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Old 11-14-2009, 12:40 AM   #11 (permalink)
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Re: Do you want to open a salon?

Quote:
Originally Posted by His&HerTanning View Post
Well not all of us can afford to buy/start a biz then add brand new equip... We Fix up what we bought and update..
You can get nice high end beds used too which will give you more value.


Quote:
Originally Posted by His&HerTanning View Post
Not everyone likes the highend places for that very reason, high prices passed to the customer...
What exactly does that statement mean? That's like saying not everyone likes filet mignon and lobster, some just like eating dog food.

Also, His and Hers Tanning, you need to stop giving out advice. It is not very business minded. You want high end equipment, you want EFT contracts, you want people that spend money.

You do not want bottom feeders, you do not want to let the tail wage the dog, you do not want month unlimited, you do not want minute packages.

Last edited by Brian Oshman; 11-14-2009 at 12:46 AM.
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Old 11-14-2009, 12:48 AM   #12 (permalink)
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Re: Do you want to open a salon?

If you can't afford to do it right then don't do it at all.

Go big or go home.
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Old 11-14-2009, 08:23 AM   #13 (permalink)
 
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Re: Do you want to open a salon?

Why would you not want to offer monthly unlimited?
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Old 11-14-2009, 10:27 PM   #14 (permalink)
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Re: Do you want to open a salon?

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Originally Posted by His&HerTanning View Post
Why would you not want to offer monthly unlimited?
Unlimited promotes irresponsible tanning habits and is not necessary with good equipment. This is what you trade out for contract EFT packages. EFT can and will get you through the slow times by spreading out the revenue.

Another definite no no is minute packages. Minutes are Death!

Minute packages leave money on the table. Customers will stockpile and spread out their sessions by doing less time and then complain that they are not getting tan because they are not following proper tanning schedule by doing this.

Also, since they will stretch out a package and milk it you are in turn losing money because they tie up the room for more visits and they are not spending any money.

Minute packages were a tool when VHR beds first hit the market and no one believed that you could get a great tan in 12 minutes* so to start the buzz and market it the minute package was born. This allowed customers to buy minutes but actually go for the recommended schedule because you would have to start off at 6 minutes (average) on a VHR bed and customers thought they were getting ripped off when in actuality they were making out.

The amount of time you can go on a tanning bed based on your skin type and tanning progression is the full time. The time on the bed is the maximum time. 6 minutes the first session is not a half a session, it is a full session because you are receiving your full dose in that time period. A session is a session.

Now, by selling minutes the customer is still using the bed and it costs you just as much whether the bed runs 6 or 12 minutes or on a base bed 10 or 20 minutes. You have the same labor of cleaning it, the same laundry, the same wear and tear on the bed and lamps, and all the while you are making half the money doing it.

Selling sessions and points packages and EFT is the way to go.

Make your single session prices high and then offer packages that discount that price. That is what establishes the value. Don't make the packages directly reflect the single session price. You want to create a sense of value to purchasing the packages based on the single session pricing.

Points packages work like carnival tickets. You buy a sheet of tickets (points) and you can ride any ride (bed). The better more thrilling rides cost more tickets but you can use the package for any unit in the salon. Points packages are a proven way to maximize your revenue intake. The customer buys a set amount of points for a price and then they don't have to pay up charges to use the better stuff but it doesn't seem so expensive to them since they are not spending money each and every time they visit and will tend to use the better stuff because they already have points on file.

EFT is the program that pays your rent, your electric, etc... This is the package that you offer under contract. You do not formally advertise this one. You make it exclusive. This will have the best pricing as they are getting the cheapest pricing but have to make a minimum commitment to get it. This is offered to those that want the lowest pricing. You sell this with a contract and sign up fee. You make it seem exclusive and stress that there are only so many slots available and if they cancel then they can never get back on this program and get the best pricing possible.

