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4th November 2006, 01:23 AM
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| Off The Chain Moderator  Join Date: Nov 2004 Location: The Sun Doctor, Califon, NJ
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|  Leaving Piles of $$Money$$ on the Table-Why? by Drew I thought this was worth another read, and it needs to be posted here, as it belongs here. Thanks Dave. » TanToday.Com Forums » Salon Oriented » Salon To Salon Ideas » Leaving Piles of $$Money$$ On The Table - Why? (Page 1) This topic is comprised of pages: 1 2 3 Author Topic: Leaving Piles of $$Money$$ On The Table - Why? Drew TanToday Moderator Member # 255 Member Rated: posted 05-09-2002 08:46 PM -------------------------------------------------------------------------------- I use this term alot. But why? A business is said to be leaving a lot of money on the table when it UNDERCHARGES for services or goods, when it does not have to. A commisioned salesperson educates the customer into purchasing a $50 bottle of Lotion. When the customer goes to pay, the salesperson, says, "tell you what, lets just make that $30, ok"...leaving $20 on the table for no reason. You ask.."why would anyone do that?" And that is my question exactly. A tanning salon puts in a tanning bed that Great Tanning salons are charging $20 for an upgrade, some salons do it for just $15 and in weak markets or in poor coal mining towns..just 10$ for this bed. WHY WOULD YOU PUT IT IN AND CHARGE , say, $6 for this???? It has already been proven that people will fill it up paying 300% more per tan but someone sells it for $6. ??? Is it to be 'the wallmart of tanning'?...to drive out all competition? Well, that doesn't work. Tanning is not done once every few weeks like purchasing a hose. Tanning is about convenience, and comfort and most of all, the personallity of the staff. The same reason we spend $5 for a drink in a bar vs getting drunk on a bottle of whiskey for $7 at home....the SOCIAL PORTION OF THE QUOTIENT. But to price yourself WAY BELOW THE PRICE OF THE COMPETITION...is just bad business. For one, other business will follow you down..eliminating your position. Two, many will go lower, falsly believing if you can do it, they can too. Three, the customers WOULD HAVE PAID YOU MUCH MORE. Same number of customers ,,just give you a lot more money. Only a very loud minority bitch about your prices going up.....few but loud. Shut your ears...raise your prices.....and you will continue kicking ass but making tons more money..and not hurting the very industry you are trying to be in. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged CRAPmarketing TanToday Industry Moderator Member # 1911 Member Rated: posted 05-09-2002 09:58 PM -------------------------------------------------------------------------------- Drew, you are oh so “dead-on balls accurate”. Bravo. Well-said. WE’VE BEEN TELLING YOU GUYS THIS. Drew, you are right to ask the question, why indeed would anyone want to charge less? If you are going to be the Walmart of the tanning business you had better make absolutely sure that your rents, salaries, supplies, and equipment costs are at least 25% less than your competition. Otherwise someone else can easily come in under you just as Walmart did to Kmart, the Japanese did to American automakers and then the Koreans did to the Japanese, and so forth (like Drew said, “eliminating your position” . Vendors’ bull**** aside, there is no way to accomplish this. No tanning salon owner has this kind of clout with landlords, lamp makers, employees, or vendors (even if vendors tell you otherwise they can’t sell to you at a 25% discount as there is not that much net profit in their products to cut – if they give you the discount, your competition can get it, too – just demand it and this just means that they have been overcharging you all along). Just try getting your employees to go along with a 25% salary cut. Don’t believe us? As experienced buyers, we bought billions of dollars from vendors far larger than those in the tanning business. You heard it here first folks – when Walmart heirs decide that they no longer feel proud to tell people at the country club that they own Walmart stock and want to upgrade their stores and inventories, sell your Walmart stock. They are going down. It may take years for it to happen because the biggest trees in the forest take the longest to die, but make no mistake about it – someone will come in underneath them with cheaper products and voila! Down they go. But at this point, Walmart is smart enough to remain FOCUSED. No one in this industry has been able to do this effectively not even in the face of competitors who are neophytes. The neophytes muddy up the waters even for them. But to echo Drew’s question, even if you could, why would you want to? What is the purpose? Do you want to be the biggest or the most profitable? We always wanted to be both – and became that in the furniture business in our market segment. Don’t you want the same? To get there, you have to merchandise and price point your service and products effectively. You have to be selling every step of the way. You must have value-added reasons for consumers to do business. You must market, advertise, and hire only the best you can find. What’s the main reason that tanners don’t know how to do it? They don’t know what they don’t know! Grip knows. (close your eyes because here is a little spam - SPAM ALERT) But don’t take our word for it. Read what others have been saying about us online. We’ll supply you with customers you can call for testimonials directly from their own lips. Put us to the test. We got our own business from zero to ¼ billion dollars in annual sales in less than 10 years – we can show you how. CRAP Marketing www.crapmarketing.com -------------------- -------------------------------------------------------------------------------- Posts: 349 | From: Atlanta | Registered: Feb 2002 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-09-2002 11:32 PM -------------------------------------------------------------------------------- I believe, some people do it more out of screwing the competition, than for sound business principles. Think about it. Putting in a NEW TECHNOLOGY, and then GIVING it away is just stupid. We all know that. However, it does do one thing well. Makes the serious business owner decide that offering that service or good is not going to be profitable due to the ego, or arrogance, of the competition. The accomplishment then is that the low ball salon does not enjoy the benefits and profits of the goods or service, and NO ONE ELSE DOES EITHER. Who wins??? The customers. And that is great if you run your business for altruistic purposes. Get a gig taking blankets to mexico if that is your plan. Tanning is not important enough to spend your life , GIVING, away to the masses. