just in from my disty...

[shelleytn1]

as of october 31st - DS has cut disty discounts to be in the same priceing range as australian and cal tan - and they will be passing on those cuts (increases) to those of us that choose to still carry these lines -

oh yeah - and those 2 times a year promo packs they send out? - no mas....

[dcjjp1]

Yeah, I knew about this for a few weeks.

[shelleytn1]

? i am a blonde ya know!

[CIT]

well atleast you're a cute blonde.

[FIDavid]

Originally Posted by shelleytn1

as of october 31st - DS has cut disty discounts to be in the same priceing range as australian and cal tan - and they will be passing on those cuts (increases) to those of us that choose to still carry these lines -

oh yeah - and those 2 times a year promo packs they send out? - no mas....

Your distributor rep is telling you what they want you to think. While you are correct on the promotion offer the ability to offer you the same discount is not. For those that think the recent changes (conglomeration) only affects you are mistaken., it has reverberated throughout the industry.
I work for a distributor, so I have to ask the question. Five years ago when I started salons were getting maximum 25% off of salon cost on lotions and selling them for twice salon cost. What has happened that you are no longer able to do that?
Yes I understand that trying to sell $120.00 bottles was insane back then, and it's still insane but why were you so able to to crank out AG Accelerator for $16.00 when you paid $6.40 all day long and unless you get it for $4.50 now and sell it for $14.99 no one will buy it?
I ask this because I have two theories and I am genuinely interested in seeing which one bears more fruit. Much like you I have a vested interest (having a job) in hearing about this. And what distributor you work with is of little importance to me. I listen to owners everyday, I hear the stories, and in some cases the excuses. I need to separate the wheat from the chaff.
And if you don't want to share it with me, share it with the rep from whatever distributor you deal with, I'm not here looking for converts to my company. You've done your due diligence and made your choices and I respect that.
There is a trend starting with weaker players using guerrilla tactics becoming overly aggressive to save their bottom line. I abhor it and will never subscribe to that method. Nor do I expect the best of the best of my competition to either.
Whoever you work with make them work for you. You are my boss, not the other way around.


Cheers,

David

[gottatanfl]

David,
I mark all my lotions at full retail price. I sell plenty at that price, customers will buy what we recommend and for most cost isnt an issue if approached correctly.

I also sell alot at a discount to negotiate a larger package purchase. With the discounts that Future Industries give me I can sell that bottle of lotion to a customer for 50% off just to get that High Pressure Bed sell. I still made a profit and the customer is happy.

I sell more lotion in the $60.00 range than the $20.00 range.

[Din]

David.

Here's a reason people are complaining.....cuz our profit margin is being cut...that's why.

why do you think the discounts went from 15% to 50%? Because tanning has gone downhill and disty's are fighting for everyones business as salons aren't buying as much....cuz customers aren't tanning as much.

[gottatanfl]

With a tanning salon on every corner just like a gas station its hard to compete.

I only have one salon for competition at one of my locations so I can set prices at full retail. Higher profit margin here...

My other salon is in an area where every couple miles there is a salon.
In that salon if I get regular salon cost I'm lucky. I need the biggest discounts possible for that salon to even come close to breaking even. Very LOW profit margin there....

Then with all the negative publicity customers are more reluctant to tan.

[Kathe]

And that extra percentage allows us the opportunity to pay commission to our employees which helps them earn more. And I can do specials and deals with it.

Kathe

[Din]

Hence™ by cutting the discounts......salons will drop that lotion line....like i have done with Caltan and now Designer Skin and have gone with lotion companies that offer better profit margin.

I'm in business to make as much money as possible......not to please lotion manufacturers nor distributors. FAKEM ALL......THAT'S how business works if you want to survive.

Not like these salons that are closing up cuz they buy ETS and stock AG/Caltan with less discounts and they can't make ends meet.