Raising rates in this economy?

[johnny j]

Split from the rate increase poll (please vote if you haven't already ):

I am not sure if now is the best time to raise your rates, but you have to do it at some point, so, I hope this helps.

Indeed, I have considered asking about this in a separate post. I don't need to raise my rates right now, but some other folks do.

I can understand the fear of raising rates right now. On the other hand, when is a good time to raise rates, really? And the current economic situation may not improve for a long time. Meanwhile, if you haven't raised your rates in a long time, every day you wait is more ground you've lost, yes?

Thoughts?

 

[Celina]

I need to raise my rates. I've been the same for 3 years, and while I started higher than the local community, I'm now considered "a good deal."

lolwut?

But I haven't done it because the economy is rotten. Which is really a stupid reason because everything else is going up, and plus I deserve a raise.

I have no thoughts, just the frustration.

 

[apples]

just raised mine...and my business is real slow..I think I couldn't have raised them at a worse time..

 

[Jacob B]

well, I can only assume because I only raised them Oct. 1,but my week has been extra slow..so, I guess I should give it a few weeks till I will know for sure..scarey tho..

I think I raised them at a bad time..everyone is very afraid of not having they're money..but will see..

 

[2nd In Command to David]

I was put in a position where I pretty much HAD to raise my rates for a single modality - Thai massage - because I've teamed up with a thai massage school and IC there, so our rates had to match up for appearances sake. That was an increase from $80 to $100 per hour...but then again, I've been charging 80 for 7 years! So now I'm in the loop, I charge the going price

More recently, I decided that I wanted to level out my fees to be the same no matter which modality a client chose (except thai). That didn't go over so well with the one client who had something to say about it. My feeling is that she is one of those people who look around for the cheapest deals and never come back, so I'm not counting it as a loss.

However, that last one was a learning experience.

Questions:

1. How do you go about informing regulars of rate increases, in the most diplomatic and tactful way?

2. What is the most universally acceptable dollar or perceneforum.xxxe increase?

 

[Suz123]

I wouldn't raise rates until after the election. People are still nervous, and will feel better once the financial situation has had time to improve and the presidential election results have been accepted.

 

[A person you dont know]

I agree.... I haven't had any increase in 2-3 years and I am going to but not till next year. I would prefer to do it now, before holiday gift certificates are bought but I won't till after this financial stuff settles.

I am going to do it in March regardless of what is going on though. I haven't been paying much attention and realized I am starting to be below the average price for my area. :shocked:

 

[Vanessa M]

I wouldn't raise rates until after the election. People are still nervous, and will feel better once the financial situation has had time to improve and the presidential election results have been accepted.

I would do it now.

If people are nervous, they probably are cutting back on things at the moment. So fewer folks will notice the price increase between now and the end of the year.

If things get worse after Nov. 4 -- and there is a 50/50 chance they will -- then you are already positioned at your higher rates. If you have to back off of them with some specials you can. Probably not the best move to try to raise rates if things get worse.

If the situation improves in 6 months, then you missed out on 6 months of a price increase and will have to explain your increase to more folks who will be spending their gas savings and tax cuts in your establishment.

Raise them now.

 

[geegee]

As a rule, I always raise rates in the fall. I don't raise rates every fall, but when I do that is when I do it.

 

[518]

I raised my rates for the first time. They were effective Oct 1. I haven't had one single complaint yet and my business has not been affected. I wasn't terribly worried that I would have problems, but I do practice in a very rural area and business can be hard to come by.
I say if you feel the need to raise your rates, then go ahead. Gas has gone up, groceries, insurance co pays, - so why not the valuable work that you do? You could always offer some specials or coupons to ease the transition. Good luck!

 

[countryjohn]

Just raised my rates for hour, 1/2 hour, and 1.5 hour massages and then introduced 2 new session lengths for clients as well.......

10-15 minute quick fixes and 30 plus, a 35-45 minute session.....

Clients seem to like that there are more options for them now as well as the fact that I didn't "jack the rates to the moon to cover your overhead" as one of my fellows put it. With the cost of utilities, trash hauling, etc going up about $275/mo. I had to raise them or cut out phones, heat, light, etc to one extent or another. Most of my clients understand the necessity of it. I also put a note on the p'card that announced the rate hike that I'm willing to work with folks for whom the rate hike increases their financial difficulties. I work out a PRIVATE agreement between the client and myself as to what they can handle and what I am willing accept for the service and it goes into my rate list on the computer under their name. IF they tell anyone else what they are paying, the deal is off and they agree to that part of the bargain as well. It works well for me, and, it gives the clients with $$ issues the chance to maintain their massage schedule. The few that have taken me up on the private agreement offer are long time clients on pretty tight budgets, feel that massage is a part of their healthcare regiment. They keep coming in, and I'm blessed to have them coming in as well.