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Old 09-18-2014, 05:16 PM   #1 (permalink)
 
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Raising single visits to work with your plans.

Was hoping to get some opinions on raising single visit pricing (not by much, maybe $3 each level) to make the memberships more appealing and round out the math when breaking down packages to customers. Based off your experience with this, does it work overall or does it just **** the single visit customers off and make them go elsewhere?

About 7% of my revenue is single visit customers and my single prices are lower or equal to my competition. I would never make my single visits higher than my comp. I don't know if I can get 7% lower or if that is a good %.

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Old 09-18-2014, 05:21 PM   #2 (permalink)
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Re: Raising single visits to work with your plans.

You dont say what your single prices are, But I personally would NEVER try to send those people away, some days those could be the only cash customers you have.
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Old 09-18-2014, 06:39 PM   #3 (permalink)
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Re: Raising single visits to work with your plans.

Higher single session prices, is what drives people to buy packages. Would it work to just lower the prices of single sessions and do away with packages entirely? Now that is the million dollar question. If your the only game in town, you could do very well with this concept. Packages do add to the cash flow, but when you have customers that tan almost every fricken day of their package, makes for very little profit. I sell an unlimited annual package, in any bed, for $299, and have a few customers that tan almost every day of the year.
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Old 09-18-2014, 06:56 PM   #4 (permalink)
 
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Re: Raising single visits to work with your plans.

I guess Im just wondering if 7% singles is a decent % of total revenue or if I could be converting more.
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Old 09-18-2014, 11:40 PM   #5 (permalink)
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Re: Raising single visits to work with your plans.

^^^^Not much? $3 raise a session; That seems rather high of an increase. How much are you getting for single sessions?
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Old 09-19-2014, 12:04 PM   #6 (permalink)
 
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Re: Raising single visits to work with your plans.

If you are selling a lot of single sessions the prices are too low. Single session pricing is the foundation for any price structure and should be high. This is what establishes the value of all other packages. When evaluating struggling salons typically single session pricing and session package pricing is one of the biggest problems. Progressively value must increase from, single session, session packages, one month and EFT membership. EFT must be the best value and session and session packages must be the most costly.
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Old 09-23-2014, 01:20 PM   #7 (permalink)
 
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Re: Raising single visits to work with your plans.

I still have the single sessions available however instead of running a 5 or 10 session package per level I now do the points which allowed me to raise my prices without the customers knowing
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Old 09-26-2014, 11:34 AM   #8 (permalink)
 
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Re: Raising single visits to work with your plans.

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I still have the single sessions available however instead of running a 5 or 10 session package per level I now do the points which allowed me to raise my prices without the customers knowing
Don't try and trick tanners. Points can be good however explaining points is hard for your staff and hard for the tanner to understand. Keep that in mind. Obviously you must set single sessions high to establish the value of tanning on a specific system.

A session package is a good idea but I suggest only one and with your HP level maybe 2 packages.

Rather than having a 5 and 10 session package on each level, it might be smarter to have an 8 session package. I also suggest having an expiration on that session package of 60 days, that is a tan a week.

There is a reason to have an expiration from a marketing stand point. Many of you will say they should not expire, but you would be 100% wrong.

Price structures should be progressive in value with the membership being the best value. If your session packages or points are the best value, you will not sell memberships. Not selling memberships is not good.

Poor price structures is a major factor in poor sales. Price structures must match your market, salon size and equipment mix.
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Old 09-29-2014, 11:29 AM   #9 (permalink)
 
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Re: Raising single visits to work with your plans.

Quote:
Originally Posted by Steve Underhill View Post
Don't try and trick tanners. Points can be good however explaining points is hard for your staff and hard for the tanner to understand. Keep that in mind. Obviously you must set single sessions high to establish the value of tanning on a specific system.

A session package is a good idea but I suggest only one and with your HP level maybe 2 packages.

Rather than having a 5 and 10 session package on each level, it might be smarter to have an 8 session package. I also suggest having an expiration on that session package of 60 days, that is a tan a week.

There is a reason to have an expiration from a marketing stand point. Many of you will say they should not expire, but you would be 100% wrong.

Price structures should be progressive in value with the membership being the best value. If your session packages or points are the best value, you will not sell memberships. Not selling memberships is not good.

Poor price structures is a major factor in poor sales. Price structures must match your market, salon size and equipment mix.


My packages expire 6 months after the first use. The point package works better for customers at this point in time. We still have the 5&10 session package in the system however we don't sell them that often
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Old 10-07-2014, 03:06 PM   #10 (permalink)
 
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Re: Raising single visits to work with your plans.

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Originally Posted by crosbytan View Post
My packages expire 6 months after the first use. The point package works better for customers at this point in time. We still have the 5&10 session package in the system however we don't sell them that often
Sessions and point packages should never be part of the same price structure. Session packages should be limited to one package per level. I think an 8 session package is best because it is an easy sell and it can expire in 60 days based on a person only tanning once a week. If 60 days for an 8 session package is not long enough they should be sold a different package.

Point packages can work well however they are harder for your staff to explain and harder for tanners to understand. Keep in mind employees and employee training is a major operators concern, keeping it simple pays dividends.
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