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Old 10-13-2004, 02:26 PM   #1 (permalink)
 
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I only have one real source of competition in my location, they are huge and have 6 or 7 locatons, my question is: they do contracts and EFT, therfore i dont do that, I do monthly plans, min. plans or session plans, Am I missing out by not offereing EFT and/or contracts? How do you guys do it? a lower monthly payment? Contract? Sign up fee? what are the ins and outs of it or where can i find that info?
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Old 10-13-2004, 02:35 PM   #2 (permalink)
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What do you want your relationship with your customers to be?
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Old 10-13-2004, 02:37 PM   #3 (permalink)
 
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what do you mean?? i want them to love me and love my salon and come here cuz there is no pressure and cuz it's easy and fun, but, should i atleast offer EFT?? if so HOW?
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Old 10-13-2004, 02:42 PM   #4 (permalink)
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That's why we do the eft's...cause they're easy, painless, and a great deal...Mostly we did it for the income in the slow season...Something we ask them when they come in..."Are you a year round tanner?" Check with your bank...(I hate banks) our software has an eft process built-in and soon will do them automatically. The downside is that you don't get to pick who processes the credit card charges. I understand this is a feature with many different software products.
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Old 10-13-2004, 02:47 PM   #5 (permalink)
 
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so you offer EFT and monthly Plans?? how much cheaper is eft?? the other place in town does something like $69 down then $29 for three months then $18.88 after that, thats complicted to me.
If i charge $49 a month, should i just charge $29 a month on EFT with a year contract or what??
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Old 10-13-2004, 02:58 PM   #6 (permalink)
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I don't know what you should charge...Are your beds the same as down the street? Are you comparing apples & oranges? What did you calculate in your business plan? What do you need to do to break even, make a profit? I was concerned about my competition until I figured out that my competition was only giving the best deals out to 1st time customers only...Guess what? His customers are coming in here at a rate of about 5 a week...I can't wait for the busy season! We try to offer pricing that fits different budgets.
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Old 10-13-2004, 03:06 PM   #7 (permalink)
 
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but is that ratio right?? is knocking off $20 too much? not enough?
sorry about all the questions. if you have any for me i'll be more than happy to answer them....ha ha
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Old 10-13-2004, 03:44 PM   #8 (permalink)
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Lots of people on EFT only come in once or twice a month in the slow period but the money still comes in on the 1st. You make money unless all customers come in everyday.
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Old 10-13-2004, 03:52 PM   #9 (permalink)
 
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We do EFT with no up front payment and you can cancel anytime with 30 days notice. If you cancel before one year you pay a $50 cancelation fee.
Level 1 is $19.99 regular price $44.99
Level 2 is $39.99 regular price $79.99
Level 3 is $59.99 we don't offer a monthly package but one tan is $16 walk in
High Presure is $39.99 a month which includes 3 tans and additional tans at half price or $15

I think a price point under $20 a month is more attractive than one thats over $20 for your entry level system. I have tried many different ways of doing this and just added the upgrade EFT's this past July and it is working out very well.

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[ This Message was edited by: JeffinKC on 2004-10-13 15:53 ]
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Old 10-13-2004, 05:42 PM   #10 (permalink)
 
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Each to his own...
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