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Old 11-02-2012, 02:02 PM   #1 (permalink)
 
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Sun Tan City newest "deal"

Unbeleivable!!! Sun Tan City is running a special now for the "tour". Get 1 tan in all beds, PLUS a spray tan for $4.95. I can't even begin to take that kind of a loss. Last week was $1.00 tans. Are they that desparate or what?
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Old 11-02-2012, 02:24 PM   #2 (permalink)
 
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Re: Sun Tan City newest "deal"

What does the new cust. need to do to get the special?
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Old 11-02-2012, 02:27 PM   #3 (permalink)
 
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Re: Sun Tan City newest "deal"

Nothing...just use in 14 days
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Old 11-02-2012, 02:34 PM   #4 (permalink)
 
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Re: Sun Tan City newest "deal"

The retention % must be very high or STC would not offer this.
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Old 11-02-2012, 02:45 PM   #5 (permalink)
 
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Re: Sun Tan City newest "deal"

Is it for everyone, or just new customers?
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Old 11-02-2012, 03:28 PM   #6 (permalink)
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Re: Sun Tan City newest "deal"

They call that a loss leader and totally assinine.
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Old 11-02-2012, 03:30 PM   #7 (permalink)
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Re: Sun Tan City newest "deal"

Sun Tan City averages $650,000 average gross revenue per store and nets $250,000 (EBITDA) a year.

Instead of calling them "Desperate" perhaps you should take some time and think about why they do the type of promotions that they do and how do they make them work? Is your current way of thinking making you $250k a year in income?
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Old 11-02-2012, 03:34 PM   #8 (permalink)
 
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Re: Sun Tan City newest "deal"

Quote:
Originally Posted by parrot head View Post
They call that a loss leader and totally assinine.
Every wonder how Rick averages 250k profit for his stores. I don't think it's from being "assinine".
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Old 11-02-2012, 03:36 PM   #9 (permalink)
 
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Re: Sun Tan City newest "deal"

Quote:
Originally Posted by House of Tan View Post
Sun Tan City averages $650,000 average gross revenue per store and nets $250,000 (EBITDA) a year.

Instead of calling them "Desperate" perhaps you should take some time and think about why they do the type of promotions that they do and how do they make them work? Is your current way of thinking making you $250k a year in income?
Like ^^ Was typing at the same time.
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Old 11-02-2012, 03:44 PM   #10 (permalink)
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Re: Sun Tan City newest "deal"

All they are doing is build market share right now.

Simple question: If you did not own a salon and you are a tanner; would you pass that deal up?

Next question: Once you have tanned for 14 days in top of the line equipment in a beautiful & clean facility with professional staff and have tried all the levels, do you think you might stay if the proper EFT price point is presented to you in a top-down approach?
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