"Slave wages"...Hot debatable topic?

[Akuwa]

On another message board I frequent, this topic has come up, and has been getting many opinions from posters.  Though I was not the OP for this topic on the other message board, and I might possibly be off on some of the information I've gathered, I thought I'd bring it here and see how you all would like to opine:The topic was about the AZ.  franchise, Massage Envy.   http://www.massageenvy.com/  There was a story about it in a recent issue of Massage Magazine (the issue w/ the hikers as the cover story, I believe). What they do, apparently, is offer the first massage at $29.95, then the client purchases a membership, and  pays $49 a month which includes one massage and 50% off all additional massage services and products.  Without a membership and after the first time, the massage is competively priced at $60.  As far as I know, they do not work with medical insurance claims/billing, but I could be wrong. They have up to 25 or so therapists employed (as independant contractors), and they also do outcalls.  There are many hours available to work every week. The story says the therapists earn $22 per hour, but it really breaks down like this:  The therapist earns $15 per massage, $6 if they can convince the client to purchase a membership, and $1 every time the client comes back.  Oh, all the tips they earn as well (how big could a tip on $29.95 be?).  And remember, as an I.C., no benefits.  Massage Envy typically goes to the massage schools and recruits their employees.  The downside to this for the client is that most therapists would have little to no prior experience.The popular opinion on the other board is that this stinks for a variety of reasons.  Some say it's like Walmart's business strategy (corner the market and drive the little guys out of business by offering below market prices, then offer to bail the little guy out by giving them a job for slave wages).  Therapists earning low untaxed wages would have to pay taxes on their earnings, but with very few write-offs, so their final wages are actually much lower and paltry to today's living standards.  Also, I feel that therapists faced with having to struggle to pay their bills might be more likely to act unethically in order to earn extra income.  The therapist builds no equity, works very hard to bring in enough income to live just below standard, and if he/she gets injured and can't work, good luck and goodbye.If this franchise continues to grow and gain popularity, independant therapists may find the need to reduce their fees in order to stay competitive.  This could mean a reduced standard of living for those who have worked hard to get where they are.  The first time the franchise gets busted for "happy endings", it is sure to make national news.  This could give the entire massage industry a black eye, setting us back many years, and once again giving the impression to the public that massage therapists are little more than glorified prostitutes. I would like hearing comments from everyone,  including those that live/work in AZ or TX, where the majority of the franchises are located, as well as those who are employed or have been employed by this company.  I'd especially like to know what therapists living in these areas have experienced in their businesses, and if this company has affected their business in any way.  I, too, am under the opinion that this stinks.  How do you opine?  

 

[the rick]

"Slave wages"...Hot debatable topic?

I live in Arizona, and there is a Massage Envy place about 2.5 miles down the road from us. funny enough, they called me to recruit me just before opening for business. They got my name & home phone number from the Town of Gilbert (who licenses me!!!I was really upset that they gave away my info, although it might be of public record... I don't know too much about that). I never returned their calls. My biz partner has a friend from school that works there. It's not a great place to work, but its a job fresh out of school. I've heard that the therapists feel that they don't even have to do a great job... just put in the time, etc. (that is hearsay, mind you!)Anyway, as far as being a competitor in the neighborhood, it hasn't affected me one bit. I have, however, considered offering a massage membership to stay competitive. The place I just visited yesterday for Ashiatsu has just implemented a massage club membership program to compete with Massage Envy. I guess it wouldn't hurt me to offer it, but I doubt highly that it would be worth the effort of detailing & advertising, etc.I'm really interested in reading the thread about this. What is the link to the forum group you mentioned, please? I'd like to participate, if you don't mind sharing.Jill/Sagetherapist

 

[Pompal 09.]

