sunsally

I don't advertise price - I advertise quality. So we have "5 levels of beds, including the only Matrix High Pressure in the area", we have the Mystic Tan and "exclusively use premium Mystic Tan Myst for 20% more color and longer lasting results", etc.

They get 3 free tans to start (with free lotion samples) so a good "draw" to get them to visit in the first place. Once here, we encourage them to upgrade to the higher level beds for a slight surcharge - but it is NOT 'bait and switch' like our competitors' loss leader "deals" they advertise. We are more than willing to let them stay on the base beds if they want. No eye rolling, no "pressure" to sign up TODAY.

The salon is spotless. Decor is "italian villa spa" like (?) - many comment on the color saying they have rooms in their homes that color (a pesto? green). Sales staff is attentive, but not pushy. NO tricky sales tactics (another part of our advertising pitch!).

With this approach, I get the "mothers" all the time, and I have more problems with my big beds being full than my base beds!

When the "kids" wander in, they too see the quality of RESULTS (they are MOST attuned to this - they want to get DARK!) - and tend to stay as well. We don't have music blaring, it isn't a "hang out" and they are taught to treat the place respectfully (bring out your towel and put it in the hamper, bring trash to the hall garbage can,...).

Once here, BOTH groups also see that our pricing is both a great "value" for what they get - as well as competitive. Not the "same", but competitive for what they are getting. Nobody fusses over price. And they upgrade regularly.

Other than "get them in to take a look for the first time" deals and occasionally bulk Mystic Tan pricing (VERY competitive here!), our competition has no impact on us in terms of pricing.





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[ This Message was edited by: sunsally on 2005-01-04 07:11 ]

MJ

Ramcat,
Memberships are a fairly simple in conception... and profitable when set up correctly. They like EFT's they are designed to promote loyalty Via -- low per visit surcharges. It gives the client that are fearful to commit to drafting money from their CC's another option.

Now, my entire price menu is set up to entice rather then push clients toward these packages. I have the basic packages as most do... But the EFT's, One Year and 6 Month...are much more attractive to most tanners. (I really do not sell many 6 Month Memberships.)This may not work for everyone but it does for me.

I never really thought of a one month membership.HMMMM I will have to do the math and see if I could make that work for me. This is how I based my membership package.

In nut shell..
This package charges a flat fee to sign up set it to what you like such as $30-$50 dollars.

Basically they are paying for the advantage of not having to wait for specials, coupons and it gives them the freedom on not having to worry about how many prepaid visits they have left, when or IF they expire. And not feel committed like a EFT package would do.

~1-year package offers the client lower then 'walk in' prices (copays) per visit. These should be set at about 35% off walk in JMHO.
They come they pay...If they do not they you get no ching.
(Other then their membership fee,they paid up front)

Which is why you HAVE to charge a reasonable membership fee.
1. To compensate for the lower copays you are giving the client and ...
2. To entice them to utilize the membership enough to actually save money off of regularly price packages.

Now if they don't ... you still received the same amount of ching you would have normally collect if they had purchased a visit package...off the main price menu. It's a wash. But this way you don't come out the losing end.

I do not recommend you offer 6 month, unless the membership fee is MUCH higher then the One Year Membership fee and teh copays are slightly higher too. Reasoning behind this...you ask?

Since most tanners start in early spring. By doing so, you could hinder your slow season tanners..and your year round cash flow.

If early spring tanners buy a 6 month package....their package will be finished by mid-summer. hence, you lose them until next Spring. By making the One Year more attractive...higher membership fee. BUT lower copays than the 6 month.

You in turn create the potential for them to JUST POP in for a quick tan all year round. Even in Sept - Nov the lower copays makes it easier for the client to pop in the VHR level 2 bed...These clients would normally think twice if they had to:
A.~ Buy a package
or
B.~Pay Walk in Rate.
More often they will just NOT tan. Then you lose the regular slow season cash flow ... when faced with those options. And the potential opprtunity to bulk out your SLOW SEASON daily tanners per day averages. Esentially equating to more opportunities to turn Spring- Early Summer tanners into year round tanners. Now most people know that means more visits = they use more lotion. ( generally speaking.)
Not to mention of they paid for a membership at your salon why would they go somewhere else to tan at walk rates?
Secondly...in the ups and downs of the ecomonic atmosphere we deal with and the increasing usage of Credit Cards/ debt cards by consumers. Clients will gerenally charge packages and bottles of lotion... but have no problem pulling out a 10 spot. I do not know about you but I like cash flow.

