Quote:
Originally Posted by Lobo 77  Sunsally, what do you think it costs to run a VHR bed like a S-Class? How about a big HP? |
Sunsally, you are giving people the wrong impression. Fixed costs do not change like variable costs, but they are costs that must be factored into your cost per session because they are costs that you actually incur every month. You are trying to use the fast food model (high volume-low margin) for doing business in the tanning industry, and just doesn't work for several reasons:
1) The tanning industry is shrinking not growing.
2) The tanning business is seasonal
3) Not everybody is going to tan indoors even once in their lifetime. (1 out of 10 or less)
4)Tanning is not a homogeneous service
As I have said before, these low price "gimmicks" are designed to take your marketshare away, not to be profitable long term.