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sunsally · 05-16-2007, 08:20 AM

I don't disagree necessarily John, but it isn't that simple.

They might have the same bed - but do they have the exact same mix? Are you structuring your pricing the same? Same "feel" in the salon? Same quality of location?

Lots of salons can have the same equipment (they DO!), and not necessarily get into price wars. OR - you can have DIFFERENT equipment, and get into one.

I had a guy move in 3 blocks North of my salon just last month. He has a "Level 4" bed (a used Orbit) that he advertises as $19/single session. It "competes" with my Ergoline 600 at $16/walk-in.

However, he has "chosen" to do a Prom special for highschoolers to give them one month unlimited in that bed for $15 - no strings.

Have I lost a little business because of it this month? - yes. Will I match it? Heck no! It doesn't make financial sense, and those aren't our "bread and butter" clients anyway. I won't give it up THAT low in the middle of season just to play his game.

I WILL however put a strategy in place when he is done to pull them all back and more!

Or - let him keep running $15/mo unlimited on a big VHR bed until he runs himself broke. Either way!

I believe in making yourself as "bulletproof" as possible. That is the combination of your equipment, your cost structure (always helps to have less debt than your competitors!), your pricing structure, your location, etc. As long as your equipment PERFORMS WELL and you keep it up, you leave yourself much less vulnerable to competition on that front.

05-16-2007, 08:20 AM	#24 (permalink)
sunsally www.highlinecapital.com Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 2,507 Rep Power: 8	Re: Ergoline?????? I don't disagree necessarily John, but it isn't that simple. They might have the same bed - but do they have the exact same mix? Are you structuring your pricing the same? Same "feel" in the salon? Same quality of location? Lots of salons can have the same equipment (they DO!), and not necessarily get into price wars. OR - you can have DIFFERENT equipment, and get into one. I had a guy move in 3 blocks North of my salon just last month. He has a "Level 4" bed (a used Orbit) that he advertises as $19/single session. It "competes" with my Ergoline 600 at $16/walk-in. However, he has "chosen" to do a Prom special for highschoolers to give them one month unlimited in that bed for $15 - no strings. Have I lost a little business because of it this month? - yes. Will I match it? Heck no! It doesn't make financial sense, and those aren't our "bread and butter" clients anyway. I won't give it up THAT low in the middle of season just to play his game. I WILL however put a strategy in place when he is done to pull them all back and more! Or - let him keep running $15/mo unlimited on a big VHR bed until he runs himself broke. Either way! I believe in making yourself as "bulletproof" as possible. That is the combination of your equipment, your cost structure (always helps to have less debt than your competitors!), your pricing structure, your location, etc. As long as your equipment PERFORMS WELL and you keep it up, you leave yourself much less vulnerable to competition on that front.