Make it a Package: How to Bundle Products and Services for Optimal Profitability

Salon owners can feel backed into a corner when it comes to improving profit margins. Most think they only have two options – raise prices to the dismay of their customers or invest in equipment and staff to the dismay of their accountants.

It is time to think outside of the proverbial box. Salon owners can leverage TanTrack software to bundle products and services into a monthly subscription. The result is an enhanced customer service experience that maximizes profitability. Here’s a step-by-step guide on how to do it.

Create

Salon customers may already be taking advantage of recurring tanning packages because they visit multiple times per month. Think about the other recurring purchases they already make on a monthly or bi-monthly basis, such as massages; hair, skin, or nail treatments; tanning lotion; hair care and skin care products; and makeup.

Use the TanTrack Back Office Reporting feature to pull data on sales, services, and retail products to determine which products and services are in high demand among customers. Once salon owners decide what to offer, they can set up bundled products and services and offer them to customers at check out.

Create bundles based on popular groupings and throw in products as a way to make sure customers never run out. For some customers, the bundles will be a no-brainer because they already regularly purchase all of the products and services included. For others, it may be a reason to try something new without the typical hesitation that comes from having too many choices.

With this guaranteed income, salon owners have some wiggle room to encourage subscription enrollment with discounted pricing. Or position the monthly fee like a budget-friendly payment plan. For example, if the bundle includes a $120 massage or $150 haircut and color, and these services are typically used every other month, charge $60 per month for the massage and $75 per month for the haircut and color. Now it is time to enroll customers.

Promote

In-store, email, direct mail and online promotions of the bundles are a must and a great way to spark conversation between salon staff and customers. Sharing the new offering at checkout can bring current customers on board who are already paying for the services individually. In-store signage and emails can entice existing customers to buy more. The convenience and efficiency might even inspire them to stop going to other salons for the same services. Direct mail and online promotions will reinforce the salon’s promotion to existing customers and are a great way to bring new customers through the door.

Use TanTrack’s marketing features to send promotional emails directly to the salon’s database. Or easily print mailing labels to include customers in a postcard mailing. Advertise the bundles on social media channels such as Facebook and Instagram with a web form that interested parties can fill out for more information. Then, add these leads to the TanTrack database. Even those who aren’t customers yet should be on the salon mailing list.

Automate

TanTrack’s credit card processing capability allows salon owners to store two client credit cards. If the first card is declined, TanTrack will automatically charge the second card, ensuring salon owners will capture their expected revenue. If both cards on file are declined, an email is automatically sent out to the client letting them know their card had declined. The email includes a convenient link back to TanTrack’s Client Portal to update billing information.

Encourage customers to schedule multiple appointments well in advance using the TanTrack Client Portal, available 24/7. In the Client Portal, customers can book tanning and salon services, view account information, and receive a full online shopping experience. The Client Portal is fully integrated with live TanTrack data, so updates, bookings, appointments, sales, and offerings are instantly reflected on both the customer and salon owner sides.

Bundling products and services into a monthly subscription is an efficient way for salon owners to optimize profitability while improving customer loyalty. Leveraging TanTrack to create, promote, and automate these subscriptions makes it easy, affordable, and sustainable.

Schedule a free demo today to see why TanTrack is one of the top tanning salon software programs in the industry.