chester

I've been in business for 12 years so I've got experience with customer loyalty. Very few customers are completely loyal to your salon based on your cleanliness, service and quality of tan. If there is any salon in the area that is offering a cheap special, your customers will flock to them. Once their package runs out, they may come back to your salon. That is only if someone else isn't offering anything cheaper. I have customers who are very honest with me and tell me that they get much more color at my salon but they also admit that whenever the big franchise down the road runs their $1 for 10 minute increment packages. (ie $2 for 20 minute sessions) they buy as many minutes as they possibly can. The franchise only runs the special twice per year like clockwork so my somewhat loyal customers return to my salon when these specials are no longer offered. They tell me that unless I can match these specials, they will continue to do so. These large franchises that offer free tanning weekends, $1 tans, etc. are dictating the prices of tanning for the future. If everyone follows suit, tanning will eventually be free everywhere. My prices are 50% lower than they were 12 years ago. My costs are 50% higher. The only reason that I am still in business is because my salon is paid for. Good luck to everyone!!

fashiontan

My sentiments EXACTLY! This is my 11th year and I have seent the exact same things you have.

COCONUT

Chester.. I disagree.My prices are higher and I KEEP my clients due to MY
CLEANLINESS and GREAT CUSTOMER SERVICE.Sorry to say..your doing something wrong...and from the sound of your post might be your attitude??IMO

dcjjp2

I believe that you have to be competitive to your comp. However with a Mega salon ie PBT it is difficult to do so and still remain profitable. In my area there are 2 regional chains and PBT as well, some independent salons as well. I believe in offering a FAIR price for the equipment and lotions. I have been dropping prices slightly to counter the EFT programs of PBT and it has been a success thus far. Sales are up 40% from last year.

fashiontan

We have two large franchises selling month unlimited for $19.95. I used to get $60.00 in base beds 10 years ago. I refuse to match the prices (but have lowered them) but may have to as numbers simply keep dropping year to year as the number of salons keep going up and up.

chester

Well coconut... When my somewhat loyal customers return to my salon after buying cheaper packages somewhere else, I always ask them what I could have done to retain them. They say "Match the competitor's price!!". They rant and rave about how our salon is so much nicer and if my prices are only slightly higher, it's not worth going somewhere else. But when the salon down the street is 50% cheaper, they say it's enough to make them choose the other salon. As for my attitude, I have a great relationship with my customers. We actually laugh about them bouncing around. Why get mad?? I've accepted it. My only bad attitude is against salons that are dictating the future by offering such cheap prices. Customers expect it everywhere now.

heatzone

student dont have the money they go for the cheapest one but the grown ups are loyals price dosnt matter to them if they like your place you have to decide who you want to cater

chester

No, the grown ups are just as price driven. I have a customer of 4 years who is in her 40's trying to negotiate price with me. She had the ad from the salon down the street with her. She said that if I could come close to their prices she will stay at my salon. Otherwise, she'll be leaving temporarily. She's really pressing the issue because she wants to stay at my salon. With the economy as bad as it is, she needs to cut costs out of her budget.

heatzone

if you think you have better beds and service then let her go shell be back

chester

I have another prime example of proof that customers are price driven. One of my employees used to work at the salon down the street which offers the $1 tans twice per year. When she worked there, she said that people used to come to the salon inquiring if they were offering the $1 tans. If she said no, they would leave. She said that they would leave and come to my salon!!! So, it's obvious that my salon is much better and they only go to this other salon when the price is cheaper. She also said that she tanned at my salon before she worked at the other and only tanned there because it was free while she was an employee. When she quit, she came back to my salon.

Wait until you have a large franchise open across the street.