angiecharm

I'm interested in doing EFT for my tanning salon.
Would someone please explain exactly what goes on with this?
Please tell me exactly how to get started and what I should be telling my customers about this.

Neon Beach

tmiller22

email me. toucantan@aol.com

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Neon Beach

Simply put?

You come up with some ridiculously low monthly charge to use base beds for example.

You set it up so that clients will be charged automatically thru credit card or debit from the bank. Most don't even use a "binding" contract anymore.

Pray you get tons of them to do this, pray they don't cancel on you.

excitednewguy

EFT's are great, as long as your customer base can support it, and you have the ability, and you don't base your entire business model on it. When we first started, we were worried about the 29.95 per month, and how many people would tan like crazy and end up spending 2 bucks per tan, as well as what our costs per tan would be. It can get pretty complicated, depending on how much you analyze it, (as I do/did,,I'm quite the research nerd).

We found that after using the EFT, our customer base who actually signed up for it, and tanned enough to make me nervous, was less than 2% of our EFT Base.

I say, do EFT, Single Tans, Packages, and offer other Tanning Packs and prices. Give them a choice. A lot of people just do not like to give out their info for a monthly draft, and you would be suprised at how many will end up paying 4 times the price for their tans, because of this.

Neon Beach

I wouldn't last a season doing it here. But of course it works for many. I would try it as limited time offer to test the waters.

excitednewguy

good point,,,,,you can always run it as a "special" and see what happens.

BooBop

EFT is a good tool for the salon but.... many have ruined it with the no commitment attitude. Why have EFT if you are not going to keep that money coming in all year? We have 12 month agreement. After that it rolls on until they cancel. Once I get the written cancelation notice, I charge the account one last time.

If they default, they are not allowed to resign. If they cancel, they can resign with a higher enrollment fee.

I really don't push this much anymore as so many have ruined it for the salons.

Neon Beach

Yes, that's very true. ^ And the $18.88 a month also sucks.

excitednewguy

i think there are too many Salon doing the "NO CONTRACT' thing now, which hurts when trying to make someone sign a contract.

we do a 3 month minimum when they sign up, and require a written 30 day cencellation notice, so this at the worst case scenarion, gives us 4 months of EFT. it's a crappy way to look at it, but we have had about 2-3% of oue eft members cancel after 1 month, so we changed to the 3 month minimum.