Steve Underhill

This in no way is a formula that should be used today. Did you read this formula and think it was correct? If you sell 20 session packages you will not sell eft memberships. Never let sessions sit in the data base, selling large session packages takes the tanner off of the market. The % of discount is crazy.

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Stephen Underhill
Consultant
steve@smuconsulting.com

Steve Underhill

If you sell using the pitch that the average person tans 2x 's a week the highest session package should be 8 sessions. If they tan more than 2 x's a week it drives them to the one month which is better because it expires in 30 days. A 10 session package may last 2 months making you $49 as opposed to selling 2 months for the 60 days of tanning, and so on progressing up to the eft. Don't let session packages kill your membership sales. You must understand why a progressive pricing works to your benefit. And allows for effective promotions. A salon that has 10 and 20 session packages sells mostly session packages, because that is what that structure is designed to do. If you want to sell memberships that is what your price structure must be designed to do.

I always hear salon owners say they tried EFT memberships but it did not work for them. It did not work because they sold a lot of session packages or minutes. They cancel out the EFT memberships. You can't just add eft memberships to pricing that is not designed to sell memberships.It is important that you understand this before you will ever maximize the income potential of your salon.

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Stephen Underhill
Consultant
steve@smuconsulting.com

sunsally

There is no "one" equipment mix, no "one" market conditions, no "one" set of salon owner strengths and interests --- and no "one" way to build a price structure!!!

What there IS "one" of is the fact that realizing ALL of those items must be in alignment for you to maximize success!!!


Your equipment mix, clientele, sales ability and more will all play a role in determining your proper pricing structure.

sunsally

In some cases this is true. And often it is not.

Understand the reality of today - not ALL our customers are unabashed, year round, frequent tanners!

In fact, some, come skulking in looking like they are afraid their neighbor is gonna catch them going into a sex shop!

SOME try to 'hide' their tanning - from themselves ("oh, I don't really TAN....I'll just get a single" (week after week after week.....)

SOME try to "hide' it from their spouse ("I pay cash - my husband would kill me if he knew I was tanning!")

SOME are purely "event" tanners - school dances, vacation, holiday parties,...

SOME are trying to "cut back" - just certain months, or units, or limited visits.

And so on and so on.


Managing a consultative sales process will be best to maximize the revenue from EACH unique customer. Engage the customer in conversation re. their goals. Do they have an upcoming event, are they a regular tanner, etc....


Then you can LEAD with membership as suggested above - for their convenience, best value, etc etc

But for those that WILL NOT be a membership member - for whatever reason - you then decide what to sell them next.


a. Method 1 -- "We recommend membership as the best value......no, ok, if you decide to pass on that then you get 2 choices - month or 8 visits. Pick"


b. Method 2 -- "We recommend membership as the best value.......no, ok, if you decide to pass on that then let's talk about what might be the next best value for you based on your needs.....we have several options, starting with our 20 visit packages which will be the lowest cost per tan....."



In the above scenario, Pricing is probably as follows:

a. Method 1 -- Non membership - $49.95 for 1 mo or 8 visits

b. Method 2 - Non membership options range from $14/week to $80 for 20 visits.


Method 2 allows more choices, ALL OF WHICH STILL ARE PROFITABLE to you, but also reflect the different goals, budgets and needs of your customer as well.

kookyguy

Steve how are your salons doing?

Steve Underhill

The salons and chains I consult for are thriving and continue to grow. I guess you have not been paying attention. I am not a salon owner I am a tanning salon consultant. After many years in this industry I have found that almost every salon can gain from outside knowledgeable assistance. My clients are doing great. Thanks for asking! Unlike many tanning salon consultants I have owned many salons and spent many years in every field of the tanning industry. For the past 16 years I have put that knowledge to good use consulting and continuing to learn. I have even spent a great deal of time hoping to learn something useful from you. No luck yet. I have learned how to be a negative hater from you. However that is not something I would share with my clients.

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Stephen Underhill
Consultant
steve@smuconsulting.com

Steve Underhill

I have always respected your views and yuou share a lot of great information. The problem as I see it when you put packages in your pricing for potential tanners that never generate substantial income for your salon, those packages will reduce potential income from the base and avade tanner. I believe it is much smarter to offer packages that the tanner you describe must choose from rather than creating a structure for that tanner that will reduce your overall income potential.

Every time I find a salon that is heavy in session packages or minutes, the proper price changes increases sales 100% of the time.

I believe as a business owner you should focus on maximizing income while minimizing operating cost without diminishing your product. Be willing to drag those tanners that want to buy only sessions into todays world. When you sell large session packages it kills memberships and you only get paid when your bed is turned on. That is the reason so many salons close because they are afraid to change.

What you are suggesting is just a different method of pricing tanning than todays most successful salons. I is certainly one way. I propose that salon owners that sell large session packages try 12 months focusing on memberships while still offering session packages that are no greater than 10 sessions. I assure they will increase sales over the 12 months and have stronger slow seasons.

One week packages 5 and 8 or 10 session packages should take care of the tanner you are describing without loosing money with your core tanner.

Ann you know in many cases struggling salons have more problems than the price structure. That is just a major part of a great salon.

I know with your assistance salon owners will always improve. We have slightly different approaches to pricing. There can be more than one successful business model. Salon operators can learn a lot from you.

__________________
Stephen Underhill
Consultant
steve@smuconsulting.com

kookyguy

LOL you have no idea what is going on, a salon that hired you as a consultant just went out of business a few months ago. I guess once they have paid you, if you don't hear from them, you just assume all is great going forward.

Wynwood

The membership-driven model works as long as (1) a large share of the population is loose with $20/month and willing to ignore paying it out every month whether they use it or not, i.e. the old gym membership game, and (2) the tanning population is not declining. Neither of these are the case in 2016 which is a big reason major brands have abandoned some big markets. I think the new level of resistance is around $10 not $20. Can you say Planet Fitness and Zoom Tan?

sunsally

Exactly.

There are still a lot of reasons to push EFT memberships - no doubt!

But the "reality" for many salons is that tanning is no longer as "cool" and not everyone will be swayed by "you can tan as much as you want for really cheap, all year round".

Salons with STRONG SALES PEOPLE (think many of the major chains that select for this and cut stragglers fast!) who are located in GOOD MARKETS with strong advertising will still push this STRONG - and have a price model similar to Steve's.


Everyone else -- can and should still "open" the discussion with EFT and membership - absolutely!

But if your only OTHER options are limited, expensive, and presented with disdain toward the client's expressed desires -- then you have customers who either leave OR purchase - but don't feel great about it and will be open to offers from other salons.....


Pricing and promotions are a system that need to be in alignment with your overall plan. Your equipment mix, staff skills & strengths, level/quality/approach of competitors, and more all have a role in determining the best approach.