To lower (prices) or not to lower prices..

[Firefly101]

I know it might be somewhat "challenging" to imagine that I am a talented massage therapist by looking at my avatar, but that is, in fact, what I am. I have been in this profession for 16 years. I recently relocated and want to offer my services in-home. I 've done home visits here and there, but have never tried to do this exclusively.

I am very hung up right now about whether I should charge what would normally be an appropriate amount of money to have me come to the client, or whether I should lower my rates "because of the economy." That pisses me off because I am very good at what I do and because an hour massage in-home is really about two hours of time for me and I should be compensated for that.

I'm in a mid-sized city in the midwest. What I want to charge is $115/hr., which is very fair. What I feel I should charge to be affordable right now is more like $85, which is a steal, but which might generate more business.

What do you think? What would YOU pay to have a very good massage in your home? Is that desirable/undesirable?

Any and all feedback is appreciated. I am, once again, trying to examine my beliefs, attitudes around doing my work. Right now I'm broke and that's unacceptable to me. I have got to figure out how to make this work or get the hell out of it.

[curiouslyrandom]

Originally Posted by Firefly101

I'm in a mid-sized city in the midwest. What I want to charge is $115/hr., which is very fair. What I feel I should charge to be affordable right now is more like $85, which is a steal, but which might generate more business.

I recently paid $100 for a one hour massage in a high end salon in the San Francisco area. That was including the tip. My yoga teacher offers massage for $70/hour.

$115 is fair for your time and effort, but it also seems a bit high compared to what I've seen others charge. Maybe because on the West Coast we have so many LMTs and CMTs per capita? In Oregon it was something like $65/hour, but the cost of living there is cheaper than in California.

You could do an hourly rate plus mileage, with a discount for clients in your immediate area. Also, what is your usual demographic? Do you work on sports injuries, chemo patients, the elderly, or just those looking to relax? I think all will help determine what sort of discount, if any, you might offer.

[VinceG]

Offer a teaser rate of $50 for one hour. Only offer it to people who have the money to keep coming.

I would lower prices only as a last resort. It's a lazy way of getting business.

[SlicK]

You could also try to do the first session for less money. It's an opportunity for you and your clients. An opportunity for you to show that you're worth your money. An opportunity for them to see that you offer quality service.

Clearly specify the deal with the first session and the fact that the next ones, if they'll want to continue, will be for the normal price.

You could even be so "crazy" and offer a crazy-ass-low price because you're so confident that they'll love it and come back for the full deal for the full price. Quality people will choose quality service.

[Firefly101]

@ curiouslyrandom: Thanks for replying. Wow, massage therapists charge only $65/hr. to travel? Geez, I charged $60/hr 16 years ago when I just started out to have clients come to me! There is no way I could lower my rates that significantly and feel ok about it...or maybe you meant $65/hr for an in-office visit?

Hmmm, yeah, demographics.....my clients have been serious marathoners and cyclists, pregnant women, people seeking energy work, people interested in wellness, I've seen children, the elderly....it runs the gamut...I am good with a wide variety of issues, which I used to think was wonderful, but which lately I think is not so good, as I might appear to be a jill of all trades, mistress of none. No "specialty" to market, although I tend to think of that as hooey anyway...

@VinceG: Ha. I know, I know. Unimaginative to say the least. But I am pretty stuck on the question of what attitude to take toward charging for my services...

[VinceG]

Originally Posted by Firefly101

@VinceG: Ha. I know, I know. Unimaginative to say the least. But I am pretty stuck on the question of what attitude to take toward charging for my services...

If you charge higher than the market rate for your service, it's absolutely essential that you do not ever in any way indicate that your service isn't worth the money. When it comes time to ask for payment, don't even flinch as you ask for your full fee. If someone questions, then tell them you're sorry, but you'll be happy to recommend someone cheaper. (use that word)

[curiouslyrandom]

Originally Posted by VinceG

If you charge higher than the market rate for your service, it's absolutely essential that you do not ever in any way indicate that your service isn't worth the money. When it comes time to ask for payment, don't even flinch as you ask for your full fee. If someone questions, then tell them you're sorry, but you'll be happy to recommend someone cheaper. (use that word)

I agree with this and practice it in my own businesses, even though I've also lost customers because of it. At best I've had repeat customers who appreciated the level of service I offered with my prices. They felt the price reflected what they would get out of the experience, and so were pleased rather than disappointed. At worst, I've lost buyers who simply couldn't afford to buy from me without a deep discount.

