EFT Selling

[mule14]

OUr cheapest EFT is $19.95 per week, debited straight from their bank account, more or an easier payment plan than coffing up the $99 for our cheapest unlimited monthly membership. Customers still pay for upgrades in store, our EFT's are worth $1500 a week to us, the whole idea of $18.88 a month for unlimited base beds in a small salon (by small I mean 12 beds or less) seems ridiculous to me...

[aeltiger]

I agree mule...I think the idea of $18.88 is great for salons with 25+ beds. Its the quantity that makes it work for them. But not for a small salon.

Ours is $24.95/month and about to go up to $29.95/month. We don't get a TON of money off our EFTs, but enough to cover rent and a few utility bills. It helps us during slow season for sure!

[jenrev22]

We sell EFT's really well at our salon. Here's our rates....

Club memberships (EFT):

Level 1: $19.95/mo
- 1 free upgrade to Level 2 (valid 1st month only)
- 1 free upgrade to Level 3 (valid 1st month only)

Level 2- $34.95/mo
- 1 free upgrade to Level 3 (valid 1st month only)
- 1 free upgrade to Level 4 (valid 1st month only)

Level 3- $49.95/mo
- 1 free upgrade to Level 4 (valid 1st month only)

Level 4- $79.95/mo
- Extra 5% off any tanning lotion (valid 1st month only)

MyMyst: UV-FREE tanning
$49.95/mo

VIP Club Member:
$99.95/mo
All inclusive Tanning with all levels including UV FREE tanning- MyMyst by Mystic


ALL MEMBERSHIPS INCLUDE:
*20% off all lotions. 50% off upgrades.
*Must be signed up for minimum of 2 months.






..... Adding the free upgrades and the discounts on the lotion are great sellers!

[MicroSpa]

[QUOTE=jenrev22;330606]We sell EFT's really well at our salon. Here's our rates....

Club memberships (EFT):

Level 1: $19.95/mo
- 1 free upgrade to Level 2 (valid 1st month only)
- 1 free upgrade to Level 3 (valid 1st month only)

Level 2- $34.95/mo
- 1 free upgrade to Level 3 (valid 1st month only)
- 1 free upgrade to Level 4 (valid 1st month only)

Level 3- $49.95/mo
- 1 free upgrade to Level 4 (valid 1st month only)

Level 4- $79.95/mo
- Extra 5% off any tanning lotion (valid 1st month only)

MyMyst: UV-FREE tanning
$49.95/mo

VIP Club Member:
$99.95/mo
All inclusive Tanning with all levels including UV FREE tanning- MyMyst by Mystic


ALL MEMBERSHIPS INCLUDE:
*20% off all lotions. 50% off upgrades.
*Must be signed up for minimum of 2 months.






As I'm reading this post I was hoping you could help me out with a few questions.

1. What beds essentially distinguish your level 2, 3 & 4?

2. You mention 50% off of upgrades. Would you explain this? If you are on level to 2 or 3 for example, how do you upgrade to level 4? Are you basing it off of the single price between two and 4 or 3 & 4?

Thanks for your help in advance.

[Stellita3]

When I took over the salon 2 yrs ago we had 5 people on EFT now we have 47. I gave is a cutsy name" The Islander Club" and give them coupons that only they get.

My level 1 price is $34.95 and my level 2( has 3 different beds to chose from) is $64.95 ( I am amazed at how cheap some of you sell your EFT's)

I charge them a $40 enrollment fee with no cancellation fees. I give them 1 coupon for 15% off a lotion, a free week for a friend, 1/2 hour massage, a free packet and $5 off a spray tan.

If they decide to cancell and want to re up I charge them the $40 over again.

It has really helped during our slow times. I also pay out a one time $10 commission to the person that signs them up so they really try to sell it to customers.

We waive the fee once a year during our free tan weekend as an incentive to get them to join in the beginning of the year.

[perfecttan01]

I can completely understand EFT with at least a 6 month or more contract.

