I think I shot myself in the foot (not literally...)

[Luke T]

I'm working at a yoga studio which has just started offering massage. It's a nice place with great people, but very little massage work at this point. The arrangement I have with them is quite good I think; a 70/30 split, with them providing linens, room, table, everything but oils. There are two of us doing massage there.

One of my clients asked about discounts for buying packages, which prompted me to go to the owner of the studio. Her response was that the studio couldn't afford to just drop its rate, but if I were to reduce my rate for a package, she could do so as well. I agreed to this, since the base arrangement is pretty generous.

We sold the first package a couple of days ago, and two issues came up that I hadn't thought about before. First, since the studio is offering the package, they get paid up front, but since I'm a subcontractor, I get paid at time of service. I'm not sure I like discounting my rate and not getting paid up front, although having a bit of cash flow doesn't bother me either.

Second, since the package is for massage services rather than for My service, I'm discounting my rate with no guarantee that I'll even receive the full benefit of the package. I'm confident that the person who purchased this package will come back to me, since I've worked with her several times and she likes my work. But who's to say the next person will be loyal? Or that this person isn't going to decide at some point in the future that she would prefer to go to a different therapist?

I'm thinking I want to ask that coupon books be created designating a specific therapist with each such transaction.

I would appreciate any input on how to work this so that I don't end up getting burned. Or am I just putting myself in a bad situation to begin with?

Thanks,
Greg

 

[Mags]

Hi Greg,

Here is my two cents in less than 2 minutes.

As a subcontractor, I wouldnt think that you would be paid upfront for the package. What would happen if you were to stop working at this place? What is someone else had to finish up the package? Would you be reimbursing the new therapist?

If I had a business with subs or employees, I would still give discounts for packages, but I would keep the subs or employees dollar amount the same. It is not the subs or employees problem. I as the owner was the one who benefited from the sale of the package. I am the one who has the money upfront to do with as I please.

You might try to expain this to the owner of the yoga studio. Perhaps they would decide to give you your cut right away, but I doubt it.

 

[Dick Tator]

Well, I might be a little fuzzy, here, but the way I see it, if you are not the therapist doing the massage at the discount price, you aren't discounting your rate - the other therapist is taking the cut.

I wouldn't worry about it. If you do the massage, you will get paid. If you don't do the massage because they choose another therapist, or because the client just never gets it scheduled, you won't get paid. Yes, the studio got paid for a massage and then ultimately didn't have to pay a therapist for doing it, but there is nothing you can do about that.

The discounted rate is *only* for packages, correct?

 

[No Requerdo]

i don't understand how you think you will get "burned". the only thing that may happen is that someone may choose to see a different therapist. that's not you getting burned. you're not out any money, you just aren't making any from them... you'll have to find more clients.

nope, there's no way for you to get paid ahead and there's no way you can make a coupon designating a specific therapist. there's no way either of these situation work out.

keep giving great massages and you won't have to worry about a thing. you'll be busy before you know it!

 

[hi_my_name_is_michelle]

good to see you around merlescuz. it's been awhile. t039

 

[donna tennessee]

Hi mush. Yeah, I've been a bit busy trying to transition into this new life. It isn't easy, but it feels so right that I'm loving every minute.

In response to terab, I would be getting paid less for sessions associated with the package the way things are set up now. Maybe "burned" is a strong word, but I don't see where I'm getting any benefit from these deals if I don't have some kind of guarantee that the client will be seeing me for the entire duration of the package.

And I'm not sure why we couldn't create coupons designating me as the therapist specified. If the client is buying these deals with the original intent of seeing me for the duration, why not cement it in writing?

Another question occurs to me: if the client decides not to use the entire package, is there any legal responsibility on the part of the party collecting the funds to reimburse the unused balance?

 

[Pompal 09.]

Okay, I understand what you are saying.....why discount your rate with no guarentee of doing all 10 or however many sessions are sold?

In my short little stint as an IC where there were more than one therapist, the owner would not offer a discount unless everyone agreed on it. That way, it didn't matter who did the massages and nobody felt cheated for working for less than the others. That only makes sense, but my guess is they didn't come up with that solution until a situation came up that caused at least a little bit of a problem. Just keep the lines of communication open - go ahead and ask all the "what if's" right now, then put the answers in writing.

If *you* are offering a package rate there, then I don't see any reason why you couldn't be named as the therapist doing the massages. Someone may not like it......but then all they have to do is offer their own, right?

You haven't shot yourself - it's just a matter of talking it all out and then writing it down.