Competitor under cutting me?

[karenrose]

Hiya girls

I have been a bit worried as a new beauty salon was opening up 2mins from me and it was on a main road whereas Im just off the main road

It opened about a month ago and turns out I know the girl who runs it.
I have been curious to find out her prices and what brands she is using but each time I drove past she was always sat at reception doing nothing!
She knows who I am and knows I have the other salon so didnt want to go in to get a pricelist.

Last week I actually seen one of my clients in reception with her!

Today I drove past and she must of been with a client through the back so I stopped the car and ran in to get a pricelist. After looking at it I realised all her prices are cheaper than mine! Some are only by a few £'s but her spray tan is £8 cheaper than mine but it doesnt say which brand she uses.

I am concerned about losing some business as she is cheaper and some people just go to whoever is cheaper!

How can I handle my client going to her? Should I write up a wee letter and send it to her but make out like its a mailshot and offer her money off her next treatment or something similar?

I know it will be difficult for her as she is on her own in the salon so if she is through the back doing a treatment and someone walks in she will more than likely leave them to go see to whoever walked in. Whereas my clients know I dont do that as Im inwith a hair salon so the girls will answer the phone anyway.

Im going to stand my ground and not lower my prices as I feel my prices are fair. When I was opening up I got local price lists and Im actually in the lower pricing band of some salons. Infact only a few weeks ago I was thinking about raising them slightly but I dont think I will raise them just yet. Esp as I think the next month or two will be quiet.

How do you handle situations like this? I want to target the client I seen in the salon. I would hope majority of my regular clients will stay loyal to me as they know me and I know all about their life and we have a good chat when they come in. Should I try organise a mailshot to all the local houses?

Help please from anyone who has been in this situation or can help me with ideas please :green: xx

 

[SJK]

You need to get serious. Up your game by providing an immaculate service that focuses on quality. Ensure your customer service is top-notch. Add little touches like a biscuit with a cup of tea that make customers feel special.

Put some measures in place to increase the footfall in your business. Check out Lynne Baker's thread on how to do this. Choose one or two ideas at a time, give it your best shot, and see what happens.

Do not enter into a price war. If people are going to her because she is cheaper than you, then you don't need those sorts of clients. Focus on getting lovely clients willing to pay you what you are worth.

This is going to be difficult, but stay strong, and as per The Godfather, go to the mattresses (it's business war).

 

[smooth]

She is silly to leave clients mid treatment as this doesn't give a good impression and it compromises salon security leaving it open and immediately unattended. People will try new salons out of curiosity but doesn't mean they will continue to go to them. Npeople will pay an additional cost for service as it adds value, don't cut your prices but maybe mailshot your clients to offer a loyalty scheme?

 

[BEAUTY4U]

i would send all your clients a little voucher for jan and feb like 20% off or something and just say as a thankyou for for your past and present custom i enclose this voucher for the future xxx

 

[ClaireyCanary]

Clients will usually go to the cheaper salon and give it a try you just need to make sure what your offering is worth the money, make sure every client is treated like royalty, cups of tea, biscuits, a friendly smile, take their coat etc etc, its the little thigs that people remeber, her prices might be cheaper but is her quality of treatments better or worse than yours, just do the best you can do and try not to worry too much....

I live in a really small town around 14,000 population and we have 18 beauty salons and 12 mobile therapists and im happy to say I worry about none of them, I have a 4 week waiting list and my clients are all happy, Im not the cheapest but I like to think i offer quality

xxx

 

[Eyecandy2go]

Yikes £8 cheaper on a spray tan? Are you expensive or is she cheap?!

Consider loyalty cards. A great incentive and way to retain customers
www.eyecandy2go.com

 

[Susie H]

Any one can be cheep hun, nail bars are cheep, they are also tacky and quiet often dirty. (In my neck of the wood anyway)
So rather then panic because you have seen 1 customer checking out your so called competion, how about a little re vamp of your own place. It's amazing how a really deep clean followed up with fresh flowers can make customers think you've had a re-vamp. Aim to make your place look like a luxury spa. There are plenty of photo's of different places to grab insperation from. New cushion covers, satin bows, a stencil sprayed on the wall at an angle to a photo. These things cost pennies but make an impact.
Make sure your clients have plenty of retail goodies to look at, catalogs to look through, there's one for Minx which my daughters friends love to flick through, they love the fact that for a small deposit they can order 'their' minx and know they have something different, part of making them feel special, along with the top quality coffee and every service I do is talored, or special, and my place allways smells good, cake in the oven, or vanilla sented candles, even my spray tan smells 'lush' (or so I'm told)
Remember hun, she's only competion if you let her be.