Advice on prepaid packages

[MARIE LOVES SCOTT]

I have been selling pre-paid packages for the last couple of years.  My packages consist on buying 4 massages and the 5th is free.  I am considering changing my package policies in the near future.  I would like them to be buy 5 get the 6h free or buy 6 get the 7th free.  How should I make these changes and should I do it at all???  What I would like to do, is send all my clients a personal letter regarding my new pre-paid packages and the date I will be making the new change.  Now, I know some of my clients will not be pleased with this, but I feel financially, I need to do this.  What do you think???  What are you offering your clients when it comes to these prepaid packages???  Any advice would be appreciated.Peace!

 

[COBHC]

Advice on prepaid packages

i do buy 5, get a 6th free.i'd either continue to honor the rate for some people, if there weren't too many; and/or announce your planned increase with 90 days notice.

 

[kneady]

When I first started my business I offered pre-paid packages at 10% off the normal price plus once they had purchased 10 sessions the 11th was on me.  I only give  the 11th free with 5 of my very first ever clients.  Now that I am established, I still continue to offer the 10% off of any prepaid 4 sessions.  Throughout the year I will email or mail $5-10 off coupons with an expiration date and around x-mas a postcard for 10% off any one massage with no expiration date.  So far this seems to be working.  My clients also know that if and when they need it, I give them extra time at no charge.  I find this helps in keeping good customer relations.  Best of luck on whatever you decide.  cbia    

 

[FlaChic]

Sorry I can't help too much with the prepaid packages.  I haven't sold any so I wouldn't even know what to begin to sell them for. I do offer buy 10 massages and get the 11th free but it's not based on prepaid.  I think the spa I used to work at took $5 off for every massage.  So that's almost 10%.  I think if I were you I'd either offer buy a certain amount and get a free one OR get a % off....I wouldn't offer both.I also do as cbia does, I give extra time to clients when I've got the time to offer.  My massages usually never last one hour.  I always go over.  I'm not a clock watcher and I don't want to be.  That's one of the really nice benefits of having your own place.  You don't have to worry about rushing someone out to get someone else in.  I hate that.

 

[Kapacs]

I offer a 6-pack;   buy 6, 7th is free, pre-paid, $390.

 

[inspike]

I don't like to sell pre-paid packages that much.  I'm one of those people who likes the exchange of money at the time of the treatment.  With packages, the money is long since received and I feel like I'm giving the massage for free.  I know, I know, there's all that talk about putting the money in a separate account and paying yourself at the time of the massage.  But, that's just mind games that don't work with me.  Between gift certificates and packages, I just don't want to feel like I'm working for free.  Besides, I also worry what will happen if I got injured, the client developed a condition where massage was contraindicated or they moved or something like that and I had to get into refunding.Those are just my feelings.  I certainly respect that packaging works for many therapists, as well as their clients.  I would give a 30 day notice.  For anyone who is thinking of purchasing a package, or even those who currently have a package, that should be plenty of time.

 

[MegMarshmellow]

Whatever your package deal is, I feel that you should put an expiration date on it.  For example, if they buy 6 get the 7th free they should be given 7 months to use the package.  Otherwise they may drag it out too long like some people do with gift certificates, and I feel that would take advaneforum.xxxe of the therapist.

 

[queen bee]

I would love to do away with pre paid packages altogether.  I don't know what my clients reaction to this would be.  I can imagine they would be kind of upset, because I have been giving them way too good a deal.  Not sure what to do.  

 

[g m]

If I were to consider to do away with pre paid packages, does anyone have any suggestions on how to word a letter I would send to clients.  And, what could I offer in place of the package, so that they get some kind of discount and don't feel completely cheated?

 

[Lizzie]

I began offering prepaid packages by demand.  Clients liked not having to bring their checkbook and said they were more likely to get massage more often if it was prepaid.So, I take $5 off the price of each massage when they buy 6 one hour or 6 1 1/2 hour treatments. They save $30 off each package ($20 short of a free massage on the hour and $40 short on the 1 1/2 hour. ) I kinda don't like them either but I'm meeting a need. When I changed pricing structure for the year 2004, I post it about 90 days out and it applies to all.  Fair across the board.  I don't have to remember who pays what and no one feels left out or special.  

 

[Knight De La Barre]

I'm in business for myself (wording might depend on my situation).  Effective June 30, 2005 I will no longer offer prepaid packages.  I will continue to honor any outstanding packages.Price of one hour massage:  $50             One and a half hour:  $70Senior Discount (over 65)  15%Student Discount                15%I'll be happy to answer any questions about this change.Namaste

 

[jimbot]

Thank you so much for your suggestions.  I will heavily consider all these suggestions.  Thank you everyone!Peace!

 

[CHATZILLA]

I am like KneadedMassage I don't personally like pre-paid packages or like to sell tons of gift certificates.What I do is offer maintenance plans.  The client commits to coming on a regular basis and they receive a discount accordingly.  It rewards them for continuing treatment and I don't lose a lot of money.1x a month receives $5 off each massage2x a month or more receives $10 off each massage.These have been a big hit and they help keep people on the schedule.    If they miss an appointment they have to pay the regular fee at the next appointment and then maintain the agreement again to get the discount.  I don't charge extra if they cancel for reasons out of their control.Hope you find something that works for you.

 

[Becky Sue!!]

Hey, I like the Maintenance Program.......encourages them to come regularly and I get paid as they go, which I like.  I'm gonna think on this one.As for doing away with the packages Sandy, I think it would be difficult to go from giving such a good deal to doing away with them completely.  What you may want to do is completely redo the pricing structure so that it's not quite as generous.  I offer $5 off each massage for a package of 5 and $10 off each massage for a package of 10.  Most don't think it's worth it to put all the money up front for the package of 5 to just save $5 each massage.  With the package of 10, they are saving $100, which is more than 1 massage, but they are putting out an awful lot of money in order to get that.  Since they are already getting such a good deal, they don't get birthday discounts or referral discounts either.  I don't sell a lot of packages, which is fine by me.  I made up the pricing because occasionally people ask me about it.  The pricing structure is not so enticing that people go for it.  So, instead of completely doing away with your packages, you may want to offer something that isn't all that attractive.  If you do lose some clients, you will have to work out the numbers and see if you're actually losing any money.  You may actually make MORE money if some of your package people drop.  

 

[Ked misybeer]

Thanks for your input.  I would love to get rid of the prepaid packages altogether, but I know my clients would squawk!  So, I decided this is what I am going to do.  As of June 1st I am introducing new prepaid massage packages.  6 deep tissue massages- $3306 swedish massages-$300.  I think this is fair, I can't get rid of them altogether, but I need to up them somehow.  Some of my clients will probably be offended, but so many of them buy packages and I am losing money because of it.  I didn't even realize I was giving them such a great discount.  You know, you learn as you go.