Time and time again I've been at shows and heard "that booth over there is cheaper than yours, but I don't like their service. You're really attentive and that makes be feel better about buying from you."

I can't remember if the $65/hour was for in-house work or not. It's been a long time since I've lived with any massage therapists who did house calls, but I did for a few years.

[Firefly101]

Originally Posted by curiouslyrandom

I agree with this and practice it in my own businesses, even though I've also lost customers because of it. At best I've had repeat customers who appreciated the level of service I offered with my prices. They felt the price reflected what they would get out of the experience, and so were pleased rather than disappointed. At worst, I've lost buyers who simply couldn't afford to buy from me without a deep discount.

Time and time again I've been at shows and heard "that booth over there is cheaper than yours, but I don't like their service. You're really attentive and that makes be feel better about buying from you."

I can't remember if the $65/hour was for in-house work or not. It's been a long time since I've lived with any massage therapists who did house calls, but I did for a few years.

That's really helpful, cr. May I ask what happens at times when you know you have lost customers? Do they tell you it is because of your prices? Do you "just know"?

I know that I am worth what I charge--to the people who value this kind of service. I must not truly believe that people DO want this. And I have caved and quoted a lower rate to someone than I wanted to because of this. It's nuts! I had a much easier time of it when I was trying to attract clients to come to me. I think on some level I feel apologetic about wanting to come into someone's home...intrusive. And apologetic that I am not offering them the alternative to come to me if they prefer. How effed up is that?

Instead of feeling great about my skills and expertise, and about offering this great service, I feel sorry! No wonder I'm having trouble figuring out my fees.

Sorry. Didn't intend to wade into this, but...really. How onearth can I get this off the ground and be confident in the compensation I'm asking for if *I* feel guilty for even offering the service. LOL. Welcome to my world.

[curiouslyrandom]

Originally Posted by Firefly101

That's really helpful, cr. May I ask what happens at times when you know you have lost customers? Do they tell you it is because of your prices? Do you "just know"?

Both. With younger customers, you can even hear them say to one another "let's go to the other place, it's cheaper over there." I sell antiques, among other things, so while someone may find a similar item cheaper somewhere else, they won't get my expertise from the cheaper seller. I charge what I do because I have researched my product over several years. I sure as heck didn't get into this business to make a lot of money!

I know that I am worth what I charge--to the people who value this kind of service. I must not truly believe that people DO want this. And I have caved and quoted a lower rate to someone than I wanted to because of this. It's nuts! I had amuch easier time of it when I was trying to attract clients to come to me. I think on some level I feel apologetic about wanting to come into someone's home...intrusive. And apologetic that I am not offering them the alternative to come to me if they prefer. How effed up is that?

Instead of feeling great about my skills and expertise, and about offering this great service, I feel sorry! No wonder I'm having trouble figuring out my fees.

Sorry. Didn't intend to wade into this, but...really. How onearth can I get this off the ground and be confident in the compensation I'm asking for if *I* feel guilty for even offering the service. LOL. Welcome to my world.

This explains why you're having trouble with pricing--you feel bad about your own value to the customer. It's understandable and very normal, I think. Getting past it will be a healthy challenge!

[VinceG]

The thing about it is, and I bet this is much more the case in the massage business than in, say the antique business, your customers expect a different level of service from the different price points. If you charge $40 an hour, they'll expect you to be offering hand jobs after! If you charge $70, then you'll get regular customers and their regular hassles with price complaints, service complaints, all that nonsense.

But if you go for the high end market, your customers will relish the experience just as much as you will. They're not just paying for a better massage. They're paying for the ease and comfort of knowing they're dealing with a professional. They can relax and know that you've got everything covered. You'll be surprised and embarrassed to get even one complaint. People in the habit of paying 150% the going rate for a massage are not in the habit of complaining about it!

But there's a hidden downside to that too. If you're not up to snuff, they won't tell you, they'll just go somewhere else.

[Firefly101]

Yep. You're so right. Thanks for bolding it for me! There it is, plain as day.

Apologetic just won't cut it.

God, cringe.

