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Old 08-06-2006, 05:01 PM   #1 (permalink)
 
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Pricing HELP!!

Here is what we are having:

1 Ergoline Evolution 500
1 Ergoline Ambition 300
1 Soltron Flirt (same specs as the Ambition 300)
2 Suncapsule Supersonic 7 Min Tans

We are in a 30,000 pop. town with 2 other salons they have 96-98 sundashes and tan america santa barbera and sun up. all offer minute packages with walk in
($9.00)and monthlys ($75.00) I am debating going bankrupt with minute packages or triing to make some fair money with sessions. I have worked senerios where on paper my prices are only slightly higher but reallycompetitive.
Or so I make you believe but we all know just like monthly it really about the number of minutes they use at the end of the month. Some tanners do well and some donate (thank you). My distributer is working on some senerios for me but I am doing my own to compare. I have heard that I need $12.00-$16.00 per session to do good, is this with lotion costs included or with out? My price plan averages about $9.00 per session with out lotion costs included. Ok Im ready for my beating from all of you. lol
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Old 08-07-2006, 08:02 AM   #2 (permalink)
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Re: Pricing HELP!!

OK -- I'll start.........

They have "base beds" -- and you don't! So right off the bat, you either have to charge the prices THEY are charging for lesser equipment -- and you lose your shirt --- or you charge what your equipment SHOULD get -- and you are perceived as too high!!

You basically have 2 level 2 beds (the Ambition and the Flirt -- why are you buying two different of basically the same bed??) and 3 Level 3 beds (the 500 and the stand-ups).

Why 2 stand-ups?? Especially at only 7 minutes? There is no way you need two of these to start especially -- add one later if you REALLY have the demand (which I doubt).

Don't do minutes - period. Salon owners just don't make money selling minutes.

Do this -- cancel one of the Supersonic's, get two "little beds" instead (even used, since that is comparable to your competition), price that level competitively (but do sessions) and then have the 300 or Flirt about a $3-5 upgrade and the 500 and Supesonic another $3-5 upgrade from there.

As you are set-up now, they won't get past the fact that you are "expensive" -- customers just don't get that "but our level 1 is really like their level 2" explanation.
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Old 08-07-2006, 09:23 AM   #3 (permalink)
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Re: Pricing HELP!!

You must make a clear distinction between what you have and what your competition has. Are you saying there are 98 other tanning units in your market? Just two salons that have that many units? Those must be some hugh salons. You will get some of the competitions' clients, by having new and better equipment, but can you compete enough to make a profit. Your territory is definately saturated. Have you done a demographics? If you proceed, do what Sunsally says, "cancel one of the Supersonics". You can wheel and deal this time of the year and likely buy three entry level units for what you would pay for that standup. Good luck.

Last edited by parrot head; 08-07-2006 at 11:17 AM.
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Old 08-07-2006, 11:58 AM   #4 (permalink)
 
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Re: Pricing HELP!!

Thank you for your responses, the existing salons are comprised of the following
one salon has one santa barbera and one sun up stand up all 1yr old
the other salon has 4 96-98 sundashes and oneheartland bravo (i tanned here yesterday walk in price in this bed 10.00 plus tax very dirty bed and salon also had 5 bulbs burnt out for 10 days now and nobody to fix for two more weeks I wonder how the other 39 bulbs are let alone the acrylics)
without saying much guess how my tan felt?
they also have sun capsul 200w and a ta sunup
all I hear around town is how they hate this place and want options
the two bed salon is new but always long lines and not clean also
I am selling my salon on cleanliness and new well maintained equip
which is the top two reasons for people come to my salon.
also my staff is educated (smart tan) nobody else is
also the pricing diff is only slight less than $2 per tan
I understand the concern with no entry level beds but ive heard the upgrade system is hard to sell and people dont want two price systems?
I really believe this town is crying for some proper tanning and customer service and that is what im selling . I will look into the two stand ups and maybe add a ergo 200 as a base unit if neccassary maybe this will help you understand the situation more I see a need for another salon if I can get the right mix of beds
I have the location to die for in between tim hortons wallmart and the only movie theater in town lots of traffic by my front door now thehard part is to get them in the door. all responses appreciated as always thank you
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Old 08-07-2006, 03:55 PM   #5 (permalink)
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Re: Pricing HELP!!

Sunsally said it best & she is right !!
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Old 08-07-2006, 10:44 PM   #6 (permalink)
 
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Re: Pricing HELP!!

sunsally is right... the best of wishes to ya. ;)
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Old 08-08-2006, 12:02 AM   #7 (permalink)
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Re: Pricing HELP!!

Do the existing salons have the TA Sunup or the SunupII? The difference is that the SunUpII has two high pressure facial lamps. This is a great selling point, and if they have those, they will use them to say that your stand up is not as good because it doesn't have facials. You're going to have to PROVE your standup is better even without facials, as well as play up your "only 7 minute tan time" (The TA is 12 minutes). Still only need one of these - period. But be advised that you'll run into this.

Where have you heard "the upgrade system is hard to sell and people don't want two price systems"? Your distributor? Customers? The competition?

Upgrades are the key to profitability in a salon. If you don't think you can sell them, then frankly, I wouldn't open the salon at all! You aren't big enough to run just on "volume" -- you need a better profit margin, and that's what upgrade beds bring.

Clients don't care that your competition has beds from 1996 -- the Sundash units looked almost the same all along, and they still will tan just as well 10 years later. Maybe not if they aren't keeping up with the lamp changes, and perhaps they need a good "detail cleaning". But don't be surprised if your competitors suddenly DO those things when you open in the market! Be prepared that suddenly THEY will also be clean and the staff will get their act together -- THEN what will be your distinctive difference? If you are just more expensive, you won't win them over on that.

The Ambition 200 is a fine choice. You could also go with something cheaper - used Sundash or Tan America like your competitors would work well. The bottom line is you need that Level 1 so you can beat/match the 'crazy specials' that your competitors will run to get folk in the door to try the salon.

Right now, I hear your enthusiasm, but I am also hearing you putting a lot of $$/expense into a salon compared to your competors. Oftentimes salon owners believe that a Wal-Mart location is "too die for", but not always. However, it is almost always higher rent! Ergo beds are good, but also on the higher end of the price scale. Your competitor has the advantages of: 1) already being established with an established customer base 2) no or minimal equipment loans/leases 3) lowered rent. These are 3 very significant advantages!!! I'd go very carefully, and make sure this is REALLY a sound financial investment -- not an emotional decision on what you WANT to believe will be a quick road to a lot of $$.
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Old 08-08-2006, 02:05 AM   #8 (permalink)
 
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Re: Pricing HELP!!

I agree with everyones posts. Have you been to a vegas show or nashville show? If not you need to attend at least one before opening. I wish I would have done that before I bought my place. Good luck!
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Old 08-10-2006, 01:17 PM   #9 (permalink)
 
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Re: Pricing HELP!!

I also think a base bed is needed here. I offer minute packages in my level 3 bed only and for me it works great. You have to take into consideration what is in demand in your location, what works for someone may not for you.
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Old 08-10-2006, 08:15 PM   #10 (permalink)
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Re: Pricing HELP!!

My base beds are 12 minutes beds. Nobody complains.....except some parents you would like 40 minutes of peace if they could.

One one piece of advice is DO NOT under price your equipment. Don't price your Japanese Pears to their crab apples. You can always run a month (or 2 if need be) long special to get them in the doors to know what they're paying for but you can't put prices up as easily.

We offer referral discounts as well so if it's too pricey for them they can save my brining friends in that buy packages.
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