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Old 10-08-2002, 11:47 AM   #1 (permalink)
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How Well Does Your Salon Sell Tanning Products !

For years, tanning salon owners have asked me how much tanning lotion should I sell in my salon?

Lotion Performance Index (TM) :
Over any time period:

Take gross indoor tanning products sales for that period divided by your number of sessions during that same period = dollars of lotion sold per visit.

Example: $975 in indoor tanning products sold last week while you had 863 tanning session last week = $1.13 in indoor tanning product sales per session


So how do you measure up?

$2.00 or more per session is awesome
$1.75 to $2.00 per session is fantastic
$1.75 to $1.50 per session is great
$1.50 to $1.25 per session is good
$1.25 to $1.00 per session is fair
$1.00 to $.75 per session is poor
$.75 or less per session is bad

Measuring your employee’s Lotion Performance Index (TM)

Do you post the lotion sales for your employees on a daily or weekly basis?

I suggest that you post the sales results of each of your employees on a daily basis to keep them motivated to sell indoor tanning products .

I suggest you use this formula to figure out their results: Measuring your employee’s Lotion Sales Performance Index (TM) Total Lotion Sales Per Employee (Get this number from your employee lotion commission report) divided number of sessions during their shift equals Lotion Sales Performance Index (TM).

Use this method to let your employees know how they compare to other employees. It only takes a few bonuses and/or firings to get the message about why they should work hard to sell indoor tanning products to every customer.

I think you should post this performance index everyday, weekly and monthly. Then act to give your employees and incentive to be near the top and fire the ones that are constantly at the bottom!

What can I do with this Lotion Performance Index (TM) !

This information is very critical, you sell tanning sessions to pay for your overhead and selling tanning products for your own personal profits.

You should review your salons Lotion Performance Index for the last year, this year, every month, every employee, yourself, and then sit down with the figures.

Look for your strongest employees and why they are the strongest.

Who is the weakest and how can I work to make them better.

Are you getting better selling lotion or getting worst. What are the trends and how can you experiment to make sales better.

Some companies base employee incentive and termination’s over this index.

You should take it that seriously!

Knowing how you stand and being able to track performance is the key to improvement!
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Old 10-08-2002, 12:22 PM   #2 (permalink)
 
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Thanks for this information Greg. We have been currently re-evaluating our bonus structure. This information is going to go a long way in how everything is revamped.
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Old 10-08-2002, 02:32 PM   #3 (permalink)
 
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We have a minimum of $1.50 for every employee. After 90 days they are expected to maintain this level. If it falls below that they get additional training from yours truly and are given 60 days to bring it up or it is buh-bye. I have never fired anyone for low sales but have had some quit because they new it wasn't for them. Not everyone is cut out for sales and there are other jobs that are more suited for them and I wish them luck!!!! But if you want to work here you just gotta be able to educate and sell to clients.
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Old 10-08-2002, 06:32 PM   #4 (permalink)
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We are very lax in our lotion sales this time of year when you see the same people every day. I guess I better get better at this if I want to improve my staff.
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Old 10-09-2002, 02:57 PM   #5 (permalink)
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Teresa,

That is a good plan. Set a standard and train those that do not meet the standard or they are terminated!

You are a salon owner to make money, selling lotions is critical to making money, your employees need to know that selling is a key part of the job!

This gives you the fair measuring stick to judge their preformance.

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www.Soakinuptherays.com[ This Message was edited by: Soakinuptherays on 2002-10-09 13:58 ]
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Old 10-10-2002, 11:46 AM   #6 (permalink)
 
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Ok - I need a little feedback from other stores. I just pulled a report for Sept. and with 35% of revenue being lotion sales I only had $1.29 per customer.....
What are the percentage's from other places????
Is there anyone doing $1.50 or above if so what are your percentanges?????
I could be missing some sales or the figures Greg has posted are off ( no offense greg)..
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Old 10-10-2002, 01:38 PM   #7 (permalink)
 
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I ran a 4 month report from june - sept
my average was $1.78 and that includes samples as well.
I was wrong on my other post on the percentage for Sept lotions.. It's more like 15% instead of 35%....
Sorry
Tommy
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Old 10-10-2002, 10:09 PM   #8 (permalink)
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I spoke with several salon when developing these numbers. My figures are a guide not law.
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Old 10-13-2002, 11:26 AM   #9 (permalink)
 
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$1.86 [18.9% of sales are lotion]
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Old 11-21-2002, 09:28 PM   #10 (permalink)
 
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I use spc (Sales per client). My employees have to maintain a $3-$4 spc, depending on season to get commissions. Most of them do, however by the lotion peformance index we are around $0.84, OUCH!! WHAT STEPS ARE NEEDED TO IMPROVE???
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