Do you want to generate more revenue for your tanning business?
Of course you do.
There is no business out there that doesn’t want to increase their profits and ultimately grow their business.
That’s why your tanning business should sell packages to your clients.
There is an entire psychology around the idea of selling packages and why it can be such an effective pricing strategy for a business like yours.
But, what are packages?
By packages, we mean selling services in bulk. Think of them as “bundles.” Packages are essentially groups of services that you typically sell for less than what you would have sold them individually.
Packages are used across many different industries.
Microsoft Office, for example, is sold as a package of software programs. However, you can even see packages or bundles being offered at fast-food chains like McDonald’s with their “Happy Meal” or “Extra Value” meals.
Here’s just part of the reason why selling packages is such an effective sales strategy: packages leverage your current customer base to sell a greater volume of services.
According to the book Marketing Metrics, the likelihood of selling to a new customer is only somewhere between 5% and 20%. The likelihood of selling to a current customer, however, is as high as 60% to 70%.
But it’s also about value perception. With a package, your clients get a deal and there is a lot of value in that.
Remember: research has shown that people are motivated by price and particularly the presence of coupons. Packages are not coupons but they effectively accomplish the same thing. They give your customers a bargain.
According to Nielsen, with the exception of consumers who are purchasing with the intent to replenish their stock, coupons are the main influencing factor as to why consumers make purchasing decisions.
With all of this in mind, here’s why you need to offer packages if you want to grow your tanning business.
Why Your Tanning Business Should Sell Packages
- Sell Greater Volume of Services (And Increase Your AOV)
First and foremost, packages allow you to sell a greater volume of services – in other words, you increase your average order value (AOV). You also get the benefit of immediately improving your cash flow.
As it’s been said before, research has found that Nintendo sold the most products when they offered a bundle of a console and a game than when they offered both of these products alone. In fact, they sold 100,000 more units with the presence of the packages.
The sale of video games increased by 1 million units.
However, as the above research shows, if you want to offer packages the key is that you have to also offer the same services individually if you want to expect the best possible results.
So, if your tanning business offers a package of 20 standard tans, you need to also make sure that your clients can simply purchase a standard tan at the same time.
You get the idea here.
So, what is it about selling packages that works?
As you saw above, packages leverage your current customer base. But the effectiveness of packages also comes down to value perception. And when something is perceived as more valuable, customers will be more likely to purchase it.
So, by giving customers a lower price on the package than if they purchased the services individually, the package holds a lot of value in the eyes of the customer. The reason why packages are so effective is that packages increase their perceived value.
Another reason why customers like to buy packages is that they are a lot more convenient.
If they buy a package of 10 sessions right then and there, their next visit to your tanning salon is much more streamlined.
Amazon does this all the time. Upon every checkout, Amazon will suggest a couple of additional related products you may also be interested in. More often than that, people will add these additional items to their cart because it’s convenient for them to do so.
As we’ve said here on the Yocale blog before, coupons are the single most influential factor for why today’s consumers buy (in the event they aren’t replenishing their stock).
Packages are kind of like coupons in that customers get a great deal on the package, spending much less than they otherwise would have.
You will notice at Sun Scape Tanning Studio, for example, that their Sunless Package explicitly states that regular price of the individual sessions so that it is clear that customers are getting a deal.
Another smart way to sell packages is to offer some packages that include less popular sellers at your tanning salon.
- Get Customers to Come Back More Regularly
You undoubtedly have a lot of clients who only come to you sporadically. Perhaps they come every time they have a special event to attend. Obviously, this is not an everyday occurrence.
Depending upon the type of package that you offer your clients, you can get your clients to come back much more regularly than they otherwise would.
Perhaps, for example, you sell a package of ten standard sessions with an expiration date. The client will have to return much more regularly in order to ensure that they take full advantage of their package.
On top of this, you also have a lot more opportunity to upsell and cross-sell when those clients come to visit you and increase your average spend per visit again. But you would have already retained the full value of the package upfront.
By seeing your clients much more regularly you are also in a better position to develop customer loyalty.
This is very beneficial for your business because loyal customers are much more profitable and they are much more likely to generate referrals for your business (referred customers are also more profitable as well).
If you are a regular reader of the Yocale blog then you will likely hear us say the time.
Nevertheless, there are a few reasons as to why seeing your clients more regularly can generate customer loyalty.
First, they are likely to see the benefits that come with tanning (they feel better about themselves, they may get compliments, their skin is glowing, it could help clients who have psoriasis, etc.). Secondly, you are much more likely to develop relationships with those clients as well.
- Introduce Customers to Other Services
When it comes to selling packages at your tanning business, there are any number of ways that you can go about it.
Here’s an example:
You could sell packages based on sessions (standard/premium) as you saw above or you could sell packages of different types of services, such a standard tanning session, a sunless tan and red light therapy session as a few example.
The point here is that you introduce your clients to services that they may not have otherwise tried while incentivizing them to try them (by giving them a deal).
- Use Your Packages to Up-Sell
You can also use packages to up-sell. For example, you could create an “Upgrade Package” that allows people to upgrade their tanning bed while getting a discount at the same time.
Here’s another example from Vancouver’s Sun Scape Tanning Studio:
You will notice that they market this particular package as a great option for when you need an “extra burst of colour” or for when your regular tanning bed is full and you don’t want to wait.
How to Sell Packages Using Yocale
Here’s how to create and sell packages with Yocale:
Step 1: Go to ‘Tools’ > ‘Business Tools’
Step 2: Select the ‘Deals’ icon
Step 3: Select ‘Packages’
Step 4: From here, you can then customize your package the way you want by filling in the specific details about your package, as you can see in the screenshot below:
If you have any questions about what any of the individual fields refer to you, you can visit our Help Center here.
Step 5: Lastly, ensure that you click the green ‘Save’ button.
Here is our blog post on the Best Ways to Sell Your Packages.
Wrapping It Up
There is an entire psychology around why businesses, especially tanning salons, should sell packages. Packages give your clients a bargain, which increases value perception.
The result is that you sell a greater volume of services and get customers to visit you more regularly, which boosts customer loyalty as a result. Lastly, packages give you the opportunity to introduce your clients to other services that they may have not otherwise considered.
Simply put, packages increase your revenue and allow you to grow your tanning business.
Do you want more appointment bookings and growth for your tanning business? Yocale is home to the leading scheduling software on the market. Our easy-to-use calendar gives you the extra hand to both run and grow your business at once. Click here to sign up for FREE or learn more.
You can also book a personalized demo here.