charges

[VassileNupolopol]

Ok guys help me out here. In my area a full bldy massage goes from $40.00 to $45.00. I am only charging $35.00. am I cutting my own throught later or do you think that's just good marketing. And will they be in shock later when I go to $40.00. If I work for some one else here they either take a 25% or a flat $100.00 which either is greater. My thinking was at $35.00 I was getting it all and at 25% I would only be getting around $30.00 of it. :-/

 

[Charmaine]

I don't know how you calculated that you would receive $30.00 but at $35.00, if the spa takes 25% you only make $26.25.  How many massages at that rate can you do and how much do you want to make?  Have you considered offering the $35.00 as an introductory rate that will go up after 3 - 6 months.  At this rate you have to perform 20 massages to make approximately $500.00.  Is that feasilble?  How many days are you working?  How many hours?  How many customers a week did the therapist before you see?  Will you be bringing a clientele base with you, if so, can you negotiate a better rate?  There are so many open questions here, you have to answer those first before you can determine if it's a good deal or not.  Good luck.  Joe E.

 

[Pompal 09.]

As you can see   My math needs improving.(ha ha ) Well you get the general picture of what I am trying to say. I love what Iam doing, but at the same time I want to make money at it also. I would like to do massaging full time soon. For now I have a full time job with insurance. And with TWO childern in braces and the oldest one graduating this year.( I have THREE childern ) I need the insurance and benefits that my jobs presently offers. I go to my job, which is in the health care business, every other Saturday from 7am til 8pm and offer massages for the staff. I charge them each $35.00 for a hour full body and $25.00 for 30min back only. In the area I am in there are so many Theraptist that if you go over $35.00 they will just go somewhere else. And I was figuring that for now $35.00 was a good start and later I could go up to $40 or $45. I can do body wraps and ear candling etc. But for going to them I only offer full and 30 min massages.

 

[Pompal 09.]

charges

My opinion *grin*Start out charging about the same as the other therapists in the area. Then, when you get busy, increase your prices. You will lose some clients but will be freeing up some of your time. That's what a lot of hair dressers do. I wouldn't raise prices too quickly or clients will leave. When you are new to the business, you've got to get those regulars and do what you can to keep them.

 

[Wtf]

Sadie is right, you can't raise them up too quickly.  This is just me, but I have always believed in cultivating the client who will pay $100 rather than discounting the 4 clients who will only pay $25.  It's an analogy, if you'll forgive me.  This is the standard I have in my private practice, not my spa job (which I do both).  Many of my friends charge $49.00 for an in-home session, I never charge less than $90 to $100.  They may see more clients than me, but we net out with the same money.  I'd much rather work half as much and make the same money.  NO?  The fear is that if those fewer clients leave, you'll be stuck with nothing and it's a real fear.  That's why you have to really work it.  Do your best work, never forget their birthdays, anniversaries, never arrive late, always be having a great day, etc.  I send cards and thank yous regularly and maintain my clients well.  It's a service industry and everything matters.  As for the insurance thing, I understand you completely, which is why I work at a spa as well (for the benefits and the regularity of clients).  Not to mention, a great staff.  But there are other options, AMTA offers health coverage which you need to apply for as do all insurance companies these days.  Yes, you have to pay for it, BUT and I'm back to the math thing, if you're working less, making more and can still pay the premium and not put yourself in the hole, you can do massage full-time.  If that's your goal of course.  Sorry this is so long and hope it sheds some light on what you're experiencing.   Joe E. Not for nothing, but where do you live that people can get a $39.00 massage?  I realize I live in L.A. but that's awfully low which is what happens when everyone starts trying to beat each other's prices.  They just keep going down.  It's a vicious cycle and one we do to ourselves.  

 

[Pompal 09.]

Actually... I live in Oklahoma. The land of the poor..(ha ha) I'm orginally from Texas. I love it here. But,$40.00 to $45.00 for a full body is the going price but there is about 4 or 5 spa's here. And Once a month it seems that one of them are running a special for $30.00 or $35.00. Now answer me something... Tell me more about this Insurance. Where do I go..etc....Ive started investing of supplies or such but I not dare start anything till Ive plan it all the way through.  And Joe you have really gave me alot of insite. No one here does the home spa parties And I am really thinking about trying that. What do you think?

