how often do you raise your rates?

[Kes]

I have been in business since October 04. My business is pretty full, 17 to 20 appointments per week.

I started my rates at $25 for 30, $40 for 60, and $55 for 90. In September 2005 I increased my rates to 28, 45, and 63. I gave my current clients a price break at the old rate until the end of 2005.

I am concidering raising my rates again, in November I was thinking of going up to 30, 49, and 68. This would pretty much put my on par with the rest of the therapists in the area. I plan on keeping this rate for 2 years once it is in place. And again, I would give my current clients a price break until the end of January 2007.

How often does everyone else raise their rates??

 

[Irvine]

I raise mine whenever it seems I'm lagging too far behind the going rate in the area AND my skills/services/facility have made a jump in quality. My rates started out in my current office in late '03 at $25/$45/$65 for 30/60/90min. I raised them in Jan '06 to $30/50/75 (gave current clients '05 prices until April). Since I was barely around for several months due to maternity leave, this equaled about 2 years of the same rates (3 actual years). This year I have added lots of little visual extras to the office like plants and fountains etc, plus added a new modality and will be adding another in the fall, upgraded all the linens to at least 320-thread-count, moved from Biotone to all-natural lotions, and began offering a few retail items and specials/freebies on a regular basis to regular clients, gussied up the table with plush and armrests and a memory-foam facecradle, plus added newsletter and a website. So I feel like I am upgrading the experience enough to warrant competetive rates. Next time I raise I'll probably go to $35/60/80.

 

[Jakob Karytt]

I guess I diddt consider how the room was decorated when I think of the price.

I know for sure my room is "up there" when it comes to uniqueness is total decoration. Plus, I do throw in quite a few bonuses in my sessions. I use at least a couple stones in each of my sessions, I use hot rice packs for backs, hot socks on their feet, I have over 25 different scents of oil, and stars glowing on the ceiling.

Well.... after this, if I keep raising my rates by 3 or 4 bucks every two years, eventually I should be ahead of the pack in short time. Around here, they go up by $5 at a time every 5 to 7 years it seems. There is a woman I know who has been doing massage for 15 years. When she started, she charged $25 an hour. Now she charges $50 (but $5 more if you want deep tissue) and that is pretty much what everyone else charges around here except most seem to charge $15 to $20 more per hour for deep tissue.

 

[We are all screwed]

I have only raised my rates once in 4 years, but then again, I never undercut myself. I started charging high-middle-of-the-road right off the bat. It has worked for me. I don't foresee a rate increase in the next 2 years, BUT we are always adding to our service menu, and that grows the volume of business beautifully too.
jill/Sagetherapist

 

[Do You Belive]

When I started (Aug 2004), I started out at $30/$60/$75/$95 (for 30/60/90/120 min sessions). At the very beginning, I was adding $10 for Deep Tissue. (I only knew Swedish, Deep Tissue, and Lymphatic Drainage.) I started off with a promotional 3-pack of 60 min sessions for $150. (I learned quickly that the package didn't work well for us.)

Once I completed Neuromuscular Therapy in July 2005, (a big beast of a medical massage class), I raised everything but the 60-mins to a new schedule of $40/$60/$80/$100, flat rate for whatever therapy you wanted (no extra for deep tissue or anything else). I accepted checks, but offered a $5 discount off the stated prices if they paid cash. (For outcalls, we calculated rates by using the in-studio session rates + a travel fee measured by distance and how easy/quick it was to get there.)

In October/November 2005, we invested in a $2000 biofeedback machine. In February/March 2006 we obtained an electric lift table (once you use one you'll never go back! lol) and took a few important classes: Hot Stone, Trigger Point, and Pre-Natal massage. In April of this year we raised our rates to $45/$70/$90/$115, ceased to accept checks (from new clients--established clients were welcome to continue to pay by check), but instead of the $5 cash discount, we implemented a plan to encourage regularity--get $10 off the next session if you reschedule TODAY within the next 4 wks (and keep the appt as it's scheduled--without shrinking the duration or rescheduling the appt for a different day), or receive $5 off the next appt if you reschedule for more than 4 wks out (same conditions apply). Of course, EVERYTHING--Hot STone, biofeedback, relaxation or deep tissue, Neuro-muscular, acupressure, trigger-point, etc--can be blended into 1 session, for the same price. Much simpler that way, for us. Outcalls are a flat $100/hr with a 1.5-hr minimum outside our city limits, with discounts available for multiple people receiving consecutive massages, or those that schedule frequently (at least once a month).

