Lowering My Rates...

[britaniisaurusrex(:]

I know, you're all gasping right now. I am actually lowering my rates as an all-around discount for the next few months. Right now I charge $40/hr for relaxation. But this past month has just plain killed me. I started my practice this June, and throughout June and July I was getting next to nothing. I then ran a special for the police departments in the area, and my schedule was semi-full, but their deal was they get their first session half-off. This generated a few repeat clients, but now even they have stopped coming by since all the activities springing up around town. See, for the past month or two, we've had fair after fair. There was a Rice Festival (ugh...), which lasted 2 weeks, then a week break, then the state fair, which lasted another 2 weeks. This killed my business in a hurry.Well, for a while I was getting 10 - 15 clients per week paying full-price, this was after my Police Special was over. It went this way for about 5 weeks, then the next week it dropped to 5 that week (after 8 CANCELLATIONS the first week of the fair!!!). The next week, about 3, after 4 cancellations / no-shows. Last week I had 2 appointments, and this week, after my first appt no-showed Tuesday, I've got one scheduled today. 1 appointment all week! Rent's due for my apartment Monday, and all the bills are in, and I'm almost flat broke. I can't afford rent so far, I'm hoping that a chair gig that I have tomorrow at a local middle school will at least help me raise enough to cover rent.So, to make a long story just a little shorter, I'm going to be lowering my rates to $30 from now until January or February. I really don't want to, but I feel that I have to in order to pay bills and hopefully sell gift certificates in the process. I'm really not sure if this is a good idea or not, and would like some input, but to let you all know, I've looked for part-time jobs for the past 2 weeks and nobody seems to be hiring (all have already hired thier christmas help), so I'm basically having to make massage work out or be evicted. I've applied my new cancellation policy (with Pete's help) and hopefully that will stop all the no-shows and cancellations the same day their appointments are. I just don't know what else I can do!

 

[skoolgirlqt03]

Since it is the Season to be thinking about Giftcertificates why dont you approach it from doing a sale on them vs. lowering your price?  That way when you raise it agian it wonte be such a shock to the clients and it wonte be so hard to do.  You could do something like buy 2 G.Cert. and get 20% off (something).  Kinda like what they do for pkgs.

 

[rarehuntress]

Lowering My Rates...

Hijust wondering what the other mts in your area are charging?Some times raising your rates works better than lowering them.

 

[Natascha]

Lowering My Rates...

Well, I guess I should have put it a different way... 'lowering my rates' seems so... permanent. It's more of a "holiday special" how i'm going to put it to clients when I tell them. It's only going to last until February, as January is always a slow month in this area for everyone.As far as the gift certificates go, I think I'll be doing a Buy 3 Get 1 Free deal on those at regular price, so 4 GC's being only $120 (which is already $30/hr as it is). The problem with that is I have to actually get clients to come into the door in order to sell GC's, even at a discounted price. JC, well the going rate in my area is $30 - $40, and I've heared a lot of people hear my rates and say they're too high. I'm thinking maybe settling for $35/hr, because when people hear 35, they really hear the 30 part and somewhat ignore the 5. So $40 seems like more of a jump from 30 than $35 does.This is mainly a promotional thing, to get out of the red and get my name out more, I have to do SOMETHING to get clients walking through my door. The hardest part is doing it with no money to do traditional advertising, so I'm depending on word of mouth, referrals (I get quite a few of referrals, thank goodness), and free internet advertising.

 

[h m]

Lowering My Rates...

do you do any ins. work or just cash.are you in a small town or big town?are there any stores you could set up drawings for new clients?can you offer a special deal to a local grocrey store foir its employies to say decrees the amount of carpeltunnel porb.? low back injuries?sorry for the spelling.

 

[i am me <3]

Lowering My Rates...

do you know any nail or hair people that you could do a deal with. mabe a combo holliday package?

