Discounting

I am moving to a higher income area where I thought I would not need to discount. I am going to be offering dermacycling at $60 a week if they sign up for 8 week treatment. I am finding out from the stylists they said there friends dont have that kind of money to spend weekly. I guess I don't understand how the spas around here can charge over $100 for a facial. Should I discount to $50? I am not sure if its marketing I need to change? At my old place I was charging $20-$30 for microdermabrasion and was getting that but its way too low for covering all my expenses and education.

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Permalink Reply by Carrie Patrick on April 24, 2013 at 10:47am

Are your stylists' friends (or the existing clients in this spa) a good typical example of the sort of clients you are hoping to attract? It seems like if there are other spas in the area charging over $100 for a facial and they're not having any trouble getting clients, your spa should be at a comparable price level, unless there is a major difference between those spas and the one where you work.

But if there IS a big difference (if the other spas are very luxurious and fancy, and yours is very basic and looks more low-budget) then you could go with lower pricing and make that a feature of your marketing somehow. Of course, you must charge enough to make a profit no matter how you market yourself.

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Permalink Reply by Michelle Duncan on April 24, 2013 at 8:01pm

It's a salon and I am renting out a private suite that has a shower. I am in the process of redoing the room by painting and making it spa like. Right now it looks like a medical office. The salon lofts which is about 15 min away the esthetician there charges $130 for dermacycling for one treatment. I am sure they are just basic rooms. Not sure how well they are doing. I guess because you charge higher doesnt always mean your doing well. I am looking to attract clients that take care of their skin and respect what I do, not looking for a deal. At the same time I need to make money. My prices are very comparable to the other spa. I am the median price point. I charge $80 for microderm while others charge $100. I am trying to think of some incentive to get clients in the door.