I wouldn't do anything. The only people that win out of discount wars are the clients..........and they'll play you off against each other.
Go over your service menu and make sure that your prices are right for the area and stick to them. Make sure you give a good service and they'll be back.
Ps. Have a sly bog at what they're offering so you keep on top of the game. xxx
Here here. Keep aware of what is availalbe locally in general, average prices etc, but dont get into a direct competition with another salon. It will just drain the time and energy from you which is better spent giving the best possible service to your clients which will in turn be a good way to retain business. In a high street near to where I live there are three yes three nail salons next door to each other. Each is slightly different in its image/products/prices, and each still does well and has its own place in the market place. If they started competing against each other directly, all three would be out of business in time.
I recently opened a salon, theres a salon nearby that also does nails, and as soon as I put my adverts about, they dropped their prices to be a tenner cheaper than my cheapest set of nails! I could have reacted, reduced my prices, bad-mouthed their products etc, but if I had I would have been worse off for it and having to work twice as hard to get new clients. instead I've just ignored it, my prices have stayed put, and slowly but surely, clients are trickling in. Think about how many ladies have their nails done. How often are you in the queue in the bank or supermarket and see a lady with acrylics on? Then think about how many one tech can do in one week. There's room for us all in the market, some are better than others, some use better products, but either way there will always be someone who prefers to come to you because of what you can offer and thats not necessarily based on price.
I know that unfortunately not everyone thinks this way, and so if you do get any ill feeling or underhand tactics from your new competition I would suggest that you grab the bull by the horns, go to her salon, discuss it with her and let her know that you wont put up with it (in a nice diplomatic way).
Hopefully it wont, I was expecting the worst when I opened but now I dont know what I was worrying about!
Get your head down, promote your own business in the best way you can, and the very best of luck!!