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged AlexR TanToday Supporter Member # 290 Member Rated: posted 05-10-2002 12:59 AM -------------------------------------------------------------------------------- For the most part, this cut-throat pricing is done by the majority of the type of people that participate in this business. Unfortunetely, this business, in large part, still attracts the unsavvy, unsophisticated, and clueless business people. Hell, that alone was an oxymoron! They get into this business thinking that it's so much fun, it's easy, and everyone will come to them if they just price it cheaper than everyone. Not only that, but even some who jump in half-cocked without really doing their research, get blindly led to acid water by their idiot distributors - who promise them pipe dreams and blind them with unrealistic projections. Only these dreams don't come true and these so-called enterpreneurs get desperate and start playing stupid price war games. Then you got your big volume multi-unit companies that basically are out to super-dominate their market. Can they do that? Well, not really - because competitors will pop up regardless and even the the little vermin steal a few pieces of cheese away. They do create a very low perception in a market's mind of what our services are worth and create a low-ball marketplace. Basically means that a bunch of business working for very minimal profit. Like Drew said, these super-cheap-super-large salons can do extremely well and be very profitable if run by experience operators but they will never, ever work in all markets. Texas is tan crazy and I know for a fact that some from there have tried to do this in other parts of the country and bombed dramatically. Bottom line is it is very hard for me to understand why in the world salons don't charge what their services are really worth. At $18, 20, and even $28 a month, you're essentially paying people to tan at your salon. So the only way to really make lots of money is to hope 1)many don't use their membership, and 2)that many spend money out of pocket for upgrades. Good post, Drew. Robbie, you've got a great operation - just not the business model that I choose for myself. I would be perfectly cabable of successfully implementing the volume model but would much rather strive for higher overall profitability, maximum dollars per tan, and less work. Just can't see servicing 400-500 people a day and keeping my sanity (or my managers). -------------------- -------------------------------------------------------------------------------- Posts: 924 | From: Ga | Registered: Oct 2000 | IP: Logged TanToday TanToday Head Honcho Member # 21 Member Rated: posted 05-10-2002 01:12 AM -------------------------------------------------------------------------------- While philosophically this discussion is fascinating, and could endlessly be debated forever. We have, on TanToday a body of people, who have been migrating slowly from a high volume, low price mode, to a higher price, more profitable mode. Most have done so by implementing a points based system, with or without an EFT compliment to that. NONE, have come and said it was a mistake. Universally, ALL have said it was the BEST business decision they have ever made. They have been from large cities, rural, and north and south, US to Canada. In all cases they have reported real results, with real increases in profits. The proof is there, just look for it. -------------------- "Your friendly guy, working to bring you information FIRST!" 412-607-5363 my cell,day or night! -------------------------------------------------------------------------------- Posts: 13446 | From: Pittsburgh, PA, USA | Registered: Mar 2000 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 02:04 AM -------------------------------------------------------------------------------- Drew et al. The foreplay is over. You want to know how I can charge $18.88 a month for unlimited tanning on a Tan America 32 lamp, 30 minute session (since 1990) and sell upgrades for as little as $3 for a Tan America 42 lamp 3 facial 20 minute tan, $5 for Ultrasun’s Powerhouse 55 and 5, 15 minute tan, Susan’s “S” Class for $6 and the Sunboard for $7. You want to know how I average a $10 PPA and $2 LPPA on VOLUME. You’re wondering how such a “chop shop” as this could survive against your Mom and Pop price-gouging models. But that’s unfair of me, you’re not all gougers. I believe that most of you honestly have not found ways to maximize your profits, by reducing your prices.(The way the rest of America has.) Drew states so eloquently: quote: -------------------------------------------------------------------------------- Who wins??? The customers. And that is great if you run your business for altruistic purposes. -------------------------------------------------------------------------------- You are right about the winners, which for many readers SHOULD explain my success. Drew, your link to altruism is way off base and you might want to save yourself the humiliation by not pursuing that avenue. Just stick to your crap about the “personal touch”. But if you ever come by Houston I invite you and your fellow readers to take some time out and visit with the best-trained tanning sales-force in America. Check with Max, Frank, Susan, or Bill and see why they say there is nothing even close to us. While your scratching your head Drew, I’m banking and you know it. Time to stop wondering why and start making money so you can do the really good dives. AlexR, hi, to update you on our success in other markets, our latest licensee sold over 1000 $18.88 memberships in less than sixty days after opening. He’s currently tanning 500 people a day, will gross 7 figures in his first full year, netting himself more than $500,000 in a market that had never heard of EFT’s. And he’s not complaining nor are his managers. The Internet is not the most advisable place to get a grip on business plans so I’ll keep my posts limited on these subjects, BUT I invite all to call me on my cell at 281-932-0230 and, if you qualify (unlike Drew), I’ll unlock the mystery and tell you how you can do it in your market. If I don’t pick up your call right away it’s because I have caller ID. Best Regards, Robbie P.S. Bruce, I may find a legitimate use for this site of yours after all. -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged TanToday TanToday Head Honcho Member # 21 Member Rated: posted 05-10-2002 09:50 AM -------------------------------------------------------------------------------- Robbie, There is no denying your success. You have done well, and in your markets, your approach has yeilded to your operation a market share that cannot be denied. And you have demonstrated a willingness to defend and help many others to success too, we know that. Your statement that top industry people that have watched your operation give it kudo's is indeed correct, they have said the same to me. Where I think you may want to stop a moment, and actually listen to the others here is on how much of a "value to consumers" is really needed to achieve dominance, run a successful operation, and do well for yourself too. Now, let me elaborate an extend the comments a little. I'm going to make some assumptions here, ones that I know do not apply to the confidential information given to me, that do not really apply to your actual membership numbers, but are being used to make a point. Assume, that an operation like yours, with over 20 salons, has 800 members on EFT's each. That would be 16,000 people on a monthly draft. [This is a hypothetical number here] Now everyone LOVES this program, they have VALUE, they have great equipment to chose from, they are loyal. Assuming you are not surrounded by tons of other salons with the same program, we will assume that most of the competion is doing traditional pricing, monthlies, and packages. If you were to raise your membership fee by only $5 to $23.88 you STILL would be, by far, the best deal, STILL have the best beds, and still have the loyal following of the vast majority of your members. My guess is that only 5% would bolt. Ignoring upgrades for the moment, we see that your firm would be the dominant player, but what happens to your bottom line? ONE MILLION DOLLARS A YEAR drops into your pocket, that is what happens. Money to