Oxygen Bars Business Opportunity

Breatheo2.com

Oxygen Bars Business Opportunity
Oxygen Bars Business Opportunity Oxygen Bars Business Opportunity

Getting Started

Overview
       Oxygen bars are places people can go to inhale high purity Oxygen for recreation and relaxation. It is a fun and profitable business that succeeds in many different settings. 

       The first "Oxygen Bar" in North America was the "Oxygen Spa Bar" opened by Lisa Charon in Toronto Canada in 1995. 

     The first Oxygen Bar in the United States was the "O2Zone" opened by Mark Zarubi and Ted Mitchell in Reno Nevada in 1996. Zarubi and Mitchell contracted with Kevin McFarland of Tekland Engineering to design and produce the first Oxygen bar equipment. The line of products quickly developed and together they formed what is now Breathe O2 to market the equipment. 

     The term "Oxygen Bar" has been muddied by the many opportunists that use the term to sell everything from air fresheners to fans. For our purposes we define an Oxygen Bar as a location for people to connect to high purity oxygen, through an Aroma Infusor™. 
     Ambient Air is 20.9% Oxygen and 78% Nitrogen. The rest is trace gasses like Carbon Dioxide and Argon. Breathe O2 developed  proprietary Oxygen Generators that remove most of the Nitrogen and optimally produce 94.7% Oxygen. This Oxygen is very dry so it is then passed through our Aroma Infusors to "infuse" the Oxygen with some water vapor and the aroma of your choice and pass it safely to the client through a cannula or mask.
Opening an Oxygen bar
     Almost everyone will try an oxygen bar so the key to success is getting it in front of people. Your bar can be used many different ways. The oxygen can be sold or given away for promotional purposes. For simplification we divide the equipment packages into two categories, "Fixed" and "Mobile". 

     Fixed installs are more or less permanent. Usually in this type of install the generator is put in a remote location like a closet or utility room and the Infusors are set up on an existing end table or your own bar or counter. The oxygen tubing is routed in some "out of the way" fashion running from the generator to the infusors. This process can be quick and simple or made more permanent by "plumbing" your location. Fixed locations like tanning, nail and hair salons, where the Generator is located in a utility room and the oxygen tubing is plumbed through the walls or ceiling to each individual infusor, are examples. 

     Mobile bars make use of our "O2 to Go" Oxygen Bar. This strong but lightweight bar is made of aircraft aluminum and is meant to be self contained and easy to relocate. The oxygen Generator is inside the bar with adequate fans and airflow for proper operation. The infusors set on top of the bar which is pre-plumbed to connect them. This unit simply needs to be plugged in to an outlet and turned on to be ready for operation. When your ready to move it just unplug it and roll it out the door on the built in castors to the next location or storage. Though we call it mobile, because of its attractiveness, it is often used in permanent locations. We have some that have been in the same location for over ten years.

What can I make
Stations Session Length Session Price Sessions per hour Revenue/hr Cost/hr Gross profit/hr
4 (trade show) 3 minutes $5 18 X 4=72 $360 72 x .38=27.36 $332.64
4 10 minutes $10 5 x 4=20 $200 20 x .38=7.60 $192.40
4 15 minutes $12 3.8 x 4=15 $182.40 15 x .38=5.70 $176.70
Your session cost is about 4 cents which includes electricity to run the generator and your aroma. Your cannula cost is fixed per customer so it does not vary with session length. We used 34 cents in this table though you can get them for less if you buy them in quantity. This table calculates on maximum use minus the time to unhook a customer and hook up the next.
    Most bars only offer the 3 minute session at trade shows where you are giving a quick sample and then they move on. These sessions are normally given to the attendee and charged to a booth as an attraction. See marketing strategies below.
Standard Operation
Normally an arriving customer will ask what is it or if they know about oxygen bars they ask what does this do? 
     Too keep it simple at first, our pat answer is, "lets hook you up and find out". It is usually best to have a printed price menu. The going rate is about a dollar a minute but your location will drive this price. Our bars in Vegas are currently $22 for 15 minutes. We have a tanning salon that is $5 for thirty minutes so it varies widely.  
     The customer has chose their session time and you have been paid. For some reason putting on a cannula can be confusing so depending on your setup it is best to put it on for them. If you are behind a bar and can't reach them keep a cannula handy and demonstrate it by putting yours on with them. Put the session time on the timer on the back of the infusor and then show them how to turn on the different aroma's on the front of the infusor. They can choose from one to all four aromas and in each can be adjusted for any strength. Let them play. 
Marketing Strategies
We'll divide these into 2 categories: Adding to an existing business or marketing your new bar.

Some sizable percentage of Oxygen bars give the sessions away to draw clientel or to keep them occupied while  they wait or receive some service. Oxygen bars are often installed in waiting rooms like dentists offices, and hair salons to "occupy" a customer who may have to wait. 

Some tanning salons include it with tanning packages. Nail salons add it both to reduce the intake of acrylic fumes and as entertainment while their nails are being done. Tattoo salons are the fastest growing segment of service industries adding Oxygen Bars. 

Oxygen bar Entrepeneurs: Often these are new businesses that intend to use their oxygen bar as a revenue generating business. This can be done by renting the equipment for trade shows, Grand Openings, to Nite Clubs, Mall Placements, Special Events of all kinds. They are even successful in car washes especially with a juice or coffee bar. We even know of one in a county courthouse snack bar.

