Rate increase experiences: positive or negative impact?

[karla]

Hi folks,

For those who have raised your rates ever, I'm wondering what the overall experience has been. I've heard almost nothing but positive experiences with rate increases... have you ever had a negative experience?

Feel free to talk about both.

My goal is to get a picture of the overall "truth" versus the fears that often come up for folks considering rate increases.

 

[You wish you knew 8)]

To my knowledge I haven't lost a single client to a rate increase. I did have one client balk at my increased onsite rate and chose instead to drive less than 3 miles to my studio instead. That worked well for me, as my onsite rate still isn't enough to justify all the additional time and effort that it takes. Win/win, can't beat that!

 

[rachelle_inhighheels]

The last time we raised our rates, I contemplated raising the hour by $10 instead of the $5 I ended up going with. We heard comments like, "Eh, its only $5," and "everything is going up."

I raised my 90 by $10 at the same time and some people seemed a little taken back by the $10 increase. I felt I had no choice to raise the 90 by $10. My rates now are $35/$55/$80. We do plenty of 90s, and raising only $5 wouldn't have cut it. A lot of people around here charge $85 and $90 for 90 minutes, so even $80 is a great price.

The next time I raise my rates I don't plan on raising everything at the same time. I will probably raise my hour and 90 by $5 in about 2 years and leave the 30 alone for another year after that.

I also want to add, the first time is always the hardest! By the third time I raised my rates it was a piece of cake.

 

[Stardust]

Bump

Please, if you have EVER raised your rates, participate in the poll and consider posting your experience(s)!

 

[McBraas]

Once I had a book full of regulars paying $10 below the local average, when I raised to the local average I didn't lose them as clients, I lost their frequency, it impacted my bottom line obviously, but it also opened up my schedule for new clients.

 

[Anni Apple...]

We raised $15 on the hour. The hour and half and 2 hour went up a bit more.

We did loose some (not so many) clients, but it impacted us positively, as we were able to work less hours for the same price and then as new clients started coming in the bottom line obviously got better. Our rent went up, but we're still ahead of where we were.

All in all, it was a positive move.

I am not sure if now is the best time to raise your rates, but you have to do it at some point, so, I hope this helps.

 

[Callisto]

We raised our hotel in-room rates 12 - 15% nationwide on July 1.

No impact on volume, AMAZING impact on the bottom line.

 

[Wagon Burner]

Our problem hasn't been in raising rates, it's been in setting the initial rates. Dh did do outcalls for a LONG time at $70/hour, not charging a trip fee even. Once he got his room, he started charging $65 for a "basic hour" and his outcalls went up to $100. He doesn't want to do outcalls anymore, except in really really special circumstances!

He's always had folks who balked or shied away at his rate- whatever it was ($70, $65, $100, whatever). I think those people are among the crowd who would take a freebie and never come back. So we're not worrying about those so much.

Now we've settled on three "levels" of service, each with a base hour rate and adding $20 for the extra 30 minutes to upgrade to a 90 minute. So far only the initial "balkers" have balked at these rates, and we're still not going to worry about them. He's told one that if she'll get him so many paid referrals, he'll give her a session for free, because she has real issues and really can't afford even the lowest base rate.

Still in startup seforum.xxxe, I can't way whether doing this has or will impact our volume or bottom line yet. I am thinking that it can only help both, because at least now he has regular rates and a regular place and so can take on more business and be more steady overall, right?

 

[paul r]

I will let you know..my rates increase the first of October so will get back to you..

 

[EnWi]

Oh excellent jacqueline. I am also wondering about raising rates in the current economy and will be most interested to hear about your experience.

Is your schedule pretty full currently?

 

[Josephine]

Shoot, I voted for no noticeable impact on my bottom line. I should have voted that it impacted my bottom line positively. Joshua, can you fix this for me? Further proof that it is past my bedtime

I raised my rates during the summer, only lost one client and she was hard to please and I probably was going to lose her anyways.
It is nice to feel valued and even nicer to make a bit more income!
On the other hand, I am so glad that I raised my fees during the summer when the gas prices were sky high, it helped clients to understand and it was before everything got so topsy turvey with the markets and unemployment rates going through the roof.

 

[AnteSavant]

exactly carol..I have been feeling "guilty" for raising rates at this time..this has been a very slooow week..will see how the next few go..

Joshua, so your thinking on raising yours too? will keep you posted on how it goes here in the midwest..

 

[Steel city]

No, not me... another business.

But more than that, I feel like this thread will be valuable for MassagePlanet folks in the future thinking of raising rates. They can come here and see that it's not as bad as they might be imagining