Look Through Your Client's Eyes: Six Ways to Increase Value
Have you been to the movies, a ball game, or a theme park lately? If so, you've probably witnessed the profit packed power of the package deal.
Say you're in line with your kids, fully expecting to shell out some bucks for a couple of small drinks and a pop corn. Then you see the special package deal. You know the one with a bag of pop corn large enough to feed a family of ten.
You rationalize the purchase to yourself saying, "I get so much more for just a little bit more."
Have you thought about using this same concept in your salon/day spa? Below are six ways to bundle products and services to create a higher level of perceived value by your clients.
Increase the perceived value of the purchase. Combining products and services together lowers your marketing costs and creates a feeling of a better value for your clients. It touches on the client's need for a deal. In addition, the marginal profit on the sale is higher, especially when the package causes something that is not ordinarily sold to be sold.
Segment your market. Make your products and services attractive to buyers who are on a budget as well as your high end clients—for convenience (I'll just pop into the salon/day spa to pick something up) to appointment based clients.
Expand the purchase patterns. Bundle synergistic products and services together—the classic half day of beauty, the micro makeover, etc. Check out Elizabeth Arden to see the list of packages they offer. Without a package, clients may never try a service. If they are given a trial package, they may like it and come back for that particular service again.
Bond clients to your salon/day spa over the long term. You can create packages for a single product as well by bundling future purchases at a discount.
Annualize the sale. Get someone to commit to a contract by offering the benefits of a reduced price, convenience in scheduling, etc.
Fixed price for unlimited use. Look at how health clubs structure their membership packages. A men's hair salon in New York City has adapted the subscription model and met with great success.
Moving slow selling products or filling in slower days.
Package some of these items (no junk please) by finding synergistic fits.
On slow moving days use packages rather than discounts to sell time and create sales.
Increase your purchase size. This one is a classic. If a particular product has little cost, then offer a larger size for a better price. Your goal is to maximize the point of purchase sale.
What's the next step? Pick one technique and package, and test it for 30 days. Once you implement one successfully, then you'll be able to implement others.
Are you interested in increasing your sales and profits? Why not try bonuses? They move people to action while requiring little investment.
By Andrew Finkelstein, The Beauty Resource www.thebeautyresource.com