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Mass discounting massage services … Where do you stand?
Personally, I feel the last thing independent practices need to be doing is discounting their services to the point where clients are conditioned to look for a coupon when wanting a massage.
Mass discounting can be a slippery slope for an individual massage practice and the industry as a whole.
What's your opinion?
Views: 480
Replies to This Discussion
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Permalink Reply by Norm Green - My Receptionist on
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"We have noticed a high number of people calling asking if we have "new client" deals. This is new, probably a result of Massage Envy down the street with their 1st time client special of $49. It is getting tougher to compete ..."
Rick’s experience makes the point that large massage franchisors have the capacity to teach the market that there are deals to be had. Once that seed has been planted … their competitors will have to pay close attention to what their market is willing to pay for and at what price.
"We’re not in Kansas anymore Toto."
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There is also a similar discussion taking place on the ABMP LinkedIn group:
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&di...
I like the 'punch card' idea posted there.
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Permalink Reply by David Beard on
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Hi Laura,
As you know im over in Black Mountain, and even though im just starting out and done have a full client list, im am chargeing $50. for swedish and $60. for deep tissue, and i feel its a fair price, I do get some people wanting me to GIVE them a DEAL, but im pretty confident that im worth the $50. i have considered doing a special for the college students. but thats not til school starts back up again...
I say, Stick to your price, so that I can stick to mine, WE ARE WORTH EVERY DOLLAR!
David Beard
BearHands Bodywork
Black Mountain, NC
Laura Allen said:I already posted this on my FB page, but I'll share it here. Earlier this week I received an e-mail diatribe from a therapist in Asheville NC, about an hour away from my small town, informing me of how successful he is because he gives massage for $30. He claims that policy allows people to come twice a month when they otherwise could not afford it. He informed me that the 60. an hour that I charge is too costly for the common man, and predicted my business is going to fail unless I reduce my prices. Never mind that I've been here for six years, employ a staff of 13, my busiest therapists are making 40-50K a year, etc. Bless his heart.
I offer buy 5 get 1 free packages on an ongoing basis. My staff members have the leeway to discount to anyone they feel really needs the work and can't afford it. One time last year in the height of the recession, I held a half-price day for new clients and sold out 61 appointments in less than 24 hours. It ended up being one of the biggest days my clinic has ever had; we sold close to 10,000 worth of package deals and gift certificates on that one day to all the new folks who came in. That is the only time since I've been in business that I've given a drastic discount, and I don't have any immediate plans to do another one, although it was such a success I'm thinking that once a year is probably about right for something like that.
There is a therapist up the road from me who offers massage for $39. He isn't making a living. He actually came and inquired about working in my place recently, and I informed him he would have to charge 60.since I can't have one therapist on my staff undercutting everyone else.
I did a little FB survey a few months ago and found that the going rate for an hour of massage around the country goes anywhere from 40. in backwoods rural areas to 120. in bigger cities. My own philosophy is charge what the market will bear, and my county has the second highest rate of unemployment in the state. Our business is still thriving in spite of it. I think if you are charging way less than others in your area in an attempt to undercut your competition, that will come back to bite you in the butt. You are going to work twice as hard to make the same amount of money that others are making.
If you have chosen to serve the poor, by for instance only offering your services to seniors or disabled people on a fixed income, then by all means charge 10 bucks or give it away for free if you desire.
I hope everyone will pray for me to survive since the character I got the e-mail from thinks I'm going out of business for charging 60--which incidentally is the highest in my town that I am aware of. 50 is the going rate around here but I pay 2000. a month rent for my office and I am here to make a living. I pay my therapists a minimum of 60% and the four who have been there the longest get 70%.
There's nothing unethical to me about running an occasional coupon or special discount, but I wouldn't make a constant habit out of it to the point where people expect it all the time.
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Permalink Reply by Jessica Weagle on
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I offer 2 types of promo discount packages.
Unlimited massages for one month - $200 (I offer this once a season)
(2) one hour massages a week for one month - $240
This gets people to see me on a very regular basis for a month. And it has been very easy to keep them coming back even after the package has expired
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Permalink Reply by Marla Barrett on
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The talk of the town where I have my massage business is the Chiropractors are offering $19.00 for the first massage to new clients then trying to get people to sign up for a membership (like Massage Envy). The feed back has not been very good from a few of my clients who really wanted a "deal". I am ok with clients going and trying new massage therapist because they come back to me and know how spoiled they really are:)
I charge $60.00 an hour massage and in my massage I use steamed towels, hot stones, heated pad, heated neck roll, and heated bamboo. So I have not been affected by the "cheap" prices in my town. My client said"what have I got to lose?" "Well $19.00 and an hour of my life:) My clients know they are spoiled and they have been my best advertisement and they keep coming back:).
Marla
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Marla’s response says it all.
It points out that there are competitive forces in some markets that will ‘mass discount’ to drive new clients into their doors and then try to sell them into a membership. They then have a process in place to try and sell memberships to new clients before they walk out the door. Not all will buy. But, many do.
Your clients that are swayed by a mass discounted promotion and then sold into a membership plan, might not be able to afford to come back to you for twelve months even if they wanted to (while their credit card is being charged automatically every month for $49).
Marla’s experience proves how important it is to provide a consistently amazing experience for your clients, when competitors are out to steal them by offering mass discounts to new clients.
