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Old 09-04-2006, 08:22 AM   #1 (permalink)
Louis13
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Join Date: Apr 15 2005
Location: Clayton, NJ
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Hollywood tans $20 unlimited pkgs.:(

How does someone compete with Hollywood Tans $20 a month unlimited? We have a ton of hollywoods in my area, but one big one just opened near a college campus that some of the students traditionally came to me. they are 1/2 mile from campus, I'm 2 miles from campus in the next town. Hollywood used to have all standups and I got the kids who liked the beds, but this one has a ton of beds.

We normally had run 3 months for $80 to get them to go the 2 miles. Should I bite the bullet and go to $50 for the semester and hope for a lotion sale?
This special would be limited to that college. Getting the word out to them is very hard. Their school paper is VERY expensive to advertise in and they make a ton of mistakes on the ADs. Their campus has had a problem with vandals so handing out flyers or doing something on campus is tough to do.
They are about 20-25% of my tanning business and I hate to lost them but wondering if my advertising dollars and time would be better spent concentrating on growing the business with-in my town. Also, I just purchased sunless HVLP equipment from a salon in town who closed down because of lease renewal time. They were open a year but the town is too small to support a sunless only salon. I'm wondering if that market would show a higher profit ratio per advertising dollar than beating my head againist the wall competing with that large chain.

Thanks

Herman
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