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Sell More: Tips & Tricks

04/28/2008
Continued from page 5

Commercial tanning systems equipped with various options will run anywhere between $2,900 for entry-level units to $40,000-plus for high-end units. When examining equipment costs, take into consideration the return profit potential that the system is able to produce. Average session costs vary from $5 to $12 for low-pressure tanning. Generally, equipment with a longer recommended exposure time such as a tanning bed would have a higher cost factor when establishing a pricing schedule. Therefore, the shorter the recommended exposure time, the easier it is to establish more competitive pricing and the greater the profit return. Based on a 15-minute session time at $5 a session, it would take 1,200 sessions to recoup a $6,000 investment. Realistically, this could be accomplished easily in less than two months, providing your service is promoted properly.

3. Place

Once the manufacturer decides what to produce and how much to charge for it, he has to get it to the place where a potential customer will buy it. Among the considerations for product placement are the following issues.

  • Where will customers shop for the product?
  • What is the best perceived location?
  • Does location affect the quality appeal of the product?
  • Will consumers know to look for it here?
  • Are there other locations that are overlooked that could be suitable locations for the product?

Whatever location or locations a manufacturer chooses, the main point about a place is the consumer’s expectations. In the past, consumers have bought products like the ones they’ve bought before, by looking for the product in the locale where new and old products are grouped according to category.

The process of placing the tanning service is a difficult one because the salon owner must select a location that will draw in the most tanning customers. Attractive display shelves and point-of-purchase displays within the salon warn the consumer that this is an opportunity to purchase. One way the manufacturer places his goods is with a wholesaler who in turn distributes them to locations where they will get the best attention.

Convenience is very important in our society, and unless a product or service is important to people, they won’t go out of their way to purchase it. Therefore, having decided on your primary audience and what will appeal to them, you must find a way to offer it in a location that is convenient to them. That may mean that it is near their home, their work or other places they frequent.

It is also important that the location mesh with the other facets of the marketing plan. If rent is prohibitively high and will push the cost of offering the service beyond your target audience’s reach, the convenience of the location is irrelevant. Or, if the salon is in a seedy part of the downtown district, and your target audience is young female professionals, it doesn’t matter if it is close to their work or if the rent is low.

The particular requirements of the services that you offer also must be considered in choosing a location. At the very least, minimum space requirements must be met. If you anticipate a bright future, you should make sure there is room for expansion.

If your service is unique or is perceived to be more desirable than that of your competition, you may be able to get away with operating in a less convenient location that accommodates those features that make your services distinct. As long as your potential customers know about you and will go out of their way for what you have to offer, the location may not be a major handicap.

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