In the last two “Knowledge for Nail Tech’s” blog posts, we examined a formula for marketing that works. If you want to create marketing material of any kind, from a business card to a brochure or even a website, make sure you use the formula I gave you.
Then, we looked at some of the biggest mistakes that Nail Tech’s make when they marketing their nail services. Make sure you avoid these or else they will cost you money.
In today’s post, we are going to focus on creating irresistible special offers. As a Nail Technician, you must understand that most consumers don’t really shop on price, but on the value and service that we give them when they walk into our business.
In this post I am going to show you how to give your customers added value.
Some consumers do shop on price. That's all they care about. But, you don’t want customers like that. That's not the kind of customer you want to build your business on.
If you own your own nail business, you are in control of your marketing message and you can even decide what kind of customer you want to attract. You want to attract customers who have money, want quality and are not scared to pay for it.
Most Nail Technicians don’t understand this and that’s why we see so much discounting in the industry.
Discounting keeps your customer focused on price alone and if you keep your customers focused on price then they are going to shop on price. That is one of the reasons why we teach you to never discount down, rather bonus up and add value. Let me talk more about this…
Never discount down – always bonus up
In this example let’s say that your Nail Business sells a set of Gel Nails for R300. Your competitor down the road sells a similar set of Nails at a similar price, except this week, to try and attract customers they’ve discounted their nails down to R270. (I.e. a 10% discount)
This means that their discounting actually cost them R30 in lost revenue. (Remember that a 10% discount does not equal a 10% increase in sales volume!)
Instead of matching your competitor’s discount, you choose instead to bonus up and add value. You are going to create a Gel Nail Package. To do this you add services to your Gel Nails that;
- Do not take very long to deliver
- Do not cost the salon very much but have high perceived value from the customer’s point of view.
- Services that allow you to upsell, cross-sell and rebook the client for more services.
Take a look at the table below for an example. This is a brief example, but if you want to know more, we cover this in extensive detail in our Marketing Training where we practically teach you how to create special offers that put money in the bank.
Now, in your special offer you are going explain the following to your customers, “That’s R565 value for only R395. Save a massive R170!”
Take a look at what you have just done. You have sold your nails at full price, covered your costs and introduced your customer to other services that allow you to upsell and rebook her for another appointment.
These ‘value adds’ are things that you do in your Nail Business anyway. You usually do them for free or for very little cost, but now you have attached a perceived value to them. For the sake of the exercise, these extras actually cost you R95 but have a ‘perceived value’ of R265.
Here’s the good news, with all your ‘perceived extra value’ you can recoup your loss of R95 by selling your value added offer for a minimum of R395. (You can charge more than R395 if you want, but never less.)
However, your competitor loses a very real R30 for every treatment sold. But, you have also introduced your customer to additional services, differentiated yourself from the competition and you have attracted a customer who buys on value not on price.
Lastly, which of these two offers, a R30 discount versus an ‘added perceived value’ of R170 worth of bonuses, would be more attractive and compelling to a prospective customer?
The answer is obvious. However, if your client wants the R30 discount then you need to ask yourself the question, “is this the type of customer I want anyway?” The answer is NO!!
We hope you have enjoyed this blog post. We would love to hear from you, so please let us know what your biggest business challenges are so that we can guide you and advise you in future blog posts