You don't want all of your customers on this program, you just want enough to cover most of your expenses, then the rest of the customers are your real profit. The customer you want on this is the one that never comes in and tans. You make it low enough that they will not mind paying the fee. This type of package will include half price upgrades, discounted lotions, etc... It is like a club and to get the good pricing you have to be "in it".

*(but they think they can split 20 minute sessions into two 10 minute sessions on 100 watt beds and get great results but can't because customers are idiots and idiot salon owners allow this to continue)
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Old 11-15-2009, 10:42 AM   #15 (permalink)
 
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Re: Do you want to open a salon?

Well in my opinion thats doing the customer wrong, shady! We do offer ETF packages, 3, 6month etc. but never am I going to tack on a fee for starting it. If I don't have to pay any extra fee then why should I pass it on to the customer...

What is your salons name, and where?
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Old 11-15-2009, 12:55 PM   #16 (permalink)
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Re: Do you want to open a salon?

There is nothing shady about it. It is called making a profit. I guess you prefer to run your business as a charity. If you struggle to pay the bills then it is time to change the way you do things. You can't stay in business and make a profit by giving away the farm. The salon, and all of the responsibility belongs to you, not your customers.

When it comes time to maintain the equipment and pay the rent in the slow season if you are complaining and struggling then it is time to restructure your plan. If you enjoy leaving money on the table and giving it all to your customers and being broke then by all means just continue on with the money losing plan you are running now and don't bother asking questions on how to maximize your profits.

Failure is always an option.

Last edited by Brian Oshman; 11-15-2009 at 12:59 PM.
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Old 11-15-2009, 01:23 PM   #17 (permalink)
 
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Re: Do you want to open a salon?

Instead of speaking out of your *** realize whats going on, I never asked how to or what to do. I merely responded to some one else's question. We run a salon without having a rip-off plan. Yes I'm sure your plan (no money left on the table) will be profitable, but we have had enough customers coming to us from big high priced salons. We don't plan on getting rich or breaking the bank. When commenting on your 200+k comment, I just wanted to say thats not true. Many of us do not have that kind of money and I'm sure you don't either! You seem to have allot of knowledge, but no experience in opening a salon. By no means am I trying to get into a ******* match, just seems as if We are in the middle of running a salon and you are selling tech/products.... So yeah if it weren't for people like us then you would be jobless...

So by all means send me a catalog of what ya got...
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Old 11-15-2009, 04:12 PM   #18 (permalink)
 
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Re: Do you want to open a salon?

So whats your opinion on a special of 20 tans for $50.00?
We were planning on taking over a salon Dec. 1st and the owner has decided to run this special this month....leaving us to honor all these tans?
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Old 11-15-2009, 05:29 PM   #19 (permalink)
 
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Re: Do you want to open a salon?

I wouldn't, half our monthly members come one out of three days. 30/3=10 @ 30$ a month. We come out better giving the customer unlimited (of course limited to one visit a day) if the customer has 20 tans then as Oshman would say "moneys left on the table".
In my opinion I wouldn't offer that.
Maybe 5 for 20$ so the customer can get a feel or a base tan for an event..(had a few do this)

thanks,
brad
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Old 11-15-2009, 06:08 PM   #20 (permalink)
 
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Re: Do you want to open a salon?

No I am not saying I would do this....it has been done to us!
We were going to take over as of Dec 1st and now they have put on this special....therefore everyone that buys this special gets 20 tans that they can use whenever and we don't get any money for it! So they get the money and we get to honor everyones tans....just a little rude don't you think...it's actually a deal breaker- we are not going to take over when everyone has just purchased this crazy package- how will we pay our bills for the next couple months? I mean $2.50 a tan come on....and 20 tans...it could take some people months to use all those up...
Sorry I just felt like venting....I was really looking forward to buying this salon, and now we don't think it would be that smart...especially when they are saying they don't know how to find out how many tans are already out there, pre-paid...you would have to be an idiot to not want to find out wouldn't you?
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