expand with, buy equipment with, pay staff more, advertise more, all the things any salon chain needs to grow with. This additional money is not at the expense of competitiveness, it is there, for the taking, just ask for it, and it is yours, with ALL of your clients still loyal, and thinking you offer the best around. Now, we expand upon this. Your upgrades are the best of the best, UWE S-Class, Sunboards, Big Bears, Big Bears, Ultrasun 55-5's, and Mystic Tan, the top stuff. Your price to use these units is again priced ultra aggressively, it is about 1/2 the going upgrade charge for these fine machines. Way below what they could hope to get at any competing salon. If you were to, again, for simplicity's sake, only charge $1 more per use session, for these machines, you again, would still be massively below any other opportunity that the members would have to use these fine beds. Assuming that the 16,000 members upgraded 1/2 the time, and why not, with these machines for the taking at value pricing, this would be 1,100,000 upgrade tans at a buck more per tan, yeilding ANOTHER $1,000,000 plus to your bottom line. So, we have easily demonstrated that you would still be the dominant player, allow no room for competition, have happy clients, and now you would have at your disposal. TWO MILLION MORE DOLLARS, for the uses that your salons might have for them. And, I believe, we are being very conservative here, there is even more money "being left on the table" by the customers who would gladly pay even more for your first class operation, and the quality that you offer. That is what Drew, and the others are saying. You only need to offer enough of a price incentive to be #1, anything more than that is just money lost. -------------------- "Your friendly guy, working to bring you information FIRST!" 412-607-5363 my cell,day or night! -------------------------------------------------------------------------------- Posts: 13446 | From: Pittsburgh, PA, USA | Registered: Mar 2000 | IP: Logged gripmarketing TanToday Industry Moderator Member # 1911 Member Rated: posted 05-10-2002 10:39 AM -------------------------------------------------------------------------------- Ah, now we have the other side of the discussion that Drew presented – and that is not that lower costs will bring about Walmart concepting, but rather higher volumes (It’s nice to be able to have both and because we’re so full service, you can learn how from us). What off-price stores are doing is not rocket science and they didn’t invent it. It’s not based on a lower costs approach even though they admirably try to lower costs – they are not solely relying on it - and can barely rely on it (even though manufacturers claim to have given them lower costs, we have found, in our experience, they will give those lower costs to anybody who demands it because they are all very hungry and can and want to sell everybody “we’ll just make more” Lays potato chips), but rather they rely on good old fashioned research, marketing, advertising, and salesmanship! “There is nothing new under the sun.” Cervantes Don Quixote The plan is simple. Begin by being well CAPITALIZED (most tanners aren’t). SITESELECT your location well using hard-and-fast information (rather than just driving around and saying “this looks like a good spot to open a store” , because it is easier to bring the salon to where the tanners are than to try to bring the tanners to where the salon is. MERCHANDISE your equipment lineup properly (something that most tanners don’t even understand and post here daily about the holes in their equipment lineups you could drive a Mack truck through). We haven’t met anyone yet in the industry who even understands the full concept of merchandising – some of the best have a limited, partial understanding and only a handful have the full concept are true marketing merchandisers. PRICEPOINT your services and products well. Even off-price stores and luxury stores know theirs could stand improvement. There again, we doubt that very few in this industry understand the concept of marketing and price pointing. SPEND heavily on ADVERTISING (very few tanners have any money left over for advertising after buildout and equipment purchases) and KEEP ON SPENDING on the LIFEBLOOD of your business – advertising. SELL EVERYONE entering the store on continuously paying monthly EFTs (EFTs are the answer to the tanning industry’s question), whether they tan or not (during slower months they tan less and help you pay your overhead which smoothes cash flow). TRAIN, TRAIN, and TRAIN some more to get good PPA and LPPA’s. Your sales personnel must be selling every step of the way. Robbie is correct that most in the tanning industry have not found a way to maximize profits by lower prices. Alex is also correct that most have not found a way to maximize profits by higher prices, either. Both can be well executed and have been by more folks than just Robbie’s off-price stores and Alex’s luxury stores. Neither Robbie’s nor Alex’s method works well without spending on effective advertising to drive customers into the capable hands of their killer closers and even they must admit that their programs could always stand improvement. So it all boils down to capital, marketing, advertising, salesmanship and constant improvement. Wow! Who’d of thunk? CRAP has already swum out past these buoys in these same murky waters enough times to know how to navigate the research, marketing, advertising, buying, and salesmanship sandbars. Unlike some others, we don’t guarantee any rainbows (only results) after just one steaming cup of Grip, but our program is jam-packed with enough eye-popping juice to keep your business out of the ditch and sailing more profitably on to the finish line. You too, can get the same CRAP on results that we produce for off-price stores, chains, mom-and-pops, and luxury stores. CRAP Marketing www.crapmarketing.com -------------------- -------------------------------------------------------------------------------- Posts: 349 | From: Atlanta | Registered: Feb 2002 | IP: Logged beachessalon TanToday Supporter Member # 1432 Member Rated: posted 05-10-2002 10:49 AM -------------------------------------------------------------------------------- 700-500=200 total operating cost? 28.6% of gross. Nice margin Matt -------------------------------------------------------------------------------- Posts: 302 | From: South of Alaska | Registered: Nov 2001 | IP: Logged Fabfanatic TanToday Supporter Member # 1799 posted 05-10-2002 02:57 PM -------------------------------------------------------------------------------- Let me get this right. The gang is attempting to teach Robbie how to run a more successful business model than the most successful model in U.S.. I am having fun watching this one. Drew already stated that Robbie makes gobs more than he does yet here you guys are telling him to do it another way. The evolution of this industry is just starting. Many more Robbie type models are coming, not Bruce and Drew types. That's reality! Good Luck stopping better service and quality for lower prices for it sounds like that is exactly what Robbie is doing. -------------------------------------------------------------------------------- Posts: 300 | Registered: Jan 2002 | IP: Logged TanToday Industry Moderator Member # 1911 Member Rated: posted 05-10-2002 03:12 PM -------------------------------------------------------------------------------- It would appear the this gang of tanners is trying to get Robbie to adopt a "live and let live" attitude (which it would also appear he already has from his