This reminds me of the time I signed up for the $14.99 unlimited car wash. I am that guy who gets his car washed once a year, so when I saw the $14.99/month unlimited wash deal, I jumped on it. The first month I washed my car 6 times. Second month I washed it 3 times. After that, I did not wash my car for the next 8 months while I continued to be billed $14.99/month.
So I paid $149.90 for basically 9 total car washes, or $16.65. I could have just paid $5 for each of those car washes and still come out way ahead.
The lesson learnt: An attractively priced membership will always beat a single session in the long run.
Some salons refuse to do EFT because they claim that the price is too low and that they would actually lose money by offering an unlimited membership at that price. On paper, that may very well be true. In reality, a properly priced EFT membership package can bring new life to your business.
When pricing an EFT package, keep in mind that a vast majority of your customers will not use the “unlimited” part of that package. A lot of customers who sign up for EFT may use the unlimited privilege at first but it is unlikely that they will continue to do so month after month. Some will, sure. But most wont. While you may lose money on those select few who will come in for their daily tan, the real revenue and profit is coming from the other majority of customers who will tan occasionally and that’s the reason a properly priced EFT package can be the most successful part of your business.