01-17-2014, 10:05 AM | #11 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Competing with ridiculous Competitor's specials Quote:
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01-17-2014, 12:23 PM | #12 (permalink) |
Join Date: Sep 6 2010 Location: georgia Age: 34
Posts: 50
Rep Power: 0 | Re: Competing with ridiculous Competitor's specials And its another lose for the store because if i did that special and then ahd to wait every time i went in i wouldn't go back so just sit tight because all they are going to do is **** people off unless they aren't waiting |
01-17-2014, 12:30 PM | #13 (permalink) | |
Join Date: Jan 30 2008 Location: michigan
Posts: 792
Rep Power: 17 | Re: Competing with ridiculous Competitor's specials Quote:
The $1 menu working just fine at mcdonalds and Burger King. One would think it would put em under. | |
01-27-2014, 11:57 PM | #14 (permalink) |
Join Date: Mar 7 2004 Age: 50
Posts: 50
Rep Power: 0 | Re: Competing with ridiculous Competitor's specials never change your prices... you have to sell value and you have to sell customer service.. you will lose some and you will gain some.. keep your price the same, but offer more.. you have to fig this out... |
01-28-2014, 09:07 AM | #15 (permalink) | |
Join Date: Aug 22 2011
Posts: 128
Rep Power: 13 | Re: Competing with ridiculous Competitor's specials Quote:
Never change your prices?!? I up my prices almost every year ;) | |
01-28-2014, 02:48 PM | #16 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Competing with ridiculous Competitor's specials Quote:
So if Someone sells 1 month for 15.99 and lets say it costs $1.50 to run the bed (per visit), how are you going to do over the long run? You had better do one heck of a volume. Most people do these cheap specials for 1 reason only; to take market share (your business). In the long run, You cannot maintain equipment or improve your salon with those low margins. The fact that they haven't stopped those specials tells me that they are in trouble. | |
01-28-2014, 07:18 PM | #17 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Competing with ridiculous Competitor's specials Quote:
Not true. There are fixed costs and variable costs. For example - your rent and payroll and any loans you took out are fixed costs you have every day whether you turn the beds on or not. The VARIABLE costs are those that go up - because you turn on the bed. Generally speaking - the cost of the electricity to fire up the unit and the amount of "wear" you use on the lamps. To run a base bed - somewhere between $.25 and .50, depending on how many lamps, what you pay for lamps, how often you change them, and your cost of electricity. | |
01-28-2014, 07:22 PM | #18 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Competing with ridiculous Competitor's specials Quote:
I could buy a bottle of lotion for $5 - sell it for $50. And give 20 visits on a L1 bed - which would cost me about $10. Meanwhile - during the 20 visits - talk to you about the benefits of upgrading, for "only a few dollars more today". Get you to do that even just a couple of times - maybe another $20-30. At the same time - your friends might ask where you tan and THEY check me out. Not EVERYONE will buy the free visits with lotion package -- just like not everyone eats from the dollar menu at McDonalds. It CAN still make a little money for the salon. But most of all - it is done as a 'Lure' to get you in the door, NOW, before busy season. When that package runs out - the staff sells you another one - NOT at that same big discount the next time. And they are locked into THAT salon for season. Rather than their competitors (your salon). | |
01-29-2014, 06:31 AM | #19 (permalink) | |
Join Date: May 26 2012 Location: Mid-market
Posts: 23
Rep Power: 0 | Re: Competing with ridiculous Competitor's specials Quote:
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01-29-2014, 07:47 AM | #20 (permalink) | |
Join Date: Mar 18 2005 Location: GA
Posts: 1,153
Rep Power: 20 | Re: Competing with ridiculous Competitor's specials Quote:
1) The tanning industry is shrinking not growing. 2) The tanning business is seasonal 3) Not everybody is going to tan indoors even once in their lifetime. (1 out of 10 or less) 4)Tanning is not a homogeneous service As I have said before, these low price "gimmicks" are designed to take your marketshare away, not to be profitable long term. | |
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