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Old 01-28-2014, 02:48 PM   #16 (permalink)
peach
 
Join Date: Mar 18 2005
Location: GA
Posts: 1,153
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Re: Competing with ridiculous Competitor's specials

Quote:
Originally Posted by sunrisetan View Post
If it's a lose lose as you refer to it as...how do you assume that salon is still on the block? I see plenty of eft type salons practicing these methods...low monthly fee's, then comes the art of upgrading them.

The $1 menu working just fine at mcdonalds and Burger King. One would think it would put em under.
Have you calculated what it costs to run a base bed for 20 mins?....More than $1 I can assure you.

So if Someone sells 1 month for 15.99 and lets say it costs $1.50 to run the bed (per visit), how are you going to do over the long run? You had better do one heck of a volume. Most people do these cheap specials for 1 reason only; to take market share (your business). In the long run, You cannot maintain equipment or improve your salon with those low margins. The fact that they haven't stopped those specials tells me that they are in trouble.
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