Tanning is price driven - Page 4 - tanTALK

dcjjp2 · 02-10-2005, 04:58 PM

Thanks Gary! I appreciate it.

top250tansyou · 02-10-2005, 05:27 PM

Our prices have remained pretty much the same the last ten years. We have not had a franchise come in though. Chester is right in the fact it matters if your salon is bought and paid for. We are running a special this spring and another salon has matched it. 1 i know they have been struggling since they opened and i believe they are bringing in money right now but are closing soon. 2 even if they match our special they dont have the beds to keep up. I also assume they are still paying on the beds they have. What is a special at one salon can be the downfall of another.

gripmarketing · 02-10-2005, 06:38 PM

Well said, top250...that's another variable in this equation: deep pockets. Who can outlast the other?

When your salon is paid for, you have deep pockets, or you're a chain operator who can afford to lose money at one salon while making money at others, you can put pressure on and outlast a competitor when offering pricing they can't match. This can be dangerous, however because then it becomes difficult after the competitor is gone to raise pricing back up to previous levels!

_________________
Gary[ This Message was edited by: gripmarketing on 2005-02-10 17:38 ]

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02-10-2005, 04:58 PM	#31 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 3,228 Rep Power: 29	Thanks Gary! I appreciate it.

02-10-2005, 05:27 PM	#32 (permalink)
top250tansyou I love Derf!! Join Date: Jan 1 2004 Location: little rock Posts: 1,488 Rep Power: 22	Our prices have remained pretty much the same the last ten years. We have not had a franchise come in though. Chester is right in the fact it matters if your salon is bought and paid for. We are running a special this spring and another salon has matched it. 1 i know they have been struggling since they opened and i believe they are bringing in money right now but are closing soon. 2 even if they match our special they dont have the beds to keep up. I also assume they are still paying on the beds they have. What is a special at one salon can be the downfall of another.

02-10-2005, 06:38 PM	#33 (permalink)
gripmarketing Join Date: May 25 2002 Posts: 970 Rep Power: 23	Well said, top250...that's another variable in this equation: deep pockets. Who can outlast the other? When your salon is paid for, you have deep pockets, or you're a chain operator who can afford to lose money at one salon while making money at others, you can put pressure on and outlast a competitor when offering pricing they can't match. This can be dangerous, however because then it becomes difficult after the competitor is gone to raise pricing back up to previous levels! _________________ Gary[ This Message was edited by: gripmarketing on 2005-02-10 17:38 ]

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