Tanning session packages? - tanTALK

fineous · 10-24-2002, 11:52 PM

When putting together salon packages should I have a less expensive package for customers that are just starting to tan, since the tanning sessions are so short for beginners.

Thanx;

fineous

TANMANBOSSFAN · 10-25-2002, 04:55 AM

When you consider all the costs involved with providing each customer a tanning session, overhead costs, like rent, labor, insurance, advertising, utilities, etc., comprise far more of your session expense than the marginally different expense of lamp and electrical usage for those "shorter" sessions.

For example, when I allocate expenses per session, I spend about $2.00 to provide a customer with a session (this does not include equipment cost). If the customer tans for only 10 minutes instead of 20, the lower usage of electricity and lamps lowers my cost by about 15 cents.

That 7.5% reduction in cost is not significant enough to go through the hassle of having a "beginners" price. Later, you'll have to raise their price. You would then have to explain the reasons for the increase. It would be easier to just charge a couple of more bucks from the beginning.

After over 5 years, and 15,000 customers, no more than 10 people have ever suggested they should pay less than our published prices. They quickly understood how insignificant the difference in cost is for the shorter session times.

Teresa · 10-25-2002, 06:13 AM

We sell our packages by the minute that way the customer feels they are treated fairly because we only deduct the number of minutes they use from there account.

Tamar · 10-25-2002, 06:38 AM

Call me naive, but I came from the car biz. I perhaps mistakenly assume it takes more to "fire up" the bed than when you're cruising along, regardless of length of session. Right or wrong, it's how I explain it to the very few that question it. Been working for me. I charge them all the same.

I do however, encourage beginners to buy a month rather than session packages. I see session packages better suited for tan maintenance as opposed to tan building.

Just my .03!

TikiTan · 10-25-2002, 09:47 AM

Also keep in mind that labor wise you may be spending more time with new customers to explain things... so the cost equals out...

fineous · 10-25-2002, 10:42 PM

Thank you all! It's a real help and comfort having a place such as this to ask questions.

Teresa,
How did you figure the cost per minute for your packages?

Thanx again;

fineous

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10-24-2002, 11:52 PM	#1 (permalink)
fineous Join Date: Oct 3 2002 Posts: 20 Rep Power: 0	When putting together salon packages should I have a less expensive package for customers that are just starting to tan, since the tanning sessions are so short for beginners. Thanx; fineous

10-25-2002, 04:55 AM	#2 (permalink)
TANMANBOSSFAN Join Date: Oct 22 2002 Location: Baton Rouge Posts: 82 Rep Power: 0	When you consider all the costs involved with providing each customer a tanning session, overhead costs, like rent, labor, insurance, advertising, utilities, etc., comprise far more of your session expense than the marginally different expense of lamp and electrical usage for those "shorter" sessions. For example, when I allocate expenses per session, I spend about $2.00 to provide a customer with a session (this does not include equipment cost). If the customer tans for only 10 minutes instead of 20, the lower usage of electricity and lamps lowers my cost by about 15 cents. That 7.5% reduction in cost is not significant enough to go through the hassle of having a "beginners" price. Later, you'll have to raise their price. You would then have to explain the reasons for the increase. It would be easier to just charge a couple of more bucks from the beginning. After over 5 years, and 15,000 customers, no more than 10 people have ever suggested they should pay less than our published prices. They quickly understood how insignificant the difference in cost is for the shorter session times.

10-25-2002, 06:13 AM	#3 (permalink)
Teresa Join Date: Dec 29 2001 Location: Davenport, IA Age: 60 Posts: 2,432 Rep Power: 25	We sell our packages by the minute that way the customer feels they are treated fairly because we only deduct the number of minutes they use from there account.

10-25-2002, 06:38 AM	#4 (permalink)
Tamar Join Date: Aug 15 2001 Posts: 1,906 Rep Power: 23	Call me naive, but I came from the car biz. I perhaps mistakenly assume it takes more to "fire up" the bed than when you're cruising along, regardless of length of session. Right or wrong, it's how I explain it to the very few that question it. Been working for me. I charge them all the same. I do however, encourage beginners to buy a month rather than session packages. I see session packages better suited for tan maintenance as opposed to tan building. Just my .03!

10-25-2002, 09:47 AM	#5 (permalink)
TikiTan Join Date: Jul 27 2002 Posts: 630 Rep Power: 22	Also keep in mind that labor wise you may be spending more time with new customers to explain things... so the cost equals out...

10-25-2002, 10:42 PM	#6 (permalink)
fineous Join Date: Oct 3 2002 Posts: 20 Rep Power: 0	Thank you all! It's a real help and comfort having a place such as this to ask questions. Teresa, How did you figure the cost per minute for your packages? Thanx again; fineous

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