I see some of you say, it helps me through slow season, my grief,,,surely you but back enough in busy season to carry slow season.

Most all my salons have 17 beds or more, great traffic through busy season.
I wish one, just one person could get on here and give me a reason why an EFT with a month, or even 2 or 3 month contract is a benefit.

I am serious, all I see the way most of them are sold is that they devaluate pricing through out the industry.
They spell on thing for me, less ching in my drawer.

Some of you may say Joe, Bob and Tom do it and it works well for them, how do you know if it works well for them?
I don't care who does it, it sets me apart from competitors that I don't offer it, what sets you apart from your competition?
How do you know if EFT is working for you, how can you tell me that you would not have made much more money with out it this year?

Maybe I don't know it all, maybe I am missing something, if one person can give me answers and numbers to why this is the dream plan, i'll be quiet about it.
Who knows, if it's the golden egg every one says it is I may start doing it, I doubt that.

[Stellita3]

I used to feel the same way but last year I became a believer. The people that I have signed up used to buy sessions and try to stretch them through the season then they would stop coming in September and come back in February. Now they stay throughout the whole year, giving me a guaranteed income during the slow time and I don't have to touch my savings. Most of these people don't even use their unlimited that much and several have gone a month or two without coming at all. I'm still charging them though. So for me it has been a good thing.

Also creates a loyalty to you. Because they have a membership I don't see them go to my competitor across town. They used to go there when her ad had a better price than mine Now I don't have to share their business.

I do agree that some of these 18.88 and 19.99 prices are way too low and to on top of that give them % off lotions and 5o% off upgrades is alittle overkill but I think you have to look at what works in your market. All I know is that my 50 EFT's are paying my lease every month.

[perfecttan01]

Originally Posted by Stellita3

I used to feel the same way but last year I became a believer. The people that I have signed up used to buy sessions and try to stretch them through the season then they would stop coming in September and come back in February. Now they stay throughout the whole year, giving me a guaranteed income during the slow time and I don't have to touch my savings. Most of these people don't even use their unlimited that much and several have gone a month or two without coming at all. I'm still charging them though. So for me it has been a good thing.

Also creates a loyalty to you. Because they have a membership I don't see them go to my competitor across town. They used to go there when her ad had a better price than mine Now I don't have to share their business.

I do agree that some of these 18.88 and 19.99 prices are way too low and to on top of that give them % off lotions and 5o% off upgrades is alittle overkill but I think you have to look at what works in your market. All I know is that my 50 EFT's are paying my lease every month.

I can understand your EFT more, it cost nearly as much as my monthly.
I should have been more precise, I am referring to the less than $30, and a% off this, and a % off that.
If you are charging them while they are not coming, don't you believe they will eventually cancel.
When they do cancel, do you believe they will do EFT again realizing they only used it a few months however paid for several?

[aeltiger]

Actually, the point of charging them so little is, "How much can I charge you not to tan without you cancelling". When you charge $25/month (like I do) clients are ok with keeping their EFT plan active, even for the couple of months they may not be tanning. They see that even including the months they are not tanning, they are still getting the best deal. For example, the way we explain it to our clients is like this: Our single month unlimited is double the price. So if you sign up for the 6 month EFT plan, its the same price you would pay for 3 single months. So even if you only tan for the 3 months, you still got 1/2 off upgrades during that time and 10% off lotions. And you still have the ability to come tan during the other 3 months if you want.

Even though our clients have the option to sign up for 6 months (with a $40 set-up fee) or 12 months ($10 set-up fee), many of them stay signed up for years. The benefit there is that if we have a price increase on our EFT plan, they are locked in at the lower rate.

I think that the key to ANY EFT plan is the quantity of them. For the plan to be truely successful you have GOT to have a minimum of 100+ people on the plan. We currently have just under 200 people on ours and are finally seeing the benefits. If your EFT plan doesn't cover at least your rent and some utilities, I don't see it as beneficial to have. We strive every year to add AT LEAST 50 additional members. If 10 people cancel, we strive to add 60, etc. This is only our 2nd year of offering it and I can already see that it works for us.

