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gravesmc 05-12-2016 04:57 PM

Minutes/points vs sessions and monthly packages
 
Does anyone still sell minutes or points? We sell 5 and 10 session packages and monthly EFTs, plus 1 week and 30 day passes, along with other "specials" The tanning business that sold minutes has just closed, and I hired an employee from there. We have 3 different levels and 5 different beds. It is a lot to go over with new clients, and when talking to my new employee, they had selling minutes so much simpler. We are getting a lot of new clients lately, especially with the other business closing. Not complaining about it, but it is tiring going over my pricing sheet over and over. It takes time. My EFT's pay for my rent, so keeping that option. Always get people that will tan everyday...EVERY DAY..and tell me they want to be sure to get their moneys worth. I actually loose, when they come every day. They wouldn't do that with minutes/points. What are your thoughts?

Ken 05-13-2016 12:29 PM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by gravesmc (Post 15093508)
Does anyone still sell minutes or points? We sell 5 and 10 session packages and monthly EFTs, plus 1 week and 30 day passes, along with other "specials" The tanning business that sold minutes has just closed, and I hired an employee from there. We have 3 different levels and 5 different beds. It is a lot to go over with new clients, and when talking to my new employee, they had selling minutes so much simpler. We are getting a lot of new clients lately, especially with the other business closing. Not complaining about it, but it is tiring going over my pricing sheet over and over. It takes time. My EFT's pay for my rent, so keeping that option. Always get people that will tan everyday...EVERY DAY..and tell me they want to be sure to get their moneys worth. I actually loose, when they come every day. They wouldn't do that with minutes/points. What are your thoughts?

There's a reason that the other salon closed (failed) and I would be pretty sure that selling minutes was a big part of that reason. There will always be some people who try to push a membership as far as they can, so instead of worrying that you may actually be losing money on those clients, focus on the averages vs sessions generated by your whole client group and price accordingly.

Black Sun 05-14-2016 07:25 AM

Re: Minutes/points vs sessions and monthly packages
 
Selling minutes is passe'....most salons seem to be doing exactly what you are doing.

I don't see how 'selling' what few, but good options, you offer can be tiring. It seems fairly basic. Do you have the price structures displayed on a menu/board/web site? This could fairly self explanatory and save you/staff from having to explain to everyone.

Turbo Girl 05-17-2016 05:15 PM

Re: Minutes/points vs sessions and monthly packages
 
If they are tanning daily, each day is a new sale opp. You know they're going thru alot of lotion, extender, etc.

sunsally 05-18-2016 12:07 PM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by gravesmc (Post 15093508)
Does anyone still sell minutes or points? We sell 5 and 10 session packages and monthly EFTs, plus 1 week and 30 day passes, along with other "specials" The tanning business that sold minutes has just closed, and I hired an employee from there. We have 3 different levels and 5 different beds. It is a lot to go over with new clients, and when talking to my new employee, they had selling minutes so much simpler. We are getting a lot of new clients lately, especially with the other business closing. Not complaining about it, but it is tiring going over my pricing sheet over and over. It takes time. My EFT's pay for my rent, so keeping that option. Always get people that will tan everyday...EVERY DAY..and tell me they want to be sure to get their moneys worth. I actually loose, when they come every day. They wouldn't do that with minutes/points. What are your thoughts?


Your price structure - even with 3 different levels and 5 different beds, shouldn't be that difficult to explain.

If you have 3 "levels" of pricing - then it doesn't really matter how many different options of beds at each level.

For each level, you should offer the same "options". So your price talk should go something like this:


"As you just saw on the tour, we have 3 different levels of equipment. With any package you can always use anything at a lower level whenever you want, and can always pay a small fee to upgrade to a higher level.We offer membership, sessions as well as short term unlimited packages.

Membership is your best value, giving you unlimited access at the cost of just a few sessions/month.

For sessions, as you buy more sessions, the price per session decreases.

Unlimited weeks or months are also an option, typically for those customers wanting to tan 3x/week or more for a short term.

Since you are a new customer, our new customer special is..."