[aiyori]

If you offer $85 to get more business, you will end up getting more people who are only willing to pay $85 or less for your service.

[Firefly101]

Originally Posted by aiyori

If you offer $85 to get more business, you will end up getting more people who are only willing to pay $85 or less for your service.

Thank you. I don't want that and have been concerned about that happening.

Really, the price I came up with is pretty market rate. If I can just make peace with what the service is and with what I am asking for it...

[Lamusa]

Build yourself up in your mind as well as in your practice that you are the greatest massage therapist in the world. Stick to your guns, follow your heart. It will be a growing experience and you may or may not struggle for awhile but insist on being paid what your worth and then some. Practice on a friend. Say to them, "I charge $115 an hour to provide you with the best healing massage service in the world" and allow whatever feelings of shame and inadequacy to come up and come out. And just keep repeating this until you feel that it is true. Practice everyday. You can write this out, too. Also, to really challenge yourself try this exercise by saying you charge $1000and hour and see how little $115 starts to feel. You state what you want and eventually you will attract the clients who will happily and willingly pay you for your services and tip you well, too.

Too many people settle for much less than what they are offering. You are providing people with a service that will have an effect on them that will continue to unfold. What a stress reliever you are in these trying times! And how many of us need to be nurtured and aided in the healing process? Healing touch, such as massage, is such an act of love. The service you offer is so profound...!

[curiouslyrandom]

With massage, it's not exactly a tangible product that you can put on a shelf and admire. Therefore, some people have a hard time justifying the expense of getting one. After all, they're likely to need another one later, right?

With my products, the buyer sometimes asks herself, "do I really need this?" Of course she doesn't need it, but it makes her happy to have it. At least I hope so!

Everyone benefits from a good massage. I think the world would be a better place if more people could have them.

[Lamusa]

Originally Posted by curiouslyrandom

With massage, it's not exactly a tangible product that you can put on a shelf and admire. Therefore, some people have a hard time justifying the expense of getting one. After all, they're likely to need another one later, right?

With my products, the buyer sometimes asks herself, "do I really need this?" Of course she doesn't need it, but it makes her happy to have it. At least I hope so!

Everyone benefits from a good massage. I think the world would be a better place if more people could have them.

I don't know how many times I've said to myself, "I need a massage." Many people believe they need them. In my opinion, many people do. $115 for an hour massage seems more than reasonable to me. There is not that big a difference between $85 and $115. This might seem huge to some people and you could decided if you want to do sliding scale fees. The point is to market your sevices in the most authentic, confident way possible to the people who are more likely to pay you for them. But if you don't feel right about it try charging $85 for a couple of months then gradually raise your prices. If I am willing to pay $85 for a massage and someone comes along with a better pitch, disposition, warmth, etc. I might be more inclined to pay $115 to them because in my mind it wouldn't be that much more and I'd spend more time with the masseuse that I feel the most connected to.

[votoshka]

This is why I've never had a massage

But that being said... You should absolutely charge what it is worth and what market rate dictates. The fact that you're coming to someone's home should add to the cost, as you're providing them with an added level of convenience.

If you want to offer discount vouchers, you could do something like offer a certain percentage off if they book another massage in advance? (Not sure how this would work though!)

[Firefly101]

Originally Posted by SlicK

You could also try to do the first session for less money. It's an opportunity for you and your clients. An opportunity for you to show that you're worth your money. An opportunity for them to see that you offer quality service.

Clearly specify the deal with the first session and the fact that the next ones, if they'll want to continue, will be for the normal price.

You could even be so "crazy" and offer a crazy-ass-low price because you're so confident that they'll love it and come back for the full deal for the full price. Quality people will choose quality service.

Thank you! I've been thinking of either doing a month-long special rate to attract people, or a first massage special rate....

[Firefly101]

Originally Posted by votoshka

This is why I've never had a massage

But that being said... You should absolutely charge what it is worth and what market rate dictates. The fact that you're coming to someone's home should add to the cost, as you're providing them with an added level of convenience.

If you want to offer discount vouchers, you could do something like offer a certain percentage off if they book another massage in advance? (Not sure how this would work though!)

