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?

Re: Minutes/points vs sessions and monthly packages
 

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.

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.

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.

Re: Minutes/points vs sessions and monthly packages
 

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"

Re: Minutes/points vs sessions and monthly packages
 

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.

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?

Re: Minutes/points vs sessions and monthly packages
 

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!"

Re: Minutes/points vs sessions and monthly packages
 

sweet!!

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

Steve how are your salons doing? :icon_wink:

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

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?

Re: Minutes/points vs sessions and monthly packages
 

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.

Re: Minutes/points vs sessions and monthly packages
 

Always keep in mind the whole point behind your price structure is to maximize your income potential at the end of each year. By trying to accommodate a select few with a package that makes session tanning the best value in the salon you will substantially reduce the amount of income that can be generated from the core or main group of target tanners. Have something for every tanner within a plan that does not lower potential overall income. Those few tanners you may be trying to do something special for will not be there when you close. Large session packages will lower your income potential in todays market. They also reduce your ability to run specials. There is really never a need to sell larger than a 10 session package unless associated with a promotion.

Re: Minutes/points vs sessions and monthly packages
 

frankly with the salon challenged, bc of the po, and the lack of eft participation with no signs of it getting better ( yeah my fault) i prefer higher priced single and low count session packs.... can you imagine same loyal clientele/ and frequency ; but everyone pays singles sessions......

Re: Minutes/points vs sessions and monthly packages
 

If you are not doing well or increasing the number of EFT memberships being sold it is because of something you are or are not doing. Take a close look at your overall price structure and how you advertise and what you advertise. The number of EFT members you have should always be growing.

Re: Minutes/points vs sessions and monthly packages
 

don't really want to convert a customer that re-ups month after month and get less money from them by switching them to eft

eft dis-enrollment exists, no salon is immune, unless they enforce some hardcore contract, why bother signing them up when fall off in a short time, i know this is negative thinking, but some salons squeak by without a robust EFT participation rate

maybe you can give an example of successful salon with low eft sign-up

if a salon does not have the traffic, i want that traffic to pay higher per visit, and they seem to be fine with that, those tanners are made aware of the more cost effective tanning but choose otherwise....

personally i dislike monies vanishing from my accounts for anything but utility bills, so i would prolly never be a a eft tanner, i 'll pay the premium for the freedom to quit at will

Re: Minutes/points vs sessions and monthly packages
 

So the salon I currently work for sales minute packages/sessions and eft's... we're the only local business in the tanning industry left compared to our competition (which is a chain) so we must be doing something right...? I want to update our packages and change them into sessions and change our EFT pricing to but since where doing so well and the only ones left selling minutes should we not get rid of those minute packages and continue selling them? Was looking to change our menu after the 1st of the year...

Re: Minutes/points vs sessions and monthly packages
 

Got away from minutes a long time ago, and should have done it even sooner.

However, we are still offering points that can be used in all of our beds....is this a thing of the past as well? Should I be offering sessions instead? What is the resistance (from a customer point of view) to points?

Re: Minutes/points vs sessions and monthly packages
 

I don't know if our owner will eer get away from minutes unless someone buys the salon from her...she's stuck on minutes... our clients love them.. another local salon closed and transferred all her people to the competition, they got made cause the competition turned their minutes into sessions... then they came over here because we have minutes.... I guess our town is old school...

Re: Minutes/points vs sessions and monthly packages
 

A tanning salon is most like a fitness center. Can you imagine use of a fitness center being used and paid for by the minute? If your salon only gets paid by every minute the equipment is turned on you are loosing substantial income. Tanners buy what you sell based on the quality of the product.

Being the only salon in town is a great opportunity to establish the standard for what and how you sell your packages.

There is always an uncomfortable period of time when transitioning to new programs. You spend a lot of time trying to gain knowledge here, good for you. You should find a way to buy this salon and turn it into what it could be.

