I don't think I want to lower rates, but...

[scatter_head]

I could really use some feedback about my current situation.

Here's a little background info:
I've been working as an MT for 4 years. November 2008 I started making myself available full time for massage (as opposed to a few evenings a week). I have greatly increased my client base since going full time. Unfortunately with the economy the way it is, most of my clients have decreased how often they receive massage. It seems to be that way for a majority of the MTs in town. People who had very busy practices and who have been doing massage for years have slowed down considerably.

About a year and a half ago at my previous location, it was decided as a group that all MTs at that spa would raise their rates $5 to $55/hr. Just before Christmas 2009, I moved my office. To insure my clients would follow me, to try to get new clients to try me, and as a thank you to my regulars, I offered a 1 hour massage for $39 for 3 weeks. I was as busy as I wanted to be, which was a nice change. I think part of the reason that special did so well was because it was a limited time offer. Schedule soon or the spots will be filled and you miss out! It's like an impulse buy.


I've tried all sorts of discounts and incentives to get people to come in and come back. Through trial and error I've found that having a rewards card (come in for the equivalent of two 1-hour massages, get $10 off the next massage), referral cards (the VERY best form of advertising for me), and offering $5 off for rescheduling before they leave have worked out pretty well. I have a website, online gift certificates, e-newsletters, and I just started a facebook and twitter account for my business.

After I give a massage virtually all clients rave about how wonderful the massage was and how great they feel - I must be doing something right! Also I offer Ashiatsu, which is new and exciting around here so it's been my saving grace. But still, I'm not nearly as busy as I'd like to be.

I have a few new marketing ideas up my sleeve which I'm going to try in the next few weeks. However, there's a part of me that thinks maybe I should just decrease my rate and get rid of the rewards and rescheduling discount to try to keep things simple(but keep the referral discount) while the economy is in the toilet in the hopes that people come in more often. There are pros and cons to that, of course.

What are your thoughts on this? I don't know what to do.