Quote:
Originally Posted by Wynwood The membership-driven model works as long as (1) a large share of the population is loose with $20/month and willing to ignore paying it out every month whether they use it or not, i.e. the old gym membership game, and (2) the tanning population is not declining. Neither of these are the case in 2016 which is a big reason major brands have abandoned some big markets. I think the new level of resistance is around $10 not $20. Can you say Planet Fitness and Zoom Tan? |
Exactly.
There are still a lot of reasons to push EFT memberships - no doubt!
But the "reality" for many salons is that tanning is no longer as "cool" and not everyone will be swayed by "you can tan as much as you want for really cheap, all year round".
Salons with STRONG SALES PEOPLE (think many of the major chains that select for this and cut stragglers fast!) who are located in GOOD MARKETS with strong advertising will still push this STRONG - and have a price model similar to Steve's.
Everyone else -- can and should still "open" the discussion with EFT and membership - absolutely!
But if your only OTHER options are limited, expensive, and presented with disdain toward the client's expressed desires -- then you have customers who either leave OR purchase - but don't feel great about it and will be open to offers from other salons.....
Pricing and promotions are a system that need to be in alignment with your overall plan. Your equipment mix, staff skills & strengths, level/quality/approach of competitors, and more all have a role in determining the best approach.