Keep it simple. Give them the tour. Show them the price matrix and tell them "Pick the equip you most like to use or pick your package budget - you can always upgrade up"

Steve Underhill 05-20-2016 08:57 AM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by gravesmc (Post 15093508)
Does anyone still sell minutes or points? We sell 5 and 10 session packages and monthly EFTs, plus 1 week and 30 day passes, along with other "specials" The tanning business that sold minutes has just closed, and I hired an employee from there. We have 3 different levels and 5 different beds. It is a lot to go over with new clients, and when talking to my new employee, they had selling minutes so much simpler. We are getting a lot of new clients lately, especially with the other business closing. Not complaining about it, but it is tiring going over my pricing sheet over and over. It takes time. My EFT's pay for my rent, so keeping that option. Always get people that will tan everyday...EVERY DAY..and tell me they want to be sure to get their moneys worth. I actually loose, when they come every day. They wouldn't do that with minutes/points. What are your thoughts?

Your price structure should be simple while having something for every type of tanner. Only have as many levels of tanning as your equipment mix dictates. You should never try to create 3 levels of tanning when you only have 1 or 2 true levels of equipment. Monthly sales meetings is a must to insure your staff has the proper tools to motivate sales. Minutes and even credits are a thing of the past.

gravesmc 08-04-2016 09:58 AM

Re: Minutes/points vs sessions and monthly packages
 
I am trying to settle something with my partner. When pricing a 1 mth pass, do you price it according to what a certain number of tans would be?

sunsally 08-05-2016 06:58 AM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by gravesmc (Post 15093647)
I am trying to settle something with my partner. When pricing a 1 mth pass, do you price it according to what a certain number of tans would be?


You can't just pull one number out of the pricing plan - it is all part of a "system".

However, I tend to set up as follows (depending on competition and what we are trying to accomplish):

single price
5 visits - approx 80% off
10 visits - approx 70% off
20 visits - 50-60% off
Month - approx price of 10 visits - and about 3 "weeks"
Week - price of two singles
EFT - approx 50% of monthly


So if your walk-in was $7...might look like this
$7
5/$28
10/$49
20/$79
Week - $14
Month - $45
EFT - $20

Your basic pitch is:

"We have several levels of beds and pricing plans to fit YOUR plan.

The BEST value is our Membership - average just 3 tans/month and it pays for itself!

If you do NOT do membership, Visits are best if you typically tan 2x/week or less. As you buy a bigger package, you get a better price per tan!

Week and month are more cost effective if you tan more frequently. As you can see, a month is just less than the 10 visits price"



Anyone that comes in to buy a single you try to at LEAST sell a week by pointing out it is the same price as two singles. "If you come just twice, it is the same money -- anymore than 2 times in the week and you are ahead of the game!"

Hot Tan 08-07-2016 09:00 PM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by sunsally (Post 15093652)
You can't just pull one number out of the pricing plan - it is all part of a "system".

However, I tend to set up as follows (depending on competition and what we are trying to accomplish):

single price
5 visits - approx 80% off
10 visits - approx 70% off
20 visits - 50-60% off
Month - approx price of 10 visits - and about 3 "weeks"
Week - price of two singles
EFT - approx 50% of monthly


So if your walk-in was $7...might look like this
$7
5/$28
10/$49
20/$79
Week - $14
Month - $45
EFT - $20

Your basic pitch is:

"We have several levels of beds and pricing plans to fit YOUR plan.

The BEST value is our Membership - average just 3 tans/month and it pays for itself!

If you do NOT do membership, Visits are best if you typically tan 2x/week or less. As you buy a bigger package, you get a better price per tan!

Week and month are more cost effective if you tan more frequently. As you can see, a month is just less than the 10 visits price"



Anyone that comes in to buy a single you try to at LEAST sell a week by pointing out it is the same price as two singles. "If you come just twice, it is the same money -- anymore than 2 times in the week and you are ahead of the game!"


sweet!!

Steve Underhill 08-11-2016 10:22 PM

Re: Minutes/points vs sessions and monthly packages
 
Quote:

Originally Posted by gravesmc (Post 15093647)
I am trying to settle something with my partner. When pricing a 1 mth pass, do you price it according to what a certain number of tans would be?

Packages must have a value progression starting with single session and going to your best value membership with steps in between that include the one month package. Calculate using average number of tans a month. I believe 8 is the number others use a higher number. A one month package should cost less than your largest session package 8 or 10 sessions, I believe it should be 8. The more the tan the better the deal the monthly package value will be, and so on up to the memberships.

You should not be figuring what your one month should be, you should be thinking about your entire price structure that will dictate the monthly price. A great deal of thought must go into price structures and be willing to make changes. That does not mean higher prices it means how tanning packages are presented based on the needs of todays consumer that is constantly changing. Be fluid in your thinking. You can present the same thing a number of different ways. Forget about minutes, and session packages should be the smallest part of your price structure and most expensive.


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