Price vs CostWhy are there such price differences between lamps?
Remember the saying, "you get what you pay for". Well, that also applies to lamp purchases. Price is only one component of the value decision. There are many lamps on the market that cost less because they are made of economical phosphors that result in shorter lamp life. As we've discussed with you on numerous occasions, higher quality phosphors produce a lamp with a longer service life and better tanning output. Over the life of a higher quality lamp, you will get more tanning sessions and better tanning results, which equals higher profits. Also, think of the time you will save by not having to change your lamps so often. This gives you extra time that you and your staff can spend on sales and customer service, generating even more income. Let's look at the example below:
Price Versus Cost |
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| Example A | ||||
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Lamp Type
|
Cost of Lamp
|
# lamps in unit
|
Total Cost
|
|
|
Wolff System
|
$12
|
28
|
$336
|
|
|
Life of Lamp
|
20 min sessions/ hr
|
Total Sessions
|
Charge per session
|
Total Revenue
|
|
1000 hours
|
3
|
3000
|
$8.00
|
$24,000
|
| Example B | ||||
|
Lamp Type
|
Cost of Lamp
|
# lamps in unit
|
Total Cost
|
|
|
Brand X
|
$9
|
28
|
$252
|
|
|
Life of Lamp
|
20 min sessions/ hr
|
Total Sessions
|
Charge per session
|
Total Revenue
|
|
600 hours
|
3
|
1800
|
$8.00
|
$14,400
|
As you can see from the example, you may have paid $84 more for your lamps versus Brand X, but you generated an additional $9,600 in revenue. Plus, you saved on manpower and possible lamp breakage by not having to relamp as often. Who wouldn't want some extra money in their pocket? You do get what you pay for, and then some, when you make the better value decisions.