Generally, we're mostly within the average for our area. Our pricing is much cheaper than some and much more expensive than others. And other stuff, others don't even offer.

Sorry that's long, but I hope it helps
Hugs,
~Jyoti

 

[Michelle G]

i think one thing you may want to be careful of is raising your rates too often. even if you're still below what everyone else is charging, clients may see it as "this place keeps raising their rates...". you could still be below everyone else but they won't look at that. you know what i mean?

i have kept my rates the same as they were when i worked at the spa a couple of years ago. i will be moving my office next month and don't plan to raise my rates any time soon. although, i do make what others are making in the area. i think i'm in the middle. i feel like i could definitely charge more than what others charge because i know what i offer compared to others around me who charge more but i don't mind. i love my clients and i am comfortable charging what i charge. actually, i lowered my price on my 30 minute session. i charge $35/$60/$85 for 30/60/90 minutes. (no charge for deeper work. that's actually a pet peeve of mine)

 

[Molly]

it's so interesting to see each other's pricing..

i've been in private practice for one year exactly and charge 35/65/95 excpet for clients who came from the salon where i was and i still honor the old pricing which was 35/60/90...

now, i am hoping to expand into the larger suite on either side of me - hopefully it will become available soon. once it does, i will keep the same pricing, but i will move everyone to the same pay scale (some people pay $50 without prepaying) and i will try to enforce package purchase for discounts. i notice that there are 1/2 the people who really appreciate the discount and the other half stand me up.. i feel like the pkgs. will nip that in the bud.

anyway, i notice that around here prices don't go up that much. i know one woman who's been charging her fees for 10 years. and i know therapists who have a really peace-less places who charge more than i do. just do what you're comfortable with, and good luck!

amanda

 

[Evil Laurie :)]

i think one thing you may want to be careful of is raising your rates too often. even if you're still below what everyone else is charging, clients may see it as "this place keeps raising their rates...". you could still be below everyone else but they won't look at that. you know what i mean?

I do know what you mean Tera. How often do you (and others)recommend changing the rates? If I raise my rates in November, it will be 14 months since I raised them. I have also heard of raising rates because a therapist's schedule gets full. This is pretty much what has happen to me. I am consistantly seeing 17 to 20 clients a week on average and booked 75% full 3 to 4 weeks out.

The hair dresser next to me raises her rates for a hair cut $1 each year at the begining of the year. There are a lot more(literally hundreds more!!) hair dressers in my area than massage therapists, and they have a much larger price range for their services.

i charge $35/$60/$85 for 30/60/90 minutes. (no charge for deeper work. that's actually a pet peeve of mine)

Yes, charging more for deeper work is a pet peeve of mine as well. I think it is a better idea to charge more for more experience.

 

[jeark]

New decision: We decided to lower or 30-mins back down to $40 and our 2-hr down to $110 ($5 less in both cases). (The lowered prices seem to resonate better with us; I couldn't wrap my head--or intuition--around the higher rates.) I should also add that we're not planning to raise rates for a looooong time. Also someone mentioned experience as a contributing factor for raising rates, and I agree. I also think ongoing training and education is another factor. As pre-med chiropractic students, we're about to learn a WHOLE lot of Anatomy, Physiology, Palpation, Neurology and Assessment, and our clients can benefit from that increased knowledge in their sessions LONG before we pass our chiropractic board exams. Others have taken extensive additional massage training or specialize in a not-widespread technique. So I think those factors count for something as well

Hugs,
~Jyoti

 

[Mr Warrior]

I guess I didn't answer the how-often question -- I plan to leave my rates at this level for at least two years, probably three. Depends partly on inflation/expenses and partly on whether I'm able to add a major modality during that time. The next big modality will be Thai -- hard to schedule that training with a very young child.

Also it's common in my area to hold prices for 3 years or more. And most therapists price at the $5 or $10 mark; I've not seen anybody do $49 or $34 or what have you. Easier to remember, maybe?

