The Perfect Retail Price for Success.

Recently I was in a luxury Spa Boutique, and sunscreen was tagged at $11.50. There are two reactions possible: none and pure acknowledgment or tickling fingers wanting to change this to either $15 or $19.

Guess what was happening in my mind? And with my fingers? … You got me! My fingers were tickling, and I was ready to speak with the Spa Manager and provide her with my knowledge of one of the psychological aspects regarding the art of retail.

An essential part of the business as a Spa Manager is pricing. Often though, Spa Leaders are relatively inexperienced in this field. Until you manage a Spa, you have been only a consumer and had no education or experience in retail and all its hidden opportunities. So Spa Managers either go with the MSRP, which does not always embrace the aspect of consumer psychology or multiply the wholesale price as their budget requires it.

Having always been very passionate about retail, I love to share some findings with you that might sharpen your eye when deciding on pricing for new additions to your shelves. Here are some insights:

• Odd-Even pricing is a whole science on its own. It means that you sell something at $99 instead of $100. But if you have high-priced items, it’s ok to go with $2200, for example. Want to learn more, read this.

• In luxury Spas, prices over $10 should not have cents. Just round up or down to the following logical amount. If you have something at $13.50, you may sell it at $15. Read more here.

• Avoid 1, 2, 3, 4, 6, 7 for the singles as these are disadvantage-able prices. Instead of selling something at $42, this means that sell it at $45. Science showed that the item at $45 sells more likely than the item for $3 less. According to studies, the best ending numbers for a prices were 9 and 5.

• If you have your signature scented candle, which you buy at $12.56, no one tells you to sell it at a specific price. In a luxury Spa environment, you may sell it at $45 and increase your margin, allowing you to sell other items instead of $105 at $99 even if this is under your typical margin.

Having touched base on the critical consideration of pricing for retail, keep in mind that this also applies to treatments.

If you are new to the retail aspect in Spas your might find it helpful to read my other Blog Posts on the retail experience and the art of retail merchandising.

Let us know how your Spa is doing and the experience and challenges you made with retail prices!