I'm in CA so I don't have one near me.  I did, however, read the article in massage magazine and my initial impression was that Massage Envy has an interesting business model.  However, I can't support the low wages paid to the MTs and find myself wondering if the MTs working there are truly independent contractors as defined by the IRS and/or state labor laws.I get so irritated when I see/hear about MTs working in salons/spas/chiro offices being paid $10-$15/hour.  Yes, that really happens!!  One year after graduating MT school and establishing my own practice, a chiropractor actually looked me straight in the eye and offered me $10/hour to work in his office AND he wanted me to answer phones too!  It was all I could do to NOT laugh right in his face!One thing to consider about all those low paying jobs that are rampant in the field of massage...if MTs stopped TAKING those jobs the wages would improve.  As long as MTs ACCEPT low wages, MTs will be paid low wages.-end of rant-BTW, I second Jill's request for a link to that other forum.  I would be interested in reading/participating in that thread as well.Pete

 

[kAt Go RaWr!!!]

"Slave wages"...Hot debatable topic?

I believe you must be an AOL member to access the message board; I know there's a way to get an AOL screen name to do instant messaging and participate in message board discussions, but I am fuzzy on the exact details.  Go to http://www.AOL.com and there you can follow the instructions to set up a member name (if you don't already have one).  Here is the link to the AOL Massage Therapy message board:

http://boards.aol.com/aolweb/artlist.mbl?boardId=391819

I hope this works for you... It took me a while to get this link (I had to go about accessing the message board another way).  If you try it and it doesn't work, let me know, and I'll try to find another way, but it is worth the effort to try... I like the group there, and learn a lot from the participants.  People post there a little more frequently also, so there's always some new discussion going.

 

[jim jim the dog faced boy]

"Slave wages"...Hot debatable topic?

>>I have, however, considered offering a massage membership to stay competitive. The place I just visited yesterday for Ashiatsu has just implemented a massage club membership program to compete with Massage Envy. I guess it wouldn't hurt me to offer it, but I doubt highly that it would be worth the effort of detailing & advertising, etc.

 

[concerned]

BTW, on the subject of punch cards, my boyfriend and I offer the 11th massage free (spread out over time, that would take $5.45 off each massage, making an hour session $54.55 instead of our usual $60.).  The free session is equal to one hour, so the client can opt to upgrade to a 90 minute massage for $25 more, and they ALWAYS do.  This way, I still make some money for my time.  When I raise my rates to $65 this summer, I will offer the punch cards to everyone at the same time, so they will essentially be paying the same amount in the long run, since they are working towards a free hour.  Although I doubt that many people will mind paying the extra $5, anyway.

 

[Mitsuna]

I agree with you Traci about the punch card (or series, however you'd like to word it). Much easier for all to handle. I do see the ease in paying a mointhly membership fee though too... only $49 per month debited from your credit card, etc, instead of a hefty pre-pay. And that's definitely a good idea about advertising "no contracts/no debitting" for the offer. Having said all that, the bottom line is that I'd much prefer to have steady clients who book in advance, pay as they go and keep coming back because of the value they perceive in their bodies. (Idealist in me! ha)Interesting note: we have Massage Envy down the road, also a place whose big roadside signage advertises $49 Massage anytime, and also a full service salon that is decorated like a strange bordello (I am not sure that they are or are not doing anything unethical though... it just looks creepy). Then there's us and one other full service salon about a block away. I've gone to that gal as a client over the years & even refered her business when it was appropriate to do so. She has a healthy business; we have a healthy & happy business. I am so driven though; I'm always pushing for growth & expansion, but that's me. Guess what I mean to say is that those 'other places' are very close by, but they are not breathing down our necks one bit.***On the comments about MTs taking & therefore supporting $10-$15 per hour wages:  they are just that. It is a job/business decision for those individuals. When you're an employee (and maybe young, or just starting out in a Massage career) there is a nice ring to just showing up & doing the work; having your taxes & SS paid through the company's bookeeping, etc. Many of those might outgrow those places & venture on their own. Not everyone is a natural risk taker or as adventurous as you'd need to be to 'do it on your own'.I think there's room (and clientele) for it all, frankly.Jill/Sagetherapist

 

[prettypinklucy]

>>>On the comments about MTs taking & therefore supporting $10-$15 per hour wages:  they are just that. It is a job/business decision for those individuals. When you're an employee (and maybe young, or just starting out in a Massage career) there is a nice ring to just showing up & doing the work; having your taxes & SS paid through the company's bookeeping, etc. Many of those might outgrow those places & venture on their own. Not everyone is a natural risk taker or as adventurous as you'd need to be to 'do it on your own'.

