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Old 08-12-2016, 03:28 PM   #14 (permalink)
sunsally
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Re: Minutes/points vs sessions and monthly packages

Quote:
Originally Posted by Steve Underhill View Post
If you sell using the pitch that the average person tans 2x 's a week the highest session package should be 8 sessions. If they tan more than 2 x's a week it drives them to the one month which is better because it expires in 30 days. A 10 session package may last 2 months making you $49 as opposed to selling 2 months for the 60 days of tanning, and so on progressing up to the eft. Don't let session packages kill your membership sales. You must understand why a progressive pricing works to your benefit. And allows for effective promotions. A salon that has 10 and 20 session packages sells mostly session packages, because that is what that structure is designed to do. If you want to sell memberships that is what your price structure must be designed to do.

I always hear salon owners say they tried EFT memberships but it did not work for them. It did not work because they sold a lot of session packages or minutes. They cancel out the EFT memberships. You can't just add eft memberships to pricing that is not designed to sell memberships.It is important that you understand this before you will ever maximize the income potential of your salon.

In some cases this is true. And often it is not.

Understand the reality of today - not ALL our customers are unabashed, year round, frequent tanners!

In fact, some, come skulking in looking like they are afraid their neighbor is gonna catch them going into a sex shop!

SOME try to 'hide' their tanning - from themselves ("oh, I don't really TAN....I'll just get a single" (week after week after week.....)

SOME try to "hide' it from their spouse ("I pay cash - my husband would kill me if he knew I was tanning!")

SOME are purely "event" tanners - school dances, vacation, holiday parties,...

SOME are trying to "cut back" - just certain months, or units, or limited visits.

And so on and so on.


Managing a consultative sales process will be best to maximize the revenue from EACH unique customer. Engage the customer in conversation re. their goals. Do they have an upcoming event, are they a regular tanner, etc....


Then you can LEAD with membership as suggested above - for their convenience, best value, etc etc

But for those that WILL NOT be a membership member - for whatever reason - you then decide what to sell them next.


a. Method 1 -- "We recommend membership as the best value......no, ok, if you decide to pass on that then you get 2 choices - month or 8 visits. Pick"


b. Method 2 -- "We recommend membership as the best value.......no, ok, if you decide to pass on that then let's talk about what might be the next best value for you based on your needs.....we have several options, starting with our 20 visit packages which will be the lowest cost per tan....."



In the above scenario, Pricing is probably as follows:

a. Method 1 -- Non membership - $49.95 for 1 mo or 8 visits

b. Method 2 - Non membership options range from $14/week to $80 for 20 visits.


Method 2 allows more choices, ALL OF WHICH STILL ARE PROFITABLE to you, but also reflect the different goals, budgets and needs of your customer as well.
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