Eft

[Tanning Queen]

Basically you want to charge the most amount of money that they will not care about spending if they dont use it. Most people wont care if $20 or so each month comes out of their account even if they dont use the service. Like in gyms. But if you charge a normal monthly fee (ex. $49.99) then people will cancel if they dont use it. The key is keeping people on the plan as long as possible.

[BelleMãe]

But your losing money if you charge 20.00 a month if they do use it?

[Tanning Queen]

You charge to upgrade. Yes, if all you did was charge $20 and never had upgrades, lotions, or anything else and they came in daily, you would be screwed. But it is really a get them in the door thing and upgrade them as much as you can. More of a loss leader type of thing. But the ones that make money with it are ones that have various levels and the ability to have volume. You need to have many people on it to make it work.

[BelleMãe]

oh ok I see! thank you!!

[JustTans23]

does anyone have a copy of a cancellation notice and any other tips for EFT? What do you base your prices on? Do you hire a company or run the cards through yourself? If you do it yourself, do you just enter all the card information into the credit card machine manually each time a payment is due? IF you do isn't that a whole lot of work? lol....I dont think any tanning salons in my area do this, I think it will help me out and help me attract customers from other salons. Do you give your workers commission for selling these? any other tips I havent thought of?

[Glowtanning530]

My lesser fee is only a $10 difference from my unlimited, but they have a 6 month minimum commitment. Many of them I hardly see. I have had very few problems with declines.

[DarkStar]

Originally Posted by JustTans23

does anyone have a copy of a cancellation notice and any other tips for EFT? What do you base your prices on? Do you hire a company or run the cards through yourself? If you do it yourself, do you just enter all the card information into the credit card machine manually each time a payment is due? IF you do isn't that a whole lot of work? lol....I dont think any tanning salons in my area do this, I think it will help me out and help me attract customers from other salons. Do you give your workers commission for selling these? any other tips I havent thought of?

We have 4 levels of EFT, We use a 3rd party company to do all EFT transactions. The fees can be charged to the client or the your salon (we pay the fees).
The 1st month is pro rata for the remaining period of that month.


We have a $25 sign up fee and the selling staff member gets $20 of that fee in cash (cost for sign up is $5 per client).

So if they sell 10 in a week they get $200 cash in hand. (super incentive). we had a total of 33 sign ups last week.

All EFT's are done 1st of the month, it hits our accounts 4 days later.

With cancellations, the client must write a letter signed and dated with their membership card included and have it to us by the 15th of the month and they are cancelled/suspended, if the note arrives after the 15th they are billed the following period.

[JustTans23]

Thanks for all the help, I'm working on getting everything set up now, does anyone have a copy of a cancellation form they can show me so I have something to base mine off of?

[aimeekat]

Please delete-sorry.

[aglowtan]

Kathe, I am very interested in the contract too. How can I get my hands on one.... email??? fax???

[JustTans23]

Besides the fact that its a whole lot cheaper than the normal pricing. How do you get people to buy the EFT. As soon as I tell them what my $35 a month unlimited sign means they freak and refuse to do it.

[Din]

You tell them the truth. It usually works. It's unrehearsed and they know it's genuine and not a sales pitch.

[jamaicabreeze]

JustTans23... check your private message

[sedmiller]

We have 5 different levels of eft, including an unlimited Mystic eft. This way customers have PLENTY of choices, from $39 to $139 a month. We have a $35 set up fee (staff members get a bonus on each level they sell with top eft getting all of the set up fee). Because we are in CA - we have customers pay a cancellation fee. This way there is none of that "I told the girl last time I was in BS". We still get that any way. We have them sign a contract and they may cancel any time. If their card declines we charge them a fee to bring it to the regular 30 day price. Since we made these changes this year, EFT revenue is WAY up for us. Be specific in your contracts, customers will do anything to try and get out of it. We get chargebacks from Visa/MC all the time and we have great documentation to ensure that we get the $$ back from the chargebacks. Good Luck. EFTs are great for business and great for the customer.

[Gonbop]

How do I get a copy of your contract?

Thanks,

Rob

[sedmiller]

Originally Posted by Alan @ TanToday

Try chasing them down in court too. Its just not worth the hassle. People read what they sign and then when it doesnt suit them they claim ignorance and cancel the cards.

Know that it will happen and dont have a coronary over it when it does.

