Marketplace

Marketplace

Handling the Price Shopper

by Jerry Deveney, with contributions from Kevin Moore

It's 9:30 on a busy Wednesday morning. All your tanning units are full and several customers are waiting patiently. You finally have a chance to take a sip of what is now lukewarm coffee when the phone begins to ring.

Salon owner: "Good morning, Tan-You Tanning Salon."

Potential Customer: "How much are your tanning sessions?"

It's the attack of the price shoppers. Before you can utter a sound, your mind presents a series of wild scenarios. First, there is the schizophrenic fantasy that it isn't really a potential customer. It's your competitor from down the street, and she's spying on you because she knows you have added two new beds. You ask yourself why you didn't install Caller ID.

Next comes the frustration factor that it is another price shopper. You can't stand price shoppers, and wish they wouldn't call. Why can't they make your life easy and just give you their money? Why do you have to work so hard?

Finally, your brain drifts into total confusion asking yourself if you left the garage door open and what will you have for lunch?

Yet amazingly, within seconds of hearing the words "how much," you are able to make a complete recovery and deliver an intelligent-sounding, though highly ineffective response.

You tell them that you charge $3.50 per session. However, before you can finish the sentence, the potential customer thanks you and hangs up. In your mind they are lost forever to the salon down the street that charges only $3.25 per session.

Every day, salon owners nationwide are faced with similar dilemmas. You work hard to make your salon the finest in town. You use only the best tanning equipment, change your lamps ahead of schedule and keep your salon so surgically clean you could manufacture microchips in your tanning rooms.

Yet, your years of hard work mean nothing to those whose only quest in life is price busting. While this daily ritual can be quite frustrating, there are methods that you can use to handle such callers. At the same time, you will learn to sell your services on value and results, not just on price.

Before we continue, you need an attitude boost. Think about the hundreds of customers who love your salon and the services you offer. You have taken a shell of a building and turned it into a place where people come to relax and feel good about themselves. Many people owe part of their livelihood to your success. You employ people, pay rent, taxes, purchase lotions, accessory products and contribute to the growth of the community.

Yet, it still hurts when one gets away. Relax. That is a good sign. If the possibility of losing a customer didn't cause you concern and if you handled the situation nonchalantly with the suicidal "who needs them" attitude, then the cloud of failure no doubt would rain on you one dark day.

So how do you handle the price shopper and what is the best way to approach this sensitive issue?

First, realize that we are all consumers. Each month, we make hundreds of buying decisions. Examine the features of the products and services that you purchase and currently own. What made you buy them? More importantly, what made you consider the product in the first place? What was it that got you in the door?
The next time someone calls your salon and asks the infamous question, try the following set of responses.

Salon owner: "Good morning, Tan-You Tanning Salon."

Potential Customer: "How much are your tanning sessions?"

Salon owner: "Your first visit at Tan-You always is free. I have an opening this afternoon at 4:30. Will that be convenient?"

Look closely at what just transpired. You, the salon owner, took control of the conversation and forced the caller to make a decision. The potential customer either must commit to the free offer, suggest a different time or continue with another question. The majority of your callers will make a decision at this time. However, let's continue this exercise and learn how to handle the worst customer imaginable.

The potential customer thanks you, but asks how much your regular tanning sessions will cost after the free session. Don't panic. There is a nice way to handle such ungratefulness. Again, you need to take control of the conversation.

Ask the caller how often he or she tans. Now the caller must provide information about their tanning history to continue the conversation. The caller either will answer the simple question or challenge you with another question.

Potential Customer: "Why is that important?"

Salon Owner: "At Tan-You we offer a variety of tanning packages designed to fit the needs of our customers. The more often you tan the more money you save."

Potential Customer: "I normally tan about once a week."

Salon Owner: "That's great. We have a special convenience package designed just for busy people like you. Depending on how often you tan, your actual session price may be as low as $2. Let me book that free session for today and get you started. Will 4:30 this afternoon be okay?"

Your time is valuable and your main objective is getting the customer in the door. While you may not be able to spend more than a minute on the telephone, you must treat each call as if it's your best customer. You have only one chance to make a great first impression. If the potential customer feels that you don't have the time to speak with them, they will find a salon that will.

Examine the tanning packages that you currently offer. Select the best deal in the house and determine what the customer actually would pay per session if they took full advantage of this offer. That should be the only price you need to offer over the telephone to a potential customer.

Some salon owners do not like to give out prices over the phone. Personally, I couldn't imagine calling to order a pizza and the store owner saying that he couldn't tell me how much the pizza will cost until it arrives at my door.

For those against giving away a free session to lure in customers consider that the cost to operate a typical 24-, 26- or 32-lamp low-pressure tanning system ranges from 25 cents to 35 cents for a full 20-minute session. That includes lamp usage and electricity.

Giving away a free sample of the wonderful service available exclusively at your salon potentially could gain a customer for life. That customer may spend hundreds of dollars in your salon each year and tell their friends about your business.

Take a lesson from our own lotion industry and learn to sell on value and results, not just on price. You need to rid yourself of the misconception that "they'll never pay that much for a tanning session in this town."

The most popular lotions and skincare products sold today are not the $2.99 gallons of goop available at the local discount store. What is flying off the shelves are the $25, $40 and $50 bottles of tanning magic that are attractively packaged and creatively marketed.

People will pay for value, service and results. Your top priorities always should be to get new people in the door and give them the red-carpet treatment. Your business will then sell itself.

If you still feel that you only can sell on price alone, take a close look at the video rental industry. Talk about competition. Video store owners will pay $50 to $75 per copy for an "A" title movie such as Batman. They often purchase 20 to 30 copies of an "A" movie and then have to recoup their investment at $2 to $3 per night.

Worse yet, the exact same movie often can be rented at a discounter for less money. To add insult to injury, the consumer will be able to purchase the actual video cassette for about $19.95 in six to eight weeks.

I rent from a local store that charges about a $1 more than the large discounter. I do it because of the convenience and the personal service I receive. Sure I could save a dollar by driving another mile, but the store owner has appealed to my sense of value, and I recognize the quality of the service provided.

Whether it's soft drinks, clothing, automobiles, resorts, hotels or tanning equipment, the companies that offer the highest-quality products and deliver results as advertised create loyal followings, generate profits and grow.

Remember, if price were the only issue we all would be driving Yugos and wearing polyester suits.

Jerry Deveney is the director of marketing for Sun Industries. Kevin Moore is the national sales manager for Forever Tan. Your thoughts and comments are welcomed at (800) 643-0086, ext. 114.

Note: This is not to be considered a guarantee of income or return on investment. Your actual results may vary.