 

[Preschool Donna]

After 15 years of privates, chiro office work and dayspas, I have to agree with Joe... I'd rather have fewer clients who will pay a little more than to have more who are looking for a deal. It's all about the perceived value of the service. I've tried to come up with little extras to make my clients feel special and set my service apart from the rest. For example: I get half-liter bottles of water by the case from Costco, which end up costing me less than a quarter a bottle for what you might pay a dollar for individually in a store. Clients love to get something for "free" to take home with them and I get to promote good hydration. (I am known as the big water pusher in our dayspa) I also get those little soft mints that I've sometimes joked is the real reason some of my regulars come to me.Obviously you need to be competitive with the marketplace but I don't believe undercutting is the way to do it. Call me crazy, but I think an extra measure of respect seems to come from people paying what you are worth, vs. a bargain. Not to say special offers or coupons are bad... on the contrary, they are a great way to get people in the door and hooked on you. I love the idea of home spa parties, too... but personally I won't go to strangers' homes. My in-home appointments are by personal referral only. BTW, our NW Atlanta suburban (Kennesaw) dayspa fees are $60/hr ($65 specialty: deep/sports, prenatal), $75 hot stone. In the summer of 2001 I was slam-booked all the time and ready to go up on prices, which I felt were on the low side for our area, when 9/11 occurred and business went way down. Things are finally starting to pick up a little again but not enough to raise prices.  For my privates I charge $75/hr for the once-in-a-blue-moon client, $130 for a couples massage (2 consecutive hours on the same visit); $70 if they prebook for within a month or buy a gift certificate, and prepaid packages of 3x$65 and 6@ 5x$70 (comes out to just under $60 or as I put it, buy 5 get one free).Wow, that was long. I guess that second cup of coffee is taking effect.  ;D

 

[jonathan.moreno14]

Happy Hands to address your insurance question, here you go.   For liability insurance, you can join any of the massage associations like International Massage Group, American Massage Therapy Association or Assocated Bodyworker & Massage Professionals.  Most offer as part of the membership $1million per occurence and cost plus or minus $200/year.  This is if someone falls off your table, claims you hurt them, etc.  It's really a necessity if you're going to go to people's homes or have your own practice.  Clients can claim anything.  It will also protect you from being sued for your personal assets, like your home.  Medical insurance is also offered through the American Massage Therapy Association for a fee.  I don't think the others do but I'm not a big fan of AMTA.  They have a relationship with an insurance broker/carrier and get a small discount off the going rate on the street.  You have to pay for it monthly but if you've got the business and want to be self-employed, it's a necessity in this day and age when a simple appendix operation could cost you $20,000.00.  Also, most of the major health insurance carriers allow you to buy insurance directly from them at an individual or family rate these days (with so many people working independently from home).  Don't get me wrong, they are not cheap but an option for those of us who are self-employed.  If you incorporate your business, you'll get an even better deal.  I don't know what carriers are popular where you live but Blue Cross/Blue Shield, Kaiser, US Healthcare all offer individual policies that you can buy.  When I moved to CA, I went with Blue Cross and they charged me $160.00/month, it went up several times over two years to $240.00/month and that's when I got a job at a spa for 24 hours a week and they offered paid benefits.  It's just what was right for me.  It was right around 9/11 and private clients slowed down tremendously.  But it's definitely something you can shop around and find the best deal.  Family coverage will be more, but I looked at it this way, if you want to work for yourself and can build the business to a point that can sustain you, one more bill shouldn't hurt too much.  Let us know what you decide to do, it's helpful for all of us.  P.S.  Keep in mind that when you work for an employer, an insurance carrier can not reject you from the company plan, but when you apply individually, you will have to fill out a medical questionnaire and if they think you're going to be a liability to them, they can reject you.  it's the world we live in.  Good luck, Joe E.

