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Old 04-09-2014, 01:17 PM   #11 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by Wynwood View Post
I have no problem with your continual phishing for business but could you at least have enough respect for the serious participants here to not throw around a statement like this one without at least qualifying it with some explanation. On its face it is pure nonsense. We exist in a business environment with zero pricing power (meaning the only way to revise price structure more profitably is if you are totally screwed up to begin with). More responsible use by tanners? How in the world can that possibly increase gross sales? Fewer sessions = less lotion sales, less salon visits, less opportunities to sell.

I'll bet you are on board with ASA supporting teen tan bans too.
No I think you are looking at this all wrong. Yes you would be amazed at how many salons have price structures that are costing them a great deal of revenue. When your price structure is based on sessions or minutes you must depend on tanners tanning a lot and tanners only buy what they feel like they need. If you have a price structure that can have a couple of different session packages that are actually the most costly way to tan and combine that with memberships and other forms of time packages that represent a greater value, now you have a method of increasing sales with the same number of tanners and less tans. Selling lotions is more about your sales staff and education.

when I say this has been a very productive first quarter that is fact for salons that are properly structured and marketed. For those that continue do operate a salon in a way that causes them to struggle can't expect things to improve magically. Business will never get better without change.

Every day in business is a challenge and you must always be evolving. If a certain day of the week is slow design promotions around that day.

The big picture is that if sales are flat or declining, unless you make changes that trend will continue and that has nothing to do with the tanning industry. It is due to being detached from what drives your business. There are always things that can be done to increase sales. In most cases it starts with your price structure and how you reach your tanners.

Yes i have run into salons that are too far gone to save but in most cases sales can be increased in most salons and in most cases substantially.

The operators that just complain and blame it on everything except themselves will never benefit from change. You must first realize that what you are currently doing is not working and find something that does.

the fix is never just one thing it is always a great many changes that are needed and it requires devoted effort to properly execute those changes. what those changes are is determined by each individual salon.

I run into Sun Sally all over the country with operators that I work with making changes when she is providing many of them with equipment. People depend on Ann when they want great used equipment. When she speaks with them I am sure they all tell her that the changes they are making are all positive changes.

Like it or not salons are turning things around and becoming very successful. I don't have to tell you the stress that is relieved when sales start increasing.
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Old 04-09-2014, 01:26 PM   #12 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by Wynwood View Post
The biggest reason this season is down is the weather where most of us are in business. Obviously the other reasons we've been dealing with for 5 years now are having an impact (consumer confidence, low wages, tan tax, sunscare, ineptness of our own trade associations) but weather is the biggie this year. We've got 3 months left to make our numbers this year. Going to be initeresting... again.
The only problem with this industry is the salon operators inability or willingness to adapt to the new rules required to be successful. The large chains are watching the independent operator self destruct and loving it while they continue to grow. In fact they have all reached out to your landlords to ask them to call if a tanning salon in their center is closing so the can reach out and buy the client base. They are feeding on your fear and unwillingness to change. All of the things you mention are reasons to make appropriate changes.
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Old 04-09-2014, 01:28 PM   #13 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by peach View Post
Who cares about what you "gross"? its "Net" that matters.
Sorry, Net sales are up for the first quarter for all salons that are properly structured and marketed. Those that are not are flat or declining and making excuses.
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Old 04-09-2014, 03:33 PM   #14 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by Steve Underhill View Post
The only problem with this industry is the salon operators inability or willingness to adapt to the new rules required to be successful. The large chains are watching the independent operator self destruct and loving it while they continue to grow. In fact they have all reached out to your landlords to ask them to call if a tanning salon in their center is closing so the can reach out and buy the client base. They are feeding on your fear and unwillingness to change. All of the things you mention are reasons to make appropriate changes.
Independent operators will not be successful by trying to imitate STC, Zoom or PBT. They will succeed by setting themselves part from them. If these big boys had all the answers, I wouldn't exist. Just like Walmart hasn't eliminated all of the grocery, and hardware stores in the US. Those competitors are not still around by trying to be like Walmart. That is why I have said-do what they won't do; you'll be different and you will survive and thrive.
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Old 04-09-2014, 03:40 PM   #15 (permalink)
 
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Re: 2014 First Quarter

"When your price structure is based on sessions or minutes you must depend on tanners tanning a lot and tanners only buy what they feel like they need."

