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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?
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Replies to This Discussion
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Permalink Reply by Paul Brown on
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As you know, I wrote about my Groupon experience over in the other thread. But there are some important points about this:
Lots of other health related services offer coupons for first-time appointments: chiropractors, personal trainers, dentists, optometrists. I don't see anything unethical about offering a discount.
I would be concerned about offering too many discounted vouchers, though. While working is better than not working (boredom sucks!), don't get so overwhelmed that you can't work on your existing client base. Those are the people who are going to be paying you your full "retail" price while you work on converting the voucher clients to regular price clients.
Yes, many of the voucher clients are going to be bottom-feeders who are only looking for a bargain, but many of them can be educated about the benefits of regular bodywork. Many of them will be actively looking for a new bodyworker - maybe they just moved to town, or their old bodyworker moved away, etc., so be prepared ahead of time with your rebooking strategy - you'll need a few different tactics to offer to people depending on what you think they are. This is where being able to read people is very helpful.
Don't be afraid to ask questions. I asked every groupon redeemer what their experience with groupon had been like - this usually got them talking about how many vouchers they had purchased, what sorts of things they have bought, and what their experience redeeming was like. You can tell a lot about a person based on what information and how the expressed it. I would use this information to decide on which rebooking strategy to employ.
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Permalink Reply by Lara Rininger on
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I agree with you Norm. I'd rather reward a loyal client who has referred two new clients with a free massage after the two new clients have had their massages or something like that. I think discounting our services devalues our work. I don't think I've ever had any other health care practitioners discount services for me unless it was back when I didn't have health insurance and paid with cash and then they gave me a little discount because of my situation.
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I find it difficult to believe you have never seen ads in newspapers or other places for introductory appointments with dentists or chiropractors or optometrists, Laura. This is a common practice.
I disagree with Norm's premise clients become conditioned to look for a discount when seeking a massage. People may use a coupon as an initial introduction to a bodyworker, but just as when people find a dentist or doctor they like, they will usually stay with the same bodyworker.
It's not the coupons or discounts that I worry about as much as the commodification of massage by the corporate franchises like McMassage.
But as far as using other strategies - I also use a "refer three, get one free" tactic, I sell bulk package deals, I hold a monthly drawing of my email list for a free massage, and other tactics to get people interested in what I do. Coupons are just another tactic for getting people in my door to show them what I do. We need multiple marketing devices, especially in tough economic times.
Lara Nabours said:I agree with you Norm. I'd rather reward a loyal client who has referred two new clients with a free massage after the two new clients have had their massages or something like that. I think discounting our services devalues our work. I don't think I've ever had any other health care practitioners discount services for me unless it was back when I didn't have health insurance and paid with cash and then they gave me a little discount because of my situation.
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Permalink Reply by Laurie on
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Yes, discounting massage prices devalues our practices as a whole, but the real question is why do clients/potential clients look for or expect discounted services in massage? An introductory offer is great, but many clients migrate from one therapist to another taking advantage of all the discounted services available in a community, never becoming a repeat client of any particular therapist.
There are many people that value the therapeutic benefits of massage and will pay the fair market value for such services. But it is the group, those that are looking for a 'deal' or discount to justify the experience that we should try to understand. How is massage perceived by discount clients? Do they think massage is overpriced or a luxury they are not entitled at full price? Do they think all massage sessions are fungible? Do they like to sample different types of massage/therapists? Whatever the reason, how do we convince this group that massage can be an important part of a healthy lifestyle. And then how do we create a long term relationship with the individual seeking a discounted massage?
Discounts get clients in the door, but what keeps them coming back on a regular basis without a discount (other than how fantastic they feel)?
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"but many clients migrate from one therapist to another taking advantage of all the discounted services available in a community, never becoming a repeat client of any particular therapist."
What is the basis for this assertion? It's certainly never come up as a topic of conversation among the therapists I know and speak to. Never seen it on any discussion forum before, neither. Heck, most of the bodyworkers I know barely even do any sort of marketing at all, let alone offering discounted coupons.
