Price structure

OhSoTan · 03-24-2003, 12:29 PM

I think it's time to restructure my tans sessions and pricing, and I need some help. Not sure if we're undercharging or overcharging. We took ownership last May and the pricing has been the same for years. I have 4 24ST Sunvision beds, 3-10min. & 1-15min.

Currently, single tans are
10-min. beds: $3
15-min. bed: $4

Knowing that, can someone please give me some help in setting up a price structure. Keep in mind, 90% of our clients are college students.

Should I go with 1, 5, 10, 15, 20 tans or 1, 5, 10, 20 and 30 day unltd. and what should I charge for each? Should the session structures be the same for both beds?

Any help is greatly appreciated. Thanks!

CHERYL

TikiTan · 03-24-2003, 01:08 PM

Cheryl, It would help to know your location. Different areas get very different prices...

sc2btan · 03-24-2003, 06:31 PM

Cheryl, I purchased my salon last July from 3 previous owners. I restructered my prices this way: After 1 month, I figured out how many clients I tanned, then I figured the total minutes each client tanned for that month. I then found out what my total overhead was for that month (power, phone, supplies, advertising, etc. basically a total of every expense for the previous month). I then figured what the average session time for each client was and divided it into the total overhead costs. In a nutshell:

$2792.46 total overhead divided by 759 clients tanned = $3.67 per client.
13,547 total minutes tanned divided by 759 clients = 17.84 minutes - rounded up is 18 min/client. $3.67 divided by 18 minutes = .20 per minute to operate. .20 x 18 minutes average session time = $3.60 cost for a 20 minute session.

Obviously, the more people you tan, the less cost per session and the fewer people you are tanning at 20 minutes, the better. Since I have 4 20-minute beds, my cost per session is $5.00. My cost for the 30 minute bronzing bed and 10 minute standup is $9.00. 5 visits in my 20 minute standard beds is $22.50 (4.50 per). I dropped the price accordingly by .50/per level of sessions. The more visits, the better the cost. 10 visits is $40.00 (4.00 per). 15 visits is $60.00 (3.50 per) and so on. I have a full price list if you'd like to see more detail on how I came up with my pricing schedule. It's easier to understand as a whole. PM me and I'll send it to you.

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03-24-2003, 12:29 PM	#1 (permalink)
OhSoTan Join Date: Feb 12 2003 Posts: 48 Rep Power: 0	I think it's time to restructure my tans sessions and pricing, and I need some help. Not sure if we're undercharging or overcharging. We took ownership last May and the pricing has been the same for years. I have 4 24ST Sunvision beds, 3-10min. & 1-15min. Currently, single tans are 10-min. beds: $3 15-min. bed: $4 Knowing that, can someone please give me some help in setting up a price structure. Keep in mind, 90% of our clients are college students. Should I go with 1, 5, 10, 15, 20 tans or 1, 5, 10, 20 and 30 day unltd. and what should I charge for each? Should the session structures be the same for both beds? Any help is greatly appreciated. Thanks! CHERYL

03-24-2003, 01:08 PM	#2 (permalink)
TikiTan Join Date: Jul 27 2002 Posts: 823 Rep Power: 7	Cheryl, It would help to know your location. Different areas get very different prices...

03-24-2003, 06:31 PM	#3 (permalink)
sc2btan Join Date: Jan 22 2003 Posts: 30 Rep Power: 0	Cheryl, I purchased my salon last July from 3 previous owners. I restructered my prices this way: After 1 month, I figured out how many clients I tanned, then I figured the total minutes each client tanned for that month. I then found out what my total overhead was for that month (power, phone, supplies, advertising, etc. basically a total of every expense for the previous month). I then figured what the average session time for each client was and divided it into the total overhead costs. In a nutshell: $2792.46 total overhead divided by 759 clients tanned = $3.67 per client. 13,547 total minutes tanned divided by 759 clients = 17.84 minutes - rounded up is 18 min/client. $3.67 divided by 18 minutes = .20 per minute to operate. .20 x 18 minutes average session time = $3.60 cost for a 20 minute session. Obviously, the more people you tan, the less cost per session and the fewer people you are tanning at 20 minutes, the better. Since I have 4 20-minute beds, my cost per session is $5.00. My cost for the 30 minute bronzing bed and 10 minute standup is $9.00. 5 visits in my 20 minute standard beds is $22.50 (4.50 per). I dropped the price accordingly by .50/per level of sessions. The more visits, the better the cost. 10 visits is $40.00 (4.00 per). 15 visits is $60.00 (3.50 per) and so on. I have a full price list if you'd like to see more detail on how I came up with my pricing schedule. It's easier to understand as a whole. PM me and I'll send it to you.

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