Although it may net you “instant gratification” on the front end, routinely discounting your retail products can send you down the road best left not traveled. There are several reasons, all of which can negatively effect your bottom line.
1. Discounting gets in the way of establishing loyal customers. If the main incentive to tan at your salon is based routinely –or solely- on price, the relationship between you and the customer will never mature into the kind that creates repeat business / longevity. The ‘better price’ down the way will usually lure your customer away.
2. Routinely discounting your retail products is a hard practice to reverse. If a customer gets used to paying a lower price, what do you get when you restore pricing? A disgruntled customer.
3. Low prices can have a negative psychological impact on your brand / salon image. The less your customer pays for your product or service, the less they will likely value it. You want to keep the perceived value of your goods and services high.
4. Discounting can lead your customers to “stockpile” the products they need when they go on sale. This leads to feat-and-famine in your profits, making it harder for you to keep your salon budget stable.
5. Discounting doesn’t pay you what you’re worth. There will always be a lower price somewhere else, but not every salon offers the education and customer experience you can. Empower yourself by remembering your worth and the value you offer your customers. Ultimately, a customer who is unable or unwilling to pay your prices is probably not the best fit for your business.