Converting discounts to full price clients
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Replies to This Discussion
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Permalink Reply by Audrey on
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I think it depends on what type of "discount" is being given. If you are talking about a Groupon or Living Social discount you will probably never convert them to a full price customer. Giving your services away with Groupon type discounts is... well....giving your services away.
Your regular prices should be low enough to be competitive but high enough to allow for package discounts of 20-25% or the odd half-off treatment. Get the money upfront and they will come back.
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Permalink Reply by Jodi on
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Basically they are pretty much offering things at close to 1/2 price. I have zero control over it. They do it to get people in, but it's hard to get these people to come back at full price.
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Permalink Reply by Desiree Hall on
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My boss does the same thing, but she runs her own weekly email specials; which are usually 50% off any spa service (never hair services). It sucks but the only thing I could say is grudually increase your discounted prices or grit your teeth and keep them coming in. Commission wise it blows big time but in my time at my spa trying to convince them to stop with the discounts and just believe in your talent is like beating your haed against the wall; they just say it is better to have a discounted client rather than no client. So good luck.
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Permalink Reply by Andrea Stein on
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Offer something that is not normally on your menu but in a pkg that offers value at a great price. ie: facial with foot soak, body wrap w/scalp massage. Charge a reasonable price for the main service but then trow in the other service as a perk. Perhaps even a product gift or hand or foot scrub or massge... well anyway you get the idea. Ive had to learn the hard way as well but it can really get hard if you discount yourself right out of business!
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There are times where you may actually lose money providing a service. If you are an employee it probably isn't that big of a deal...unless you are on a % commision. I know of one spa that ran a buy a haircut and get a manicure free. Of course the nail tech was an employee working on percentage. So 50% of zero is zero. They were working for free and these type clients rarely tip or give full price repeat business.
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Thats how my salon is run. it really does suck sometimes.
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Sorry, I did over fifteen facials and my boss did these coupons at 29.00 and both massage therapist and myself Aesthetician we were only receiving 10.00 per facial and 6.00 tip max. This is NC the Raleigh area.
My boss thought that since a facial goes for around 65.00 75.00 and up and getting a facial or massage at price of 29.00 and they would throw another 20.00 at the Aesthy or MT. Did not work that way.
Then we were complaining and people were making no money and like giving services away for free and I am working for free just about and I felt very used in the process. Then she raised us all 20.00 per service and I felt that was not fair in the game because now the deals were at 65.00 or 75.00 and I am only getting 20.00. She wanted to target the low income area and they do not have a lot of money and just to get a service and hardly no tip. We all lost many tips over this issue. I feel this is the price or go to school. People only tip based on what they are charged at 20%.
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Permalink Reply by Cora Ariella on
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I learned long ago not to give services for free, I would rather give a product. So the special is something like this : Free XYZ Moisturizer ( a $45 value) with any facial in July. My cost for the moisturizer is $11, my time is more precious than that and she walks away with something in her hand with my name on it.. Honestly, I feel that the cheapskates are just that, cheapskates and their friends are the same, etc.. I never look for cheap when it's about personal services. Cannot wait for this recession to be over so I can get rid of some of them, tell them that I've had a price increase or that I am no longer able to give discounts.
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I like your strategy :)
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Permalink Reply by Kirsten Kayser on
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Dear Audrey,
What I like to do is rather than discounting a service offer them a 'free gift with service.' This can be an add-on service for FREE, or a goodie bag of samples of product, or maybe even a $10 gift card to use on their next service. I rarely discount service prices because of the 'coupon hoppers' out there. Right now with Groupon and Social Living and all the others popping up, it has created a market of 'lets see who has the cheapest deal' for a lot of people. I have found in my own practice, that the clients I want aren't there because it's the cheapest thing they can find- they're there for quality and consistency. They still love a little freebie as a 'thank you' for their loyalty, but I too have found that if the client is the 'cheapest price' mentality, it's very hard to convert them into a loyal client. For me, that's a waste of time, so I target the kind of clientele I want! Those with disposable income who will keep coming back because their mentality is that they deserve the best! Best of luck to you with this, it can be tricky!
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Permalink Reply by Mary Maloney on
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Those are some great ideas. If I have a client who works in a related industry ( fashion, hair etc..) I will give them the discount and ask them to pass out my cards and a 25% off card to clients they think might benefit and use my services. I tell them only the serious ones. That way you give a discount to the client who is working for you
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Permalink Reply by Carlye Walters on
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Hi Jodi,
I would recommend instead of discoutning your services to add value instead. For example, take a facial and instead of offering 25% off add on an eye treatment or brow wax or something along those lines. I believe that the worst thing you can do is train your clients to wait for a sale!
Hope this helps,
Carlye Walters
http://www.estheticiantraining.biz
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