When people call me looking for a session, I've never been asked for a discount.
If the real question is what should a massage therapist be paid for their work, that's a whole other question. But I don't see offering discounts as much of a problem at all.
Laurie Russell said:Yes, discounting massage prices devalues our practices as a whole, but the real question is why do clients/potential clients look for or expect discounted services in massage? An introductory offer is great, but many clients migrate from one therapist to another taking advantage of all the discounted services available in a community, never becoming a repeat client of any particular therapist.
There are many people that value the therapeutic benefits of massage and will pay the fair market value for such services. But it is the group, those that are looking for a 'deal' or discount to justify the experience that we should try to understand. How is massage perceived by discount clients? Do they think massage is overpriced or a luxury they are not entitled at full price? Do they think all massage sessions are fungible? Do they like to sample different types of massage/therapists? Whatever the reason, how do we convince this group that massage can be an important part of a healthy lifestyle. And then how do we create a long term relationship with the individual seeking a discounted massage? Discounts get clients in the door, but what keeps them coming back on a regular basis without a discount (other than how fantastic they feel)?
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Permalink Reply by Laura Allen on
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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 Robin Byler Thomas on
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Hi Laura,
Me thinks you're chuckling about this whole thing as you have a great business mind, appear more than fair to your employees, have a great education, and solid massage therapy ethics.
My prayers for you are you will continue to thrive (and not merely to survive).
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Hi Paul-I've lived in southern and northern CA (East Bay Area) and now NE Ohio. I've honestly have not seen introductory discount prices for dentists, doctors, or chiropractors. Just because I haven't experienced it doesn't mean it doesn't exist or it not common practice, but I've never seen it. I see no harm in offering an introductory price as long as you are clear on how long you will be honoring that price and the client understands it will be going up. It's your business and I respect how you market yourself and get your clients. And I apologize if I have in any way insulted you or shown you disrespect that was not my intention at all. You have far more experience than I do, I haven't even started practicing yet so what do I know? I may feel differently once I'm done with school. But for now, I'm comfortable with no discounts or introductory prices and offering more services or methods to increase the value of my services and charging what the market will bear in my area...The original poster asked for our opinion and I simply stated mine.
Namaste
Paul Brown said:I find it difficult to believe you have never seen ads in newspapers or other places for introductory appointments with dentists or chiropractors or optometrists, Laura. This is a common practice.
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I'm not offended - sometimes I can be very forthright in my conversation, but that's not offense :) Life is good!
The discounts are a great way of getting people in the door. From there, it's up to the practitioner to get them to re-book at their regular price.
Lara Nabours said:Hi Paul-I've lived in southern and northern CA (East Bay Area) and now NE Ohio. I've honestly have not seen introductory discount prices for dentists, doctors, or chiropractors. Just because I haven't experienced it doesn't mean it doesn't exist or it not common practice, but I've never seen it. I see no harm in offering an introductory price as long as you are clear on how long you will be honoring that price and the client understands it will be going up. It's your business and I respect how you market yourself and get your clients. And I apologize if I have in any way insulted you or shown you disrespect that was not my intention at all. You have far more experience than I do, I haven't even started practicing yet so what do I know? I may feel differently once I'm done with school. But for now, I'm comfortable with no discounts or introductory prices and offering more services or methods to increase the value of my services and charging what the market will bear in my area...The original poster asked for our opinion and I simply stated mine.
Namaste
Paul Brown said:I find it difficult to believe you have never seen ads in newspapers or other places for introductory appointments with dentists or chiropractors or optometrists, Laura. This is a common practice.
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I do appreciate forthrightness, but since you used my name it sounded personal and I just wanted to make sure I hadn't miscommunicated somewhere. I think it's great that you've figured out a way for Groupon to work for you in such a beneficial way...