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Thank you Norm!!!!!
Norm Green - My Receptionist said:Marla’s response says it all.
It points out that there are competitive forces in some markets that will ‘mass discount’ to drive new clients into their doors and then try to sell them into a membership. They then have a process in place to try and sell memberships to new clients before they walk out the door. Not all will buy. But, many do.
Your clients that are swayed by a mass discounted promotion and then sold into a membership plan, might not be able to afford to come back to you for twelve months even if they wanted to (while their credit card is being charged automatically every month for $49).
Marla’s experience proves how important it is to provide a consistently amazing experience for your clients, when competitors are out to steal them by offering mass discounts to new clients.
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Permalink Reply by Irene Diamond, RT on
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Yep, folkeroos- don't try to compete based solely on price- there will ALWAYS be someone who will charge less.
Instead, try to focus on what sets you apart, makes your massage unique and as long as the client is WOWED each time they see you, they will come back to you, whether they paid $40 or $200! As long as they feel they got a good value- it will always be worth it. (If you look at cars as the analogy - some folks prefer top of the line, while others scrape by to get a beat up less expensive car... You Decide: are you a Lexus? Toyota? Volvo or Prius?)
~Irene
Marla Barrett said:Thank you Norm!!!!!
Norm Green - My Receptionist said:Marla’s response says it all.
It points out that there are competitive forces in some markets that will ‘mass discount’ to drive new clients into their doors and then try to sell them into a membership. They then have a process in place to try and sell memberships to new clients before they walk out the door. Not all will buy. But, many do.
Your clients that are swayed by a mass discounted promotion and then sold into a membership plan, might not be able to afford to come back to you for twelve months even if they wanted to (while their credit card is being charged automatically every month for $49).
Marla’s experience proves how important it is to provide a consistently amazing experience for your clients, when competitors are out to steal them by offering mass discounts to new clients.
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Permalink Reply by Tammy Wilson on
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I am agree with Paul as, it is important to provide discounts to the first timers so that, they will feel happy and relaxed as there are many thoughts flowing through their mind while going for a massage and they somewhere feel little uncomfortable too by thinking how will it going to be done etc etc, so it is good to make them feel comfy and relaxed.
After all, when they will get some better service from you they will prefer to come again.
Thanks
massage beds
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I think providing discounts are not bad only when you are not facing any loss like you can choose any season where there are heavy discounts or some sort of competition I mean it can be like getting better and more business from all the people, so that to have some business.
otherwise, in a regular time, it is not necessary to give any discounts coz it dont worth.
thanks
massage equipment
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Permalink Reply by Alicia Willette-Cook on
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This happens to be a topic that I feel very strongly about. In school, many moons ago, I thought that discounting would be a way to draw clients in the door. What could be the harm? First time client? Here's 10% off! What for? Just because I feel happy that you found me! And I like you! Now, I have changed my mind completely. And it was because of One Sad Day With a Chair Massage Event.
(Keep in mind, at the point when I did this Sad Chair Massage Event, I already had a very well established private business. )
I set up my chair and proceeded to literally work my fingers to the bone, one (potential) client right after the other...for almost 3 hours. I had a 10 minute break in there somewhere for some quick stretching, and sprint to the restroom. This was all at my local Business Association Meeting. Getting to know the local businesses, as well as the town and it's residents. Free. All of it. I had a line out the door. I gave away over 75 business cards. To residents. To Business Owners. To Everyone. How many clients did I get? One.
My opinion now is that people will not pay later for something that they received for free, or at a discounted rate, earlier. Their perception of the value of that object/service has been skewed. As well, it de-values what I do. I would be willing to bet that the coupons that the dentist, doctors offices are giving out are covered by insurance. And that the doctors are truly not losing any income. I would be.
I do not ever discount my services. Not ever. I do, however try to keep my prices reasonable. I'm not in this to get rich and retire tomorrow. (That's my other evil plot...)
This is just my opinion. Peace!
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With great skepticism, we gave Bloomspot a try for a couple of our hotel spas.
Couple of things worked well, others we will have to wait to see if it pans out.
#1 - I told them flat out I would not offer services at a 50% discount. Money loser for us. They kept pushing for a "richer deal" to bring people in. I tried to tell them my goal was profitability, not mass use, which is how they make money. They didn't like that too much, but they kept saying things like "our goal is for this promo to sell out!" Try thinking about your customer's needs!
#2 - Since our spas are in hotels, and the bulk of our business is hotel guests, locals paying a visit, even on a discount, are incremental revenue, so long as they are profitable. In otherwords, we are not desparate to fill the spa with locals, in fact, our hotel hosts would frown upon that. Not being desperate makes it easy to resist the steeper discount
#3 - We offered $80 coupons for $40. We net $30 on each. But since you can't get a service for $80, we got at least $25 per redemption, free from the Discounter's cut. We ended up making $15 - $20 per basic 50 min service, for a net discount of 45%. Fortunately, our first two redemptions upgraded to 80 mins, so the discount worked out to net 33%
#4 - We sat on our Reservations team to make sure they screened the requests for BloomSpotters. No more than 1 per day on Fridays or Saturdays, our busiest days for hotel guests.
One spa sold 60%+ of the coupons, the other only 20% or so. We'll see about the 3rd and 4th locations and see if any of them turn into repeats.
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