 Commonly people say that other salons do not have contracts, that they do not offer yearly unlimited memberships similar to ours. Sometimes I think people see the word CONTRACT as a bad thing. This is why we - in the membership business - call it a membership AGREEMENT. The thing is, I know you people arent idiots, a membership agreement is just a contract with a pretty name. However, a contract IS simply a written agreement, a piece of paper that simply lists obligations and expectations that two or more people agree to perform and accept. For example, to OPEN my business, I am obligated to sign many contracts, to list a few.
So I made agreements to pay all this money, and in a seasonal business, such as tanning, there are months where my service is in HIGH demand, and in LOW demand. Owning a salon in West Edmonton Mall, means that many of these contracts had to be for much larger sums than my competitors, and thus a responsible business owner must strategize around these circumstances to attempt to build a successful company. Now in respect to the age old concept of supply and demand, when demand is high, supply reduces, and thus the prices has to increase, to attempt to curb demand to manageable levels, and the whole theory of the profit motive is to benefit for having an excess in supply of something that is in demand. Which also has an inverse relationship, when supply is high, and demand is low, the price decreases to create demand, based on the profit motive of the client, and their desire to save money. This is largely due in part to the businesses desire stability, especially since the expenses stay stable. Rent doesnt change with the seasons, neither does the equipment loans, and so on. Without further ado, back to the issue of the contract. What a contract shows ME the business owner, is that you, the customer, are committed to staying a client here. There is a set market rate for tanning services, based on the power of the tanning bed. On average the price for a month unlimited, in a higher end bed ranges between $70 and $140. Yet many salons have contract options, that allow you to tan Unlimited in those beds, for a significant discount, such as $30 to $70 a month. This is an offer BASED on the commitment, if you were to get a 1 year membership, stay for two months during a high demand season, then refuse to pay. He sold you two months for lets say $30 per, or $60, when the no commitment option is $70 per or $140 for those two months. So by you not agreeing to commit for the expected time period, the business owner lost $80 potential revenue. This is why an agreement needs to be solidified in a CONTRACT. To protect BOTH parties. So why, you ask, would we even bother selling it for lower on a membership, with all the hassles of a contract and whatnot? Well, simply because it is an OPTION for those not afraid of commitment. I as a salon operator know that there will be months where you tan A LOT, and months where you will tan very little However I need to keep the business open year round. In exchange for steady, year round, dependable income, allowing the stability of making sure all the bills are paid regardless of how good of high pressure sales people we hired, has VALUE. Value that I as the owner am willing to pay - through reduced pricing - to have the privilege of earning. Also, some clients simply do not have the ability to buy minutes in bulk in large $150-$200 portions, and can really benefit from budgeting it out. Even if they are only going to tan for 6-7 months a year, it is still more cost effective to use the membership option. It is simply an OPTION, a CHOICE it is by no means mandatory. The problem with the membership is the profit motive of the client is to save money, they feel cheated when they know that we can sell Tanning for $50 a month, yet charge $125 for the single month unlimited. Well, for the girls, let me ask you this, if a man you liked was up front and said he wanted to be with you for at least a year, and didnt do the short term thing, and another guy you liked was up front and said he really only wanted you for the month. Which guy would you be more likely to be attracted to? The smart mature female sees a committed man as more attractive than a man who simply wants to please himself for a short time then run. Now, as a third scenario, how do you feel about the man who only wants you for a month, makes you think he wants a year, but then leaves after a month? I don't really need to argue this point, they are called players and dogs and dirtbags. Well this is how I feel when I promise a client a deal, based on commitment, and they run off when they are done with me. I dont need to go to university for 12 years to know that this potential outcome is a real issue in my business. So I have TWO choices. 1. Dont offer that membership option, and simply offer the no-commitment options. 2. Offer that membership, but make sure there is a written agreement that is clearly explained so that there are consequences to both our actions if the commitment is not upheld. Remember, the contract option is simply an OPTION. If you choose to get a contract, and not choose the no commitment option, then you are displeased with the choice, or your life changes, there are options to get out of the contract at a reduced price than staying bound by the pre-determined terms of the contract. Known as a cancellation fee. If you are displeased with the service in general, this is partially buyer beware, but it is also on you to discuss that you dont feel that part of the written agreement is being held up. Which means you need to discuss it with the people you made the agreement with. Disappearing of the face of the earth, putting stop payments on, and talking poorly about the person online, are not legally considered in the contract. They are simply turbospaz responses created by the speed and efficiency of the digital world. However, they do not get you off the hook within the scope of the agreement. Simply put, make sure that if you make a commitment, you are willing to work things out with the person you made the agreement with because you made a commitment. Make sure you investigate with whom you are entering into a written agreement with, and other than that. Suck it up. Because it was a choice, an option, one that you chose. This is the way of the world and I had to sign far more contracts before you showed up. I love all my members, and I care more about this business than many other business owners because I live it every day, and I am always far more willing to make things work with someone who is committed. For that commitment, you own me, and have a right to demand happiness from the relationship we agreed to. To all my valued members! Thank you for the ongoing support and referrals! |
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