Presenting EFT

[DB Hottie]

I will be repricing and resigning our salon soon.

In doing so, I've been thinking about the way EFT is presented.
Sign up fee;Perks; Etc.

My thinking is that instead of saying there is a sign up fee....Say "The first month you will pay full price and every month thereafter, your rates are half price."

Client mindset: No sign up fee to get the discounted rate.

Even though it is the same thing I think the verbiage used might be better.

Anyone else present/sell EFT this way? Is it better?

[navigatin1]

Jeff does it that way. Dcjjp or whatever his screen name is.

[The Spook]

We don't have a signup fee. Just a flat rate with a 12 month commitment. They're not selling that well, though, so I like your idea.

Basically this is how it works here... If you commit to 12 months, you get 50% off of the standard month-to-month rate. If you don't want to commit, you pay full price for the first month, and if you renew before expiration you get 30% off subsequent months.

The former (EFTs) don't sell very well here, but people seem to like the latter (30% off subsequent month-to-months).

[BeautyisSkinDee]

Im the same as spook, no fee however you bringing it up that way I may look into starting that! The spook! What part of Wisco you from?

[dcjjp2]

That's how I do it. I talk about EFT and tell them that their first month is the 30 day price, and on the anniversary (sign on date) it will auto bill for the lesser amount for as long as they wish to keep it open.

It is a great way for those that are interested in one single month, to get them on EFT. i let them have until their last day of their 30 day month to decide if they want to continue for the EFT price and perks that they would receive once signing on. We convert quite a few this way. Even if it's for a few months, it's better than them just walking away.

[MicroSpa]

DB, I have a salon near me that does this and they seem to do well with it. It seems a little confusing in my mind but it does work for them.

I'm of the opinion however that you should have a signup fee. The reason being is that it is something you can use to convert customers to memberships. If it's say $50 for the signup fee, tell the customer from an advertisement that they will only have to pay $25 or zero or whatever you want to convert them that day. They feel like they are getting a better deal that way. There are so many possibilities on what you can do with it. You can also use it to cover the expense of products you want them to try out in sample forms that will lead to other sales.

Good luck.

[glowtanning530]

Don't use the words: commit, contract etc.
Its a membership and a member agreement
We are $19.88 a month, there is no enrollment fee. You only pay and early cancelation if you cancel before 12 months.
Save 30% on skin care the day you enroll, and 15% there after and half off your upgrades any day of the week.

[DB Hottie]

We've always had a sign up fee and I have no intention of getting rid of it.

First month EFT and sign up fee are equal to a one month [30 day] pkge now anyway.

We just don't "sell it" that way. We sell it as the monthly rate w/ a sign up fee.

Glow, I agree wording is everything and I'm evaluating overall presentation. I would think getting a fee on the front end would be much easier than on the back end.

[CrystalSS]

DB...interesting thought on the presentation. I will never get rid of the sign up fee and one main reason is it keeps the wrong people out of the place.

Same reasoning for cover charges at a night clubs. Those that have the cover charges tend to keep out the majority of the riff raff. Certainly a few slip in the door now and again.

I do tend to offer a sign up "promotion" that shows a value equivalent to the sign up fee. In my case they get one complimentary session in each upgrade bed. It is a great way to introduce them to the higher levels by giving them a sample.