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Old 08-25-2006, 07:35 AM   #1 (permalink)
 
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pay as you go memberships...

Does anyone do a pay as you go-type of membership? My business partner and I are tossing around doing a $9.99 membership, but paying for each session as they come in. We have 5 levels of tanning and 20 beds in our salon. Our current upgrade prices are level 2 for $1, level 3 for $3, level 4 for $4 and level 5 for $6. our basic month unlimited is $35 and they can get level 1 for free and pay the $1 upgrade for the second level, but levels 3, 4 and 5 are half their regular price. Our one year EFT is $17.99 a month and the upgrade charges apply past level 1. I'm not sure that the allure of only paying $9.99 a month and then havng to pay each time they come in is worth it for the consumer. Any suggestions or experience that you have had would be great....thx!
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Old 08-25-2006, 07:58 AM   #2 (permalink)
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Re: pay as you go memberships...

Wow your prices are LOOOOWWWWWWW.

Basic month (30) unlimited is $45, upgrades are $5, $6, And $12.50 hp.
At $45 I am still low priced compared to many others in the industry, but highest in my area.

Going up on that package in 07
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Old 08-25-2006, 08:36 AM   #3 (permalink)
 
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Re: pay as you go memberships...

We are the lowest in town, but we only have one location, everyone else has at least 2 locations minimum. We just purchased the business in April and the few changes we have made have lost us some customers and I really don't want to lose any more if possible. We are going to be raising prices in the fall, but want to add the 'illusion' of the cheap package....
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Old 08-25-2006, 08:50 AM   #4 (permalink)
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Re: pay as you go memberships...

Okay then. If you do 9.99 and charge $1 per visit for the base bed you will still come out less than the price you have now for base bed only visits.

ie. 9.99 upfront
1.00 per visit
x 20 average client will tan no more than 20 times a month

= $29.99
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Old 08-25-2006, 09:42 AM   #5 (permalink)
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Re: pay as you go memberships...

i dont think you should offer EFT and unlimted. if they want unlimited or monthlys then make them buy the EFT.
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Old 08-25-2006, 09:43 AM   #6 (permalink)
 
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Re: pay as you go memberships...

I agree, I'm just wondering if anyone has tried this and how have they structured their pricing for it. I'm trying to combat the 'cheap customers' and keep them from going to our competitors. Our numbers are down from the previous owners from last year. Our daily surcharges are up over 100%, our daily customer numbers is down, and at the end of the day we are about $400 per month from last year's numbers. I'm trying to get more customers in the door. Since our sales and surcharges are good, getting more ppl in the door is my goal. We have spent a lot of marketing money so far, but i'm not pleased w/the results and i realize that it's trial and error. Yesterday was a great day, just shy of $1000 for the day and our sales have been around $400-$600 for this time of year.
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Old 08-25-2006, 09:49 AM   #7 (permalink)
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Re: pay as you go memberships...

i once offered the pay as you go but nobody cared 4 it. they would figure out it was cheaper to buy the unlimited....most people just want to get it paid for at once....as far as getting people in the door i say focus on the names you already have in your database if you havent yet.....its cheaper to get a client back then get a new one.
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Old 08-25-2006, 10:07 AM   #8 (permalink)
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Re: pay as you go memberships...

I had that type of membership when I first opened to match my nearest competitor. Nobody bought it.
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Old 08-25-2006, 10:17 AM   #9 (permalink)
 
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Re: pay as you go memberships...

As a coustomer i like to pay the one month unlimited, or by the year package.. my salon i go to charges 25 for unlimited.. or 89 for 6 months 199 or somthing for a year usually is cheaper in the winter...
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Old 08-25-2006, 10:38 AM   #10 (permalink)
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Re: pay as you go memberships...

we did do this once upon a time - before - we had EFT
19.95 for base bed and then $1 a visit - if they come 20 times then you made 39.95 - i personally would try to lure them to the EFT - the pay off is better for you - give them some sort of incentive for signing up - a few free upgrades or something - but if you do choose to do the pay as you go - be ready to run it for more than one month at a time because it will take a while to catch on - especially this time of the year :(
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