 

[fenwick]

I think there are two different issues at hand: getting your name out there more and giving discounts. I don't think these two go hand and hand in your situation. From what you are saying, you want to get your name out more, but I don't see how lowering your rates will do that. How will people find out about your rates? I think you should focus on marketing and not the price. If you think your rate is too high, maybe you should just charge a middle of the road price for your area. You said you just started your practice in June, so if you started out on the high end, I think it will be hard to increase your rates sometime down the road because then you'll be much more expensive than all the other therapists in town. You say you get quite a few referrals already from your clients. I would work that a bit. Send them a card saying you appreciate them. Mention you are having a holiday GC sale and offer something to them for buying GC for their friends.  Remember, building a thriving practice will take a long time. I think you should expect the first year (at least) to be full of ups and downs. Good luck!Michelle

 

[Knightmare]

Another idea with the gift certificates -You usually do one hour bookings?  If you don't usually have 30min bookings, offer 30min gift certificates at $17.50 (you can always say you normally charge $22 or $25 for half an hour).  You will probably find people are more interested in getting multiple certificates if they are cheaper - if the area is resistant to $40 for a massage, they probably are even more resistant to spending $40 on a gift for someone, and even less likely to spend that much for multiple people.  Make them a short expiry (if you are allowed to put expiry dates on them) say end of Feb.  That way you should get quite a few new people through the door.   When they ring up to book you can ask them to upgrade, to a full hour for $20 or $25 (you're still making around $40 if they upgrade) or even when they get to the office, just book them in as if they are one hour appointments.Your client gets a cheap gift certificate, they know the person using the certificate will be offered the upgrade at the more expensive rate, so they look like they spent more on the gift than they actually did, the recipient gets a full hour at half price if they upgrade, and you hopefully will sell more certificates.  Maybe even put "upgrade to a full hour for $x" on the certificate?You might only be able to sell 5 one hour certificates, but you would probably be able to sell 15 half hour ones that may turn into 5 upgrades which would be like selling 10 one hour certificates.Tell your regulars they can have the same rate as the gift certificates for Dec/Jan.

 

[magidge]

Lowering My Rates...

What kind of larger businesses do you have in your area? We teamed up with the County and the Hospitals in the area and had GC sales at their work. We were also involved in the craft fairs they have this time of year. We usually sold quite a few GC. It makes a great Christmas gift and people like the convenience of going down the hall to buy the GC. The other positive of going to large companies is THEY WILL ADVERTISE THE SALE FOR YOU. The hospital had a monthly flyer they handed out and e-mailed the sale to all the employees.

 

[Socky]

I have mixed feelings about this post.  First off,  I believe that we can not buy a share of the market.  By this I mean that even if you are the lowest priced therapist in the area you will not necassarily be busy.  Presumed Value becomes the issue.  Ihe only charges us $35 and almost everyone else charges $45 then he must not be as good.  There is a whole field of study to this.  Secondly, a lot of therapist get into trouble when they put the GC sales money into operating capital.  If they use that money to get by on now, what happens when you get 20 appointments scheduled for next month and they are all GC sales, so no money at time of service.  Then you are busy but you have already spent that money.  Thirdly,  how will all the clients that you have worked on in the past feel if they find out that you have lowered your price (even for a short time) without consideration for them.  What I suggest is to add value to your product,  If your clients book a one hour appointment then you give them 30 min extra,  or a gift cert for 30 min to give as a gift, or something that works in your situation.What most people don't understand is that others want to help you.  They feel like they have been beneficial in you success.  So do what most big business have forgotten to do.  ASK FOR THEIR HELP.  Tell you clients, "I am trying to grow my practice, so that I am a viable business, could you please help me by referring some friends and family members.  For every 3 referrals I will give you a free 1 hour appointment and be eternally grateful."  I did this and I was amazed at how many people said--'I can help YOU!  I thought you were doing so well that I was afraid to send you anyone because I didn't think I would be able to get in myself."  Within a few weeks I had doubled the number of clients I was seeing and now those clients that helped my in the beginning are still with me 7 years later.  Hope this gives you something to think about.Big Dog

 

[ChazSexy]

