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Old 05-20-2008, 01:06 PM   #1 (permalink)
 
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Question Mobile Pricing

I am opening a Mobile Spray Tan business. I am shocked at prices people are charging. I was going to charge $60 for a monthly package (3-4 times per month max) and only $25 for a house visit. Am I starting off way too low? And then $20 per person, minimum 8 people for a tan party. Am I crazy? I am in the Ohio market. I'm guessing $5 max gas travel costs, $5 max product cost, with a total overhead of $10 per visit. I will raise prices every 3 months once I build my business. Any suggestions? My husband is a mobile dog groomer and high pricing is killing his business during these economic times of hardship. I pay $40/month to go to a salon to get mystic, I'm trying to determine what someone would be willing to pay for mobile. I'm open to any and all suggestions on pricing. Thanks and have a great day! :)
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Old 05-20-2008, 02:26 PM   #2 (permalink)
 
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Re: Mobile Pricing

People will pay more for mobile. I wouldn't go less than the $60.00. I have not heard of a monthly rate for mobile spray tanners.
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Old 05-20-2008, 07:38 PM   #3 (permalink)
 
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Re: Mobile Pricing

I'm not that familiar with mobile but that sounds really low. The going rate around here for an in salon tan is $40-$50.
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Old 05-20-2008, 07:41 PM   #4 (permalink)
 
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Re: Mobile Pricing

That is for a single tan. I would not do unlimited tans at all,especially if I were doing mobile. Have you thought about selling packages at a slightly discounted rate. That would ensure that you're actually making $ for each visit.
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Old 05-21-2008, 08:40 AM   #5 (permalink)
 
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Re: Mobile Pricing

Hi Kristi,

I too am in the ohio market. where abouts are you located? I am a little familiar with some of the demographic criteria in this area with my background in advertising. At this point in time, I'm not doing individual mobile. I'm not located in a market that is willing to pay the national average of $65. My in-house rates really bring the clients in though. I do alot of co-networking events with other beauty/health consultants/tecnicians which target the same demographic and/or book parties with a minimum of 4 paying guests. I also have added a fuel fee to booked parties exceeding a 20 mile one way distance from my home base. I'm not doing this as a hobby. The service I'm offering is new and unique to this area. If I'm not recovering the costs for the fuel, materials and the VALUE of my time, then its more profitable if the client comes to me. Either way, their is interest, but you have to consider what the market you live in is willing to pay for services.
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Old 05-22-2008, 08:56 AM   #6 (permalink)
 
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Re: Mobile Pricing

Hi, thanks for your reply! I am located in the Columbus, Ohio area. I did some number crunching and I am seeing how much to charge and still have it be worth your time. At an hourly rate I would be willing to work at, and the rate I would have to charge, I don't believe the people of Columbus would be willing to pay it. I believe I will start this up as a hobby and do some tanning parties, but mostly to just pay for my equipment. I have a HSN spray gun now that me and my friends all use but it is timely. I want to upgrade to something quicker and more professional. My ultimate goal is to start a small on the side business to pay for our family vacations while enjoying being part of the beauty/health industry. I am currently employed as a Financial Analyst for a large bank here in Columbus (you could probably guess which one, hehe) so I feel doing this as a hobby would be great fun! How is the Marysville area for booking tanning parties? How do you advertise to get people to come to your house? My husband's dog grooming business (The Dogfather) advertises in the Money Town Saver but I would prefer to not drop $2,000 in advertising if I won't see the return. I am open to any suggestions, thank you for your help!
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Old 05-23-2008, 05:10 PM   #7 (permalink)
 
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Re: Mobile Pricing

hey kristi, I got started in this business after having some experience airbrushing my neighbor's daughter for her beauty pageants. the mom was a dress maker and all her business saw her daughter sprayed and wanted me to spray their daughters too. during that time, it was strictly fun, using a timely airbrush (argh..) and it was not a source of income. i had six years behind me with the la times in advertising when we moved to Marysville for my husband. the dispatch picked me up but daycare for three little ones just wasnt worth it despite their promising and "projected" commission packages..ha ha. newspaper print is dying breed anyway -- and that comes from someone whose been in the business. direct marketing is different though. my business is too small at this time to afford the type of ads your husbands company invests in. that being said, the staying power behind regular advertising, logo, and branding ones' image is key. in the meantime, im trying to make good on my promise to recover my initial investment (which was substantial if you add it all up), cover monthly expenses (web design upkeep, tanning solution , bus. cards, flyers, FUEL ... i feel your dh's pain!!) I worked with business developers from the chamber here in marysville and dublin areas to get started and to get the word out. I do alot of event planning with people who market the same demographic. Alot of my business is now by word-of-mouth. People know my kids from their schools and see me pick them up everyday. I self promo on my vehicle. I have flyer replacement locations weekly in exchange for referrals. I live in a very family friendly neighborhood. It's slow growth but right now, I'm swamped. If I do events where the numbers substatiate my time/cost -- or -- if customers come to my home office, it's straight up $25. this is not an industry that is yet regulated in Ohio so for now, I'm able to do this without repurcussion.

Mobily however, for tanning parties, the cost is much more. To be honest, I get alot of interest and excitement over the notion of tanning parties, but I have yet to an actual booking because clients know the price difference if they spray in-house, and they know I do alot of planned events locally. the repeaters just would rather come to my place i guess. for me, i keep more money and my time is more valued that way (no babysitter, fuel expenses, wear and tear on my vehicle) so Im fine with it, but am still always pitching it.
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Old 07-06-2008, 04:46 PM   #8 (permalink)
 
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Re: Mobile Pricing

I charge $40 in salon and $60 for house calls. If the client is more than 30 miles round trip I charge extra. I had a lady who was about 1 1/2 hours away. I usually will not travel that far but she offered me $200.00 to spray her and her daughter. In this economy "money talks and I drive".
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Old 07-06-2008, 11:36 PM   #9 (permalink)
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Re: Mobile Pricing

I refuse to do mobile packages...this is my pricing rules...

If the client is outside of my immediate area (i cover the whole county), there is a travel fee from $5 to $50 dependent upon where I am going. If the client invites a friend to tan with them the travel fee is usually dropped. If the client tans three times a month, there is no travel fee imposed upon them, unless I am driving more than half an hour.

My clients are usually pretty good about getting multiple people to tan with them, especially when I do the occasional out of county tanning session.

People often get miffed that I don't do packages...it's not worth it and I won't make anything off of the tans in the end.
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Old 07-07-2008, 12:41 AM   #10 (permalink)
 
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Re: Mobile Pricing

With the national average for a gallon of gas above $4, I just can't see how it would be worth your time to charge so low. My time, expertise, and quality solutions cost. And when you're too cheap, people assume you don't know what you're doing. I realize it's a different market, but be careful what you commit yourself to. It's not easy to raise your rates, once you have a price. People don't like change. It's better to set a normal price per session, rather than over extend yourself.
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