Paul Brown said:I'm not offended - sometimes I can be very forthright in my conversation, but that's not offense :) Life is good!
The discounts are a great way of getting people in the door. From there, it's up to the practitioner to get them to re-book at their regular price.
Lara Nabours said:Hi Paul-I've lived in southern and northern CA (East Bay Area) and now NE Ohio. I've honestly have not seen introductory discount prices for dentists, doctors, or chiropractors. Just because I haven't experienced it doesn't mean it doesn't exist or it not common practice, but I've never seen it. I see no harm in offering an introductory price as long as you are clear on how long you will be honoring that price and the client understands it will be going up. It's your business and I respect how you market yourself and get your clients. And I apologize if I have in any way insulted you or shown you disrespect that was not my intention at all. You have far more experience than I do, I haven't even started practicing yet so what do I know? I may feel differently once I'm done with school. But for now, I'm comfortable with no discounts or introductory prices and offering more services or methods to increase the value of my services and charging what the market will bear in my area...The original poster asked for our opinion and I simply stated mine.
Namaste
Paul Brown said:I find it difficult to believe you have never seen ads in newspapers or other places for introductory appointments with dentists or chiropractors or optometrists, Laura. This is a common practice.
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Yes, I like to personalize my correspondence; it makes it seem more like a real conversation that way.. :) Sorry I misspelled your name the first time, Lara.
Lara Nabours said:I do appreciate forthrightness, but since you used my name it sounded personal and I just wanted to make sure I hadn't miscommunicated somewhere. I think it's great that you've figured out a way for Groupon to work for you in such a beneficial way...
Paul Brown said:I'm not offended - sometimes I can be very forthright in my conversation, but that's not offense :) Life is good!
The discounts are a great way of getting people in the door. From there, it's up to the practitioner to get them to re-book at their regular price.
Lara Nabours said:Hi Paul-I've lived in southern and northern CA (East Bay Area) and now NE Ohio. I've honestly have not seen introductory discount prices for dentists, doctors, or chiropractors. Just because I haven't experienced it doesn't mean it doesn't exist or it not common practice, but I've never seen it. I see no harm in offering an introductory price as long as you are clear on how long you will be honoring that price and the client understands it will be going up. It's your business and I respect how you market yourself and get your clients. And I apologize if I have in any way insulted you or shown you disrespect that was not my intention at all. You have far more experience than I do, I haven't even started practicing yet so what do I know? I may feel differently once I'm done with school. But for now, I'm comfortable with no discounts or introductory prices and offering more services or methods to increase the value of my services and charging what the market will bear in my area...The original poster asked for our opinion and I simply stated mine.
Namaste
Paul Brown said:I find it difficult to believe you have never seen ads in newspapers or other places for introductory appointments with dentists or chiropractors or optometrists, Laura. This is a common practice.
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Permalink Reply by Norm Green - My Receptionist on
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So the question you need to answer is …
How will you capture and keep your share of the market?
Some folks will only get a massage if they know they are getting a deal. Some folks will pay top dollar for the experience and results they desire. Tough economic times can turn some value shoppers into discount shoppers.
The market will drive the trends and the smart businesses owners will capitalize on the trends.
My concern is … with increased competition (and slower economic times) many practices will default to discounting on an ongoing basis to drive traffic. If mass discounting becomes ‘the norm’, then certain segments of the market will come to expect a deal when looking for a massage. If the majority of the market is conditioned to expect a deal, then “commodificaiton” of the industry may be the result.
I agree that offering discounts judiciously can create new client opportunities that can be turned into high value clients.
In the ‘ironic’ department … I just went to dictionary.com to make sure that I was using the word ‘judiciously’ correctly, a Massage Envy banner ad was promoting ... 'Say Good Bye to Stress for Less. Schedule Your Massage Today.'
Come to think about it, given their reach seeing their ad on dictionary.com is not surprising at all.
As much as the market will drive trends ... dominant competition can change the game.
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