I have one small suggestion.  I notice from the rate information listed on your website that 30 minutes is $30, 60 min - $40, 90 min - $60.  Looking at this another way, your rate for both 60 and 90 min massage is 67 cents/min so there is no incentive or price break to encourage clients to choose the longer massage.  My suggestion is to raise your hourly rate slightly, while keeping your 90 min rate the same. In other words, make 90 min massages your best deal.    This makes sense for several reasons.  Once your marketing has been successful, and your client is on the table, the additional half hour is simply your time and energy, not additional overhead, laundry or marketing costs.  If your client pays another, say ten bucks, for that extra half hour that is ten extra bucks you made for just 30 more minutes of your time.  It is much more efficient in every way to do five 90 minute massages than fifteen thirty minute massages, and your pricing should reflect that.Also,  your clients will be more satisfied and you will have more time to focus on providing your best work, paying attention to your bodymechanics, etc.   Just a suggestion.  

 

[Tayman]

once you lower your rate, it's very hard to raise it back up.Offer your client who come in and pay the regular rate now a 50% dicount for the next appointment, prepay. that will assure they will return fro the next appointment. in a way it same you time. figure the math. 50% off the second appointment+ full price for the first one = 25% off of each.  run some special bring a friend for a free half hour. you cant build your client base very fast.  When the economy slow, it affect lots of people that can spend the money for leisure, many people think of massage therapy as a leisure, so target the oppostive group of clients. just like muscle, you need to work the extensor and flexson. are you only doing one only?

 

[chaosjmf]

I encourage you to call your existing clientele and see how they are doing.  Calling is less expensive than mailing and you get an opportunity to talk with them firsthand.  Plus it is much easier to get someone to come in again than it is to get someone to come in for the first time.You mention lowering your prices for a Holiday Promotion, might I suggest you offer this as an exclusive to your existing clientele first as a reward/thank you.  Since you are looking for quick cash you want to make your packages extremely easy and affordable.  Keeping them in increments of $50 (2 half hours for $50) and $100 (or 3 hours for $99.99) are easy numbers to digest.  Also putting in the session cost or total savings helps them see what they kind of deal they are getting (this brings the session cost to $33 a huge savings off of the regular rate!).A call might go something like this:"Hi, this is Seforum.xxx from Seforum.xxx's therapeutic Massage, it has been a while since I've seen you and I wanted to know how you are doing?  Is your neck still bothering you?  I know we discussed how regular massage can really help the problem you are experiencing.""I remember you had a preference for evening appts and I wanted to let you know that I had an opening come available tonight at 6:15 would you be available to come in tonight?  Okay, great I'll see you tonight!"  OR"I understand it is short notice.  I do have openings next week in the evening.  Would you like to schedule for one of those?  Do you need a reminder call for that appt?""And, oh btw, I wanted to let you know that I am offering an exclusive Holiday Package to my existing clientele as my way of saying thank you for your business this year.  It is a screaming deal of 3 hours of massage for only $99.99.  This brings the session cost to $33 an hour!  You can use the sessions for yourself  or give them away as gifts to your family and friends!  This promotion ends November 30th -- I would really enjoy the opportunity to work on you more often so I hope you will take advaneforum.xxxe of this great offer.  The gift certificates are available at the front desk."Obviously you would frame certain things differently according to your client and their needs.  The idea of having a daily call list to fill appts while offering a discount to them for last minute sessions is a great idea too.  That can bring in quick $$.  You could offer a choice between a $5 discount or 15 extra minutes for free if it fits into your schedule to do so."Hi, this is Seforum.xxx of Seforum.xxx's therapeutic massage.  I noticed I hadn't seen you since (insert date) and wondered how you are doing?"  "I have had some interest from a few clients to start a call list for last minute openings in my schedule.  I thought this might be a good way to stay in touch with my clients and have decided to try it out.   The way it works is when I have a last minute opening in my schedule I will call only the people wishing to be called and offer it to the first person I reach.  If you take the appt you will receive either $5 off the regular session price or you can add 15 minutes to the session (if it fits in with my other scheduled appts).""Would you like to participate?  Wonderful!  What day or days would you be interested in having your name listed?  Are there certain times of the month that work better for you?   In order to reach you I will need your cell phone #.   Thank you!  Now, remember you don't have to wait for me to call you to come in and see me! )  I appreciate your time and look forward to working with you again in the near future."Good luck!

