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Old 08-15-2016, 08:05 PM   #17 (permalink)
Steve Underhill
 
Join Date: Apr 21 2004
Location: Frisco, TX
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Re: Minutes/points vs sessions and monthly packages

Quote:
Originally Posted by sunsally View Post
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.
I have always respected your views and yuou share a lot of great information. The problem as I see it when you put packages in your pricing for potential tanners that never generate substantial income for your salon, those packages will reduce potential income from the base and avade tanner. I believe it is much smarter to offer packages that the tanner you describe must choose from rather than creating a structure for that tanner that will reduce your overall income potential.

Every time I find a salon that is heavy in session packages or minutes, the proper price changes increases sales 100% of the time.

I believe as a business owner you should focus on maximizing income while minimizing operating cost without diminishing your product. Be willing to drag those tanners that want to buy only sessions into todays world. When you sell large session packages it kills memberships and you only get paid when your bed is turned on. That is the reason so many salons close because they are afraid to change.

What you are suggesting is just a different method of pricing tanning than todays most successful salons. I is certainly one way. I propose that salon owners that sell large session packages try 12 months focusing on memberships while still offering session packages that are no greater than 10 sessions. I assure they will increase sales over the 12 months and have stronger slow seasons.

One week packages 5 and 8 or 10 session packages should take care of the tanner you are describing without loosing money with your core tanner.

Ann you know in many cases struggling salons have more problems than the price structure. That is just a major part of a great salon.

I know with your assistance salon owners will always improve. We have slightly different approaches to pricing. There can be more than one successful business model. Salon operators can learn a lot from you.
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