The game starts by deciding what your goal is for spray, over time.
Growth: Will your salon create immediate and sustained growth if it dramatically expands the number of people who spray tan every now and then, in order to convert some of them to an EFT spray memberships, over time?
Cow: Will your salon grow sales and profit both now and long term by maximizing the sales and profit on each sale? Based on experience, when you maximize sales and profit per each single session, do most tanners come back – soon? frequently? 3-4 times per year?
Growth or Cash Cow is a critical decision because few lines of businesses can be both.
So, decide, as it will help you determine the everyday price of a single spray session.
Should the price be the same as a EFT spray membership $49?
Seems to make for an easy sales pitch … Tan 1x for $49 or unlimited tanning for $49?
The value is obvious but most people do beauty treatments (hair cut, hair color, nails, brows, massage) every now and then, not weekly.
Should the price be linked to your actual ASP (click: how to calculate average selling price of spray tan session)?
If the salon has an ASP of $14, then maybe the every day price for a single session should be priced 50% above that, or $21. Tip: Lots of salons have a spray ASP in $9-$18 range.
$21 may seem low, especially if the salon advertises a price of $49 (or whatever).
But, $21 is 50% more than you are making now.
If EFT member is paying $49 now for unlimited tanning, would they cancel membership because they can tan anytime for $21?
If you think so, then maybe the every day price is $25.
How would you feel if your spray sessions increased 20% or more and you raised your ASP by 50%? Over 1,000 salons – like yours – grew spray sessions by 28% or more over the last 12 months.
Of course, getting the price right is no game — not to you, and certainly not to your current or future customers.
If you’d like help to properly calculate ASP in order to set an every day price for single sessions that will drive a sales and profit increase – connect with your Mystic Tan representative at 888-974-9977.