Trade Shows: Breathe actually got its start by installing and operating Oxygen bars for clients who used them as a booth attraction. They are perfectly suited to this function. Since they pay for the service and give it to the show attendees to draw them into their booth they are very busy and often have long lines to try it. This setup works well for everyone. The attendees get a free shot of oxygen, The booth gets 3-5 minutes of a "hooked up" prospect to pitch their products or services and the oxygen bar owner gets paid for every person they hook up. The fees run from $2 to $5 per person plus expenses. A 1000 hooked up attendees in a single weekend is very common. You usually can get far more connected to oxygen than you would if you were charging for it and the booth gets far more attendees to stop by then they would normally. Often you can get annual contracts and setup for the same booth year after year. We still setup for a fashion show now in our 11th year. We accept no new contracts so we would never compete with our equipment customers. We may even be able to send you clients when they call us to rent equipment in your city.

Nite Clubs: This is  the main source of revenue for the O2 to Go oxygen bar. Almost any nite club will try an oxygen bar. You can do these many different ways. Revenue share: They rent the equipment: or you rent space, and more. Revenue share is the most common. In this setup you will install your Oxygen bar in their location. Usually you supply the operator. We like this setup better because our employee is watching the equipment both for cleanliness/maintenance and abuse. Normally we subtract operating cost form the gross revenue then split the profit with the Nite Club. We also do well with the space rental if it is a good location in the bar. You'll need the marquee in a nite club. The bar gets lost in the crowd without the brightly lit marquee shining "Oxygen Bar" over head.

Salons: The more upscale the better. Tanning salons are a little install hassle but work very well. Many tanning salons include oxygen with their packages. This makes it harder to determine the profit. Our Infusors can be connected to the tanning software that tracks them as if they were a tanning bed. That makes usage easily trackable. Hair Salons do use them for the waiting room or when the customer is waiting for something to dry or set. The cannula makes wearing them impracticle while in the chair. Nail salons work very well and helps alleviate the smell of acrylic. Tattoo Parlors are our fastest growing market

Events: They range from Grand Openings, Parades, Festivals, Parties, fairs and marathons. We have been successful at all of these. In most of these we are hired to put on and charge a setup fee and so much per person. We do pay for the booth and charge at some festivals and fairs. We have set up a bar at the California State Fair in Sacramento since 2001 and have always made money. Booth location is key to this and that means selecting your spot early usually the year before. Oxygen Bars are extraordinarily successful at the various hemp festivals. We sell hundreds of our "It's O.K. to Inhale" T-shirts at these. It is not financially profitable but we setup in "March of dimes "and "Walk for the Cure". For a small actual cost and some of your time your bar can be used to promote causes you believe in. 

Malls/shopping: Selective malls have been successful long term. The fashion Mall in Las Vegas and Mall of America have had profitable oxygen bars for more than 5 years. There are no doubt many more than this but malls are less successful than you would think. Almost anyone will try an oxygen bar but only those knowledgeble of the benefits will be repeat customers. The key is getting them in front of new customers. Malls have the same issue that nite clubs have, the same customers. The key to making malls, shopping centers and nite club locations successful is to move them often. Six to eight weeks and then move to another location. You can even come back in six months but as soon as you see sales sliding off, move your bar to a new location and you can stay profitable.

Airports: The rent can be high but exhausted travelers love the refreshing blast of some pure oxygen. Add a massage chair and you have a hit.

Resorts: Especially Ski Resorts are usually profitable. While this is seasonal it can earn enough in a short time to be worth it. Day Spas at year around resorts are a great place to run a business. Setup on a fitness cruise and you get paid to go on vacation.

Equipment sales: We'll pay a finders fee for any leads you send us for Oxygen Bar Equipment. The amount depends on the sale. We pay 5% on packages and 3% on ala carte equipment. You probably don't want a competitor around the corner but if you get an inquiry from a tourist or visitor we'll make it worth your while to get their information and pass it on. If you give them our information please be sure to have them tell us you sent them or you call us and let us know you referred them. 

Maintenance
After operating our own bars for well over a decade we have developed very low maintenance equipment. The generators are very tough and only need a thread on filter every 3-6 months to operate for years, 24 hours a day. Keeping your aroma fresh is the most maintenance item of your bar and even it is quick and simple. Thread your old aroma bottle out of the infusor. Pour the water down any drain and recycle the bottle. Install your new bottle and away you go for another 100 customers. Seals and check valves are replaced as needed but this also is simple and no maintenance item needs more than a phillips screw driver to complete.
Regulatory
Medical Oxygen is a prescription drug and unlawful to dispense without a prescription. Breatheo2.com's generators manufacturer oxygen exclusively for use in a  breathe O2 oxygen bar.  The difference between "Medical" Oxygen and "Recreational" Oxygen is claims. Various oxygen types are chemically the same. Aviation oxygen and Divers oxygen are all the same purity. The FDA defines a drug as anything intended to affect the form and structure of the body. They identify your intent by the claims you make. To keep your bar compliant you cannot make medical claims. This bar is not intended to diagnose, prevent or cure any disease. Seen that on the bottom of every vitamin and supplement? That is a requirement of DSHEA the Dietary and Supplemental Health Education Act of 1996. 
Safety
Oxygen itself is UN1072 non-flammable gas but it will dramatically increase the rate of something already burning. Breatheo2.com's  equipment stores no oxygen. The Oxygen is manufactured as needed using the latest PSA (Pressure Swing Adsorption) technology. 

Oxygen and Essential oil are an unsafe combination. Breatheo2.com developed our own oxygen safe aroma's Never use your oxygen generator with Essential Oil. 

Many types of tubing and hoses can release toxic chemicals in the presence of high purity oxygen delivering these toxins directly into the respiratory systems of O2 bar customers. Breatheo2.com uses only FDA approved tubing and hoses to distribute oxygen.



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Breatheo2.com Oxygen Bars Business Opportunity
Breatheo2.com Oxygen Bars Business Opportunity Breatheo2.com Oxygen Bars Business Opportunity