new salon owner needs advice on sale per person

[EliteMike]

Blondes!

[aimeekat]

MIKE!!
So splain it baldie. Either one of you two.

[Tanning Queen]

Din is not using session packages in that example. Only monthly or EFTs. That is why you guys are confused.

[aimeekat]

That's what I thought. That'd confuse the @*%& outta my clients and my staff. EFT pay X, unlimited pay x and then sessions pay x.

K.I.S.S. for me!

[Tanning Queen]

THat is why I didnt have session packages. Only ETFs, unlimited and points. Only had to pay for upgrades on the unlim and ETFs. And they were the same price of 1/2 off walk in.

[imhere]

i understand now how this is such a valuable piece of info and easy for employees to use to stay on or above target but...

din, where do the $10 PPA and $2 LPPA come from? did you make it up? is it from an industry publication that used data from multiple salons? is it from a consultant?

[Rob]

did you make it up? is it from an industry publication that used data from multiple salons? is it from a consultant?

all of the above..lol

If you watch your business, you would see where and how much profit comes from lotions. As well as your tanning packages. Those numbers are a great starting point and if you can achieve those numbers, you will be going in the right direction.

[STC1996]

OK guys...I got one for ya. I use Helios. It gives a PCA on the daily sales report and a PSA on the shift report. Now, PSA is the total sales divided by the total customers for the day, (whether they tanned or not). The PCA is the total sales divided by the total tanning sessions. This gives different totals. Which one do I go by and use for setting my sales goals?

[Brian Oshman]

When you say total customers do you mean total active customers or total customers in the database since inception?

[Tanning Queen]

It normally doesnt include ALL names in the database. It calculates it on a "unique" client basis and I believe it is how many "unique" clients came in that week/month/etc vs how many sessions actually used. So you might have seen 7 different people that week but sessions were 21. Sold $150 in packages/lotions. That would show $21.43 PCA and $7.14 PSA.

Or at least that is what I remember...

[eyecandytanning]

if helios is like suntouch total customers adds number of tanning sessions and the number of purchases. some are the same, so the number is skewed.

[STC1996]

Originally Posted by Tanning Queen

It normally doesnt include ALL names in the database. It calculates it on a "unique" client basis and I believe it is how many "unique" clients came in that week/month/etc vs how many sessions actually used. So you might have seen 7 different people that week but sessions were 21. Sold $150 in packages/lotions. That would show $21.43 PCA and $7.14 PSA.

Or at least that is what I remember...

Tanning Queen - that is correct. So, which one does a salon owner base his sales goals on? PCA or PSA? And your PCA changes depending on the time frame of your reports...daily - weekly - monthly - yearly. The PSA will stay relativley the same if your sales are consistent.

[Tanning Queen]

I used both. But to set sales goals for my emps, I used Per sale or PPA daily. Per client was more of a way to gauge how I was doing overall. I paid emps based on PPA and LPPA or in Helios, PSA.

Can get confusing I know. LOL!

I would print up each day how the emps were doing and ranked them from best to worst. I would show them all their per person average, lotions per person and their commission earned so far. I would even put mine on there if I was working. LOL!

[Din]

If someone bought a package for a level one bed of 5 sessions...then that's exactly what they bought. If they want to upgrade, buy a single session at full pop baby!!! Or you should be doing points or something to that effect to allow all bed usage on that package.

Basically a package gives them a discount off of a walkin price based on buying multiple sessions (discount) So if you offer 4 packages.....
package#1 - 15% off ($40)
package#2 - 25% off ($75)
package#3 - 35% off ($125)
package#4 - 50% off ($200 or more)

If you sell a monthly membership EFT or NON EFT...i don't care, the only difference between the 2 is the amount you charge them monthly...and the whole automatic withdraw...other than that, it's the same savings/sales codes

if they buy a level 1 monthly unlimited for $29.99 and they want to upgrade to higher bed, than that which is included for free...they pay 1/2 off a walkin....

That is how you pay your bills, that is how you make money. Charging them $2 or $3 or $4 difference....you are losing money.

[tamara]

Ok, so basically I need to up my upgrade prices right?
right now my "level 2" upgrade is only $3, but a single visit is $10 so really it should be like $4 or $5 to upgrade, correct?

[STC1996]

Yes...I would say $5.00 - half of your regular single session in that bed. This will help bump up your PSA (per sales average).

[STC1996]

I kinda like Din's advice though. If they have a package in the Level 1 beds and they want to upgrade, make them buy a single session in the level 2 for full price! More money in your pocket. I might implement that idea.

[Jones]

Most people who have an existing package would expect to get an upgrade less expensive than someone who just walks in for one tan...I have a upgrade price on each level that anyone can purchase if they have an existing package with us...and then all eft clients receive 1/2 off that upgrade price because they are members of the salon.

[imhere]

still didn't get an answer about where the $10 PPA and $2 LPPA is coming from.

i understand the math, duh!

my prob is trying to figure out what MY goal should be this year. i

i assume i should determine what kind of money i need to make, look at last year's stats for # of tanners and do the simple math. increase this by 10% and that will be target goal. increase by 15% or 20% for stretch goal. these goals will help my staff help me achieve and maximize my profit.

but this year is different. staying flat from last year is doing well.

[Tanning Queen]

You said

din, where do the $10 PPA and $2 LPPA come from? did you make it up? is it from an industry publication that used data from multiple salons? is it from a consultant?

Rob's response

all of the above..lol

If you watch your business, you would see where and how much profit comes from lotions. As well as your tanning packages. Those numbers are a great starting point and if you can achieve those numbers, you will be going in the right direction.

It really is just that simple. Overall, that is the general rule of thumb. But it depends on your salon needs as well. Some need less to break even, others more. So you have to tailor it to your needs. Sorry. You have to do what you said above with goal setting. You might need to raise your PPA and LPPA to hit your goals or you might be right on the mark. Only you can determine that.