AND the bank will charge you $15 for each charge-back. Oh how they love to screw businesses. We charge $35 for set up and $30 for cancellation.

I have had customers tell ME that I just shoved the paperwork in their face and told them to sign. I laughed at him.

Unfortunately, it is part of doing business. 10% of the people will cause 90% of the problems. We have more than doubled our EFT business this year.

[Drew]

the "idea" that the eft is the amount of money that is too low to cancel...the Darque Tan plan of 18.88 was this idea.... is basically hogwash. People will cancel a 14.44 plan if they are not using it.
The ONLY reason someone won't cancel a low price EFT is if they had a BIG start up fee..which isn't common anymore and wasn't the D.T. model .....

[perfecttan01]

I have never felt the concept of EFT is a good plan for tanning.
As bad as I feel the plan is, I believe with the bad press and the economy on a downward spiral that this plan will become even more of a loss to owners.

The plan was designed to attract clients with the low price point, with intentions of pushing upgrades.
How can you push upgrades if the client does not bring a form of payment with them ?
Remember, they assume they are paid in full for the month.

I understand the salonowner is hoping that the client will continue the plan the entire year regardless if they use it or not.
How many people are going to continue paying for a plan after they realize they are only using it four months out of the year?
Not many, Not enough.

I know the plan was designed to create more upgrades.
You can do that with any plan, my copay plan works well for that, however you can upgrade off any of my plans.

Bottom line is, we know the economy is bad and people are spending less money, bargain shopping, and dropping debts they don't need at a rapid rate.
can your salon afford to tan all these clients at $20 per month and survive?

I see a lot of owners complaining about how bad the year has been, could it be that you have too many $20 eft clients that are not upgrading?

I have never thought EFT was a good program, in this economy I believe more than ever that I was correct.
I do believe that EFT has devaluated this industry, think of what we could be getting for tanning today has this grand concept had not been promoted.

I am not saying I am right, I am not saying I have the answers, I am simply calling it the way I see it.

[John]

Many people bad mouth EFT's & the tan till the end of the year for $99 deals.

Makes perfect sense to me!

First find out your PPA = Per Person average.
(so if you did $250K last year & had 3500 people tan with you that would be $71.43 per person)

So the average life of an EFT is about 5 months. 5 months x $19.99 month = $99.95
Your ahead of the game already & haven't sold any lotion or upgrades to this person yet.

Then in July you run $99 till the end of the year. People who are coming off season specials or those that cancel EFT's will jump at this. And again you still haven't sold any lotions yet or upgrades.

The beauty of this deal is you lock the customer up till the end of the year. They certainly will not pay your competition to tan & you will also have a great chance of getting them back in the busy season since they will be familiar with your salon & staff.

[perfecttan01]

[QUOTE=John;335893]Many people bad mouth EFT's & the tan till the end of the year for $99 deals.

Makes perfect sense to me!

First find out your PPA = Per Person average.
(so if you did $250K last year & had 3500 people tan with you that would be $71.43 per person)

So the average life of an EFT is about 5 months. 5 months x $19.99 month = $99.95
Your ahead of the game already & haven't sold any lotion or upgrades to this person yet.(QUOTE)

If I tan a client for 5 months and they never upgrade or purchase lotion, the will spend about $30 per month, assuming they tan 10 times in that month .
$30 per month x 5 = $150
Many will tan more than that, therefore that is bottom number.

Nearly all clients bring a payment method wit them at my salons, they acknowledge they have to pay something.
How many EFT clients come in empty handed?

(QUOTE)Then in July you run $99 till the end of the year. People who are coming off season specials or those that cancel EFT's will jump at this. And again you still haven't sold any lotions yet or upgrades.

The beauty of this deal is you lock the customer up till the end of the year. They certainly will not pay your competition to tan & you will also have a great chance of getting them back in the busy season since they will be familiar with your salon & staff.[/QUOTE.

From what I understand most EFT salons have no cancellation fees, therefore how are you locking them up?
The non EFT salon has made what they need for the year in the season, therefore affording them to sell the last 6 months for
$79 till the end of the year if they wish.
EFT clients for the most part are bargin shoppers, will they switch salons to save $20, you decide.

I just don't see the beauty, but hey,, I am just a 20 year veteran that is doing fine without it.
I am seeing EFT salons falling like flies, but I don't claim to know it all, maybe I am wrong.