Business decision, tanning packages

[DarrenX]

Background: My fiance and I own a tanning salon/day spa together. It's been open for about 14 months, and doing well overall. The one area which isn't doing very well is tanning. We believe this is based on how our packages our laid out. Currently we offer individual tanning pricing, and 25 and 50 minute packages in each of the 4 levels of tanning we offer.

Looking at other business models and our research, we have decided to offer packages for unlimited tanning by month, 6 month or year increments for each level of machine. The question on the table is, should we continue to offer 25 and 50 minute packages? We each have our thoughts on this, but I'm interested in the general public opinion. Thanks in advance.

[guids]

I know the guy who started the Tan Co., he has about 70 places across the US, and is doing EXTREMELY well. I suggest stopping into one of his places and see what he does, and copying it.

[tshort]

I haven't heard of having a 25 or 50 min package. I think the idea of having to keep track of the minutes you've used is unappealing. The club I workout at offers single tans, packages of various numbers of tans, and unlimited monthly price. I think this is simple and logical.

[Brainwalter]

I would never tan my package lest I fall asleep under the lamp.

[Los Feliz Slim]

I bet the 25 and 50 minute package prices will make the unlimited packages look like great values. If I'm correct, than I say keep them. Actually, I say keep them anyway, but there's another good reason.

[pokergrader]

Tanning is gay, dude

[oddjob]

tanning is gay, but if you can make money from the vain idiots that do it, more power to them. especially if you can give them skin cancer to boot.

this place is very successful in denver:

http://www.darquetan.com/

i didn't read his package plans, but someone told me his philosophy is to get the people in the door through very cheap base prices and basic plans, then upsell the hell out of them.

a client of mine is using this same business model for his car washes, and they seem to be working quite well. i'm of course no business expert.

[DarrenX]

[ QUOTE ]
I haven't heard of having a 25 or 50 min package. I think the idea of having to keep track of the minutes you've used is unappealing. The club I workout at offers single tans, packages of various numbers of tans, and unlimited monthly price. I think this is simple and logical.

[/ QUOTE ]

Thanks for your comments. The reason we originally did packages this way was based on the suggestion of the tanning unit manufacturer, stating the beds are so strong unlimited tanning doesn't make sense. We have vertical tanning beds, which are 2-3x stronger than a typical lay down bed, and take (avg 7-9 minutes) less time per session.

[DarrenX]

[ QUOTE ]
I bet the 25 and 50 minute package prices will make the unlimited packages look like great values. If I'm correct, than I say keep them. Actually, I say keep them anyway, but there's another good reason.

[/ QUOTE ]

Thanks for the comment. For the most part, the unlimited DO look like a better deal with the exception of the strongest bed. Based on the recommened tanning schedule for the highest level (1-2 tans for a base coat, once/week to maintain), the price structure favors the 50 minute package. If I can get that in alignment, it does make sense to keep for comparison's sake.

[WackityWhiz]

I started tanning earlier this year. I started in the 'high-pressure' bed and bought a 300-minute package. Since I was a new customer I was given like 50% off any package that I wanted. The 300-minute high pressure package cost me somewhere around 140-145.

How do those prices compare with yours? I feel like I got a great deal... but maybe I'm wrong.