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Old 03-12-2008, 08:25 AM   #1 (permalink)
 
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pricing structure

Need advice. We are trying to come up with a pricing structure. The previous owners did it by session and packages. It was suggested that we do it by minutes and charge a membership fee. We were going to offer EFT but not make it a requirement. I guess I am wondering what works??
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Old 03-12-2008, 09:50 AM   #2 (permalink)
 
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Re: pricing structure

Both methods work. It's how you implement and sell it that's going to be the deciding factor. I do think a point system is more confusing to the customers. Some people say the eft's are the best thing to happen to their business but you're always going to have the people (myself included) that hate locking into automatic eft programs.... I've been 3 months trying to get Rhapsody to stop taking monthly fees from my checking! :)
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Old 03-12-2008, 11:23 AM   #3 (permalink)
 
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Re: pricing structure

Do you charge a beginning membership fee?
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Old 03-12-2008, 11:32 AM   #4 (permalink)
 
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Re: pricing structure

We do sessions and I think it is less confusing to the customers who come in.

We do a membership we they have to pay a joining fee then they get 1/2 off all packages and 20% off all product. That works very well for us.

We do EFT yet the are horrible here. People in our area are locked in my gym memberships and such and don't like it so they refuse to do and EFT. Some times EFT's work and some times they don't. It's worth a shot because those EFT's we do have we make money off of, because they don't come in very often.

Hope this helps.
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Old 03-12-2008, 11:39 AM   #5 (permalink)
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Re: pricing structure

With EFT you can always go with debit/credit cards. This avoids potential NSF fees on the user end of things, thats what people fear most with automatic withdrawals.
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Old 03-12-2008, 11:39 AM   #6 (permalink)
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Re: pricing structure

I never heard of doing a membership along with pkgs. Explain.
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Old 03-12-2008, 11:48 AM   #7 (permalink)
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Re: pricing structure

If you change over to minutes you will be back here next year asking how to transitition away from them. Offering minutes is only good for the consumer. You should be selling results, not time!!!!
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Old 03-12-2008, 12:26 PM   #8 (permalink)
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Re: pricing structure

Quote:
Originally Posted by neubie View Post
I never heard of doing a membership along with pkgs. Explain.
Its what we do, packages and EFT work well. We have tons of people on EFT, which is a monthly deduction/membership.

Then we have packages for those who just want one month or 10 tans, etc.

Is that not how many salons do it?

Places that force EFT cause clients to come to my salons :)
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Old 03-12-2008, 12:33 PM   #9 (permalink)
 
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Re: pricing structure

Quote:
Originally Posted by movieking View Post
If you change over to minutes you will be back here next year asking how to transitition away from them. Offering minutes is only good for the consumer. You should be selling results, not time!!!!
exactly.
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Old 03-12-2008, 12:58 PM   #10 (permalink)
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Re: pricing structure

Whoever advised you to go to minutes was wrong. As Movieking points out - you'll regret it.


What is your goal? How many units do you have total? What levels? How many beds in each level? What sort of competition is around? What packages were most popular under the old owners? Least popular?


It isn't like a grocery store where "Eggs - $1.49/doz". What pricing makes sense for YOUR salon is a function of all my above questions and more. Telling you what I do or don't do in my salon is of no value to you at all unless our salons are compatible, we have the selling skills and strategies, etc.
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