race to increase rates

[Pompal 09.]

Massage rates in my area are going through the roof. I live in a smaller comunity, a micropolitan area technically speaking. There are bigger cities around my city, but you have to drive at least an hour to get to them.

I live in a smaller community. The nearest big cities are at least an hour away. Rates for an hour massage range from $40 to $70. I charge $55 and have been doing this for about 4 years. I also have an employee with 2 years of experience.

There are two therapists who charge more than I do and seem to be raising their rates every year. As soon as one raises their rates, the other one raises her rates too. They are truly pulling ahead of the pack. I would love to be paid $65 or $70 an hour, but if I raised my rates $20 an hour, I would lose all of my clients. My employee fears even a $5 increase would terribly effect her client load.

Does anyone else have clients who complain about money on a frequent basis? I have some clients who complain about gas prices, work hours being cut, and the economy. Then, the next one will tell me my rates are cheap. Then the next tells me massage is expensive!

I really worry that massage is getting priced out of what many people can afford. Or am I worrying to much or about nothing? Or do you think I am undervaluing my work?

 

[Prianka]

I rarely raise rates, so when I did, it was a $15 jump, from $60 to $75.

In the end, I don't recall but loosing a few regulars, and those were ones who complained about cost in the first place. Both eventually have come back to me, if that helps any.

I may have lost more, but can't recall as that was a few years ago that I raised prices now. I do know that my schedule has increased and not decreased since that time.

We've also got a few threads around here regarding those who have raised their rates. In most cases it has been helpful to the therapist on a number of fronts.

 

[a7x2121]

I have not checked on the rates of the others around me since I set my rates 4.5 years ago. I did check then, but did not set my rate to reflect anyone else's, anyway. I charge what I need to be compensated for my time, expenses and skill set.

When you need to raise your rates, you will know it. You won't need competitors to tell you.

 

[Pompal 09.]

I will share my approach, and invite you to take what works for you and leave the rest.

I'm curious to know what cost of living, etc, is doing in your area... is your community getting just plain more expensive to live in generally speaking? Have your business expenses gone up? If either of these are so, perhaps it might be time to raise your rates?

They are truly pulling ahead of the pack.

I might ignore these two as outliers, then... look at what the real market average is in your area and decide where you want to position yourself in relation to that. Do you offer below average, average, or above average services?

...if I raised my rates $20 an hour, I would lose all of my clients.

So perhaps you raise it less, if you decide to raise it at all.

When I raised my rates, they jumped $25, and I got more clients not less, and they valued massage more than my previous clients... but it turns out I was charging about that much less than the average for my area.

My employee fears even a $5 increase would terribly effect her client load.

I can't recommend making business decisions based on fear. And I think most people's experiences (as reported on these forums) raising rates have been overwhelmingly positive.

I really worry that massage is getting priced out of what many people can afford.

This is a concern for me too. However, in my community there are several non-profits offering massage and other holistic services on a sliding scale basis... I really think this concern is best addressed by organizations such as those, that can get funding through donations and grants, and not by private practitioners and small businesses.

Perhaps if this concern is a particular passion of yours, you might consider changing your organizational model?

 

[witnessofJesus]

I agree with what has been written above. Although I'm just beginning to see clients on my own while still working five days a week in a massage clinic, I was torn with what to charge. I wanted to be competitive in a somewhat saturated market, but I also did not want to underprice my services. I decided to charge $70/hr, $100/90, which is $10 less than what the clinic charges, while being more or less on par with private practioners in my city. As I acquire more and more clients, I will transition from a 'extra spending money' mentality to a source of income. So, in my portion of the world, my pricing reasons are different than yours.

I wouldn't necessarily base your pricing on what other therapists are charging (unless you are pricing way below - in which case, you could be perceived as offering an inferior service).

Are you 'just getting by'? If raising your rates would lighten your financial burdens, this might be a very good point in favor of increasing your rates.

If you do raise your rates, do so with an increase with which you'll be happy for the next couple of years. I'm a little leary of raising rates every year.

If you do raise your rates, offer your current clients an opportunity to purchase a package at the current price as a possible way to 'ease' them into the new rates.

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As far as people complaining about your current prices being expensive...

If you lowered your prices, those people would still probably complain.