Most people on our base EFT plan upgrade regularly. If they didn't then yes, I would rethink it. Of course we have a handful of people that do not upgrade, but more often than not, most of them upgrade regularly and buy lotions as well.

[Stellita3]

Originally Posted by perfecttan01

I can understand your EFT more, it cost nearly as much as my monthly.
I should have been more precise, I am referring to the less than $30, and a% off this, and a % off that.
If you are charging them while they are not coming, don't you believe they will eventually cancel.
When they do cancel, do you believe they will do EFT again realizing they only used it a few months however paid for several?

I have had 4 people cancel. 2 because they were caught up in the frenzy of free tan weekend and joined even though they were not regular tanners. 2 others for medical reasons. The ones that don't use it consistently like the fact that it is a smaller monthly fee and they don't have to cough up a large dollar amount to buy sessions. They can budget their tanning. The people that miss a month or 2 rather do that then go back to paying the regular prices.

Most of the people that cancel aren't going to rejoin. The ones who think about cancelling get reminded that they have to pay the enrollment fee again when they rejoin and go back to the month to month prices.

This is something that no one in my area offers so it gives me an edge over my competitor. We market it as a special service and we guarantee that this will be our lowest price in tanning.

[perfecttan01]

Originally Posted by Stellita3

I have had 4 people cancel. 2 because they were caught up in the frenzy of free tan weekend and joined even though they were not regular tanners. 2 others for medical reasons. The ones that don't use it consistently like the fact that it is a smaller monthly fee and they don't have to cough up a large dollar amount to buy sessions. They can budget their tanning. The people that miss a month or 2 rather do that then go back to paying the regular prices.

Most of the people that cancel aren't going to rejoin. The ones who think about cancelling get reminded that they have to pay the enrollment fee again when they rejoin and go back to the month to month prices.

This is something that no one in my area offers so it gives me an edge over my competitor. We market it as a special service and we guarantee that this will be our lowest price in tanning.

Your area is different than mine, most all salons here offer EFT and most for less than $20, many with no contract.
Not offering EFT is what sets me apart, I use other options.

With the downward economy, I believe the majority are going to analize their budget and delete what they are not using.
As for myself, I have cancelled my gym contract, got rid of the movie channels on tv, dropped my home phone because I have cellphones all around here.
My income has not dropped much, I am simply looking ahead.
I believe most of the general public is doing the same.
The bad press is another factor that is going to do us great harm.

I will not do EFT, I do believe if you can get a decent price for an EFT, and a decent term contract, it could be a good plan.
I can not do this in my area due to the way the competition has structured them.

Keep in mind, this is just my opinion, and everybody has one.

[Stellita3]

You are totally correct. Everyone's market is different. You have to take that into consideration with anything you do. I am lucky I am in a suburb that is affluent with very little competition.
What works for great for one salon can bomb in a salon across town.

[Glowtanning530]

Originally Posted by aeltiger

Actually, the point of charging them so little is, "How much can I charge you not to tan without you cancelling". When you charge $25/month (like I do) clients are ok with keeping their EFT plan active, even for the couple of months they may not be tanning. They see that even including the months they are not tanning, they are still getting the best deal. For example, the way we explain it to our clients is like this: Our single month unlimited is double the price. So if you sign up for the 6 month EFT plan, its the same price you would pay for 3 single months. So even if you only tan for the 3 months, you still got 1/2 off upgrades during that time and 10% off lotions. And you still have the ability to come tan during the other 3 months if you want.

Even though our clients have the option to sign up for 6 months (with a $40 set-up fee) or 12 months ($10 set-up fee), many of them stay signed up for years. The benefit there is that if we have a price increase on our EFT plan, they are locked in at the lower rate.

