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Old 08-07-2016, 09:53 PM   #11 (permalink)
 
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Re: When, how often, where to increase prices?

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Originally Posted by gravesmc View Post
I have a question regarding pricing.. What do you price a 1 mth pass on any given level? Do you price as far as taking the total price of a number of tans? Would love to get some input.
i reverse engineered the pricing the PO had in place, to figure the formula, i mutiplied the singe session pricing per level by a 30 days, and took the monthly unlimited and divided that by the 30 figure to get an idea and the eft pricing was lower than that

i noticed and tanners that utilised the monthly pass the most averaged 15 times per month, so in theory they can use it 30 time, but few do,albeit some do


the short answer... low enough for them to say yes high enough for you to put up with cleaning after them

my 2 cents
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Old 08-11-2016, 11:11 PM   #12 (permalink)
 
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Re: When, how often, where to increase prices?

In most cases the answer is not raising prices. Most salons leave money on the table because they are not working a well structured pricing to increase sales and sell upgrade packages. You must train yourself and staff how to get more money spent by each tanner with the pricing you have. Now this only works if you have a smart price structure. Always start by pricing single sessions and session packages high. Never have too many or large session packages.

You must have a formula and strategy to get tanners on long term packages and get them to upgrade those packages with smart promotions.
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Old 08-18-2016, 10:12 AM   #13 (permalink)
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Re: When, how often, where to increase prices?

Quote:
Originally Posted by gravesmc View Post
I have a question regarding pricing.. What do you price a 1 mth pass on any given level? Do you price as far as taking the total price of a number of tans? Would love to get some input.
Here's my pricing https://www.cocobunstanning.com/pricing/


Quote:
Originally Posted by Hot Tan View Post
i reverse engineered the pricing the PO had in place, to figure the formula, i mutiplied the singe session pricing per level by a 30 days, and took the monthly unlimited and divided that by the 30 figure to get an idea and the eft pricing was lower than that

i noticed and tanners that utilised the monthly pass the most averaged 15 times per month, so in theory they can use it 30 time, but few do,albeit some do


the short answer... low enough for them to say yes high enough for you to put up with cleaning after them

my 2 cents
Aren't you assuming that your PO did their pricing correct to start with? If they did a poor job your work will turn our poor.

my 2 cents
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Old 08-18-2016, 12:32 PM   #14 (permalink)
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Re: When, how often, where to increase prices?

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Originally Posted by DH View Post

Nicely presented - easy to follow! Hope you have these available n the salon to "show" as you tour clients.


My "pet peeve" - your formula isn't consistent from one unit to the next...

You have established spacing with your walk in pricing and EFT that suggests your Level 2 is equally better than the L1 -- and worse than the L2. If that isn't true, may have customers who "stay" at L2 because they see it as "almost like L3 -- but a lot cheaper".

That said - if they are truly "equally apart", then the pricing should reflect that at ALL levels - or you unknowingly create "deals" - both good and BAD!

So for 1 month - you would expect $50, 85, 120, 155 --- not $110, $140

And for "buy 6, get 4 free" - actually NONE of your prices are "buy 4, get 4 free". The Level 1 is "buy 6.875, get 3.125 free" and the others are all "buy 5, get 5 free"


I generally try to reserve a 50% off discount for 20 visits (and I'm usually a bit over 50% for those).



Quote:
Originally Posted by DH View Post
Aren't you assuming that your PO did their pricing correct to start with? If they did a poor job your work will turn our poor.

my 2 cents

As for this ^^^ - Bingo! See it all the time!!
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Old 08-18-2016, 12:42 PM   #15 (permalink)
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Re: When, how often, where to increase prices?

Quote:
Originally Posted by DH View Post

Also - for your new customer special (5 visits every level, goggles, bottle of lotion for $50)...


LOVE the "one visit per unit" - I recommend a "tour" like this to all the salons I consult with!


Key to this is:

a. Multiple visits

b. Try everything (or at least the best equip)

c. One time only, at a substantially discounted price (I usually price at approx 50% off or approx the cost of the highest price unit for a single tan)


Only thing I might "suggest" as an alternative to your offering....


rather than a "cheap" bottle of lotion (I assume it would be low end if part of a $50 offering...), make it one (or more) packettes of lotion instead.


This way they can sample better lotions or lotion "types" - and be more likely to buy a better quality lotion down the road.


If you "start" them on a cheap lotion - they may never bother to move up 'cause "this one seems fine".


So your 5 visit salon tour is maybe $29.95 or $32 instead of $50 and includes 1 packette of lotion and maybe the googles. Then SELL them additional packettes for their next visits and find what they like for a bottle.


Or keep it at $50 if you find that is still a price point you can sell to EVERY NEW CUSTOMER that walks in --- and show the "value", with the 5 visits and 5 packettes and pair of goggles -- of $100++).


With your EFT bottle discounts, it helps make membership look like a better deal upfront when they will ALSO get to take a discount off a better bottle of lotion!! A new customer special that INCLUDES lotion bottle means that the "perk" of the EFT will now be put off til later down the road...and may make that membership less enticing as a result....


P.s. Being picky now...but I see 7 pieces of equip, including Sunless. 6 without. So which unit is NOT included in the 5 visit tour - and why??
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Old 08-19-2016, 01:42 PM   #16 (permalink)
 
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Re: When, how often, where to increase prices?