 

[SandToes Studios]

charges

 This is just me, but I have always believed in cultivating the client who will pay $100 rather than discounting the 4 clients who will only pay $25.

Many of my friends charge $49.00 for an in-home session, I never charge less than $90 to $100.  They may see more clients than me, but we net out with the same money.  I'd much rather work half as much and make the same money.  

Do your best work, never forget their birthdays, anniversaries, never arrive late, always be having a great day, etc.  I send cards and thank yous regularly and maintain my clients well.  It's a service industry and everything matters.  

I realize I live in L.A. but that's awfully low which is what happens when everyone starts trying to beat each other's prices.  They just keep going down.  It's a vicious cycle and one we do to ourselves.

ITA with you!  This is one giant contrast I see between my friend's business and mine.  

She offers steep discounts almost all the time for various reasons, and I have often wondered if the many people she sees would go to her if she weren't offering the discounts.  She sees about 5 more people a week than I do, currently, but at lower prices.  She still sometimes complains that she is working a lot, but still broke.  I much prefer having the two clients that make me $200 for the day, and then I have the time to spend it as well.  Filling up my day with four $50 clients is not my idea of fun, and if I want to last in this business, I think it is important to pace myself.  I do many two hour sessions also, so at the end of the week, when I am counting up 12 clients, I also began adding up the hours... seeing 20 hours on the books makes me feel much better about the week I had, especially when my friend tells me she's had many more clients.  This helps me to not have "client envy".    I suspect when it comes down to it, she and I are still making about the same money.

Another important thing to note is that not initially reducing my prices brought me a high quality clientele.  I very recently advertised "1/2 hour free with first visit" for almost a year, and during that time, experienced more sleazball callers looking for happy endings, as well as a general reduction in the quality of individual that walked though my door.  When I removed that from my ad, the new clients that it generated were of substantially higher quality and better off financially.  At the risk of sounding elitist, these are the clients I would rather have.

Seasons do bring in slow periods, in which time reasonable discounts for good clients have served me very well, but as a constant, I don't think it's a good idea.  Recently, I did offer the discounts, and it helped greatly to get me out of that late spring/summer slump.  I have no discount offers out currently, and yet I am managing to get more than double the amount of clients as I did this time last year.  The clients who have no problem with paying $100 for a massage enjoyed the $10-$15 discount, and many responded, but would have eventually come in anyway once the weather became too inclimate for outdoor recreation.  Some came in and gave me my usual fee, anyway, considering the extra a tip.

Keeping in touch during special or stressful times, maintaining a professional attitude, treating your clients well by offering a clean, beautifully appointed office with wonderful smells, music, sensations, and small luxuries are the best ways to keep them coming back again and again.  They will say, "she charges $10 more, but the place is beautiful, and I love all the little extras, so it's worth it to me".  

(BTW, my friend also maintains her clients well... I don't wish to imply that she doesn't.)

 

[blonde bitch]

One thing I have learned over the years is that you can not 'buy a market share'.  What I mean by this is that you can't  underprice your services and think they will stay with you.  People who see you because of the lower price will only stay with you until they can get a lower price elsewhere, or until you raise your price.In marketing there is a phrase call "perceived value".  If you charge more people believe it is worth more.  Everytime I have raised my prices, I have lost 5-10% of my clients.  This last about 2 months and then I see an increase of 15-20% of profit.  Most of this comes from the price increase, but some comes from the new business that comes to see me because I am better the so-and-so down the block because I charge more(therefore I MUST be better).I know it is hard to raise prices the first time.  But after you do that and you see the response, it gets easier everytime.Just my thoughts...Dale

 

[Head Like A Hole]

charges

In marketing there is a phrase call "perceived value".  If you charge more people believe it is worth more.  Everytime I have raised my prices, I have lost 5-10% of my clients.  This last about 2 months and then I see an increase of 15-20% of profit.  Most of this comes from the price increase, but some comes from the new business that comes to see me because I am better the so-and-so down the block because I charge more(therefore I MUST be better).

I know it is hard to raise prices the first time.  But after you do that and you see the response, it gets easier everytime.

