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Tanning Salon Management Salon management help here. |
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10-08-2009, 05:36 PM | #21 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: Annual Memberships - To Offer or Not to Offer! Quote:
In my salon, that bed would be $119/mo or $59/mo on EFT ($720/yr). If they choose to do a pre-pay year they pay 10 months - or $590 (plus the enrollment fee). So - could you get more for it? Maybe. But as kpower points out - a customer spending $375/year is a good customer. You just priced it too low and now regret it. You aren't "losing" money on this customer - it doesn't cost more than $2.56/tan to turn that bed on. They aren't 'contributing' that much to your other overhead - labor, rent, etc -- but they just bought what you sold them! So these 6 customers contribute $2250/yr to your bottom line. If your salon is grossing 100K/yr -- they are more than 2% of that. If you are grossing 200K/yr -- they are more than 1% of that. Not bad for 6 people. If you try to change it drastically - you may well lose them. Do you want to lose $2250/yr to a competitor? If so - go for it and see what happens. I'd say at this point I would "grandfather" those folks in and maybe raise the price slightly - like $400 this year, $425 the next. And if you chose to continue to offer that membership - make it $500 or something you will be happier with. OR - just set up an EFT instead OR sell only annual memberships on level 1 and make them "upgrade" to the other levels. Overall - don't get too worried about small numbers. These 6 customers are coming to your salon about every other day. Hopefully when others comment on their tans - they tell them they use your salon. You may be getting even more "benefits" than you realize. And - you are taking in $375/year each -- see how that compares to the totals from your other customers and see if they are among your more "valuable" from a spending standpoint. | |
10-08-2009, 07:37 PM | #22 (permalink) |
DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 48
Posts: 3,632
Rep Power: 46 | Re: Annual Memberships - To Offer or Not to Offer! sunsally has great advice again grandfathering the regulars in is a great idea...tell them as log as they keep renewing the year unlim you will lock them in. tell them they need 2 renew before their year runs out, if not they loose the old pricing
__________________ someone PM me when a good tanning topic is posted. :lol: |
10-11-2009, 02:20 PM | #23 (permalink) | |
Join Date: Oct 5 2005 Location: Georgia
Posts: 244
Rep Power: 19 | Re: Annual Memberships - To Offer or Not to Offer! Quote:
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