Re: Minutes/points vs sessions and monthly packages
 

I finally got rid of Minute packages 6 months ago and it was one of the best things I ever did in my 17 years in this business. My PCA is way up and my customers are getting way better results. Its a win win for everyone. I am currently the only salon in town doing it so it can make explaining to some more difficult but once you make a customer understand that they should not look at what they are losing and to look at what they are getting they love the idea. It has also caused a huge increase in upgrades.

Re: Minutes/points vs sessions and monthly packages
 

1. Client "love minutes" because it is the LEAST PROFITABLE program for salon owners - and therefore the best "deal" for customers. But in many cases, the salon is actually offering packages that result in NEGATIVE REVENUE for the salon.

2. Just because "some" customers came to YOUR salon and SAID their "reason" was that the other salon had sessions and you have minutes..... it is not that simple. Have to look at all the OTHER reasons that may have also factored into their willingness to look elsewhere -

a. An overall BAD price structure/plan - e.g. might not have been even close to "compatible"

b. Equipment offered and compatibility for the price

c. Environment, Staff, Location and all those things compatible for the price.


You don't see/hear from the ones that did NOT leave that salon, but rather had their packages transfer and then bought new ones. So you can't assume it was "because" you offer minutes. But you may wish to let your owner know that there is virtually NOBODY in the entire industry that would agree that offering minutes as being in the best interests of the salon owner and the salon profitability

Re: Minutes/points vs sessions and monthly packages
 

BINGO!

And this is virtually the same experience that every salon that ever moved from minutes to sessions/memberships experiences (assuming they have a well structured new price plan)

Re: Minutes/points vs sessions and monthly packages
 

I just wanted to say thank you all for the great tips in this thread and the others regarding EFT memberships. After 10 years, I've decided to change my pricing plan to include EFTs. It's scary to transition over so is there any advice that you all can give me to ease my customers into it?

We will get rid of our monthly unlimited and our 15 session package and probably our 5 session package and then add an 8 session package.

Change is good but it can be scary too.

Re: Minutes/points vs sessions and monthly packages
 

Just remember that the EFT memberships must offer the greatest value. When offering promotions never devalue the EFT membership. having a great combination of packages and memberships is important. I don't suggest eliminating the one month package.

Re: Minutes/points vs sessions and monthly packages
 

What I should have written was we will be getting rid of our monthly unlimited and only offering a monthly unlimited under our monthly membership option.

My local competition (2 different salons) only offers a monthly membership and then a walk in 1 session option. There are no other options for tanners, just these two choices. I've gone back and forth about this and I am not sure if I should follow suit or not. I know that as a salon owner having as many memberships as possible is financially beneficial but people leaving because they only have 2 options is not good either. Any advice?

Re: Minutes/points vs sessions and monthly packages
 

No matter how good you are at the sales game, a career in sales includes rejection. Lots of it. The key to not only surviving, but thriving, in such a difficult environment has more to do with you than the number of deals closed.
The more proactive and resourceful you are in sales, and the better your judgment calls and decision-making are when you’re dealing with an obstacle (such as remaining motivated while trying to close a deal), the greater the trust and confidence others (future clients, etc.) will have in you.
Motivation Comes From Within- Motivation is something you do for yourself rather than something that happens to you, as many have commonly believed. http://ghinsberg.com/motivational-speaker/ It is a set of mental processes, and though it may not be easy, it is within your control.

Re: Minutes/points vs sessions and monthly packages
 

Well said!

Re: Minutes/points vs sessions and monthly packages
 

I'm curious how this turned out for you? Did you get the results you expected? I wouldn't get rid of an unlimited month because my fear is you will scare about potential tanners if they feel forced to do the membership. I have several options but to specifically speak about the monthly and memberships this is how I do it. I offer the monthly unlimited. Then I off a membership that comes with a 3-month minimum. My monthly members are offered their 2nd month at $10 off but they have to start immediately following their active month. A lesson I learned about memberships early on was that I had to have a "minimum" number of months because I had it set so they could cancel anytime after their first 30 days, people would sign up for the membership because they got 20% off their tanning products. Low and behold come the end of that month and they'd cancel. So their intentions were always to tan for only a month and doing it without minimums allowed them to take advantage a nice discount. Never again. Now I have a 3-month minimum for all memberships.