 

[Double Bubble]

This is something I've been thinking about lately. I have been in business here for 2.5 years but I've changed locations a couple of times and I don't feel I've really given my business 100% of my efforts until 10 months ago. So I still feel like a pretty new business in town. I started with the going rate in town and I think it is still pretty much the going rate, some charge more some charge less.

In the next year I will be adding two new modalities, getting Nationally Certified, and becoming more of an educational source to the community. We are also going to buy a house, so I think probably next year, when I have been at my current location for one year still giving 100%, have had been in business in town for three years, having added at least one new modality, gotten the NCBTMBCBCTBCTMBCB (I can never remember the initials), then I will raise my rates $5-10. I'll still keep my maint plan for those scheduling every week or two. And then I probably won't raise my rates again for another 3-5 years depending on how my business grows and what I need to make for my family.

Greatlakes, it sounds like you are a real go getter and have created a wonderful experience for people coming to get a massage from you. It also sounds like you did not start out at the going rate for your area, maybe you are closer to it now, but you are still giving steep discounts to get business in. If you can afford to have business drop a little, I'd say raise your rates to the going rate (or slightly above the going rate) and then continue with your wonderful new client specials. Let those who truly value your work and your service stay on at the rate you set, and keep introducing your services to new people. From everything you have contributed to the board so far, it sounds like your business is going to set the seforum.xxxe for other therapists in your area. Your rates should reflect how awesome you are.

 

[Wonder]

Thanks much for the compliment Akb!!

I spoke with an MT who may be moving in next to me. She recommended raising my rates to $30, $50 and $70 and then giving a discount for prepayment. They can pay for as many appointments ahead as they like at the discounted price. Her feelings are that because the client has paid for the appointment, they are less likely to cancel or reschedule. If they are short on money at the time of the appointment, they will keep the appointment. Of course, if they are short on money, they may not pay in advance for the next one!!

I just dont like the idea of having all the money a month in advance that techincally isnt mine. Personally, if I were the client, I would feel odd about paying ahead. I dont get a lot of cancelations and no shows, so I dont think the prepayment would deter that from happening.

I know some on this board give their regulars a discount without prepayment if they reschedule within a certain time frame. If they cancel the appointment or reschedule it, the next appointment is at the full price, but the next one would be discounted once again as long as they kept that appointment. I think I prefer this way better.

For those of you that do discount if they keep their scheduled appointment: How strict are you with your policy? Have you had positive reaction from your clients? Do they get PO'ed when you tell them they have to pay full price because they missed an appointment?



PS When I started, I priced my rates on the low end of what was being charged in my area. I really should have went with the middle. So, I am playing a bit of catch up with my rates, but not to badily.

 

[Tiocfaidh ar la mo chara]

Christine,

Here's my wording in my brochure for my maint. plan (yikes, I might have taken a bit of this from sagetherapist at one point):

Regular massage has many health benefits, which is why it should be a priority in your life just as proper nutrition, exercise, and rest. To assist in budgeting regular massage into your health and wellness regimen I have a standing appointment maintenance plan available. Here’s how it works:

Keep a standing appointment on the day and time of your choosing every week or every other week and save $10 when you come to your appointment. By keeping a standing appointment you can make sure that you will always get your massage when it is most convenient for you.

Applies to 60 and 90 minute integrated massage sessions only. To qualify for the Maintenance Plan, please set/confirm your next appointment before you leave. This offer cannot be used with gift certificates, specials, or any other discount offer.

At first I extended it to every three weeks, but found that those are the clients who no showed or forgot at the last minute and wanted to reschedule. So I stopped that since every three weeks is practically once a month except for a few months of the year and if someone needs help budgeting $55 a month for a massage, then they obviously don't see it as a priority. I do still have two people on the every three week plan. One woman remembers faithfully, and the other does not. She'll forget sometimes and reschedule for a couple of days later and for the first time or two I gave her the maint plan rate, but I see that she is the type of person who is chronically late/forgettful, so I do charge her full price when she doesn't make it to her originally scheduled appts. She does not balk at all when I charge her the full price, and she tips me on top of it.

The others who come every week or two really do look forward to their appts so much and I work with them if scheduling conflicts occur. None of them has "taken advaneforum.xxxe" of my flexibilty I think because they actually want to come in really often and are not just looking for a cheap deal.

