. Also, some salons can take advantage of increased savings by coupling the increased bonus depreciation with the updated Section 179 expensing.

We encourage all of our customers to take advantage of this great tax incentive! Talk to a tax expert and see what sort of tax benefits you can work out.

Maybe you’ve heard that our modular tanning salon walls are green; that they preserve the environment and help reduce waste. So what does it all mean? How do modular walls really help preserve the environment?

The main green feature that modular walls enjoy is that they vastly cut down on construction waste. Construction waste typically makes up around 30% of landfill waste, which is a lot of waste!

So how do they cut down in waste? The design characteristics of a modular wall allows for this in several ways.

First: modular walls are manufactured in a factory out of recycled materials. Manufacturing in a factory allows for greater control in resource and energy use, with less need to combat environmental disruptions like weather and theft. Not only are modular walls made of recycled materials, but the materials themselves are used more efficiently with every modular wall panel manufactured.

Second: Modular walls themselves are recyclable. Modular walls can easily be added or removed to expand or relocate booths without resorting to constructing with drywall or destroying existing walls. This not only saves on demolition waste, but on resources that would be used to build another wall, thereby providing a double advantage in waste reduction.

Not only do modular walls cut down on waste, they improve air quality in build sites. By manufacturing the wall panels in a factory, you can shield your customers and employees from any unwanted airborne particulates that may be stirred up or caused by traditional on site cutting and patching. Modular consruction is less messy and preserves the immediate environment as well.

Build some salon booths with modular construction and tell your customers you’ve gone green!

In December 2009 Sunset Tanz LLC President and Owner, James Harton set a new goal for his company: Branding and Expanding.

Harton was looking to move his business from a local multi city venue to a multi state venue. Although the right timing for moving into a multi state venue was still unknown, Harton knew that branding would be a key to success. With branding comes recognition, and with recognition comes high expectations from clients. One hurtle that Harton faced was build out. Although metal studs and sheet rock can recreate a location, time and time again, it was costly and time consuming. Harton recalled a modular wall set up at the Smart Tan Expo in Downtown Nashville back in October ’09 and decided to call up the little gal that he met there by the name of Kristina Admire. Admire and Harton conversed and quickly came to a conclusion: whether Sunset Tanz was to be 9 locations or 90 locations, Modular Walls would help with the brand recognition and professionalism of each and every store!

Harton and Admire quickly went to work on the details and standards of Sunset’s build out. Time was running short as January had come and gone in the blink of an eye and they had to work fast. At this point Harton knew that with deadlines, hefty regulations, and the feet dragging of city inspectors there was no way this salon location could be up and running by March using a conventional style build out. It was now that Harton knew the choice he had made was the correct one! After endless conversations with Admire, Harton was confident that the build out would take no more than 5 to 7 days tops. And that was going to be with only 2 men working full time and a 3rd man working part time. Admire and her trusty architect (who’s real name has been omitted due to the fact that he’s a spy for the CIA… [LOL, just kidding]), worked daily on the setup created as a rough drawing by Harton. Admire and Mr. Architect worked tirelessly until the job was done.  

February and March both came and went like a whirlwind with only minor issues arising; but they were quickly taken care of. Soon, the 9th Sunset Tanz location went from a dream to a reality…this dream was not only Harton’s, but also a dream that tanners in Athens, AL had been hoping would some day come true: the first professional tanning salon chain to come to Athens, AL! A sign of growth in tough economic times, not just for Sunset Tanz, but also for the city of Athens!

Now present day, Harton and the Sunset Tanz Crew continue to serve the people of Athens. The location that they had all waited for wouldn’t have been possible without Kristina Admire and the gang at Tan Wall. You might ask yourself, “What do modular walls have to do with the success of a tanning salon chain?” The answer: they have everything to do with success.

Here are reasons why you should use Tan Walls, just to name a few:

1. Tan Walls allow for better use of space (why waste space that you’re paying rent for?).
2. Tan Walls are quick and easy to construct (time is of the essence, time is money and time will pass you by!).
3. Tan Walls are less expensive (not to mention, they will save your crew from a vast majority of the inspection process in many areas of the country).
4. Tan Walls are re-usable (many times tanning salon chains will expand or relocate stores; why waste material and money?).
5. Tan Wall creates modular walled salon build outs at an affordable price (dare to compare, you’ll be back).

In short, if you need walls for your salon, whether it be 1 location or 100, use Tan Walls!

The Venture:
Michael Loomis began working on a business plan for a new tanning salon, soon to-be- called Tantations. As a first-time salon owner, Michael wanted an easy, efficient, and cost effective solution for his build-out needs.

The Challenge:
Tantations needed to be more then just a one-store-wonder. Michael wanted a build solution that was so cost effective he could see himself expanding his business from one salon to a multi-location operation. Conventional construction methods for his rooms and walls just wouldn’t cut it, once he considered time and money. So Michael started exploring the possibility of using a modular wall system instead. And that’s when TanWall came into the picture about 6 months ago, when Michael approached us to consider the construction of a healthy number of rooms for his brand new tanning salon.

The Solution:
TanWall’s Modular Wall System was exactly what Tantations needed. TanWall proved to be faster, easier and less messy then other construction methods. After some careful and thorough research, Michael soon discovered that TanWall’s system provided the flexibility, efficiency, and cost effectiveness in order to expand and develop Tantations into a competitive brand.

“I chose [TanWall’s Moduar Wall System]…” Michael explained, “…because they look amazing, pave the way for possible franchise opportunities and save money as you do not have the added expense of a contractor, building permits, or [missing] your deadline due to construction delays.” He went on to finish by saying, “Overall, TanWalls are one of the smartest investments you can make when building a salon!”

For Tantations, Michael chose Rosewood TanWalls with Bronze framing and stained the doors an upscale color to compliment the Rosewood walls. Michaels order, from approved to layout to manufacturing, took 2-3 weeks.

The Conclusion:
We can’t argue with Michael. TanWall’s Modular Wall System is the best investment you can make into your tanning salon.

Kristina Admire, National TanWall Design Manager, had this to add, “I hope many more entrepreneurs in the tanning industry may come to see TanWall as a simple way to build out a salon that creates a brand image along with a fast and repeatable process for future stores.” She also had this to say to Michael of Tantations, “I was so happy and excited to help you develop Tantations. I wish you all the best and look forward to seeing the growth of your business and brand.”

iTAN Solarium is a rapidly growing tanning franchise that is poised to take the lead in the Southern California tanning market. With headquarters in San Diego, California, iTAN Solarium is successfully catering to a growing group of happy clientele while expanding to keep up with rising demand.

iTAN Solarium is a first class industry model distinguished by its core competencies: skilled and knowledgeable staff, exceptional product, and luxurious, upscale look. iTAN Solarium holds its salons to the highest standards of cleanliness, professionalism, and technological advances – including the most elite beds in the industry. Each iTAN location offers fit body wraps, teeth whitening, and hydration therapy/photo facials to meet the diverse needs of its discerning customers.

iTan’s growth and expansion plan necessitates a solid and consistent construction method. iTAN Solarium uses a modular wall system manufactured by TanWall to create each private room. This system utilizes colors custom matched by TanWall that are available exclusively to iTAN franchisees. This repeatable, reliable construction process – and its stunning final result! – is fundamental to the success of the iTAN Solarium franchise.

If you are interested in exploring franchise information, please visit www.itansolariums.com.