Lotion Packet Pricing

[raynchris]

How do you price your packettes ?
Do you follow MSRP pricing ?
Do you use a rounded, tier level (i.e. $4, $5, $6....) ?
Are they all the same price ?

[jamaicabreeze]

I do MSRP. Never have a complaint.

[brownsuze]

Rounded tier level, I hate dealing with coins...

Since you brought it up... I looked at my best sellers for last year and was not shocked to see the $3 packettes (Down Town Brown) vastly outsold any other. I hate selling $3 packettes and making a huge $1-$2 off them, but if I'm selling several hundred more than the next best seller, is it worth it to keep the $3 option?

As of now I'm phasing DTB out and will bring in more $8 & $9 packettes. I wonder if this is the smart move or if I will see a drop in packette sales since the "cheap" option is gone...

(I think DTB is a VERY nice lotion for the price, its about profits not quality)

[W8INLINE]

In 2008 I am phasing out any packette on a product that the bottle retails for under $50. My reason behind this is that I advise everyone to try the product by getting a packette before they invest a lot of money on the bottle. If the bottle is cheap to begin with it's not a big deal then. Also, by offering .5oz options on the higher end ones they get to use the better products more and it should raise the chances of them buying a more expensive product.

[TanPro]

We use MSRP and are toying with the idea of giving them the amount of the packet off if they purchase the bottle.

[raynchris]

To answer that question, I would look at your #2 and the price you charge. And then compare the profit from both and multiply it by the amount sold of each. That may help a little.

IMO, to take out a $3 pack and replace it with an $8 or $9 pack may be risky. But it depends on your clientele. And what they buy.

[brownsuze]

The word "replace" is inaccurate... I still have $4, $5, $6, $7 options, just adding in some $8 & $9.

And unfortunatly I realized I was rounding the #2 best seller DOWN instead of up and was not making the profit from it I should have... that has to be changed this year. so the #1 is gone, and the #2 has been increased...

Also, as W8 is saying, I will drop the cheapest bottles (DownTown Brown) and bring in the 3 oz Tinis. They retail for the same as DTB ($16-$21) but will be used up a lot faster as they're so much smaller.

I just totally jumbled this thread...

[brownsuze]

And I mention the Tinis as I will be pushing those as not only the cheapest bottle but as the most expensive "packette."

[brownsuze]

Originally Posted by raynchris

IMO, to take out a $3 pack and replace it with an $8 or $9 pack may be risky. But it depends on your clientele. And what they buy.

There will always be people who want the best and always be people who want the cheapest.

[raynchris]

Originally Posted by brownsuze

The word "replace" is inaccurate... I still have $4, $5, $6, $7 options, just adding in some $8 & $9.

And unfortunatly I realized I was rounding the #2 best seller DOWN instead of up and was not making the profit from it I should have... that has to be changed this year. so the #1 is gone, and the #2 has been increased...

Also, as W8 is saying, I will drop the cheapest bottles (DownTown Brown) and bring in the 3 oz Tinis. They retail for the same as DTB ($16-$21) but will be used up a lot faster as they're so much smaller.

I just totally jumbled this thread...

I gotcha. I guess I kinda misunderstood. Thought you were phasing all out and going with $8 & $9 stuff.
And you're right. About quality and price. Why kill yourself selling say 100 packets of one, when you can make the same in selling 20-30 of something else. Bottom line right !
Cheapies will always be cheapies. Fudge em.

[EliteMike]

I'm bringing back a cheap bronzer and a cheap accel as of Monday. I use the cent rule when dealing with lotions, but not tanning. You have to tax them anyways, so having whole numbers doesn't matter one bit. 7.99 sounds a lot better than 8.00

[Isltan]

$3.95 (Aust. Gold orig. .75 cost) and up. More than MSRP! Packettes are a big pain in the butt. They buy them and make them last 2 or 3 sessions! Make the packettes expensive b/c they will see the value in a bottle.

[Busygrl98]

I sell 3 , 4 and 5 buck packettes, if i don't use those price points they will not use any at all. I can usually find wholesalers that need to get rid of packettes that just didn't fly for them, so its almost all profit from the sale. in my area packettes customers are not bottle customers, i do find the higher price on the packette the more i see someone try and get 3 tans out of it, i tell them its a single use ! Tan inc called friday they have packettes for .40 cents if anyone is interested. and yes they sell salon direct.

[Din]

Lotion packettes hover at about $9.00. My cheapest are $6.00

I do specials on all the free lotion packettes i get sent by every distributor for $4.00.

[Isltan]

Exactly, most packette customers are NOT bottle people, another necessary evil in the indoor tanning industry!

[trackerbuddy]

Originally Posted by Busygrl98

Tan inc called friday they have packettes for .40 cents if anyone is interested. and yes they sell salon direct.

I am interested how do I contact them.

[benzobaby]

I charge the MSRP and people complain....but i found that people complain about everything..maybe i should just give it to them for free...On another note in my area there is a salon that is about 8 miles from me that 2 lawyers own and they only charge a .25cents over what they pay for it which really pisses me off because often I see sample packets in the garbage cans in the rooms with the prices on it....it's nothing really that I sell, but it still pisses me off....just because they have money already what gives them the right to make it harder for poor souls like me to stay in business.

[Din]

.25 cents over what they paid? Or over Salon Cost?

If they get deals like free packettes with lotion bottles or they get 50% OFF salon cost.......then their markup is still 100%....just 100% off of what they actually paid.

So they are still making money.....they are not being greedy and they probably sell tons more than if at MSRP.

If salon cost is $2.00 and MSRP is $4.00. They would sell it for $2.25....BUT...what they actually pay for it is $1.00.

So they pay $1.00, they sell for $2.25....that's 125% Markup.

[esun]

Many of the new FREE packets sent by AG and Cal Tan/ Matahari and others are only .34 oz and say FREE SAMPLE and Not for resale On them. Theres hardly enough to do half your body so you need 2 packets!