comments), and also get him to raise prices in the process. However, off-price stores make themselves appear off-price by having lower prices than the competition. As far as Robbie learning anything from them: There isn't ANY business operator anywhere who doesn't have room for improvement including us, you and Robbie! -------------------- -------------------------------------------------------------------------------- Posts: 349 | From: Atlanta | Registered: Feb 2002 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-10-2002 03:48 PM -------------------------------------------------------------------------------- Thats the point. Some people think they are geniuses, when in fact they are just good. Taking a very good business and making it great is a 'genius' thing to do. What is stopping them? What is stopping them? I don't have to be a pro golfer to see a bad putting stroke on a sunday tv match. Do I? -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged Fabfanatic TanToday Supporter Member # 1799 posted 05-10-2002 03:54 PM -------------------------------------------------------------------------------- Drew, Spotting the bad stroke is easy. But try walking up to Tiger on a practice green an offer him a putting lesson. I have a feeling he wouldn't gain much from you. -------------------------------------------------------------------------------- Posts: 300 | Registered: Jan 2002 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 08:21 PM -------------------------------------------------------------------------------- Fabfriend, Now I owe you TWO, and judging by your fan club I’ll get plenty of chances to repay. Thanks. Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 08:22 PM -------------------------------------------------------------------------------- Matt at Beaches, More than 7 figures means more than $1,000,000. Margins get exponential over $500,000. Recalculate-- it's better than you think. Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 08:46 PM -------------------------------------------------------------------------------- CRAP, We haven’t as yet had the pleasure and as such I’m willing to accept the “off-price salons” characterization as an honest error on your part. I’m even going to overlook the fact that you’re quoting from Don Quixote. What I won’t continue to abide is your confusion that I have something to learn, especially from you. Why is it that you, Drew and your ilk yearn for me to admit that I don’t have all the answers and maybe there’s a better model out there? You’re so consumed with the notion that everyone has something to learn. It’s obvious that you sure do—like how to spam and still remain credible. How are you so sure I’m not the very best I can be? I’m sure I am. If I thought I could improve right now, I would have already done it. Based on all that I know and is known to me, I am the very best I can be. Will I ever change? Can Darque Tan ever improve? I and Darque Tan always are, but our evolution is not based on the debased notion that we can always be better. It is based on the fact that we understand what being the best requires and are committed to never straying off-course. That’s as nicely as I can put it. I would recommend you disengage with me on this one. I can feel it stirring inside. Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged beachessalon TanToday Supporter Member # 1432 Member Rated: posted 05-10-2002 09:06 PM -------------------------------------------------------------------------------- Robbie, I was so excited with the numbers and plugged the seven wrong. Now that is more like it, thanks. This industry sure is taking some different roads, the high and the low. Matt -------------------------------------------------------------------------------- Posts: 302 | From: South of Alaska | Registered: Nov 2001 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 09:07 PM -------------------------------------------------------------------------------- Bruce, That only leaves you and your second-hander marketing principles. Charge less than the other guy. Charge what you think you can get away with. An extra dollar here, two pennies there…nobody will notice, right? Your model is to squeeze what you can out of a market you don’t even realize your shrinking. I earn what I earn by providing great value to markets I am growing. You only focus on PPA’s with out a care to the denominator of the equation. Learn to grow that, and you’ll be rich. (As an aside, I find it somewhat amusing that you are so vocal on how to grow the Industry, but are struggling to grow in your own market.) You think I’m leaving a pile on the table, but why is it I have the bigger pile? Your pile comes from what you artificially overcharge your customers—your “get it while you can, if you can” philosophy. My pile comes from offering the very best I can offer, while continually growing my base and finding better ways to add value to that base. Guess what we’ll both look like 5 years from now, I dare you. Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-10-2002 09:16 PM -------------------------------------------------------------------------------- Grip. dont bother. Legend in his own mind. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-10-2002 09:17 PM -------------------------------------------------------------------------------- You guys are all idiots. You can't teach Robbie or Doug ANYTHING. And they are not going to teach you ANYTHING - they engage you for fun or to throw out business opportunities so that they can profit from it. idiots. Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-10-2002 09:18 PM -------------------------------------------------------------------------------- Robbie, I have to ask this question to you. Appriciate it if you would answer it. Those prices that you do charge are very low, even by my standards. Why wouldnt you want to raise the prices , not on the EFT month thing but the upgrades. I have no problem getting 15.00 for my Mystic if the customer has a month. Or a 10 dollar upgrade for a large VHR. When a customer of mine cant get into a base bed they have no problem paying the either 5 dollar upgrade for a small VHR or 10 for the big VHR. Will you really lose 50% of your clintele if you raise your price on that S class to 12 dollars instead of the 6 that you have it for right now? Thats all I want to know because you have 32 salons so you must be doing something right. How did you get the capital to start all of these salons? I heard you use to be a male dancer but I know from "very old experience" that doesnt bring in that much cash. Jim Remembering the good old days -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-10-2002 09:25 PM -------------------------------------------------------------------------------- And after you answer those questions - could you tell me your social security number, a few credit card numbers, and give me an outline of your employee handbook and your business plan? I am not back - but you guys amaze me, and I am pretty dumb... wait, then that would not be a big feat... oh whatever... Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-10-2002 09:35 PM -------------------------------------------------------------------------------- First good laugh I have had all day. Score one for the bored out of his mind.....ROD! -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-10-2002 09:39 PM -------------------------------------------------------------------------------- The Rodman is back -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-10-2002 09:43 PM -------------------------------------------------------------------------------- To clarify. I KNOW , and I am NOT trying to teach Robbie anything. I learned last year that he knows everything. The best restaraunts. Best Movies. Basically EVERYTHING. He is an omniscient GOD. However, to those of you that do not know everything....you can learn from Rob and Fab, or you can learn from everyone else. Now , Rob DOES have zillions of stores, and a Hundred thousand dollar watch, so he must know something....But everything he does, can be done if you have lots of money. DO YOU? If not...move on...If you do..call him...licence a Darque Tan Altruistic Tanning Center today. Now, Fab also must have many stores. So, If you also have a lot of stores...listen to him and have a Molson Ice for me. He can show you the benefits of an all baby bed salon, and how to cram a 7x3 foot bed into a 7.2 x 3.1 foot room. Good tips. For the rest of you....read the initial post over, and Grips response. Because the only way you are gunna make it outa the grime and slime without daddy warbucks paying for your every wiggle or waggle in business..is to MAKE SOME MONEY. WITH WHAT YOU ALREADY HAVE. Do you think that Rob and Fab.....really sing their own songs? -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-10-2002 09:55 PM -------------------------------------------------------------------------------- Drew, I knew I should of went to college then I wouldnt have had to look up what the hell the word Omnicient meant.. Well, you spelled it wrong . I think you meant "Omniscient" "Having total knowledge; nowing everything.. Ill have to remember that word when my wife starts on me... Honey, I am Omniscient. Dont you just hate me.. That will get her .. Thanks -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-10-2002 10:04 PM -------------------------------------------------------------------------------- No I am not back. Just visiting momentarily for my amusement. I have decided to follow the 'rich tanning salon owners' model - which is, don't post often, when I do - make someone look stupid (In this case myself since I am having difficulty making anyone else recently), and then just disappear without a trace for a while. I know Bruce is in the Den have a wet dream because Robbie is here, and I am back on posting. I bet he is in his house pacing, pounding his little fist in the air saying "See God - I can even outsmart you! Someone pat my back, lick my butt, kiss my feet." Anyway - When I finally do disappear after making myself look stupid for a little while, it should not be too long thereafter that I own at least 12 salons and strike fear into every tanning salon owners heart. Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged Neal-Florida Rooms TanToday Rookie Member # 1762 Rate Member posted 05-10-2002 10:06 PM -------------------------------------------------------------------------------- Jim, remember the last post on the use of the english language? You did receive a plethera of respones, correct? Call Me, see ya -------------------------------------------------------------------------------- Posts: 12 | From: Baltimore | Registered: Jan 2002 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-10-2002 10:11 PM -------------------------------------------------------------------------------- OH, now you did it...Jim has to run to the Websters again. I should castigate you on your behavior. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged solarmeter Technical Moderator Member # 622 Member Rated: posted 05-10-2002 10:17 PM -------------------------------------------------------------------------------- There is one common thread in these posts: value. Whether perceived or real, whether price or service, whether Walmart or M&C business model, customers will flock toward value as they see it. Some products can sell themselves; most need effective marketing of some kind. Both is even better. Regardless, higher volume enables lower pricing. A fact of life, as long as overhead doesn't creep ahead disproportionately: that's called leaving money on the seat, in the auto rebate world. Fundamentally, we all need to reduce costs incrementally, while gradually improving price-support based on value. At the same time keep debt ratio to cash flow LOW (see MCI/WCOM lately), and improve marketing simultaneously. All the time remembering that something new can come along and surprise us.. plan B stimulator. Rod - you're baaack? -------------------- TanToday Technical Moderator -------------------------------------------------------------------------------- Posts: 1335 | From: 254 nm under the sea | Registered: Feb 2001 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-10-2002 10:19 PM -------------------------------------------------------------------------------- Hey Neal, Hows it going buddy.. Ill try your cell right now. Jim -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged TanToday TanToday Head Honcho Member # 21 Member Rated: posted 05-10-2002 10:19 PM -------------------------------------------------------------------------------- Robbie, it is for amusement that we ARE ALL here, sorry, you are not the only one that enjoys the sparring interaction. And frankly, I do rather enjoy your myopic views on things. It gives me a glimpse into the workings of the Robber Baron mentality. I have to remember to finish that tome on the "Life And Times of John D. Rockefeller." Are you familiar with him? He used to give out dimes to everyone, it made him philantropic. He had this nasty little trick of buying up everyone, and if they failed to "see the wisdom of that" he surrounded their stores with his places, sold for dirt cheap till they caved. It worked for him, and he died the richest man in America. Yeah. I really do have to finish that book. Good thing you don't have gas stations, or change that, I wish you had gas stations NEAR me, I need to fill up the auto tomorrow. -------------------- "Your friendly guy, working to bring you information FIRST!" 412-607-5363 my cell,day or night! -------------------------------------------------------------------------------- Posts: 13446 | From: Pittsburgh, PA, USA | Registered: Mar 2000 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-10-2002 10:25 PM -------------------------------------------------------------------------------- Yea, I saw WCOM today.. Pitiful.. 1.58 I had that stock at 30 and sold at 38. Thank god I got out of that one. Damn it Drew.. Hold on, let me look up that word. castigate: To criticize severerly -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 10:49 PM -------------------------------------------------------------------------------- Jim, My wife loves it. (easy Rod) To answer you’re question, let me ask “Jim the customer” a question. All other things being equal, which would you prefer to pay for a session in the S Class? $12 or $6? By the way my Mystics are $10 for a single, $7.20 if you’re a member with a package. I have 23 salons and 4 licensees. Started with $13,000. Opened one salon at a time from cash flows, no debt, no silver spoon. You see Jim, don’t fall for the banter that advises there are many best ways to sell tanning. There is only one best and it always exists regardless of who is able to identify it. Don’t conclude, that Robbie has his way, Alex another, Fab another, and they all work for them. Ask instead what happens when we’re all on the same street. Think you still get your $12 for the S against my $6? Your $25/mth against my $18/mth?