massage and bodywork professionals
Price Increase
I have a dilemma and would appreciate some guidance. I am a sole practitioner currently work from home. I have a full time day job outside the industry (hoping to transition to massage full time but that's another post). I see clients evenings and weekends. It has always been my mission to make massage affordable and because I have fairly low overhead I have kept my prices at $60 for 60 minutes and $75 for 90 minutes (located in the midwest).
My family is growing (boyfriend and his son) and I am considering moving my business out of the house. I found a great location that is actually closer for the majority of my clients and the owner is giving me a reasonable deal on room rental since I only work part time. I would be an independent contractor, setting my own schedule and rates. The owner strongly recommends that I start charging $90 for 90 minutes to keep my prices in line with her staff. I certainly wouldn't want anyone's client to jump ship because my rates are lower and I have no problem charging new clients $90. But what do I do about my existing clients? I can't very well bump their rates up $15 in one fell swoop can I?
Should I increase existing clients $5-$10 for now? My clients are spoiled and get good bang for their buck. I know they will understand a price increase due to me having more expenses but at what point, and how, do I get everyone on the same price tier? Thanks for your suggestions.
Sharon
nyzel adams
At first, raising my prices is out of the choices but when the time comes that my business is low because I thought having more customers is the best choice but I was wrong and it took me a payday loan to help me pay for things while my business is low. Now, I realized that in any businesses, building a bigger consumer base is not necessarily the solution for growing a business. Instead, increasing the prices might be the very best bet.
May 14, 2012
Relax & Rejuvenate
There are only 3 ways to increase profitability.
They are not mutually exclusive -- so you can do a little of all, not just one. But they are also inter-related. Growing volume can mean increasing costs through advertising. Discounting to grow volume may be less profitable in the end.
Lowering costs is hard for sole practitioiners and small practices -- there aint a whole lot there to cut!
May 14, 2012
Stacy May
I find this all comes down to the Law Of Supply & Demand. If the supply of your time is ample or the supply of others then the demand for services based purely off price will decrease. Often times as I have worked with other therapist they fail to understand that in today’s world massage is offered everywhere. I mean they are competing with Groupon/Living Social and other daily deals site all the time as well as the franchises. If your demand is high enough you can continue to raise your rate until your clients levels out, but your run the risk of running your client base off. So look at your schedule and see how many massages are you really wanting and willing to do daily? Based on this number what is the amount of income your seeking? I have gone thru the number a million times with students I mentor and can show them that unless they have a base (80% of the clients already to support their income) they are better off building a book of clients at a lower per massage rate until the demand for their services exceeds 30% of their maximum ability to schedule in a 60 day window. Being booked doesn’t been one week or even two weeks out. Being booked is 30 plus days of prescheduled and hopefully prepaid clients. Your income will be more stable, you rate of no shows will diminish, and your clients will elated with your fees and service. Good luck and hope all turns out well for you.
May 16, 2012