Eft

[Solihull]

What does EFT stand for and what are the variations of it along with benefits/drawbacks?

[Pink]

Electronic Funds Transfer

[Solihull]

Thanks Pink - so when people on here talk about EFTs with membership prices and monthly charges they are talking about electronioc funds transfers?

I'm still a little confused - it could be my age I guess

[Pink]

We offer memberships . We debit their accounts each month when they sign up for our eft program. I call it EZ Pay so I do not scare anyone. It is basically a unlimited base bed program and they receive 50% off of upgrades if they are a member.

In the UK do they offer memberships?

[MoHo50]

There are a lot of variations of EFT programs but basically, the idea is to lock in customers to future payments that you automatically take from their credit card each month. It is convenient for them and provides you with cash flow year round.

[anelson]

The computer software program you buy should come equipped with one. If you have more questions please do not hesitate to contact me at anelson@idi-usa.com, check us out on the web www.salontouch.com, or call 877-725-6686.

[eclipsegirl]

I am in the process of setting up my EFT. Would anyone be willing to share their EFT Membership structure with me? Prices, benefits, fees, limitations, etc. I am researching what my competitors are doing, but would love to know what others are doing as well.

Thanks a bunch!

[Pink]

Membership 18.88 and 50% off of upgrades. We also have "upgrade packages". If you are a member it's deducted from your 50% off session price, if not it is deducted from the guest price.
Is your head ready to explode yet?

Make sure you can sell if you plan on offering eft's, and you have enough equipment to handle it. You also have to have the right mix.

[eclipsegirl]

Pink~ Thank you for responding. $18.88 per month gets unlimited full 20-min sessions? Do you have an enrollment fee? Cancellation fee? Can they suspend? How much for that? And, um.... yeah.... ya lost me at the "upgraded packages" part.

A couple of my competitors offer unlimited 12 or 15 min sessions in their 20 min beds for $11 per mo. & charge $1 per to get the full 20. Then $19.99 per mo. for unlimited 20 min sessions. One gives 50% product rebate to members, via free upgrades.

I have 7 units total, 3 of which are 20 min beds. Gonna be tight, huh?

Thanks for you input!

[Pink]

We do not run 20 minute beds, only 15. We have sign up fee of 39.00 but they receive that money in free upgrades. It helps get their butts of the base beds. They can cancel or freeze at any time.

Do not run 20 minute base beds. Can you fit anymore beds? What are the other 3 beds again?

[eclipsegirl]

I see. That's a pretty good deal for a 15 min bed! My competitors run $39 a month for that. No cancellation or re-enrollment fees for you? Just have to pay the $39 enrollment fee again if cancelled? What do you charge them to freeze?

How do I answer to their $11/month packages if I don't run base beds? I have (3) 20 min beds, (2) 15 min beds, (1) 9 min tower & (1) 12 min bed. All Sonnenbraune. I have space for 3 more beds, but no money for more right now.

[Kathe]

Originally Posted by eclipsegirl

I am in the process of setting up my EFT. Would anyone be willing to share their EFT Membership structure with me? Prices, benefits, fees, limitations, etc. I am researching what my competitors are doing, but would love to know what others are doing as well.

Thanks a bunch!

We have been doing EFT's for 12 years. We have three levels each with a membership start up fee and monthly dues. We only use credit cards and I run them monthly (hate to pay those huge fee's the EFT companies charge). Our basic is sign up fee $40 with $19.99 monthly dues, our mid-range is sign up fee of $50 with $49.99 monthly dues and our premier is sign up fee of $60 with monthly dues of $79.99. With the basic you can upgrade on a daily visit for $10 to the premier. I run the credit cards through the first business day of each month. Members also get 10% off tanning lotion & Arbonne products every day and with their membership fee and first month dues they get a pair of eyewear and 25% off any products including teeth whitening, tanning lotion or Arbonne.

Kathe

[Jancy]

We ran into a problem recently with one of our customers refuting his charges. Our policy is the customer can cancel with a thirty day notice (basically, in advance to the first day of the month when they wish to cancel.) Our customers are required to give notice in writing. At the desk we have an actual form that customers sign advising them about the 30 day notice policy.
Yesterday we got a call from AAC and a customer had cancelled on the 22nd of the month, yet his draft was for the 15th of the month. The guy was under his 6 month minimum inclusion in the program so I had no problem with charging him past the next 30 days and then cancelling him. The man was upset, and wanted to be discontinued immediately before the next draft period.
Fortunately for us, we had his signature on both the original contract and on the subsequent cancellation notice with both advising him of the 30 day cancellation notice.
Be sure that your salons have a very specific procedure for cancellation, or otherwise be ready to just let customers walk all over you and get away with taking advantage of your great prices for the EFT and using you for a month or two just for th price. I suggest that every EFT be a committment for a specific minimum period of time (over 4 months just to make your money back) and that you ask for a high enough deposit to initiate your original contract.
EFT's have both an upside, and as in this case, a down side.
The occassional person who has SNF's or overdraws their credit limits is usually no problem as long as you keep up with the customer, make sure that your provider follows up, and you insure that the person understands their obligations to the contract from the moment they sign on the dotted line.

[MoHo50]

Good points Jancy. I run a 9.99/mo with $1 tans or $23/mo with no co-pay and I've eliminatd the cancellation fee but have an initiation fee instead so I get the money up-front. I tell em that I expect them to participate for at least 3 months and haven't had any problems. If they are going to cancel and know that there is a fee, they close the credit card and you're stuck anyways. It's not worth the hassle.

[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.

[Kathe]

We have an initiation fee but not a cancellation fee. We debit their cc the first business day of the month. I've been taken to court twice to try and get dues refunded but my contract stood up with the judge and I won both times. My contract states that they have to cancel in writing by the last day of the month. Once dues are collected on or after the 1st of the month, they cannot be refunded.

Have a good solid contract that will hold up in court. Take your fees up front so you don't have to chase anyone down. If you want a copy of my contract, let me know and I will post it.

Kathe

[eclipsegirl]

Kathe~I would like to see that contract, please.

[MoHo50]

Kathe - can you post it? Thx.

[Angelique]

I agree with you Kathe.

Sadly enough ... it has becoime standard for people to complain and point fingures when things don't suit them.

I am in the proccess now of giving my EFT contract an overhaul and I would LOVE to see yours Kathe Since yours has been tested in the court system twice it is a good contract! I would like to take a look at it before I finish mine and see what I can ad to mine form yours that I may not have.

Thanks Kathe!

[dcjjp1]

I have revamped ours for '06 and I think it is a winner. $50 set up free includes a bottle of Tanology #1 and a DS lip Service. $29 monthly for base beds upgrades to level 2 (sunstorm $5) and level 3 (sungate/supersonic/Mystic $10) No minimum to be in but, the intial $50 will make them think twice (tanology only costs me like $7 and lipsercive almost nothing) I run them personally so I let them cancel in writing (form from EFT with deactivate date printed on it) up until the last day before billing (30/31st) NO FREEZES. If you cancel and want to start up again same rules apply.

The reason I don't let them FREEZE is because I let them go up until the last day of the month unlike most others that have to have either 30-60 days notice in my area. So far so good.

They also get 10% off all product and massage services as well.

What do you think....