I think that the key to ANY EFT plan is the quantity of them. For the plan to be truely successful you have GOT to have a minimum of 100+ people on the plan. We currently have just under 200 people on ours and are finally seeing the benefits. If your EFT plan doesn't cover at least your rent and some utilities, I don't see it as beneficial to have. We strive every year to add AT LEAST 50 additional members. If 10 people cancel, we strive to add 60, etc. This is only our 2nd year of offering it and I can already see that it works for us.

Most people on our base EFT plan upgrade regularly. If they didn't then yes, I would rethink it. Of course we have a handful of people that do not upgrade, but more often than not, most of them upgrade regularly and buy lotions as well.

Very well said. We find for every one that might cancel 2 more sign up in their place. This time of year to get them on is offering a lower intro rate

[scruffyluv]

I came into this one a little late, but this is what my salon is doing. We bought the salon almost a year ago and the EFT program was already in place. Through the years, the prior owners grouped the level 1-3 beds into one flat price, so we knew we couldnt really change that. What they charged was $25.95 a month for a VIP package, and they had an upgrade package that included a cyberdome and massage bed for almost $60 a month. No one bought into the more expensive one. In March we sold the cyberdome, bought a brand new level 4 bed, then upped the VIP's in July. People that signed up prior to that date keep the older amount, but new VIPs get charged $27.95 a month, and for the level 4 upgrade, its $40.95 a month. We "freeze"accounts for a max of three months a year for $3.95 a month,dropping them down for the time they are on freeze.. We have lost a few VIPs, but are slowly getting some back. Signed up 3 in the past 6 weeks. We also offer our VIP's 10% off lotions. Sign up fee is $15.00. Its not paying the rent yet, but my girls do try to push it. I think they can try harder though!

[HotBod]

I have owned my salon since July and have found that EFT's are a must have for me. I bought this salon (that had no EFT business) and it was super slow season and without the EFT's that I have put in place, we would be falling short.

I sell EFT's by calling them "Membership with free enrollment". They can cancel at anytime as long as it is before the 15th so that they will not be billed again on the 1st". They can cancel for any reason.

The prices are 50% cheaper than the regular monthly prices and this helps encourage people to sign up, honestly I have no problem getting people to sign up and I can usually tell the moment that they come in the door if they would be interested in it. Some people prefer to stay out of that and once they say they are not interested in membership I move on. Never pressure people.

My pricing as of now is:

Level 1 EFT: $19.95

Level 2 EFT: $29.95

Level 3 EFT: $39.95

Level 4 EFT: $54.95

and soon to come Level 5 EFT which will be for our new HP bed and also will include unlimited airbrush tanning for $99.95.

I use Helios and First Data for my EFT processing and it is as simple as having them fill out the membership form, writing in their bank or credit card info and then signing it.

With Helios a screen pops up at the end when selling a EFT membership and you simply enter the credit card number and expiration. You manually go in on the 1st .. or 15th of each month depending on which you choose and use the EFT module to bill the credit cards or bank accounts.

It seemed hard at first since I had never owned a salon or set up anything like this but when all is said and done it works for me and my employees are perfectly comfortable selling them to our clients.

Its all about the presentation IMO

[The Grinder]

To the OP, sorry if this has been suggested but in the gym biz, we present it this way--since a lot of people don't like it when they get their checking account tapped into, try this explanation:

"Mrs Jones, you are authorizing your bank to pay our bank(the bank thing is softer) $50 per month for 12 months"(month sounds better than year). Now read the customers mind, if they may balk at allowing this say this "Yes I know I really don't like it either. But here's what you do Mrs Jones--say your payments due on the 20th of each month, now when you come in a few days early, drop me off a check(or cash), and I call the payment into the billing company and I promise they will never hit your account"

Of course this works best IF you do use a billing company. Simply tell the member that billing co MUST have checking number as back up. They are welcome to pay at the front desk.

Good luck