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Updates from ETS Tan insiders. Covers tanning bed technology, tanning salon owner news, tanning bed maintenace and more.


Dec 01
2008

Build Your Own Revenue & Profit Blueprint - Part 5 of 6

Posted by Bill Pipp in tanning salonsalon managementrevenuepromotionsprofits

Bill Pipp

In the previous post I showed you how tanning salon software gives you an inside peak at where the money is being made in your salon.  Now it 's time to make those profitable tanning packages really sell.

Part 5 - Promotions Build Profits

Some of your customers love to sit at the lower levels. You could have your best salesperson on them and they’re content to sit there and continue using the Level 1 Bed forever and because they have a membership and, as we both know, they’re not profitable.

So, how do you get them into that higher level tanning bed?

The Answer is Promotions

Sometimes, something as small as giving a customer a free session is enough to entice them to that higher level.

For example, let’s say you give that low-spending customer a free upgraded session. It will probably cost you as little as 20 cents, but if that customer enjoys the experience and starts using the more expensive tanning bed even just every other time, all of a sudden you’re making that much more extra profit.

Identifying Promotional Opportunities

So, yes, promotions will cost you money, but the trick is identifying those promotions that cost you the least amount of money. Before you begin any promotion, ask yourself:

  • What tanning bed packages or lotions are the most profitable?

  • If I give this product away, how much will it cost me?

  • What’s the long-term profitability potential of this promotion?

Ideally, you want to give away products that cost you very little (like time in a bed) and offer huge profitability potential (like future upgrades).

The Bottom Line

You want to use low-cost tactics to yield high-profit results. One of the best ways to do that is to upgrade your low-spending customers by enticing them with free promotions. If you can turn just one customer into a regular user of your high-end tanning bed, it could be worth it.

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