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    3 Replies Latest reply on Sep 7, 2008 2:33 PM by Lighthouse24

    Utility costs for salons.

    genie_m_ross Wayfarer
      I'm planning to open a salon and started asking around for what people pay for their utilities. The only quote that I got was for a salon less than 2000sq ft and she said their bill usually runs $3-4000. I have a hard time believing this could be the case. I know this particular salon and I know they have four unneccessary processors, four big screen televisions, lighted display cases, a lighted receptionist desk, etc. This leads me to believe her bills are so expensive due to all the appliances she has but I still can't believe that outrageous amount. Does anybody know anything about this or where to get information on it? I'm starting to think my business won't ever happen and it's frankly a little sickening.
        • Re: Utility costs for salons.
          Lighthouse24 Ranger

          You don't mention (and your profile doesn't say) where you are located. Although this data is a couple of years old, a typical salon in my region was using about 35 kwh of electricity and 46 cf of natural gas per square foot annually. For a 2,000 square foot salon, that's 70,000 kwh and 92,000 cf. Commercial rates here are about $0.095/kwh and $11/mcf, which (if my math is right) would result in an annual cost of $6,650 + $1,012 = $7,662 or about $640 a month. No matter where you are, I can't imagine how they'd get up to $4,000/month -- that's in the ballpark of what a small Best Buy or Circuit City store pays for electricity here -- they'd need more than four of those big screens! Hope that helps.
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            • Re: Utility costs for salons.
              genie_m_ross Wayfarer
              We're in the North Atlanta area. Where can I get those figures for my area? That's great information. Are these good calculations to use for a business plan?
                • Re: Utility costs for salons.
                  Lighthouse24 Ranger
                  You should be able to get figures for your area from the local utility providers and/or a local business consultant (even a SCORE counselor in the area who knows storefront operations may be able to help). The only clients I have in your region are industrial and warehouse, so nothing I'd be able to get current/detailed data for would help you much. If you are buying/leasing an existing salon or occupied property, the utlity bills for that actual property would be the best source of business planning data, with adjustments for the equipment and appliances you intend to add (all of which have specs that will let you calculate/estimate consumption). If you are building or moving into new or previously unoccupied space where bills are unavailable or non-existent, then yes, the guidelines I offered would give you something decent to go on. You may use a fuel other than natural gas for heating and water heating, but you can adjust for that -- otherwise, I don't think the climate in Georgia is so different from Texas as to make a radical impact on your annual heating/cooling costs.