 

[Soundgardener1980]

"Slave wages"...Hot debatable topic?

Yes, it's true that if they are Independent Contractors at a place like ME, they won't be building much except experience. However, they could look at it as an internship year (or whatever time frame). And they can take the education tax credit to write off their massage school tuition. I did it when I went back to school in the summer of 2000. I ended up getting a full refund of all my taxes paid that year (including the wages from the "job" I did from Jan through June).Don't get me wrong. I'm really not supporting the way ME does business. I just don't feel threatened by them, so I can see their point of business practice and look at it for what its worth. The franchise owners are smart. They are making good money, and some MTs fresh out of school are getting a secondary education by working there, in the school of hard knocks. They are paying their dues, yes the hard way, but they also chose to take that route. They may feel a bit scared to 'rent' right away, or not know clearly what they 'see' their future practice to be. I don't think ME has any illusions that those fresh MTs out there are going to stay with them for any length of time. Then again, I don't think that phases them one bit either. They just have to have enough therapists to meet the volume of clients.I would never work there. They just recently ran an ad in the classifieds for a management position, paying 20-24K DOE. I really laughed at that. If I were to be in the position of taking a job there (IC status, I mean), I would also start building my private practice on the side, doing in-home appts, etc. And even though they cannot take clients with them when they go, if a client wants your work, they'll find a way to follow. Or you'll find a way to let them know.Subjects like this get really hairy.Traci, please don't think I'm arguing... just writing my thoughts out. I don't support places like ME, but then again they sure make my practice look good! ha.Jill/Sagetherapist

 

[star42]

"Slave wages"...Hot debatable topic?

>>>Subjects like this get really hairy. Traci, please don't think I'm arguing... just writing my thoughts out. I don't support places like ME, but then again they sure make my practice look good! ha.

 

[<barbierox>]

"Slave wages"...Hot debatable topic?

I work as an employee for a small day spa, in addition to my private practice. I am paid $20 per massage. I thought this really sucked at first and wondered if I was being used and then I started thinking about the expenses the spa has to put up. They charge $65 for an hour massage. $20 of that goes to me...$45 left. I figured the cost of the rent/laundry/utilities/supplies/etc to come around $20 per session. The spa isn't very busy yet as it is new and as it gets busier, this figure would go down quite a bit. So $45-$20=$25 gross profit for the spa owner, which is not very much, because this doesn't include the cost of marketing, taxes and the whole hassle of running a business.$20 per massage is still not very much, but it is nice to just show up and do the work and leave the laundry and business worries to someone else. I have my own business to work with...working for someone else is almost like a vacation I get paid for.

 

[Fashionislove]

My friend worked in a health club for $29/hr.  She used it to help pay the bills while she worked towards her own practice.We did the math on it one day.  She was paying about $900/mo in expenses.  Figuring that she earns around 3K/mo gross, she'd wind up with $2100 after expenses.  Based on that figure, she would need to do 87.5 hours of massage in a day spa per month (at $24 per hour) to make what she was making in her own practice, so it comes out almost the same, and there would be no other bills to pay, unless she decided to advertise herself above and beyond the day spa.  The big deciding factors for her were  A), she wouldn't be investing in herself;  but what's more, B), she has MS, and when she has a flare-up, she can't work for several days.  If she were employed by a day spa, she couldn't just call in sick for days at a time, or she'd surely be out of a job.   She decided to stick it out with her own practice, and it turned out a wise decision.  The first couple of years were tough for her, but well worth it in the long run.

 

[S. Parkmen]

That is total slave wages!!!  Which is another beef I have with working for other people.  Why am I going to kill myself for someone else?  I have an Excel spreadsheet that I always do my totals on and in May, I did about $4000 worth of business for the spa and my take was something like $1500.  That pissed me off, and while the Massage Envy place SOUNDS good, in theory, it sucks for the people that work there.  I'm not saying that I wouldn't sign up for something like that if we had it because I probably would, and there is a place right up the street from me and they do one hour massages all the time for $49.  The girl that is running the show has a great idea and she's only been open since last summer, and it's a great thing, but I don't want to make 20-25/hour per massage.  Been there, done that and I've learned my lesson.