tanTALK - View Single Post

BigLeo · 01-26-2007, 06:26 PM

tanning is becoming more and more commoditized, so that the local market competitive factors largely determine the cost for a tanning session. differentiation is no longer the competitive advantage it once was, because salons will eventually emulate you.

whatever you do, it is easy to decrease prices, but a lot harder to increase them. Pricing should remain fairly stable during the peak season when demand is the highest. Pricing can be termporarily reduced during the low season, when demand is low. many salons are likely to lose money during the low season, so lowering prices to increase traffic is a strategy that can be used to get you as close to breakeven as possible.

in my previous posts, i've always stressed the need to diversify your salon product and service mix. do not rely strictly on tanning. add other producs and services into the mix that can smooth out the highs and lows.

01-26-2007, 06:26 PM	#2 (permalink)
BigLeo Join Date: Jan 27 2005 Posts: 243 Rep Power: 4	Re: Setting your prices tanning is becoming more and more commoditized, so that the local market competitive factors largely determine the cost for a tanning session. differentiation is no longer the competitive advantage it once was, because salons will eventually emulate you. whatever you do, it is easy to decrease prices, but a lot harder to increase them. Pricing should remain fairly stable during the peak season when demand is the highest. Pricing can be termporarily reduced during the low season, when demand is low. many salons are likely to lose money during the low season, so lowering prices to increase traffic is a strategy that can be used to get you as close to breakeven as possible. in my previous posts, i've always stressed the need to diversify your salon product and service mix. do not rely strictly on tanning. add other producs and services into the mix that can smooth out the highs and lows.