I have had several people express interest in the maint plan and come for a couple of months that way, but then something takes them away. Whether it is that we don't mesh well, or it's really just not a priority for them after all, it doesn't matter. If some of those people call me up after 6 months has passed and want to get back on the maint plan for a while, then I will let them, but the first appt. back is full price.

Hope that helps.

 

[Kirjava]

Akb,

Thanks for the info about your maintenance plan. I always try to call my clients to remind them of their appointment. I probably call about 90% of the time. I have clients who are great about remembering appointments and then I have some that are not so good. You can bet I call the ones who arent very good at remembering.

 

[Priestess]

In six years I rasied my rates once, and that was two years ago. When preparing to do that I gave four month's advance notice and all current clients kept the old rate for six months into the new year. It was just easier on all of us to do this at the start of a physical new year.

I raised them because I felt comfortable enough not only with the level of advanced training I had by that time but also I finally felt I'd gained sufficient experience in the same fields to warrant the increase.

I started in line with others in my area so now I'm just a bit above average but by no means outrageous. I don't plan to raise them again for several more years for exactly the reasons cited by others--the "geez, the price is always going up around here!" impression. I also don't want to price myself beyond the very people I like best to work on: regular folks, not rich people.

 

[Todd ex-atheist]

I know some on this board give their regulars a discount without prepayment if they reschedule within a certain time frame. If they cancel the appointment or reschedule it, the next appointment is at the full price, but the next one would be discounted once again as long as they kept that appointment. I think I prefer this way better.

For those of you that do discount if they keep their scheduled appointment: How strict are you with your policy? Have you had positive reaction from your clients? Do they get PO'ed when you tell them they have to pay full price because they missed an appointment?

I'm pretty strict with it. The appt must be kept for at least the same day. (For example, I had a client with an evening appt call me to see if I had anything earlier because a surprise situation came up where she had to actually be somewhere at the time her massage was scheduled to end. So I advised her that because she was rescheduling for the same day, she'd be fine--the $10 credit would still apply.) The appt can be lengthed if the client decides they'd like extra time and I have the time to give, but the discount isn't applied if the session is shortened. (I apologize if this's slightly OT, but my 24-hour cancellation policy also applies to shortening an appt...they have to give notice for that, too.)

BUT I'm not a total hard-a$$ I understand that Life Happens, and that sometimes emergencies come up that couldn't be helped, so I'm cool with extending the $10 credit to them anyway, as long as the rescheduled appt isn't TOO far out.

I haven't had anyone get annoyed yet. I think it just comes down to being clear about the discount while I'm letting my client know about it, and as they're scheduling the next appt.

I really like this reschedule discount because it gets clients in more frequently. They stay looser and more relaxed. They remain in the habit of getting massaged. It becomes a pleasant ritual for them. They start to see the value in consistent preventative healthcare, which is how we present and market our practice and massage itself. I am willing to sacrifice a little in order to get them in regularly and help them stay healthy. In exchange for that committment on our part, they commit as well, by scheduling on their way out. We went from 1 to 7 monthly regulars within about 2 mos after starting that program. (We're currently a low-volume, gradually-growing practice. )

Like Christine, I don't like the pre-paid packages either. We offer them in case someone wants to take advaneforum.xxxe of them. It's one more way to make massage more affordable. But I also don't like having all the money up front. I also have found that ppl HAVEN'T taken advaneforum.xxxe of ours. The biggest reason I don't like them, though, is that a package is finite. It has a beginning and an end. When it's done, the client decides whether or not to prepay for more or not, and if the economy hiccups, it's easy for them to decide not to or to "hold off for right now" and "beback later". And then they call 5 mos later and want to get in that day and if you have nothing available you might not hear from them for another 5 mos and then when you are able to finally get them in, they're so knotted up that you can't "fix" them in one session, but that's a whole 'nother discussion entirely!

With the reschedule discount, it becomes much more of an ongoing thing, and becomes part of their lifestyle. They start to think about massage as a priority. And they don't have to fork over a lot of money at one time, which makes them more likely to keep paying as they go. And our practice STAYS more regular that way, if there's no beginning and no end. I also like it much better for the same conscience reasons that Christine/Greatlakes expressed.