So your "winning price structure" is to sell people things that they DONT NEED? What happens to your brilliant plan when these stupid consumers figure out that they are paying for things that they don't need and don't use? I'd rather dig ditches than to do that. Sorry
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Old 04-09-2014, 03:43 PM   #16 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by Steve Underhill View Post
The only problem with this industry is the salon operators inability or willingness to adapt to the new rules required to be successful. The large chains are watching the independent operator self destruct and loving it while they continue to grow. In fact they have all reached out to your landlords to ask them to call if a tanning salon in their center is closing so the can reach out and buy the client base. They are feeding on your fear and unwillingness to change. All of the things you mention are reasons to make appropriate changes.
You can't buy my data base by renting my leased space. Are you smoking crack or something?
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Old 04-10-2014, 10:09 AM   #17 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by peach View Post
"When your price structure is based on sessions or minutes you must depend on tanners tanning a lot and tanners only buy what they feel like they need."

So your "winning price structure" is to sell people things that they DON'T NEED? What happens to your brilliant plan when these stupid consumers figure out that they are paying for things that they don't need and don't use? I'd rather dig ditches than to do that. Sorry
Some times i wonder why your thinking is so narrow minded.

Here is the big picture as far as marketing todays consumer.
If people only purchased what they actually need there would be very little of anything sold in any industry.

Over 80% of money spent by consumers is based on impulse spending. Therefore any product should be marketed based on reaching that impulse buyer.

My point instead of selling sessions that are purchased based on need you should have a combination of packages that will solicit the purchase made based on want and perceived value instead of only need. This is what will drive a successful salon. If you are not comfortable with controlling a consumers buying habits you should not be a business owner.

All advertising for any product is based on making the consumer want something that they probably don't need.

By definition we sell a product that a person can get for free by standing in the sun.

If you opened a salon in order to save the world instead of making money I question your sanity.

Do you have to be PBT? No but can you implement some of their model that makes them successful? If your smart. You can do this without losing your own flavor. It is not just PBT. All successful chains have similar business models with subtle differences.

Peach, you have a tendency to be disconnected from reality. I trust that people that follow tantalk have the ability to know what advice they should follow.

If what you believe and do works for you that is fine. Unfortunately based on so many of your post you appear to be somewhat disconnected. No insult intended, only an observation.
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Old 04-10-2014, 10:21 AM   #18 (permalink)
 
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Re: 2014 First Quarter

Quote:
Originally Posted by peach View Post
"When your price structure is based on sessions or minutes you must depend on tanners tanning a lot and tanners only buy what they feel like they need."

So your "winning price structure" is to sell people things that they DINT NEED? What happens to your brilliant plan when these stupid consumers figure out that they are paying for things that they don't need and don't use? I'd rather dig ditches than to do that. Sorry
By the way when i set up a price structure it is based on an individual salons market and equipment mix that will get the most out of that particular salon. The price changes are only part of the changes. We must identify what is being done wrong and what should be done that is not being done and have a plan for executing the changes. It is never as simple as making some price changes.

So many salons operate without any form of a business model. That is a formula for failure, as salon owners quickly learn. They simply need help on how to identify and correct mistakes.

Operators come to tantalk looking for answers. It can be confusing because many of the operators that come here looking for help end up giving advice.
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Old 04-10-2014, 03:25 PM   #19 (permalink)
 
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Re: 2014 First Quarter

Steve, This industry has fallen so far so fast, that most people in the industry today do not know or remember what it used to be like to make an honest living selling UV light to people. We used to run salons with 8-10 32 bulb beds; sold people what they needed and made good money doing it, while giving people what they paid for. We were an industry that had right to be proud.

Now we are building 250k stores with $35k beds that look like space ships, tanning fewer and fewer people, bombarding them with mega doses of UVA, tricking them into buying things that they don't use, and selling them $100+ bottles of lotion (that aren't worth $20).

And we call that progress? No wonder people think that our industry is a joke. I am not disconnected; I have some morals and some ethics that still guide me. I will give people a fair shake; I will not deceive them, I will not sell them things that they will forget that they are paying for and call that a business plan. I will leave that to the rest of you.

And when the day comes that I cannot make an honest living doing that, I will find something else to do. To each his or her own.

AND...I think that there are people on this site that want to hear something other than the standard industry blah, blah, blah. Steve, you are good at the blah, blah, blah. If people wanted to follow your plan, they could save a lot of consulting fees and just buy a membership a PBT and take some good notes when they visit....
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Old 04-11-2014, 04:13 AM   #20 (permalink)
 
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Re: 2014 First Quarter

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Originally Posted by Steve Underhill View Post
The only problem with this industry is the salon operators inability or willingness to adapt to the new rules required to be successful. The large chains are watching the independent operator self destruct and loving it while they continue to grow. In fact they have all reached out to your landlords to ask them to call if a tanning salon in their center is closing so the can reach out and buy the client base. They are feeding on your fear and unwillingness to change. All of the things you mention are reasons to make appropriate changes.
What proof do you have that large chains are calling landlords?

A bit embellished I think. This to me sounds a bit 'fearmongering' on your part.Big chains have more important things to do than randomly call landlords. They have real estate departments that scour and select prime locations, not faltering nearly out of business salons.
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