(it will be more like $10 by then). As I grow my market and hone my expenditures, my prices will come down. I seek to offer the very best I can for the lowest price I can and still feed my family, (lobster). There is no imaginary price in my mind as to what the customer should pay, and I care nothing for what the other guy charges, unless it’s less than me, and then I’m back to figuring out where I’m going wrong. Hope this helps, Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged Robbie TanToday Supporter Member # 1213 Member Rated: posted 05-10-2002 10:51 PM -------------------------------------------------------------------------------- Rod, You are too perceptive here. Don’t give out the punchline. I’m trying to build a business here—it’s the only way I can justify to Vonda why I’m on this thing so much. Thanks for the laughs, Robbie -------------------------------------------------------------------------------- Posts: 451 | From: Houston, TX, USA | Registered: Sep 2001 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-10-2002 11:18 PM -------------------------------------------------------------------------------- Well do me a favor and don't put me out of business anytime soon, and I will continue to give you laughs. Thanks Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged joetan TanToday Supporter Member # 1893 posted 05-10-2002 11:42 PM -------------------------------------------------------------------------------- Robbie, You are the man! You were in first .... you made money ... you created value .... you made more money .... you expanded .... you made more money..... you honed your costs ..... you made more money .... and now you have a wonderful thing... A VIRTUAL MONOPOLY. A monopoly protected by entry barriers that only the few could crack, those with really deep pockets. It doesn't mean they are not lurking out there ... just highly unlikely in this industry. I know exactly where you are at ... the model works like a charm even if it is a little labour intensive. Funny how success breeds envy and contempt amongst those with limited knowledge! Congrats on your sucess! Maybe we joust one day.... And for the rest of you ... back to Economics 101!!! -------------------------------------------------------------------------------- Posts: 203 | From: Around the Corner | Registered: Feb 2002 | IP: Logged MR.TANLINES TanToday Moderator Member # 292 Member Rated: posted 05-11-2002 09:26 AM -------------------------------------------------------------------------------- Robbie, Just wondering with such low prices, and doing such high volume. What is your $average per person, in one of your stores? By the way are you good friends with Anthony Tesorio? -------------------- -------------------------------------------------------------------------------- Posts: 1473 | Registered: Oct 2000 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-11-2002 11:05 AM -------------------------------------------------------------------------------- Look. Again. Who ever said the Godhead Rob is NOT THE MAN? Sure he is the MAN. But so are a lot of other salon owners that make a boat load more money than him. Not just some more money. Double and tripple the money he makes. With the same ammount of stores...or less. They too are the MAN! Just not working so hard for it. You see, because Rob believe he KNOWS IT ALL, he never sees that even in his home town, he has competition that will tan 300 people a day at their store, AT $40 bucks a month, and pay $20 bucks for a HP bed and $15 bucks for a VHR bed....all day long, booking the beds solid. Doubling or tripleing the gross sales in their store that Robbie will do right down the road. (and he has so many stores that a darque tan is always near) NOW WHY ARE THEY ALL NOT AT DARQUE TAN? Why why why why why why why why why why??????????????????????????????????????? I don't know either..but It PROVES ROBBIE WRONG. Why is the Marriot at 60% full and 129$ a night and the HYATT is at 60% full at $209 a night? I don't know that either..but IT PROVES ROBBIE WRONG. This post is NOT FOR ROB. He and I will be boys, play golf, dive whatever..but for the rest of you , DONT FOLLOW HIS LEAD. It hurts the industry. And makes you LESS MONEY. He can do whatever he wants to, free country. Just don't think he has a template for success. He said there is ONE WAY TO SELL TANNING. YEA, Right, and only one way to be a restaraunt...errrrrrr......wellll.........that may be a bad example because it PROVES ROBBIE WRONG. Have you ever paid $6.95 for a cheeseburger, and another buck fifty for the bacon..plus $2 for a side salad...and had a GREAT LUNCH. Not in Robbies world. Hell, he buys lobster dinner at McLobsters and gets the McKlaws for 99cents each...the ONLY WAY TO BUY LOBSTER. Drew is done on this. Why I try and make any point at all is beyond me. I know no one listens cause you are all Robbies. GENIUSES. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-11-2002 12:37 PM -------------------------------------------------------------------------------- You guys are all still a bunch of dolts - including you Drew - You keep asking him to explain what makes him successful, and he has already told you everything you need to know yet none of you understand or pay attention. The biggest clue Robbie gave you to your business is - he typed in somewhere (and I am not going to go back and check because my ADD is kicking in and I don't have time for that - I need to hurry up and get this out before I start on a different project) that he builds markets in areas that are not familiar with EFT. On top of that, he offers a price so outrageously low that any other salon in the area can not compete. He does not make members sign contracts, he probably carries a full line of lotions pricewise so that way it is affordable to each and every person depending on what they feel comfortable with spending (which gives him the highest profit margin), he owns all his equipment outright, so he can charge low prices while still making profit, he uses 30 minute beds that give results, but not like a $6.00 S Class will in one session and 12 minutes - and then they can still jump into the Mystic Tan for $7.54 more. The customer sees how much other places like Alex, Drew, M&C charge for a single session on the same equipment, and now they go to Robbie's and get a full month, a session on the S - Class, a session on the Mystic - and they still did not spend as much for one session as they would have at the other places on one S-Class. He has a highly trained sales staff, he knows how to delegate responsiblity, he advertises and makes woman WANT to come there by telling them they "know what boys like" (Which implies boys like tan girls, If boys like girls then girls feel better, and other girls get jealous, and want to be better to), he holds Darque Tan Model Search competitions so the girls wanting to model will also go there AND he gets his salons name out for being prestigious. And all you dolts are on here kissing his ass having an orgasm everytime he types something on the internet - and he thinks you are a bunch of kiss ass idiots. He told you everything you are going to get from him, figure the shi.t out for yourself. And I didn't even give you his punchline. But you should remember one thing, he is on here watching, even when he is not posting. Robbie - I want to net 500k+ a year! I will listen to you like you are God, and I won't backstab you in order to get ahead. If one day ever arises that you feel I am ready - give me a call and help me get rich. 909 544 5371 Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged marster37 TanToday Moderator Member # 296 Member Rated: posted 05-11-2002 03:04 PM -------------------------------------------------------------------------------- Geez Rod Take it easy -------------------- -------------------------------------------------------------------------------- Posts: 2248 | From: TERPS WIN>> THE CROWD GO'S WILD | Registered: Oct 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-11-2002 03:36 PM -------------------------------------------------------------------------------- Believe it or not - I was. Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged island sun TanToday Supporter Member # 283 Member Rated: posted 05-11-2002 04:17 PM -------------------------------------------------------------------------------- hey rod i only have 8 salons opening 2 more in june and i net over 400k i would consider myself a failure if i had as many as robbie and didnt net 7 figures . also i also have no debt and i get 30.00 for my single mystic. and 18.00 for my ta 42 3 or 52 8 royal sun and they cost lots less than a silver bullet. and i'm going to get 20.00 for my 54 8 in my newest salons. and if someone like robbie opened by me i also can lower my prices and afford not to make as much money and still grow in fact i could cut my prices even lower and make sure both of us dont make much money. -------------------------------------------------------------------------------- Posts: 196 | From: commerce twp. mi | Registered: Sep 2000 | IP: Logged student of the game TanToday Supporter Member # 2286 Member Rated: posted 05-11-2002 04:27 PM -------------------------------------------------------------------------------- Hi Island Sun... How big are your stores? I think Robbie's stores are 18 beds each. Do you favor 30+ bed model? The 15-20 bed model? or the 10-12 bed model? Can I ask you what it costs you per foot to buildout your stores? (not the lease rate on the space, but the buildout cost for everything except equipment) Sorry that I have more questions than answers. I'm sure we all started that way, right? -------------------- "When the student is ready, the teacher will appear." -------------------------------------------------------------------------------- Posts: 17 | From: Georgia | Registered: May 2002 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-11-2002 04:48 PM -------------------------------------------------------------------------------- Drew made the point to me that Taco Bell has "cheap" food, yet El Torrito still makes money and it draws people. In his above post, he says he is not certain why it works, but it does. Well - Here is why it works. Taco Bell offers a less quality food, with poor service, at a discount. El Torrito gives you good food, better service, and it is substantially higher. When Taco Bell offers the same quality food as El Torrito, at the same price Taco Bell currently has... all other high quality resteraunts will fail. Darque Tan offers the BEST QUALITY, great service, with knowledgeable people who will help you (I should know, I called and harrassed one off his employees today - and although I knew more about tanning, she was pretty good...) Rod -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged island sun TanToday Supporter Member # 283 Member Rated: posted 05-11-2002 04:56 PM -------------------------------------------------------------------------------- hi student . i like 15 to 20 bed salons need about 2200 to 2400 sq ft buldout is about 60k get your landlord to pay for most of it.use your money for equipment that way. -------------------------------------------------------------------------------- Posts: 196 | From: commerce twp. mi | Registered: Sep 2000 | IP: Logged Kendall TanToday Rookie Member # 2275 Rate Member posted 05-11-2002 05:41 PM -------------------------------------------------------------------------------- hi teacher. you have 8 salons yet you have not demonstrated your ability to use capitol properly - i don't think i would benefit listening to you. besides - i know a salon that had an interior buildout that was $175,000.00. and it was one of those 'cheapo' salons. bye teacher. hiya - chop suey sensai! mr. miagi has spoken. scary. oops - this is my fiance's screen name... she unlike me uses her real name. rod -------------------- Kendall -------------------------------------------------------------------------------- Posts: 2 | From: California | Registered: May 2002 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-11-2002 06:56 PM -------------------------------------------------------------------------------- Rod you ignorant slut. So, has Carls Jr.'s SIX DOLLAR BURGER put Fridays outa business. How bout Islands. Or Chilies? How much is robbie paying you to spew this tripe? -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged Rod TanToday Supporter Member # 607 Member Rated: posted 05-11-2002 07:37 PM -------------------------------------------------------------------------------- Drew - are you really that dumb? Let me rephrase it... When El Torrito begins charging the same price as Del Taco while giving the same quality, service, and atmosphere as they currently do(but they expand to allow more people to eat since they will get more business) ... all other mexican restaraunts will go out of business. Rod This has nothing to do with Robbie - I was just helping you slow people figure out what you were seeking. -------------------------------------------------------------------------------- Posts: 3130 | From: the store | Registered: Feb 2001 | IP: Logged Drew TanToday Moderator Member # 255 Member Rated: posted 05-11-2002 07:52 PM -------------------------------------------------------------------------------- Oh, REALLY? Give me ONE example then of a company that has done this. Taken Quality, and added it to Quantity, and combined it with low price...and has SUCCEDED in putting all competion out of business. PLEASE POST SOON! I can't wait to be enlightened. PS. dont say wall mart or home depot. Because they haven't eliminated competiton, just changed it. Robbies model works...but just not for tanning. -------------------- -------------------------------------------------------------------------------- Posts: 6199 | From: Back | Registered: Sep 2000 | IP: Logged
__________________      Three can keep a secret if two are dead.  |
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| 4th November 2006, 11:55 AM | #4 (permalink) |
| Hall of Famer  Join Date: Nov 2004 Location: Ca Posts: 2,890 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew Wow, I don't even remember the exact post. The topic sure, but I laughed at the Blankets to Mexico analogy just now. Well, Gary's point about putting the store in the right place is the one point I got now, that I didn't get "then". Salons that have a+ locations, even in 10k a month rents etc seem to pull it off if all other factors are done appropriately. Also, being well capitalized. Another thing that now I realize the difference from 'well' to WELL.....as I have competition with net worths of over 100 million dollars....I have realized that I was wrong years ago..... I believed that wealthy people would NEVER get in this business as it is NICHY, and has a percieved health threat, and requires a lot of hands on management etc etc etc etc..... I was wrong. Seems rich people aren't any smarter than others. They just have more money which buys them time....time to fix problems, time to see competition go under, time to run hundreds of thousands of dollars in horrible ads, but still be in business to fix the campaign the next year so it works better etc. This business is moving towards....Invest 350k and expect 50K a year net per store. Own 10 and you will be happy. I can't do that. But with your money....I can. For hire. 619-254-8267 |
