05-07-2014, 12:33 PM | #11 (permalink) |
Join Date: Aug 21 2007 Location: San Jose, CA
Posts: 155
Rep Power: 17 | Re: Memberships prices and contracts Offering 2 EFT options has never been an issue for us as far as confusion. 30 days or long term leaves our clients wishing for a happy middle, so we gave it to them years ago and it works well. But I can see your point, it may be too much for some salons. |
05-07-2014, 12:45 PM | #12 (permalink) |
Join Date: Aug 21 2007 Location: San Jose, CA
Posts: 155
Rep Power: 17 | Re: Memberships prices and contracts We have always offered EFT to compliment the other options. There is no sales pressure to do it. Each option, including 30 days only, is available for each person's goals. And that's where we differ from other competitors that push EFT and hide other options available to the client. Our software handles EFT processing, so there is no extra fee for that. Pushing low pricing 100% of the time is a devalue situation...AGREED. Market forces, big players annihilating indys...all natural competition in my opinion. It's the part about EFT pushing clients out of the tanning industry is where I get a little cloudy. That argument keeps coming up and I don't understand it. That in itself is not pushing people out. It may be a factor amongst 10 others, but not alone. I got burned by Pep Boys once, and that's all it took. I never go back to them. But it didn't stop me from going to mechanics. |
05-07-2014, 01:10 PM | #13 (permalink) | |
Join Date: Aug 21 2007 Location: San Jose, CA
Posts: 155
Rep Power: 17 | Re: Memberships prices and contracts Quote:
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05-07-2014, 02:00 PM | #14 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Memberships prices and contracts Quote:
It really depends on how you are set up and explain things. I will start a separate thread on pricing programs and promotions. That said -- if you are a salon trying to "offer it all" -- it can be confusing to offer (for example): Several "visits" options (e.g. 5 visits, 10, 20,...) Several "unlimited" options (e.g. week, 2 weeks, month, year..) Several "membership" options (e.g. any cancel EFT, longer term EFT,..) Take all that - spread it out over 3-5 levels of equipment....it can get tough for employees -- and customers --- to know where/how to focus!! Trust me - I see this frequently in my consulting!! That said - it isn't insurmountable - and SOME salons can and are successful. But for MOST salons -- the "sell" of membership is (quick summary): "Sign up, it's the best value even if you tan just a few times/month on average. It's always here for you at a rate that is so affordable, you just come when it works best for you and it'll still be the best value". When you start getting into: "well with this option you can cancel anytime, but we charge you more per month because of that and there is a sign up fee, OR there is THIS option where you have to stay at least X months, but pay a little less per month and we don't do a signup fee, OR you could buy just one month if you aren't sure how long you are going to tan and can always buy another after that if you want, BUT we also offer visits if you want and that can be a good value for some people depending on how often you come in and if you want to share them with family members, AND of course, you can do this on any level so we should talk about which one you like best or what fits your budget, of course you can ALSO upgrade any time if you want, so you can really use any bed you want no matter what you do, and then on Y Day we do half off upgrades, so that can be a good value,......". You can see how, without a really WELL TRAINED sales person that EXPERTLY understands the pricing structure and TAKES THE TIME to learn each individual clients' needs to help direct them to the right choice.....it becomes a muddled quagmire!! :-) | |
05-07-2014, 05:18 PM | #15 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Memberships prices and contracts Quote:
When I started in this industry 22 years ago, we were charging 20-$30 per month for a basic bed (24-32 bulbs). When you sell the same package today for $9.99 or $18.88 is that a real, fair and transparent price? The answer is no, no, and no. There usually all sorts of other "fees" that are charged that are not advertised. Like start-up and annual membership fees, as well as bed upcharges. We don't tell the customer that there is only 1 bed for that package and that they will have to wait for an hour to get in it. Not transparent. Not fair. By the time their month is up they will end up paying far more than $30. And we think customer don't notice that, or care? So which would be fair and transparent; charge $30 upfront, or $18.88 and then nickel and dime them to death for the other $12? But, I guess some would call that "marketing". Do you really think that that reflects well on our industry? We look more and more like the airline industry, and we all know how much they are loved by the public don't we? I haven't flown anywhere in 10 years because of the crap you go through in air travel. SO....the question will be, does the Tanning public have a choice anymore? Answer: yes, in my town they do! | |
05-10-2014, 08:10 AM | #16 (permalink) |
Join Date: May 6 2009
Posts: 55
Rep Power: 0 | Re: Memberships prices and contracts It's the part about EFT pushing clients out of the tanning industry is where I get a little cloudy. That argument keeps coming up and I don't understand it. That in itself is not pushing people out. It may be a factor amongst 10 others, but not alone. I got burned by Pep Boys once, and that's all it took. I never go back to them. But it didn't stop me from going to mechanics.[/quote] Last edited by Bronze1; 05-10-2014 at 08:10 AM. Reason: incomplete |
05-10-2014, 08:43 AM | #17 (permalink) |
Join Date: May 6 2009
Posts: 55
Rep Power: 0 | Re: Memberships prices and contracts The end result of lower pricing through eft's and otherwise is, as we are seeing, less salons. The industry is already under attack and on the losing end of the anti-tan campaign. Seeing less and less salons is interpreted by the consumer as confirmation that obviously tanning is bad, that's why there are less tanning salons because there are less tanners. They don't connect salons going out of business with the low pricing/not enough volume scenario. They connect it with the anti-tan message. Now stay with me on this. Out of sight, out of mind. As it becomes less and less convenient to find tanning salons, the industry appears less legitimate to the consumer, the consumer thinks less about tanning, and the pie gets even smaller for whoever is still left trying to sell tanning. We are at the point where the average salons biggest challenge is not just making a profit or outlasting the comp down the street. When the comp down the street falls, it isn't just because they didn't know what they were doing. Its because the industry they are in is failing to continue to provide opportunity for enough salons (volume to offset low pricing) , before you even get to how well they are run or not. Burgher King, Mcdonalds and Wendys are GOOD for each other being on the same corner. It legitimizes fast food to the consumer and makes that corner as a convenient place providing that product. They can offer a dollar or value menu because they have enough VOLUME to offset it. Even though they compete head to head, the high tide of that industry gives each one a legitimate chance to succeed. That high tide is what the tanning industry has lost and continues to lose. So the result of low pricing in our industry connected with not enough volume is less salons, with some immediate winners and losers, but ultimately makes our industry less convenient and less legitimate with the consumer, which further weakens the industry. And the spiral continues. That's the point. Salons that survive think they are winning, but they are only winning todays battle just to lose the war, largely because low-pricing won't give them sustainability long-term. And our industry continues to emphasize low-priced memberships in an at best seasonal business on top of it. Brilliant. |
05-11-2014, 08:10 AM | #18 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Memberships prices and contracts Quote:
The bottom line is that the DEMAND for indoor tanning is going DOWN. We as an industry must look hard at what we are doing, and see where we are contributing to our own demise as an industry. | |
05-12-2014, 08:53 AM | #20 (permalink) |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Memberships prices and contracts You have to ask yourself, Why are people in this industry so willing to dump on people in it? We blame bad operators, unwillingness to change, unprofessional owners, old equipment, etc. etc,... Who has the agenda here? Why do some people want us all to talk alike talk alike, and run our stores alike? |
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