I've been in business for 12 years so I've got experience with customer loyalty. Very few customers are completely loyal to your salon based on your cleanliness, service and quality of tan. If there is any salon in the area that is offering a cheap special, your customers will flock to them. Once their package runs out, they may come back to your salon. That is only if someone else isn't offering anything cheaper. I have customers who are very honest with me and tell me that they get much more color at my salon but they also admit that whenever the big franchise down the road runs their $1 for 10 minute increment packages. (ie $2 for 20 minute sessions) they buy as many minutes as they possibly can. The franchise only runs the special twice per year like clockwork so my somewhat loyal customers return to my salon when these specials are no longer offered. They tell me that unless I can match these specials, they will continue to do so. These large franchises that offer free tanning weekends, $1 tans, etc. are dictating the prices of tanning for the future. If everyone follows suit, tanning will eventually be free everywhere. My prices are 50% lower than they were 12 years ago. My costs are 50% higher. The only reason that I am still in business is because my salon is paid for. Good luck to everyone!! |