That is my opinion of One Year Memberships... Hope that clarifys things for you.

P.S. With the introduction of my EFT package (March 2004) I initially lost about half of my 1 year members... But I have since then made the necessary adjustments and now have a equal balance.

I personally suggest both packages for anyone looking to balance the budget year round and keep the all important-- positive cashflow year round too. JMHO

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Jane... You Ignorant Sl*t!!!

[ This Message was edited by: MJ on 2005-01-04 00:44 ][ This Message was edited by: MJ on 2005-01-04 00:49 ]

MJ

Sorry I went off on a tangent again...

The point was that even if they GUY down the street does offer crazy coupon packages with no expirations. While You raise your prices.

You have already somewhat matched him...via your One year membership copays.

Now the price war 'warrior' will probably match your copays with no Membership FEE required to one up you.
Boy he is Smart!! S M R T :friggenidgitsface:

But that just means he will commit finacial suicide that much faster. Making your life easier when he closes. Your walk In ~ NON EFT/1 YEAR member package clients purchases should be enough to stay ahead of the game...and keep you in the money. While off setting your "Year Round" Client's ~ slightly discounted packages...as mentioned above.

So bottom line: let them get cheaper while you keep your salon standards high and raise your prices accordingly...to adjust to the cost of living increases. JMHO

navigatin1

Quote:
On 2005-01-03 10:54:00, tanu01 wrote:

I personally think pricing should reflect the quality of the salon.
Bob

I agree 100%! When I purchased my salon, the previous owner had lowered his prices to "match" the compition around the area, even though his equipment was all top notch.
The first thing I did was raise the prices to reflect the quality of the equipment and the awsome results produced by this gear. IMO, if you lower yourself to the level of other salons around you, then you are baisicly saying that you have nothing better to offer your clients and you are just looking to compete and not stand out.

ramcat

Thanks. It helps alot.

tanu01

Are prices went in effect yesterday,and we had the largest jan. day ever.

ramcat

So. You charge a membership fee and give a lesser per session fee. What about the unlimited monthly fee? How do you figure this out? Is it using the max # of customers you can get into the bed per day or a %?

sunsally

For pricing, it's all about key price points and loss leaders...

At the grocery store, they try to "lure" you to shop there with 3/$5 gallons of milk, $4.98 for a case of Diet Pepsi and 79 cent eggs. Stuff you can use, has a perceived "value" to you - attractive. At any given time, as good as, or better than, the other grocery stores in town. In a grocery with so MANY different products, have maybe 100 of these that 'rotate'.

At the same time, their ads reflect their particular "niche". "Huge selection of international items", "Low, low prices everyday", "One stop shopping with our in-store bakery, bank, starbucks cafe & shoe repair", "match any competitor advertised price", etc.

In tanning, not nearly as many products. So have only a few key price points and loss leaders.
1. Your "WOW" loss leader to attract NEW clients. FREE tan, 3 FREE tans, FREE week, 3 tans/$5, 4/$4,...
2. Your "WOW" loss leader to re-attract inactive clients and reinforce current clients. FREE birthday tan, FREE tan weekend 1X/year, special cheap package during the slow season,...
3. Your "best value" tan package - EFT, Membership, EZ Pay, Year Unlimited,... "Pennies per day to tan"
4. Probably your base bed pricing. In general, a large majority of salons, if they charge $7 for a walk-in get about $25 for 5, $40 for 10 and $70 for 20 visits. Give or take a few $$. Clients can't remember ALL the pricing, but they'll have an approximate feel for what this is across salons.

After THIS - your pricing should reflect the quality of your equipment, salon practices (e.g. how often you re-lamp), customer service, location and cleanliness.

As with the grocery stores, there are different people attracted to different "models". You can't be all things to all people! Pick YOUR path, and stick to it.

But realize - at the end of the day, the one that makes the most money "wins" (so to speak). So your prices don't have to be the "same", but they do have to be perceived as the same or better VALUE. Customers need to agree with your 'perception' of the quality differences between you and your competitors, and value that, or they will "vote with their pocketbook" and go elsewhere!