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Let’s say you have to compete with a gym chain that moved into your market and they are offering gym and tanning for $20 a month. You are offering your Level-1 tanning for $20 a month and are baffled as to how to compete.
One of the industry’s most troublesome profit-stealing areas of concern is that of “product diversion,” or the online sales indoor tanning of lotions at deep discounts. While we know that many of these products could be adulterated, watered down, unsanitary, etc., the unsuspecting consumer simply thinks they’re getting a great deal. You can use your “levels” of tanning and spa services to combat this, as well.
Some of the best advice I ever received in business was this: “Avoid lowering your prices. If you must discount, simply provide more product or service.”
Jerry Deveney is the President of SunForce Marketing, Inc. He has been actively involved in the tanning, spa, wellness and fitness industries for more than 30 years. His company provides business analysis and consulting services in the areas of sales, marketing and operations. Jerry has worked in almost every industry sector including salon management, equipment manufacturing and distribution, new product development, regulatory affairs, and sales & marketing.
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