This is a YouTube video titled "Why I Love The Salon Suites Business" created in April 2025. The content features a single speaker discussing the business model of salon suites, comparing buying versus building units, marketing strategies, occupancy challenges, and growth models. The speaker shares insights from conversations with other salon suite owners and emphasizes the importance of client acquisition metrics and marketing to grow the business. There is no indication of multiple speakers or a conversation involving Kyle Mallien.
Brings me to my next topic. Salon suites, right? There's two schools of thought. Do we buy. Do we build new units and make a bigger margin and cost less capital up front, but it's a longer runtime because I got to fill the units, or do we buy stabilized assets that already have 95% occupancy with tenants in it? Well, I've talked to a couple of other salon suite owners, and, you know, I talked to one in Reno specifically two weeks ago, and he said, kyle, I thought I was the smartest man on the planet when I bumped into this business model. I own the real estate. I converted them into salon suites. And all of a sudden, out of nowhere, I had a lady leave on me, and she took half of my tenants. So I went from 30 tenants to 15 tenants overnight. He's like, honestly, I own a bunch of other businesses in this other market. I don't really have time. You know, I'm not really doing anything. I'm sitting at 50% occupancy. I don't want to give the business away, but I'd be interested in partnering or selling it with you if you were interested. And I said, well, who's your leasing manager? He's like, well, I don't have one. So nobody's showing the properties. Well, how many. How many showings are you doing a month? Do you have a marketing system to generate leads to bring you tenants? He's like, well, no, I never had to do that. So, I mean, I know everybody in town. I mean, I'm one of the biggest guys in town. I mean, they should know me, right? I'm like, well, how do you. How do you market your offering? Well, I mean, they just know me. I have great location. And I said, well, how do you price it? Well, we're $500 a month. This industry is priced on a weekly basis. So when you get up a beautician in there, it's $195 a week. It's $250 a week. It's $400 a week. That's how the billing is done in this business. And I said, you're not even. You're, you know, you're selling your product. Product at $500 a month, which is $125 a week. So you're $75 under market, but you're also not running it the appropriate way. So you're scaring. All these potential would be clients off, and you're at 50% capacity. You don't have any marketing going. You're not running at capacity. I could make that guy an extra $180,000 a year in leasing if that was, you know, if that was of interest to me. Right. Like, I know that with our system and process, we could put leads in there. You know, we have a vacancy issue right now in the Vegas market in one of our properties because we had an isolated situation and we're getting 30 leads a month. Right. So that's a lot of showings. But you have to get traffic in the business. And I'm not worried about it at the end of the day because I just know more traffic, more looks, more lead, and I'll fill that building up. It's going to be okay. You need to look at every one of these businesses the same. I can't hope and pray on the business that I just bought. Right. I need to have a growth model. I need to be able to understand where I can add strategic value, how I can apply the gas. And I'm going to appropriate so much money in my budget to marketing for client acquisitions. So remember I told you in the presentation and in the past that in if I have these metrics, I can grow any business, right? If I have the client acquisition cost, I have the conversion rate, I have the lifetime value, and I have the average ticket price, I can grow any business because I know what it's gonna take to get clients in the H vac space. I know what it's gonna take to get clients in the salon suite space. I'm spending $15 a lead in the salon suite space. Every one of these categories has got a different acquisition cost and a different conversion method and a different conversion price. But you need to learn these things. And as you're going, that's really 2.0. That's really the growth model of the business. And I'm going to help you with all of that stuff. But these are the things that make sense on the front side when we're looking at an opportunity so we can go, does this make sense? You know, like, where is the marketing? Does this marketing method and model hold up to be able to, a, pay the debt, B, make me a profit, C, have potential for growth in the business, and I want to know that.