Just my thoughts...Dale

You said it very well, Dale!  I believe this theory is what helped me to develop a high quality clientele like the one I have now.  Reducing my advertised prices brought me more grief as I struggled to hang on to the clients that wanted to lowball me even further on my prices, or try to combine offers.  Some of these clients went on to other therapists (who probably offer reduced prices) when I couldn't give a cheap enough massage.  I think my massage is worth the $60 going rate, and probably more!  My long term regulars have no problem paying me well for my work.

Most therapists have a difficult time charging well for their services, let alone charging more.  I recommend to all new therapists that they start on the higher end of the pay scale, but not the top.... leaving room to grow later.  They can always run a special.

I also found that with the postcard special, one mailing was sufficient to get old clients back into the habit of coming in again.  I mailed them to all my clients, and it got me over the hump with regard to seeing me through the slow period.  Now the ones that were not coming in are back into the habit of being regular again.

 

[space monkey]

charges

Mulling...I appreciate all that is being said here -- I'm all for saving my hands & body by working smarter, not harder, and for attracting clients who value massage and are able to pay on a regular basis. And I'm for making massage a valuable and valued service...But having been personally hit hard by the recent downturn in the economy, and knowing single moms & dads who are struggling out there.... sometimes people look for deals and lower prices because they simply *can't* afford more. Do they need or deserve massage less than everyone else? I started in massage school when my husband's young computer-consulting company was just taking off in 2000 -- we thought the sky was the limit. Only a couple years later, while I was still building my practice, everything came crashing down. We had to live on our credit card, and many of our friends were getting laid off as well. I couldn't have paid for a massage at all (thank God for trades), but if I *had* had any extra cash, you'd better believe I'd have been looking for the less expensive treatment.Things have since stabilized... my husband's at another company full-time "workin' for the man", and my practice is growing nicely, but I still struggle with the massage-price issue. Right now my services are priced about average, honestly maybe a little low (I haven't done any analysis in my area lately), but I love my clients, and I know people can be funny about raising prices. I just can't do it yet.Sorry for the long ramble... just had to get it off my chest.Andrea

 

[Shaun]

I always love what Joe E. and Big Dog have to contribute, it's usually right on! Our school instructor told us the same thing about"perceived value" and to start out at the price you want to be or even a little higher so it'll be a longer time before you have to raise your prices and hopefully by then your clients will  know your worth it and you'll get only a few complaints She also says we should not do discounting or specials or accept tips. She feels it cheapens the industry as a whole and that again people really don't appreciate the work when it's discounted. She did this back when massage wasn't very popular and she had a very successful practice.I gotta admit I haven't been brave enough to not offer only occasional specials and I don't turn down tips, but neither do I expect them!                                    Good luck!

 

[REVA M]

charges

I totally agree that if you charge lower than the compititon the perception is that you are not as good. When ever I increase my prices, or add a surcharge I get worried that business will suffer. It never has.. I have been doing this for 8 years and have never lost a client because of price increase. I stay on top of prices in my area and charge accordingly. I takes a lot of hard work to please your clients and the ones that cannot afford to come to me I don't want to come to me. I give 100% to every client that comes in my door. I give a small discount (10%) for multiple purchases that are paid in advance, and I never give free massages.

 

[Pompal 09.]

To YogaLMT:If you have been in business a while, then you are able to gauge when your slow periods are likely to happen.  Sending out a discount card to your existing clients can get you over the hump, and they will feel like they are getting a nice deal, while helping you bring more traffic through your doors during lean times.  Offering a discount good for their birthmonth is also a nice idea.Otherwise, it seems to be more of a "worth" issue that you are struggling with.  I was afraid to ask too much in the beginning, but I did ask the going rate, and the clients came in, anyway, and were only too happy to pay what I asked, and most tipped as well.  Could you justify increasing your prices if you offered more in your regular massage?  A little aromatherapy oil, hot towels, or hot stones, for instance?It was when I offered the 1/2 hour free with first visit that I found that the clientele I was attracting was not what I wanted (or was used to): I had many more no-shows, propositions for "happy endings", and people who wanted discounts over discounts.   I learned from this experience that  I needed to speak to the people that I wanted to attract.Discontinuing that line in the ad made my massage look better than the other therapists I was competing with.  I have been running a professional looking ad for a few years now.  I have been averaging more new clients per week now since removing that line from my ad!  People are willing to pay more for what they think is a better massage.  They think that they are getting more because they are paying more.  Do you really want to deny them that opportunity?  LOL...I also see that lowering my prices to get more traffic through the door is also the wrong idea for me.  My friend is doing this, and I'd venture to say that she and I make around the same money, even though she is averaging 5 or more clients a week than I am.  She is also not doing as many 90 minute or 2 hour appointments.  I offer extras as a rule with all my massages, like aromatherapy and hot towels, etc.  My clients love this special treatment, and stay longer for it.

