Frustrated with local competition

[Timeless Tanning]

My bosses wife has just put an ad in the local newsagent offering tans for the whole of August for £10 if you go to her studio.

This has really annoyed me as I think that it undervalues the service we offer and there is no way I can compete with that pricing. She doesn't need the money, it is just pocket money to her. Unfortunately, I do need the money to get by.

I did a special offer last month and it didn't really bring me any additional business and I can't afford to lower prices too much.

Any ideas on how I attack this sort of situation would be greatly appreciated.

Thanks x

 

[redsadie]

Hi hun, I do sympathise with you as discounting de-values any service in my opinion.

Could you not go in and have a chat with her about it? Or write her a letter underlining the fact it's not you she's hurting, but also her bottom line and also the bottom line of all the other therapists in the country!

If not, then the thing I would do is big up the benefits of the tanning product you use. Why do you use this particular one, what does it do? Can you offer a course of (for example) 5 tanning sessions for £x (payment upfront) meaning they get the 5th one free or half price and you get a boost in your immediate revenue? Or give away with every tan a bronzer product such as wipes which don't cost a lot for you for free (worth £x)? Giving added value is so much better than discounting any day.

I hope this helps and I wish every beauty Therapist realised that discounting doesn't work! It just hurts everyone in the industry. Nobody ever won in a price war.

Sarah. xx

 

[TheLoungeWorsle]

My bosses wife has just put an ad in the local newsagent offering tans for the whole of August for £10 if you go to her studio.


Why is your boss's wife trying to undermine your boss's business?

Price war is what Tesco's and others do, to try to eliminate the competition. Abusing their power to absorb losses!

 

[Verve Designs]

Refocus your marketing. If your competition is focusing on price, and you can't match them, then emphasise service and quality.

Do a leaflet run that emphasises your experience and qualifications and be very explicit as to the risks of a “cheap” inferior service- give them reasons as to why it might be counter-productive and you’ll sow seeds of doubt. If they’re the type of client that just wants a cheap-arse tan- then are they really what you’re aiming for?

If you really want it to be a winner then combine that with a limited time reduction in price (but make sure they have to produce the leaflet so you can measure it)

Also, don’t take it personally, we’re in business, its kill or be killed I’m afraid. It doesn’t matter what she needs the money for- the fact is that it’s a threat to you. The worst thing you can do is be passive about it.

 

[Timeless Tanning]

Thanks Ladies

We get on okay as we come across each other at various work functions.

I think my boss wanted to give her something to do and thought the tanning was a great idea so went completely behind my back about the whole thing and set her up, so this is her business not his.

I work for her husband's company in an office during the day and I told him out of courtesy what I was doing in the evenings as I know some companies don't like it.

She isn't really that dedicated to it as they have numerous holidays each year, they have three small children but they are rich, don't need the money so she can afford to charge whatever she wants. I don't think she really thinks of it as a business like we do, just a little side line to earn her some pocket money as I think her husband pays for all her stock etc..

I do offer a loyalty scheme whereby clients get their sixth tan half price and I also offer a course where they get six for the price of five if they pay in advance.

 

[Verve Designs]

Ladies???

 

[Timeless Tanning]

Sorry about that. My computer thas been playing up this morning and your post wasn't there when I started writing my post,

Jackie