Excessive Lotion Discounting - tanTALK

PHriend · 03-21-2005, 10:37 PM

I have added a new High end lotion line this year that has done really well for us. Now I find out that our local "Curves For Women" that has just one tanning bed has added the line and has its regular retail price 35% less than what I am selling it for. We are selling it for suggested retail. We have done really well with it, but I don't want to appear to be gready when I price it at suggested retail. Could it be a potential problem? Should I be concerned? If so, What should I do? I don't mind throwing a discounted special out there once in a while but this is crazy. Even the diverted products at least sell closer to retail! Any thoughts would be appreciated. Thanks!

top250tansyou · 03-22-2005, 06:16 AM

If i buy a lotion at $10 and sell it $30 i think that is greedy. I double what i pay and add 12 - 20%. I also let customers know this so that they know they are getting a better deal buying it with us. CT7 retails for $100. I do not sell it for $100 but i make a very good profit on it.

dcjjp2 · 03-22-2005, 08:42 AM

I agree Top, MSRP for lotions is a joke to try to get these days. I am more on the volume at a fair price strategy. ex. I sell my product less my % discount (from MSRP) I get from my disty add my commission and that dictates my price. I sell tons and tons of lotions weekly. Also, every one on here complains that RAI Tanology isn't set up for a profit for salons, but I do quite well with mine.

engfant · 03-22-2005, 10:06 AM

Quote:
On 2005-03-22 06:16:00, top250tansyou wrote:
If i buy a lotion at $10 and sell it $30 i think that is greedy.

Oh yeah? How much you think it costs to make those shoes on yer feet? Pants on yer ***? You are NOT factoring in the INDIRECT COSTS involved in selling that bottle of tanning lotion.

If you have 1000sqft salon and say you are paying $1/sqft. So everything that takes up space in your salon is costing you $1sqft to house it. A bottle of lotion may take up 1/4 sqft which would cost $.25 to house this one bottle of lotion for 1 month. Times that by the 300bottles on hand and you get $75/month.

That's only one cost.

You also have to factor in damaged goods, sampled items, sale items, costs to advertise the product (ink, paper, etc) labour costs to sell.

There are reasons for the SRPs.

You should be basing EVERYTHING on SALON COST. NOT your ACTUAL costs.

ramcat · 03-22-2005, 10:10 AM

I sell lotions at 5% below MSRP. It is a fair % for the salon and the price makes the customers very happy.

SwedaGuy · 03-22-2005, 11:36 AM

I'm at retail, unless you're a "member"...then the discount is anywhere from 15% to 25% (or more on discontinued stuff)...

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03-21-2005, 10:37 PM	#1 (permalink)
PHriend Join Date: Jan 23 2005 Posts: 7 Rep Power: 0	I have added a new High end lotion line this year that has done really well for us. Now I find out that our local "Curves For Women" that has just one tanning bed has added the line and has its regular retail price 35% less than what I am selling it for. We are selling it for suggested retail. We have done really well with it, but I don't want to appear to be gready when I price it at suggested retail. Could it be a potential problem? Should I be concerned? If so, What should I do? I don't mind throwing a discounted special out there once in a while but this is crazy. Even the diverted products at least sell closer to retail! Any thoughts would be appreciated. Thanks!

03-22-2005, 06:16 AM	#2 (permalink)
top250tansyou I love Derf!! Join Date: Jan 1 2004 Location: little rock Posts: 1,488 Rep Power: 22	If i buy a lotion at $10 and sell it $30 i think that is greedy. I double what i pay and add 12 - 20%. I also let customers know this so that they know they are getting a better deal buying it with us. CT7 retails for $100. I do not sell it for $100 but i make a very good profit on it.

03-22-2005, 08:42 AM	#3 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 3,228 Rep Power: 28	I agree Top, MSRP for lotions is a joke to try to get these days. I am more on the volume at a fair price strategy. ex. I sell my product less my % discount (from MSRP) I get from my disty add my commission and that dictates my price. I sell tons and tons of lotions weekly. Also, every one on here complains that RAI Tanology isn't set up for a profit for salons, but I do quite well with mine.

03-22-2005, 10:06 AM	#4 (permalink)
engfant Join Date: May 20 2003 Posts: 9,301 Rep Power: 29	Quote: On 2005-03-22 06:16:00, top250tansyou wrote: If i buy a lotion at $10 and sell it $30 i think that is greedy. Oh yeah? How much you think it costs to make those shoes on yer feet? Pants on yer ***? You are NOT factoring in the INDIRECT COSTS involved in selling that bottle of tanning lotion. If you have 1000sqft salon and say you are paying $1/sqft. So everything that takes up space in your salon is costing you $1sqft to house it. A bottle of lotion may take up 1/4 sqft which would cost $.25 to house this one bottle of lotion for 1 month. Times that by the 300bottles on hand and you get $75/month. That's only one cost. You also have to factor in damaged goods, sampled items, sale items, costs to advertise the product (ink, paper, etc) labour costs to sell. There are reasons for the SRPs. You should be basing EVERYTHING on SALON COST. NOT your ACTUAL costs.

03-22-2005, 10:10 AM	#5 (permalink)
ramcat Join Date: Oct 26 2004 Location: Florida Posts: 2,262 Rep Power: 21	I sell lotions at 5% below MSRP. It is a fair % for the salon and the price makes the customers very happy.

03-22-2005, 11:36 AM	#6 (permalink)
SwedaGuy Waiting Confirmation Join Date: Sep 3 2004 Posts: 533 Rep Power: 0	I'm at retail, unless you're a "member"...then the discount is anywhere from 15% to 25% (or more on discontinued stuff)...

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