No one is rational, or everyone is rational

Common remarks of salon owners: “EFT is obviously the best deal for a spray tanner”, and “The best way to sell EFT is to have very high price on a single session”

Another common remark: “I’m not getting enough spray tanners to sign up for EFT.”

Hmmmm? People love deals, yet EFT sign-up is disappointing. What’s going on here?

People are not rational – not me, not you, not anyone.

  • Why do only 60% of people, eligible for employer-matching 401K programs sign up? It’s free money.
  • Why do less than 50% of adults have a will? Seems rational and logical that everyone knows they’re going to die – maybe tomorrow.
  • Why doesn’t everyone shop at Walmart for undifferentiated products like Oreos, Jif peanut butter, Advil? Walmart offers the lowest price.

Maybe it’s because everyone is indeed perfectly rational — in their own mind.

Salons need EFT because it provides a predictable revenue stream and induces loyalty to a salon.

People who frequently spray tan love EFT because, well, it’s a great deal (about $15 per tan, if tan 4x per month).

What about the people who don’t like EFT – Don’t like to be locked-into a payment, Not sure they will use the service enough to make it pay-off, Afraid if will be hard to cancel, Only want to spray tan 1x per month, or every 3 months?

So, if a tanner is unwilling to sign up for EFT on their 1st visit, what’s the best ways to get them join EFT (later) …

  • Give them a reasonable price for a single session (how likely is somehow to be satisfied and give rave reviews about a salon, when charged $50+ for a single session tan that lasts 5-7 days)
  • Give the guidance to make sure they get a great tan
  • Have a reasonably priced 2 or 3 tan package, with an extended expiration period – 60 days

EFT selling often fails not because of the value of the deal, but the quirky and (ir)rational aspects of human nature.

Make it easy and satisfying to try spray tanning, and to come back again. The more trips to the salon a person makes, the more chances you have to sell EFT.

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