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unity · 02-15-2008, 10:44 AM

In my experience the younger the client the more usage. A good example is week unlimiteds I recently sold. Average was 3 sessions in that week. But those under 20 used 5 or more, those over 25 used 2 on average.

So they catered to a group that may be much more likely to use the packages to the full extent. Then they offered it cheap, too cheap. Once you factor in all the over-head there is little to no profit (if any) on $20/ month. Of course that depends on hidden expenses that we do not know. But for your typical new salon, no way.

Not only that, but people will be EXPECTING deals now and forever. Heck, it happens here! We had a sale, 10 tans for $30 last fall. Thats a deal, we never go that low usually. Our regular price is 10 tans for $50. This lady came in a LAUGHED at the 10 for $50. I told her is was regular price now. Anyway, clients there will expect those low prices and when they dont a lot of those kids will just walk out. They probably wont tan anywhere though, they want it for $20 or nothing at all.

You cant run a business like that.

02-15-2008, 10:44 AM	#2 (permalink)
unity I vote for DERF! Join Date: Jan 6 2004 Location: Midwest-ish Posts: 2,288 Rep Power: 5	Re: New Salon in Area In my experience the younger the client the more usage. A good example is week unlimiteds I recently sold. Average was 3 sessions in that week. But those under 20 used 5 or more, those over 25 used 2 on average. So they catered to a group that may be much more likely to use the packages to the full extent. Then they offered it cheap, too cheap. Once you factor in all the over-head there is little to no profit (if any) on $20/ month. Of course that depends on hidden expenses that we do not know. But for your typical new salon, no way. Not only that, but people will be EXPECTING deals now and forever. Heck, it happens here! We had a sale, 10 tans for $30 last fall. Thats a deal, we never go that low usually. Our regular price is 10 tans for $50. This lady came in a LAUGHED at the 10 for $50. I told her is was regular price now. Anyway, clients there will expect those low prices and when they dont a lot of those kids will just walk out. They probably wont tan anywhere though, they want it for $20 or nothing at all. You cant run a business like that. __________________ All Democrats raise taxes. All Republicans start wars. If the Republicans didn't start pointless wars, the Democrats wouldn't have to raise taxes.