 

[Little One]

happyhands,Hi.  Well,  it sounds like you are under-cutting a bit much in the area.  First off, from what I can calculate, you are going to have a pretty hard time making a living on $35/hour massages, unless you are working very steady everyday.  Most people aren't fortunate to have a waiting list practice and so, you will probably have to go up on your prices if you want to go into full time practice.  However, cost of living may be workable with the current massage fee in OK.  I think if massages are going at $40 to $45/hour, you should be able to charge $40, which is under the highest priced individuals and you can still feel like you are giving a "deal" to people, if this is what makes you more comfortable. Now, the question would be: "How do you increase the prices?"  Do you do it in one fell swoop, do you tell people you will be raising the fee schedule in 3 months, do you send out a card which will enlighten them of a fee increase + a new bonus you are adding with the fee increase (like the hot towels/bed buddie/aroma therapy or some other such thing to go with the massage), OR do you consider upping your massage to 1 hour and 15 mins. and charging the straight $45 for the session (letting people know that a session is now 1 hour and 15mins and a half session is 45 mins. -- and the reason you are doing this is because you find this is better for the client, giving them the "ultimate in relaxation" or "promotes better therapeutic treatment").  I think it all depends on your clientele, how or if you advertise, if you have an official "place of business", etc. etc.  It is really hard to say in your particular case, because we don't know everything that encompasses your practice.  But, hopefully, this gives you some food for thought.

 

[Pompal 09.]

charges

sometimes people look for deals and lower prices because they simply *can't* afford more. Do they need or deserve massage less than everyone else?This is something that's important to me... I have yet to even start school, and I'm already contemplating ways to deal with this.I want to be open to abundance while feeling like I contribute to the world in ways other than simply catering to the rich. So, what to do? I've considered a sliding scale, but the best I can come up with so far is simply to volunteer. There are many populations that could use it: folks with AIDS, battered spouses in protective homes, prisoners, homeless, etc. Also, in another thread, someone suggested doing inexpensive introductory massage for children... I believe the setting was parks, to help during summer slumps. Another reason for doing this could simply be the above. And considering how little caring touch children (especially boys) receive in our culture, very valuable. Something one could really feel great about.

 

[marc antony]

charges

Here's a discussion on the "sliding scale".

Sliding scales: How do you do it "right"?
http://www.massageplanet.com/forum/viewtopic.php?p=30576

 

[the_super_pessimist]

charges

Not sure if this helps you or not, but there is a chiropractor here who actually made the office a "non-profit entity" (but, I am not sure how they did that) and then lets the patients decide how much they want to leave for the visit (last I was told, they have a "drop box" for payments, with an envelope the patient uses to put the money into).  From what I understand, it has worked out well for the practice and they have not closed their doors yet.  I think they have been in practice since 1996.  Maybe that would be another route to consider?If you are really interested in this, send me a mail and I can call them and get some specifics for you.  It may take me a few weeks, but I can do that.

 

[Prada? Count me in!!]

I have found the best way to help those who can not afford to get a massage is to become successful and then give them my time.  I think if I was not making it financially I would be apprehensive about giving up my time (that I could be billing for) if I wasn't making enough to pay the bills.  Work hard and make a good living and then give back.  Thats what we do, and it has worked out well for us.  In the Marine Corps we had a saying.  'Take Care of Your Own First'