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Old 07-22-2005, 04:23 PM   #1 (permalink)
 
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I'm a manager at a salon that just opened recently. We have a lot of competition in our area, and they charge a lot less then we do, (our prices are not outrageous) . Our beds are a lot newer and more powerful then the others, and we're doing all kinds of specials and incentives, but it's hard to get people in the door with the guys down the street offering $20/month tanning. We are turning barely any profit right now, and I'm considering lowering the prices. Any opinions, ideas, or suggestions for this situation?!?
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Old 07-23-2005, 08:42 AM   #2 (permalink)
 
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I am opening up also and we are going to have the same problem...I can see it. We are having specials, buy one get one free. We are going to have competetive prices but the other tanning salon has been in this area a while.. we are making our prices about 1.00 more because we have newer beds... Hope you do good with your incentives...We are new at this and I am a little jittery now...Good Luck.
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Old 07-23-2005, 08:42 AM   #3 (permalink)
 
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I am opening up also and we are going to have the same problem...I can see it. We are having specials, buy one get one free. We are going to have competetive prices but the other tanning salon has been in this area a while.. we are making our prices about 1.00 more because we have newer beds... Hope you do good with your incentives...We are new at this and I am a little jittery now...Good Luck.
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Old 07-23-2005, 10:13 AM   #4 (permalink)
 
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Midlo, how do your beds compare to the comp.? Maybe focus on your beds and better results with your specials, not just price.
Good luck!
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Old 07-25-2005, 08:43 AM   #5 (permalink)
 
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Our beds are a bit better then most. The only one we are really competing with is Atlantic Tanning it seems like, and their biggest bed is the Chill Bed, which isn't even HP. We carry Ergoline beds, our biggest bed being the 850. I think I'm going to lower the prices, but nothing drastic, just tweak them. I'm thinking that if the prices were still a little high, we can give our clients $10 off here, 20% off there, so they feel special and we're still making bank. So like you said, we can focus on our beds and look better with our specials and incentives. I explain to all our customers that we are a little more expensive, but it is for our beds and for the atmosphere.
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Old 07-25-2005, 08:43 AM   #6 (permalink)
 
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Our beds are a bit better then most. The only one we are really competing with is Atlantic Tanning it seems like, and their biggest bed is the Chill Bed, which isn't even HP. We carry Ergoline beds, our biggest bed being the 850. I think I'm going to lower the prices, but nothing drastic, just tweak them. I'm thinking that if the prices were still a little high, we can give our clients $10 off here, 20% off there, so they feel special and we're still making bank. So like you said, we can focus on our beds and look better with our specials and incentives. I explain to all our customers that we are a little more expensive, but it is for our beds and for the atmosphere.
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Old 07-25-2005, 02:38 PM   #7 (permalink)
 
Join Date: Apr 21 2004
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It is not as simple as selling tanning cheaper or lowering prices. The price of tanning should be a piece of a complete marketing program. You must support your pricing with a correct equipment mix and your price structure must be made up of a number of elements that address the buying habits of your tanners. What marketing program are you using? (How is your pricing and memberships structured and why?) Do you know how and why tanners spend money on tanning? You can't make random pricing changes or specials; they must be specific and strategic. Your pricing should not be made based on what other salons are doing. You must have a complete proven plan and follow it no matter what the competition. These decisions should be made in the early stages of opening your salon. If you had established a plan in the beginning you would know exactly what to do. It is like building something without following the instructions. If you know exactly how to build something it is easy, if you don't know how you must have instructions. Don't wait until it is too late to take advantage of instructions on opening a successful salon.
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