lowering your prices vs. raising them?

[zectasy]

we have raised our prices only a couple times over a 15 year period of time...as of right now we are in the process of switching from sheets to computer and we are starting some new unlimited packages that i hope help out sales...anywho right now our single session prices for our 20min base beds are 1-10 $5 and 11-20 $6....we are actually thinking about changing to a flat rate of $5 for 1-20 minutes for the fact that its only a dollar less but once word gets out people will start hearing "brownbodies lowered their prices" which might bring us in more customers who use to think we were too expensive before...what do you guys think about this?

[dcjjp2]

I wouldn't lower them, just do deals.....I made the mistake of lowering mine to combat EFT's and business did pick up, but I think I personally jumped the gun with it.. I should have just had an ongoing sale to combat. I shopped the competition within a 20 mile radius and based it on what data I have found.

[Neon Beach]

Unlimited is great if you think you can pull in some big volume to make up for what you could have made otherwise.

15 years and no computer scares me.

Keep lowering prices, and the comp will follow until one of you is eating uncooked mac and cheese out of a discarded sneaker you found at the curb.

Fight the Wal*Mart mentality!!

[zectasy]

the business is owned by my mother and grandmother who both have never used computers...im 21 and trying to bring some young and fresh things into the business...thats why it took so long to get computerized...regarding the walmart comment...80% of the people in our town are cheap and tan where its cheaper rather than wheres quality...we wanna stay quality of course but with us charging 5 instead of 6 i personally think it will pull in alot of other people who have never tanned with us before or old customers...its just how i feel and i think its worth trying...plus regarding cheap prices...expensive prices...computers or no computers...i dont think thats a reason to knock someone else...i think someone doing the sheets that weve been doing for 15 years can be more succesful than someone using computers,etc.

[candie]

You first need to consider how long the majority of your tanners go for? If they are going the full 20 I wouldn't change anything. They are willing to pay and that's what you need. Instead of lowering prices, why not add perks to bring in more clients and then, once they become regulars, raise the prices slightly to make a better profit. You also have to consider what else your salon has to offer. Do you have an HP or any other upgrade to offer? Maybe run a special to get them hooked, but raise the price slightly on those to make a better profit?

[dcjjp2]

Realistically if it is $1 cheaper, that isn't going to bring them in in droves.
Make an attractive special where they make some kind of commitment sessions, EFT moonthly vs worring about single sessions... If they resort to them, make as much $$$ as you can.

Everyone knows that "bulk pricing" yeilds a better deal.

[clubtan1]

dcjjp2 makes two very valid points. The only thing I could add is to think about a new piece of equipment. Add something new that no one else in your area has.

	Superior UV

[dcjjp2]

darn, I can't spell today.... LOL!