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Old 03-01-2014, 08:42 PM   #16 (permalink)
Tony
 
Join Date: Jan 30 2007
Location: Naples FL
Posts: 782
Rep Power: 18 Tony is on a distinguished road
Re: Membership - MANY approaches...

Quote:
Originally Posted by Steve Underhill View Post
Tony you have things fine tuned I assume with communication with your client being a matter of fact.

I think you will find that most operators are still lacking in some of the most basic operation skills. Steve i have been in the RETAIL tanning industry for 29 years this month. I was a software provider of POS software for 18+ years which makes me the only RETAILER and software guy in indoor tanning. This gives me a profound knowledge of indoor tanning so YES I am aware of the deficiencies of MOST operators. While I agree there are different profiles for the EFT client, you can still have a more positive effect of each type with your level of consistent communication. Please put this is some form of functional reality without the Tony Robbins spin.

EFT membership is only part of a well orchestrated price structure. EFT is the MOST important part of a salons price structure. The way its implemented will directly and drastically affect profits. What where and when you advertise can still allow you to have a more productive off season. I would venture to say that I run more radio and possibly more TV ads then any other chains in our industry. I dont say this to be braggadocious but to provide some perspective for what i am about to say. I run a very substantial amount of radio and TV all 12 months. I am almost positive no one else does this so I speak with unique experience. I have run so many tests to try and stimulate off season tanning. It just cant be done with much effectiveness. Before you tell me "oh its how you communicate with people" let me tell you two more interesting facts. I took one isolated MSA and BOMBARDED it with Radio. I took another isolated MSA and BOMBARDED it with TV. There was only the SLIGHTEST difference in new client counts and sales compared to same store sales the previous year and other store sales with much less advertising! And this was after 3 months of nothing less then a total onslaught of marketing. I know the photobiological trigger better then almost anyone. I am 100% a believer and yet I still attempted to see if i could force mother natures hand!

Also why do you think that 70+ % of EFT members dont tan in the 4th quarter? They dont use what they paid for so how the heck do you think you can get people to stay on longer or even get them to join year round with better communication and advertising? Really Steve? Retail tanning has been my life. I study it and devour it like few others in our industry do!


While there can be different price structures that can be effective, it is still imperative that the plan is properly executed on every level. DUH!


I know you like your $9.95 (its $9.99) membership and assume that because it is so cheap people don't cancel, How do you know what I assume? Well I dont assume that so you dont know what I assume but to suggest this is the best program for all salons is probably not realistic. I dont suggest I know. Why do I know? Because everyone I have mentored (yes I mentor which means I dont charge) since 1999 has been HYPER successful with my strategy. Oh by the way I dont believe in EFT concepts I believe in EFT strategy.

I don't think any salon should look to only EFT as a price standard.
I dont know a single salon that does so why even say this?

Some people will only make shorter term commitments for many different reasons. I believe having a price structure that offers something for everyone while maximizing the income potential from each type of tanner is a smart way to go. Well it sure sounds really good Steve but its more philosophy. Go after the 80%!

This thinking is also easier to adapt to most existing salons.
I dont recommend whats easier. I recommend what works better!

You have to agree it is not simply pricing, there is much more to it than that. I think your pricing STRATEGY is a gigantic part of your stores success at the point-of-purchase. Marketing gets them in the door but pricing strategy makes sales. You also want a strategy that sells. Systems sell - People Tell :)



Tony, I am not sure why you feel we are having a contest here,
Steve you feel its a contest not me. I just STRONGLY disagree with what you say. My views are based on YEARS of empirical data analysed with a religious fervor! Dozens of focus groups and thousands of interviews with salon owners, employees and clients. We have different views of what we feel works best. I think people can llisten to what we both have to say and decide for themselves what might be best for them to investigate further. Sure they can decide for themselves and their results will vary greatly :) But they certainly have the right to believe who they want and quite frankly I dont really care since I am not a consultant making money off salon owners!

One thing is for sure, there are a great many operators here that can generate a great deal more income by making changes that will increase sales 100% of the time. AMEN!

I just heard from a client today that with change increased sales by 90% in 2013 over 2012 and is up 184% in the first two month of 2014 over 2013. Well I think I have to pull out the BS card on this one Steve. And if its not BS then they did such a terrible job at every aspect of their business to surpress their sales so much that such an unrealistic increase could become reality! While so many operators are talking about how sales are down, it has to make you think about why?
My sales have been up every year for the last 6 years. I had one down year since 1985. All the things people whine about here is effecting them because they fail to execute properly!

Steve i did paid consulting in the 90's. I use to fill my marketing classes for $500 a head. I literally sold out every class. I gave tours to my stores with motor coach busloads of salon owners during the shows in Chicago. Some of my young students where Tony Hartl (Planet Tan), Todd Beckman (Tan Company), Bart Bonn (Ashley Lynns and now Palm Beach). All 3 went on to great accomplishments in our industry! I could name many more! I did what you do with fervor, passion, experience and strategy that I sincerely believe was unmatched then and now! Once again I am not trying to be braggadocious. I just want you to understand where I am coming from and why!

Last edited by Tony; 03-01-2014 at 08:54 PM.
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