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-   -   Stop Under valuing Your Product (http://tantalk.com/tanning-salon-management/2393491-stop-under-valuing-your-product.html)

Steve Underhill 01-28-2014 12:51 PM

Stop Under valuing Your Product
 
Over and over again I see operators under pricing a single session tan on each level.

The single session price establishes the value of tanning on a particular piece of equipment. All other packages are priced based on the single session price.

You do not want to sell single sessions. if you are selling single sessions, they are priced to low.

If level one is $5 a session there is no room to offer discounted multiple session packages. It also makes session the best value in the salon. Single session and session packages should be the most costly packages in the salon.

Not having the correct pricing on packages will make your whole price structure ineffective.

Also the time of year for deep discounted offers is over, those are for slow season.

Level one should be minimum $8 to $10 single session. Any less will kill monthly and EFT sales.

The number one pressing issue for todays salons is your price structure.

Do not feel that you can't change your prices because my tanners will get mad.

it is not just changing the prices of the packages you sell, in most cases you must also change which packages and combinations of packages you should sell relative to your equipment mix.

Please I ask all operators to take a deep breath and be open to fixing your problems and don't avoid change because you are afraid of how your tanners will react.

There are ways to eliminate the discomfort of change.

For those operators that are ever year losing ground. Be willing to make major changes or you will not survive.

After speaking with some operators it is so frustrating when they are so stuck in the wrong way of approaching the operation of their salons.

Your focus should be on making money, not friends.

Don't waste another season. You start to see a rush in tanners coming in your salon and you tell yourself, great this year things will be different even though you have no changes to make it different. Please wake up and make those hard decisions.

suncitypembroke 01-28-2014 11:04 PM

Re: Stop Under valuing Your Product
 
People are into what it cost not what it can do (tanning bed ). I teach my worker to know the bed and what it can do , I let them tan in all beds, start low and work your way up to the top dog. This way they feel what it can do and pass it on to the customer as to what will work best for them without burning as well as them selve.
Price point :
Tropical -10.00
CPS, Bermuda Triangle- 15.00
Silver bulett- 20.00
S-Class- 25.00
Master Sun 30.00
Unlimited level 2 Tropical 30.00
Unlimited Level 3 49.99 This is only CPS & Bermuda Triangle, Reason no other level unlimited, I want then to up grade to other beds and when business is slow I will run with 1/2 off upgrade.
Vip all beds 1/2 of single session 20.00 a month fee.
Have spray tanning Versapar 20,25 30
What your opion on what the price point are and what do you see wrong.
What I found for me is that when I run unlimited in all level that it no other sale , and it kill me for the month and hope there is a resale next month.

Steve Underhill 01-29-2014 01:10 PM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by suncitypembroke (Post 15082133)
People are into what it cost not what it can do (tanning bed ). I teach my worker to know the bed and what it can do , I let them tan in all beds, start low and work your way up to the top dog. This way they feel what it can do and pass it on to the customer as to what will work best for them without burning as well as them selve.
Price point :
Tropical -10.00
CPS, Bermuda Triangle- 15.00
Silver bulett- 20.00
S-Class- 25.00
Master Sun 30.00
Unlimited level 2 Tropical 30.00
Unlimited Level 3 49.99 This is only CPS & Bermuda Triangle, Reason no other level unlimited, I want then to up grade to other beds and when business is slow I will run with 1/2 off upgrade.
Vip all beds 1/2 of single session 20.00 a month fee.
Have spray tanning Versapar 20,25 30
What your opion on what the price point are and what do you see wrong.
What I found for me is that when I run unlimited in all level that it no other sale , and it kill me for the month and hope there is a resale next month.

Not real clear here, are you selling one month packages and not EFT packages?
If the unlimited you have listed are just one month packages, they are too cheap. i also do not like using the term Unlimited. Recommended tanning sounds better and is more accurate.

If this is your entire price structure there are a lot of holes. Your single session prices are good.

suncitypembroke 01-29-2014 10:18 PM

Re: Stop Under valuing Your Product
 
When the person buy the unlimited , most of the time they upgrade and this is were my add on cost add up at end of month.49.99 added with upgrade 89.99 Plus.
Dont do EFT people like the idea that there no contrack,other store has it and they come to my shop for we dont have contrack.gross sale are running 140-150 a year with 7 unit.

Steve Underhill 02-03-2014 10:54 AM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by suncitypembroke (Post 15082176)
When the person buy the unlimited , most of the time they upgrade and this is were my add on cost add up at end of month.49.99 added with upgrade 89.99 Plus.
Don't do EFT people like the idea that there no contrack,other store has it and they come to my shop for we dont have contrack.gross sale are running 140-150 a year with 7 unit.

You should not have a contract but there should be a cancellation after the first 30 days with a 30 day cancellation plus there should always be a startup or membership fee. ALWAYS!

Tony 02-03-2014 07:56 PM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by Steve Underhill (Post 15082322)
You should not have a contract but there should be a cancellation after the first 30 days with a 30 day cancellation plus there should always be a startup or membership fee. ALWAYS!

Bad advice Steve!

Steve Underhill 02-04-2014 04:22 PM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by Tony (Post 15082361)
Bad advice Steve!

Wrong, people hate contracts. If they are going to stop paying they will with or without a contract. Not having a contract cuts through a major negative with the consumer. A contract is a bad idea and will reduce the number of memberships you sell and create a great many tanners talking bad about you. I love structuring salons in a market where the competition have contracts.

Steve Underhill 02-04-2014 04:24 PM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by Tony (Post 15082361)
Bad advice Steve!

The most successful chains in the country have no contracts.

uts-sj 02-04-2014 05:27 PM

Re: Stop Under valuing Your Product
 
IMO you can't have a 30 day cancellation policy without a contract/agreement/whatever moniker you choose. You can't auto-debit anyone's card without their permission.

Tony 02-04-2014 08:51 PM

Re: Stop Under valuing Your Product
 
Quote:

Originally Posted by Steve Underhill (Post 15082407)
Wrong, people hate contracts. If they are going to stop paying they will with or without a contract. Not having a contract cuts through a major negative with the consumer. A contract is a bad idea and will reduce the number of memberships you sell and create a great many tanners talking bad about you. I love structuring salons in a market where the competition have contracts.

Steve

Why did you think I was referring to contracts? I figured out 20 years
that those where bad! I was referring to your enrollment fee. Talk
about killing EFT sales. #1 killer is a contract and right behind that is
an enrollment fee.

NEVER NEVER NEVER have an enrollment fee.


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