Hi Guys

A new salon has opened down the road from me and is doing the most craziest offer i have ever seen.

They are offering 50% off all treatments for a month ???

They are surely losing money!!

I am an established business of over 4 years now and dont particularly want to be drawn into a price war.

My takings have dipped somewhat since they have opened.

Does anyone advice on what to do in these circumstances or has anyone experienced this before ??

How annoying for you. Honestly? Wait them out, I really don't think they will be in business long, cheep as chips gets cheep clients. When their prices go up they will loose them.
In your shoes I would concentrate on what you would normally be doing, in a price war, no one wins
In fact, now would probably be a good time to introduce a new luxury treatment. With your emphasis on the 'touch of class' or 'luxurious elegance'
or even 'pure decadence'
Given a choice between a quick cheep pedi or a hour long pamper with a perfect cup of fresh ground coffee and a decent foot massage I know which one I'd go for

as Susie says, keep your dignity, but offer a luxury package.

Cheap clients aren't what you want, some people put a value on price. And its only for a month.

Theirs a place opened down the road from me, its the 3rd owners of the hairdresser/beauty, they've got a proper decal sign up in the window saying all treatments 50% off for a limited time only.

Poor you, but new doesn't mean good so people may try it but they will come back to you because of the quality of your treatments. As has been said keep on doing what your doing wait it out, good luck Hun.xxx

you think thats bad, a brand new luxury salon has opened and they are doing FREE treatments. We were dead yesterday, only thing is they dont do nail enhancements and the staff are crap. 2 used to work for me and although lovely girls couldnt do anything. But joe public doesnt know that and will just see the beautiful shop. oh the joys

As a new business they may have calculated that in their start up costs....Its all about getting clients in to see what you are like. They may be charging twice the price to start with! I think I would offer any regulars that disapeared! a treat or maybe the new luxuary treatment you will offer. Why not go down and have a treatment see what they are like that way you can see if you need to be worried!

this happened to me 6 months ago. I have only been going for 13months so it was a real worry. I made an appintment for a pedicure for £10 to see what it was about and the booking was cancelled cos someone had booked me inwhen there wasn't a therapist available. A therapist friend of mine tried to go there and was told that no one was qualified yet to do threading which was on the brochure. I pride myself on quality of service and making my clients come back to me by making them feel important. You may find it is quiet for a while but your clients will come back to you if you give them exactly what they are after.

Don't change your prices !!!!!

Some salons do this the first month they are opening, but you can guarantee they won't be doing it next month or the month after that.

Some of your clients may be trying them out but at the end of the day it is QUALITY that counts.

This kind of offer also attracts the clients that bounce from salon to salon to get the best deal.

We geeks are always debating offers and have always agreed that an extra something looks so much classier and more attractive than a money off percentage.

If you are concerned, why not try either a new luxury treatment or a special October package, "indulge in a luxury pedicure and receive a mini manicure half price" or a "witching hour" package, one hour facial with a complimentary lash tint. You could do the tint while the masque is on.

Always complimentary, never free.

HTH xxxx

i have opened a new salon, it had been closed for 7 months prior to me taking it on, i have a beautiful fully equiped salon and did 30% disc for opening week!, i had to do it to let ppl know i was back, the salons around me are now offering silly offers of half price waxing, free brow shape with tint, free mini manicure with pedicure.
Its killing me i really cant compete but im seeing some regulars returning very slowly!
seedee

Concentrate on being the best. Best at treatments, customer service and the little touches that matter. If I was a client, I would much rather pay more for a better treatment than less for a rubbish one.

As someone mentioned, they can't keep doing this or they won't make a profit, so just ride it through.

With a new salon starting out, their is often teething problems etc, and that fact you are established is a big positive. Think when you were starting out, you most probably made mistakes that you wouldn't do now.

Competition is worrying, but you shouldn't think the worst. See it is as healthy, a way to keep you on your toes. Perhaps look at your marketing and review things such as recommend a friend (word-of-mouth and all that), regular emails, specials (that don't discount but add value), loyalty cards etc. Being on top of it all and proving to your clients that you are the best, which of course you are.

Book in with the new salon, check them out and don't be shy about it, I'm sure they'd feel in a more vurealable space than you.

And remember some people (especially in this industry) perceive more expensive as better.

In your head, wish them well and success in their venture and you'll have nothing to worry about I'm sure.

Good Luck x

There will always be lots of competition around. Clients go where they feel happy.

Think of it this way they are doing twice the work for the same money you're making with one client so they need twice as many customers to make a good profit. They may be temporarily busy but if they are no good they will not be able to maintain it. Sit tight and keep doing what you are doing focus on yourself and your business. Even if they are successful that doesn't mean you can't be too

Hey - leave 'em to it...

What you need to do is work out what segment of the market they are really after (sounds like the cheapies) and then you take the rest.

As a lot of folks have mentioned high price clients are MUCH better. They moan less, spend more and you need less of them make the same money.

I'd defo make a deliberate swtich to go after the big spenders.

And start with existing client base.

- Identify the big spenders.
- Get them in for a treat.
- set up a referaal program they want to be in.
- Look after them like A listers...

And charge lots more than anyone else...

Brend x