Struggling with a hard decision-a little help appreciated

[Jen889]

Hi,

Just before i start, i don't want advice to promote the service below etc, i have tried BELIEVE ME but the deals are too good in my area, clients go for the deal sites.

I'm self employed i'm struggling to pay bills for my room. I am getting a roommate which will help for the rent. My beauty side takes care of that rent no problem the biggest struggle and what i need your help for....

i have a laser machine thats 500£ a month! when i first moved to this new room i could cover the cost of the machine and make a profit. a little over a year later and i have almost zero clientele for it. the two clients a month and that doesn't even cover the payment. I am thinking of selling the machine to cut costs, which of course is the smart thing to do. My problem lies in the fact that i took prepayments as a promotion and have had to spend close to all the money to keep a float (it has been that bad). If i take a loan out for the amount i owe clients, so i can pay them back, it will still save me money as it will be less then half of the laser payment (about 180£ in stead of the 500£)

Do you think taking a loan to pay clients back would be a better option then keeping the machine for the next 6months and paying out of pocket? I have spoken to my boyfriend and a family friend, they both say opposite things. I personally think taking the loan is STILL better then the payment but i may be wrong.

 

[Jen889]

i should mention that i have had a few opportunities to travel to other spas and offer laser on a commission base. but this is FAR from home (1.5hours almost 2) and even though they will be full days, hopefully, i am not sure i would like to do this. it's never guaranteed right?

 

[Bombalurina]

Can you contact the clients who have prepaid? Perhaps a little white lie about your leasing of the machine coming to an end shortly, therefore it will not be in the salon much longer...you could give them 2 choices, either they take the treatments they have paid for, or you will transfer their laser appointments to massage/waxing/facial vouchers to use within the next 3 months..? When they paid you did you stipulate a timeframe for them to take the appointments?

Personally I would try to avoid giving back money you no longer have, as you will be out of the frying pan and into the fire. Can you try something as suggested above and if the clients aren't happy then offer them their money back? Some might actually be happy to convert their treatments to something else, surely there must be a reason they've paid and not returned for further treatments? You never know, perhaps only half will want their money back if given other options first, which would save you a lot of grief in the long run, and may even convert your laser clients into massage (or whatever) clients....worth a try???

 

[Jaksnip]

If you own the machine; how is it costing you 500 a month?!?!

Also, if you do give it up, you HAVE to pay back your clients with cash. I think it is totally unacceptable to even think of offering them alternatives!!!

If I was you, I'd stick with it, and push it big time with advertismentsn

 

[Bombalurina]

I think it is totally unacceptable to even think of offering them alternatives!!!

Why? Surely it makes better business sense to offer an alternative to try to keep your head above water rather than just giving up, rolling over and owing more money? If they'd rather their money back then I wouldn't argue, but why is it not acceptable to try offering an alternative?

 

[Jen889]

If you own the machine; how is it costing you 500 a month?!?!

Also, if you do give it up, you HAVE to pay back your clients with cash. I think it is totally unacceptable to even think of offering them alternatives!!!

If I was you, I'd stick with it, and push it big time with advertismentsn

I never once said I OWN the machine, I said I have one. I bought the machine using a loan I got from my bank. This is why I have the payment!!

The prepayments are the result of my efforts to advertise. I would never offer them alternatives as they came for ipl not a manicure etc so of course I would give them back the cash, I'm not sure why you thought I wouldn't but thank you

 

[Jen889]

Why? Surely it makes better business sense to offer an alternative to try to keep your head above water rather than just giving up, rolling over and owing more money? If they'd rather their money back then I wouldn't argue, but why is it not acceptable to try offering an alternative?

Unfortunately they don't want alternatives, they came for laser and that's all they want

 

[muawax]

converting their laser treatments into waxing treatments will scare them away from ur salon completely i think.

people see laser treatment as permanent treatment.

 

[essentia]

I would not often suggest this and if you are not already doing this, I would make offers on the laser treatments to get the clients in to pay for the lease payments, even if it just covers them at cost. I would also contact the laser company and see if they can help you out in any way - you do not mention the lease terms? Perhaps they can help in your payments, promotion or any other suggestions they may have to get you out of this dilemma - after all they would rather get money for it, than have it returned, although it sounds like returning it may be your only solution with so little funds. Taking out loans I would avoid if you possibly can.

 

[dandelionpoppy]

If you own the machine; how is it costing you 500 a month?!?!

I thought this, too, as the OP mentioned selling the machine.

 

[Nearlyme]

If you sold the machine would it repay the loan?

Sent from my GT-I9505 using SalonGeek mobile app

 

[Kim Lawless]

In your situation, any money is better than no money, so do a really low special offer and fill your book with laser clients. Do your own kind of Groupon deal if you know what I mean.

 

[Jen889]

In your situation, any money is better than no money, so do a really low special offer and fill your book with laser clients. Do your own mind of Groupon deal if you know what I mean.

This is what I have decided to do, thank you. It seems to be going good so far

 

[Jen889]

I'm not sure why it is so hard to understand that I do not own the machine. As I mentioned I have a loan with my bank and this is why I have the payment.

I purchased the machine used from a local salon that was going out of business. I have been doing laser treatments for over three years. Before purchasing this machine I rented one every month at a crazy high price, buying this used one lowered my cost substantially but my business in this new location is very low for laser making it hard to afford the monthly payment now.

Thanks everyone!

 

[Bombalurina]

I would never offer them alternatives as they came for ipl not a manicure etc so of course I would give them back the cash, I'm not sure why you thought I wouldn't but thank you

Not sure why I thought you wouldn't give money back?? You asked for advice regarding getting a loan and getting into more financial problems. So I gave you some advice with this in mind. There is absolutely no need to be rude. If you are intending to refund then why ask the question in the first place????

 

[Jen889]

Not sure why I thought you wouldn't give money back?? You asked for advice regarding getting a loan and getting into more financial problems. So I gave you some advice with this in mind. There is absolutely no need to be rude. If you are intending to refund then why ask the question in the first place????

I was not being rude, the answer I gave was not directed towards you. I'm sorry if it came across rude toward you, it was not meant too. It was directed for the post I quoted.

I have decided to try one last push in advertising (as mentioned above) which seems to be doing well. Thanks