It is my belief that s salon will get more sales on every level when there are only 3 levels. What ever price structure you are using you can see if it is doing what you want it to do buy pulling and reading sales reports. If you want to generate a substantial jump in level 3 and 4 sales I would put those systems on the same level and change the price of that level just above where you have level 3 priced. By doing so you will move more tanners up to that level and generate more income than what you are now generating with level 2 and 3 combined. You want everyone using your HP equipment, make it reachable to all and beef up level 3 creating more performance separation between level one and 2. I also see a few other changes you might make but that would depend on your sales reports. I do like that 10 sessions is your largest session package.
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Old 08-23-2016, 07:40 PM   #17 (permalink)
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Re: When, how often, where to increase prices?

Quote:
Originally Posted by sunsally View Post
Nicely presented - easy to follow! Hope you have these available n the salon to "show" as you tour clients.


My "pet peeve" - your formula isn't consistent from one unit to the next...

You have established spacing with your walk in pricing and EFT that suggests your Level 2 is equally better than the L1 -- and worse than the L2. If that isn't true, may have customers who "stay" at L2 because they see it as "almost like L3 -- but a lot cheaper".

That said - if they are truly "equally apart", then the pricing should reflect that at ALL levels - or you unknowingly create "deals" - both good and BAD!

So for 1 month - you would expect $50, 85, 120, 155 --- not $110, $140

And for "buy 6, get 4 free" - actually NONE of your prices are "buy 4, get 4 free". The Level 1 is "buy 6.875, get 3.125 free" and the others are all "buy 5, get 5 free"


I generally try to reserve a 50% off discount for 20 visits (and I'm usually a bit over 50% for those).






As for this ^^^ - Bingo! See it all the time!!
Thanks for the input. It's been so long since we adjusted our prices I can't remember why we set up our Level 3&4 monthly packages that way. We just purchased a Magic 636 at our new salon and it's time we reevaluate our prices before the next busy season.

We do print our price sheets on 6X9 post cards really cheap and they look high class for in-store use. They look so good that some clients ask if they're allowed to take them home with them because they're so nice. These post cards are very high end looking. Our price sheet on our webpage prints exactly on our 6x9.
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Old 08-23-2016, 07:47 PM   #18 (permalink)
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Talking Re: When, how often, where to increase prices?

Quote:
Originally Posted by sunsally View Post
Also - for your new customer special (5 visits every level, goggles, bottle of lotion for $50)...


LOVE the "one visit per unit" - I recommend a "tour" like this to all the salons I consult with!


Key to this is:

a. Multiple visits

b. Try everything (or at least the best equip)

c. One time only, at a substantially discounted price (I usually price at approx 50% off or approx the cost of the highest price unit for a single tan)


Only thing I might "suggest" as an alternative to your offering....


rather than a "cheap" bottle of lotion (I assume it would be low end if part of a $50 offering...), make it one (or more) packettes of lotion instead.


This way they can sample better lotions or lotion "types" - and be more likely to buy a better quality lotion down the road.


If you "start" them on a cheap lotion - they may never bother to move up 'cause "this one seems fine".


So your 5 visit salon tour is maybe $29.95 or $32 instead of $50 and includes 1 packette of lotion and maybe the googles. Then SELL them additional packettes for their next visits and find what they like for a bottle.


Or keep it at $50 if you find that is still a price point you can sell to EVERY NEW CUSTOMER that walks in --- and show the "value", with the 5 visits and 5 packettes and pair of goggles -- of $100++).


With your EFT bottle discounts, it helps make membership look like a better deal upfront when they will ALSO get to take a discount off a better bottle of lotion!! A new customer special that INCLUDES lotion bottle means that the "perk" of the EFT will now be put off til later down the road...and may make that membership less enticing as a result....


P.s. Being picky now...but I see 7 pieces of equip, including Sunless. 6 without. So which unit is NOT included in the 5 visit tour - and why??
Our tour is 1 tan in each level and 2 in level 2 because that level has lay downs and standups (1 in each). We don't include spray tan in this but need to do so.

I really like your idea of switching from a bottle to packetts. We currently allow them to pick a lotion up to $28 which is promoting cheap stuff and switching to packetts would potentially encourage higher end lotions.

******, now I have homework
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Old 08-25-2016, 01:15 PM   #19 (permalink)
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Re: When, how often, where to increase prices?

Quote:
Originally Posted by DH View Post
Our tour is 1 tan in each level and 2 in level 2 because that level has lay downs and standups (1 in each). We don't include spray tan in this but need to do so.
I see 6 beds in the pictures...... :-)

If you have 6 unique units, make it 6 unique tans. Otherwise, maybe when I get to your Level 4, I have to pick ONE of the two choices - and maybe the one I picked doesn't "wow" me, so I rule that level out. But maybe if I had randomly have picked the OTHER to try, and it DID "wow" me -- I might have been locked in as a customer willing to spend the $$ you are charging to use either of those beds.


As for spray tan , since not EVERYONE is a spray tanner, I usually offer that as an "add on" for a substantially reduced price (maybe $5-14.99). If they want ONLY spray tan , then I suggest a multi-visit discount (Like 2 for price of 1).

Quote:
Originally Posted by DH View Post
I really like your idea of switching from a bottle to packetts. We currently allow them to pick a lotion up to $28 which is promoting cheap stuff and switching to packetts would potentially encourage higher end lotions.

******, now I have homework

Exactly! Either just include the 1st packette and sell them others from there during the rest of their "newcomer tans" to build to a good bottle purchase. OR, it could still be $50 -- you just let them pick or you pick the packettes that are eligible as part of that promo - emphasizing a UNIQUE packette for each visit (different exposure).


A customer who "trusts" their sales person and is educated about why different choices cost different $$ (in other words, the increased benefits you get for more $$) will SPEND MORE than a customer who comes in and is introduced to your least impressive equipment and/or products.
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