 

[gem69ine]

Lowering My Rates...

Wow! What great ideas, Intuitouch!I'm going to try some of your suggestions out. I'm trying to get my web site up and running before the holidays so that's another excuse to call clients I haven't seen in a while. Thanks for the valuable input!Be well,Jen

 

[joe]

Lowering My Rates...

Thank you all for the great ideas!JC: I do only cash, I'm still trying to get into insurance billing. I'm in a small town. There are a few business around, i'm wanting to start having drawings at the businesses in the shopping center. I need to get some fish bowls and entry cards made up NOW.Tiamouse: I tried the lower rate for about a week in my online advertising and word of mouth, and have had about 5 clients book at the rate so far in a matter of a couple of days. I let them ALL know that this is only temporary during the holidays as a holiday special, and the price of my regular rate. I'm also very responsible with all income that I get. The only thing I spend money on is bills. I don't need anything else, so I don't buy anything else. I do know that it has ups and downs for the first year, but this is my sole source of income. I have no other job, no other source of income. I am doing massage to support myself, and it's just a down time right now. In order to keep my practice, my office, my apartment, my vehicle, and maybe a bag of ramen noodles every now and then, I have to do massage. I cannot advertise, so I am using my phone, mouth, and computer to do all advertising at the moment. Giving this discount has seemed to help out a little, and if i get the chance to advertise it more, I will do so as it seems to be working. I won't keep it at this rate, but for now it's starting to pull me out of the red for this month.I really like Intuitouch's way of telling clients that you miss them. Those are great ideas, and I will put them into action immediately. Thanks a million!

 

[Coach Bradley Dunagan]

Hi seforum.xxxgnantsounds like things might be turning arround for you if so SWEEEET if not dont worry it will. This time of  year is tuff when your getting started. we all gone through it sigh.I thought of a cupple of things for you though. You said you do only cash awsome( way less paper work ;D)so Martial arts studios and gyms are a great place to get people and they usally have a bord that you could put a litle flyer and some cards on. or what about the police and fire dept. they work hard and could certinly use the strees relief making a deal just for them could pay off in spaids now on to Ins.the best way to get into this work (Barring a friend who just got into an accident) is to do demos on the doc's in your area show them what you have to offer their clients.I wouldn't at this time if I were you worrie about major Med just go for auto and L&Iwhen you do get a doc that sends some one to you be sure to send them a little thank you a GC to something in town   it keeps you on their mind and also sets you apart from a lot of the other MTs in town and that is keyalso when you do ins you might want to adjust your rates ;D (just an idea dubble your cash rate)hope this helps

 

[2010]

Lowering My Rates...

Seforum.xxxg, you seem to be working at this really hard and I wanted to commend you on your efforts.  Getting a business up and running is hard enough and keeping it going is going to continue to be a challenge.  In the end, the payoff of your own business is delightful.  I just go up and it's 11:30am, that's the payoff part - and yours will come soon enough.  There are a lot of great ideas already posted, especially BigDog's, don't discount asking those your helping for help.  Also, your original post gave the impression that the "fairs" negatively affected your business.  Perhaps next year, think about partificipating at the fairs and get your name out even more through them.  It sounds so corny, but change the negative into a positive.  Also, you mentioned trying to get a part-time job which many have done.  I know I could write a book with some of the things I did while building my practice - pool boy, telemarketer, cater waiter to name a few.  Seriously though, what about lowering all household bills too (while your building your business) - cancel cable, water, paper delivery, get a roommate, anything that will ease the load.  They are all temporary and will all come back when things change.  Last, and I know it's the last thing you have time to think about, but think about your long-term business and how the decisions you make today might affect your later business.   If you're not filling up the appointment books right now, why not share your space which might bring some income in during your down times.  Good luck and keep up the hard work, it's so worth it!  Joe E.  

