This strategy is used successfully every day by major clothing stores, restaurants and spas … now it’s your turn!
Industry data reveals that most tanning salons will generate up to 70 percent of their annual revenue from January through June; therefore, you cannot afford to miss this window of opportunity! Following is one of the most effective, low-cost sales and marketing strategies that you can implement today and will generate immediate results. Please note that this is a basic outline; you should customize it to meet your specific goals and financial situation.
Instant, In-Store Spending Credit
Example: Every customer (new and existing) receives $5 to spend on any purchase of lotions, skin care products, accessories, etc.
1. Create $5 e-money bills complete with your store info, etc., and email them to your customer database.
2. Create promotional flyers and post them on the salon’s front counter, etc.
3. Offer the next customer who walks in the door, $5 to spend on any product or service.
Strategy: Offering a percentage off on a product is boring! Your salon guests are so conditioned to seeing %-off signs, they rarely respond to them. Giving an actual dollar amount to spend provides customers with a sense of control – and also a sense of loss if they don’t use the money. If you choose to, you can limit the program. For example, the offer applies only to purchases of select products, $10 or more. Just be sure not to make the program so restrictive that your salon guests are turned-off or confused.
A good salesperson should easily be able to up-sell any guest, given the positive selling-and-buying environment this offer creates. And in almost all selling situations, your profit margins should support the strategy and still provide a profit.
You can test this program immediately. Simply tell the next person who walks through the door that they have $5 to spend on any product purchase – the only restriction – they have to use it now!
You should have select products and deals in-hand – and ready to use as part of your suggestive selling approach.
“With your $5 store credit, this $15 bottle of moisturizer is now just $10.”
“The $7 upgrade to use the super-bed will now be just $2.”
Analyze how your customers respond and react to the offer. Continue to improve upon your presentation skills and polish your approach until you have it perfected. I have personally witnessed the success of this strategy in businesses throughout the country. Often, the person in line behind the guest being waited on will ask, “Do I also get $5 to spend?”
Many successful businesses use this strategy every December-January to spice up holiday sales and start the New Year on a positive note. Some give each customer as much as $20 to spend – and they report that the average sale when using this strategy is over $50!
Sure, some people will go for the bare minimum and find the lowest priced item on which to use the credit; but the majority will use it toward a larger purchase if you can effectively steer them toward what you want them to buy. The main idea is to do something different and exciting – something bold and daring that gets customers talking and creates a positive “buzz.”
You should determine how long you want to run the program and how much time customers have to take advantage of the offer. Create a sense of urgency – while also being fair to all. I advise that you test the program on a few select salon guests first before rolling out the program on your database.
About the Author:
With more than 30 years of hands-on experience working with tanning salons, beauty salons, health clubs and spas, Jerry Deveney has helped thousands of people own and operate successful businesses. His extensive market research became the foundation for thousands of business plans and inspired his book, Sun Business.
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