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| 4th November 2006, 12:16 PM | #7 (permalink) |
| Super Star Join Date: Nov 2006 Location: North Carolina Posts: 596 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew Good debate, need to read over. I love this site. It makes you think. Not that you should stop thinking and let the competition roll all over you then you die. |
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| 4th November 2006, 01:47 PM | #8 (permalink) |
| Hall of Famer  Join Date: Dec 2004 Location: Cloud 9 Posts: 1,388 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew This is the only thread I have ever printed out. But... I lost the paper. Thanks for re-posting this Brian. __________________ "We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle "The first step to becoming is to will it." - Mother Teresa |
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| 4th November 2006, 02:46 PM | #9 (permalink) |
| Arbiter Elegantiarum  Join Date: Nov 2004 Location: Virtual Reality Posts: 4,146 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew I remember the original post going on for about a dozen pages. This is, maybe, 10% of the original "Leaving Piles of $$Money$$ on the Table...." __________________ ObamaNation. Sing with the children. Drink the Kool-Aid. si vis pacem, para bellum "The Meek Shall Inherit Nothing." -Frank Zappa. "I inhaled frequently. That was the point." - Barack Obama. "Even if we win, we will have just eked out a victory, and we can't govern." - Barack Obama. www.GunBanObama.com   sui generis |
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| 4th November 2006, 03:01 PM | #10 (permalink) |
| Checks and Balances  Join Date: Mar 2005 Location: Maryland Posts: 6,163 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew OK, so go forward 4 years. Start a new one Drew given the information you know now. __________________  Alan"America is too great for small dreams" - Ronald Reagan  |
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| 4th November 2006, 03:28 PM | #11 (permalink) |
| Hall of Famer Join Date: Nov 2004 Location: Ca Posts: 2,890 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew Bruce made the main point clear. If you want to be a market price leader and you have the ability to do volume tanning....then charge low enough to achieve that, but not so low that you negate your investment and harm the industry of which you represent. Large chains with high capitalization are most equiped to do this and NOT the small business owner who isn't able to rapidly expand and make use of their "leadership" in pricing or equipment. The chains will still have their negatives. This will allow the smaller operators to charge more and give more. Robbie may believe or may have offset all those negatives...but I still wont go to burger king because of bad food or service here in San Diego, but I will never give them a try in another state as I believe them all to be the same. Similar problems with chains. Every negative experience spreads ripples across the entire brand. Equipment differences from store to store has greatly diminished in the past 4 years....negating some of my worries and moving them into the fact catogory. But if today, a person adds a 360 hp unit or a new IBED from UWE and charges 15$ a visit on it...then they are commiting the same crime.....of stupidity. Plasma HI DEF TV's started off at 10 or 20k....and they sold many....ONLY later did they reduce prices and cut the huge profit out after re couping the years of investment dollars and time to create the medium. Same thing here. add on. Believing that you create MORE tanners by having low prices may be valid. But do you create that many more? Did mexican food become popular in the mid west because Taco Bell had 59cent tacos for a few years? Or did taco bell just get poor people to eat a decent meal for cheap? I don't have the answer..... Last edited by Drew : 4th November 2006 at 03:31 PM. |
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| 4th November 2006, 05:51 PM | #12 (permalink) | |
| Off The Chain Moderator Join Date: Nov 2004 Location: The Sun Doctor, Califon, NJ Posts: 7,009 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew Quote:
You are comparing the electronic industry to the tanning bed manufacturing industry. Years ago, the electronic industry produced limited quantities of goods due to the fact that they were hand built. Many connections and components were made by hand, which required people to do. This amount of intensive labor made the products expensive to produce and purchase. The transistor goes back to the nineteen-forties but has been constantly shrunk down in size to the point eventually where they could pack hundreds of millions of transistors in a 2x2 inch space, hence the microprocessor, the backbone of all current electronic devices. To get these components this small, it required machines that could stamp these out at a high rate but needed to be reliable and within tolerance. Today, these parts can be stamped out in hours as compared to weeks as it took years ago. The electronic industry no longer needs vast amounts of people in the manufacturing process to stamp out thousands of completed products per day since it is all automated, thanks to surface mount technology. The tanning bed manufacturing industry on the other hand has a disadvantage. First it caters to a nitch market, which is small as compared to the electronic industry. All of the beds are hand made. Sure, there is some machinery involved such as blow molds for plastic parts and sheet metal rollers for the shells but all of the welding, wiring, assembling and painting is all done by hand. The amount of beds per year developed by the bed companies does not warrant automation. The beds will always be expensive yet too many salon owner are devaluing their markets with low ball tanning. Now this was started by the guys with deep pockets but, when everybody decides to jump on the bandwagon and lower prices or just hang the 18.88 sign outside with no strings attached, this is where everything runs into trouble. They have no clue how the program really works and figures that they can do it too. Well six months down the road you find out that you can no longer change the lamps, pay the rent, electric or afford to fix broken beds so they sit empty, lowering the income even more. It is a vicious cycle that really cannot be reversed once it gains momentum. __________________ Three can keep a secret if two are dead. | |
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| 4th November 2006, 08:42 PM | #13 (permalink) |
| All Star Join Date: May 2005 Location: usa Posts: 109 | Re: Leaving Piles of $$Money$$ on the Table-Why? by Drew Brian has a valid point. Tanning beds have been bringing less and less profit for the manufacturer not more. (yes there are exceptions) Out sourcing and injection molding has increased the cost to manufacturer, as equipment gets prettier and better but not cheaper to make. Its not as profitable on the salon side either the same 20 salon chain that netted over a Million 5 years ago is now looking at 500K at best. Many salons break even or do under 50K for the simple reason that every location is not a cash cow and nobody has the silver bullet for choosing locations (if someone does introduce me). I have always disagreed with the fitness center mentality for a tanning salon but in many markets you are forced fed this strategy and either cave or take the fall. What's the answer, it changes from ma |