 

[2290]

JC, thanks for all the tips, I had kinda thought about the martial arts studios, I'm trying to find some of the mroe busier ones around to post flyers up, but thinking about it, any will do. During July when it was this slow, i offered a deal with the police stations around. I offered a free half hour, and the option to upgrade to an hour for only $25. MANY took me up on this offer, and I was out of the red pretty soon. Thing is, it was all from one police station, the other cities that were just as close to my office as this one didn't even make a single call. It worked out well. 2 weeks ago I spent a lot of time making materials to get the local hospitals in on that same type of deal, only for $30, but I found that hospitals are a little harder to crack. I'm still trying them, only the effort and lack of getting through the front desk ladies is starting to make me think I should drop them and try something else. There's a lot to go through just to get a flyer circulating there!Joe_E, I'm already looking into the fairs next year, as i'd LOVE to be able to set up a chair there and make some cash during the usual down-time (it's slow for almost everybody when the fairs come around I found out, especially salons, chiro offices, and MT's).  Booth rent will probably be outrageous, but as long as i can make something out of it, it'll be worth it.I'm also currently trying to find an MT that I trust that will share office space with me. At least half the rent, probably more since I can supply them with the table, decor, music, etc. I mean, if I'm not in my office, it's just sitting there being paid for, might as well let someone help me with rent!  ;D

 

[Antonia K]

Lowering My Rates...

Hi Seforum.xxxgnant,I have a thought -- going on what Joe E. Suggested about finding a therapist to rent space with you.Why not post a request on all of the board forums?  You never know, you may find someone moving or someone in your area who has been lurking here forever.Also, maybe the reason you are getting so many people from the surrounding towns is because the people in your town aren't as open minded or don't want to be seen going to a therapist?  Just a thought as to what is happening (since you mentioned that).  Since it seems to be more work from other places, I think targeting other places is the way to go then.  Someone a while back mentioned they put a fish bowl in a flower shop or some such place, offering free massage and it worked like a charm.  I know many are saying don't give away free services, but at the same time it may be another thing to use in an outside town?  I'll try to find the link to that thread today or tomorrow.Lastly, I rented space to another therapist for about 7 years.  Charged $300 and then raised it to $350 that last year (when I started getting a bit busier and knew it was time to consider being a sole proprietor) -- I only went through 3 therapists doing this.  The first stayed one year, the second stayed one year and the third stayed 3 years.  Each had their own key to their own room in the office and I had the doors keyed so the therapist could only get into the front door and the therapists private room.  It worked out great.  My stuff was still locked up that way.  I know your situation is different, but maybe this gives you more for that creative thinking cap you have.  I'd also consider renting with an acupuncturist.  You may be able to even find someone (acupuncturist) from Louisiana who is interested in working a few days over here in Texas.  I think the law is still such that to practice acupuncture in LA, you have to work under an M.D.'s license.  SO, it may be up for grabs for them to consider doing a little traveling a few days per week so they can practice on thier own in TX.Hope all goes well.  If I think of more ideas, I'll pass them your way.

 

[Sasuke U]

Seforum.xxxgnant,I did the same thing with the fish bowls. I waited until Garden Ridge had a special (3 of them  for 99 cents). I got 6 of them and posted them around my town at various hair or nail salons. I tried to leave them at chiropractors offices; however, all of them I've gone into already have an M.T. on staff already.I'll be going around every other week and pulling the cards out. Call them and say that even though they didn't win the free massage, I'd still like to give them a discount. The one that did win the free massage, I would call and congratulate, then tell them that they won a free massage if they bought one at the regular price. That way, even if I'm giving away services, I'm still generating income and getting them to come more than once, hoping to initiate regulars that way.Hope this idea helps you!Be well,Jen