Gosh I ramble LOL
Hugs,
~Jyoti

 

[Dianne F]

I have been reviewing this thread.

I went to the utility company yesterday and a woman inquired about my rates. I told her $50 an hour and she said that was cheap! I HATE THAT!!! I heard it on Saturday as well!! t013 It is a pet peeve of mine. I rarely hear the opposite. $50 is the going rate around here. (Of course tho, there are a couple places that only charge $40) If you drive 40 miles north, south, or west an hour session will cost $60 to $75, if you travel 40 miles east you get wet.

It isnt just massage though. I have heard from out of towners and people who have relocated to my city that the people around here are very thrifty (actually the word was cheap.) I suppose that could translate to the some of the business owners as well and that is why the prices are lower for massage and other things as well? This place is very much a blue collar town, though there are a fair share of white collar people around.

I have raised my rates twice in about 2.5 years. Some people have said raise rates when your schedule is full and your schedule will open up a bit. This hasnt happen for me, I just keep getting busier and busier. Nine months ago I was seeing 17-20 clients a week, now I am seeing 20 to 25 (my limit.) Plus, I just relocated and my not so regular clients want to come in and check out the new place, so I have people calling all the time who want to get in. Most have no problem scheduling about 2 to 4 weeks, but..... for example yesterday a woman called and wanted to get in yesterday or today to get a 40 minute massage (she had a $40 balance on a gift cert) and I was full, boy was she POed!! I dont even offer a 40 minute service either!! We offered her something next week but she doesnt like to schedule that far out because she doesnt know what she will be doing. She is in her mid 50's, so its not like she has little kids to care for. All her kids are in their 20's and 30's and out of her home!

Soooo... in the fall of 08 I have a feeling I will be raising my rates again. From 30/50/70 to 35/55/80.

 

[rae rae shorty]

I have to laugh at my earlier reply on this thread -- I thought I was going to leave my rates in place for 2-3 years. But I have already raised them $10 again, after just one year at that pp (from 25/50/75 to 35/60/85), and it probably won't be another year before I raise them again. When I opened this practice I was in the low end of mid-range for my market; it has grown so quickly around here that even with all these increases I am still in the low end of mid-range. I need to keep increasing until I am approaching high-end.

What bothers you about people saying your rates are cheap?

 

[kimmiebballgirl]

What bothers you about people saying your rates are cheap?

I worry that people will think cheap means poor quality. My rates are in the mid range, most places charge $45 or $50 for a one hour session around here. Maybe some people think all massage in my town is cheap?? Perhaps someone just needs to pull ahead of the pack and let other MT's know that people in my town are willing to pay upwards of $60 to $65 for a one hour session.

It is a difficult choice... to be the one to stand out by charging so much more than other places... always the worry that I will lose clients.

 

[suzie]

I am still in the low end of mid-range. I need to keep increasing until I am approaching high-end.

No kidding, BJB. I didn't even know a massage could be had in your area for those prices.

I started out low-mid range, and was struggling. People would call and ask my price, then grouse and grumble that it was "too much." ($55/hour. Average was $60/hour.) I went to a clinic that was giving me some mentoring/setup help and told them I was having this problem... along with people who would book and no-show, people who came one time and complained about the price... etc. I asked if, since I was new, I should lower my price. She said "no, raise them. Now."

I don't know why I did, I'm stubborn and I figured they needed to be lowered. But I figured I wasn't making any money at $55/hour, what difference did I make if I wasn't making any money at $5-10/hour higher?

So I raised to $65/hour after less than 6 months in business, putting me solidly in the high range for my suburb. Guess what? People stopped complaining about my "high rates." Instead they made appointments. Slowly, rates have crept up to average $60-65, so I figure by the end of the year it will be time to raise rates. I will probably raise my 90 minute rate very soon (since I prefer to do shorter sessions.)

The way I handled it last time is I told clients that as long as they had a regular appointment, they could keep the old rates. If I didn't see them for a few months they would then be subject to the new rates. I still have 2 people paying the old $55/hour rate. When I raise my rates again, anyone who books at least once a month can keep the old rate.

My only discounts or "specials" are my packages. I'm thinking about getting rid of the 90 minute packages when I raise the 90 minute rate.

I don't feel bad, my officemate is 80/105 for deep tissue, and she is booked all the time.