Yes, I could do a referral program, perhaps. I have the years of experience, I regularly get fantastic feedback on my style of work, I'm attractive, graduate-level educated, I have the right demeanor,I communicate very well, I have the energy and the willingness. I have what I need to do well with this! *Except* for this weird mind lock I've been in and a teeny self-worth/fear of failure and success problem. I've been doing all the reading I can recently--BLMG, Science of Getting Rich, Think and Grow Rich, etc. etc., watching Hicks videos on youtube, writing intentions. I'm trying to shift! I have been feeling better...and better...more hopeful and optimistic....then BAM. It's like I hit a wall again mentally and have to start all over. I feel like I'm "too old" to have the $$ situation I do. I do practice gratitude, I try to live in the day or the moment. But I have had enough of having to choose between food and gas. It's nuts.It's like my dirty little not so secret secret.

Thank you ALL for your responses. They help so much!


Your feedback is very helpful! I really don't talk much to other massage therapists about this because low self-esteem and under-charging for services rendered seems to be rampant in this profession.

[Firefly101]

Originally Posted by Lamusa

Build yourself up in your mind as well as in your practice that you are the greatest massage therapist in the world. Stick to your guns, follow your heart. It will be a growing experience and you may or may not struggle for awhile but insist on being paid what your worth and then some. Practice on a friend. Say to them, "I charge $115 an hour to provide you with the best healing massage service in the world" and allow whatever feelings of shame and inadequacy to come up and come out. And just keep repeating this until you feel that it is true. Practice everyday. You can write this out, too. Also, to really challenge yourself try this exercise by saying you charge $1000and hour and see how little $115 starts to feel. You state what you want and eventually you will attract the clients who will happily and willingly pay you for your services and tip you well, too.

Too many people settle for much less than what they are offering. You are providing people with a service that will have an effect on them that will continue to unfold. What a stress reliever you are in these trying times! And how many of us need to be nurtured and aided in the healing process? Healing touch, such as massage, is such an act of love. The service you offer is so profound...!

Lamusa, Thank you! Thank you, thank you! Yes, yes, yes, I DO need to practice! You should here how I sound when someone asks what I charge for an in-home visit....yikes. Lol/cry.

I have not spent any time practicing aloud or role-playing. I actually had the experience of a random woman in a social situation confronting me upon hearing my rates by saying, "Why, you hardly have any overhead. How DARE you charge that much?" with this icky, passive-aggressive smile on her face. I managed to say why I felt my fee was reasonable, but it was not a commanding performance on my part.It was painful.

I want so much to be more confident that I can be successful in my out-call practice. I do believe that we all need this kind of work! I actually had a client who had experienced massage all over the world tell me that I was one of the best masseuses he'd seen. I want so much to close the gap between what I have to offer and what I /think/ habitually about what I have to offer.

[Firefly101]

Originally Posted by votoshka

This is why I've never had a massage

But that being said... You should absolutely charge what it is worth and what market rate dictates. The fact that you're coming to someone's home should add to the cost, as you're providing them with an added level of convenience.

If you want to offer discount vouchers, you could do something like offer a certain percentage off if they book another massage in advance? (Not sure how this would work though!)

Well, see, now I want to give you a free one!

[ssandra]

How about;

Whenever someone recommends someone else (who of course pays the full price) they get a discount of 15% (so they pay around 98 dollars).

This gets you more clients who are willing to pay the full price, as well as reminding people that it is a good thing to recommend your service.

Most people, although they like a service don't think about actively promoting it, unless you give them a reason. And 15% discount (although maybe not much money) is a great reason!

[Angelique]

I agree with offering discounts and keeping your rates.

I was an RMT when I was younger, it's hard work! You have to be able to net a good value for yourself. The more you charge, the more value you'll be able to give to each person because you won't be burning yourself out.

[Boreas]

Maybe a coupon idea could work well for you. Keep charging the 100+ rate, and give out some coupons for the cheaper price, see if it increases your business, and after the coupon, they can pay full price...

[SnerpGoodWord]

$115 per hour seems above the market, even for California. Assuming you were able to bill half your hours and worked 40 hours per week, that would work out to $115K/year with two weeks of vacation. That's more than twice what the median US household earns and is more than the median household income in any county in California. In other words, it's a lot of money. And massage therapy, while a skilled profession, has a somewhat lower barrier to entry than most jobs that pay as much.

Point being, I think economic forces will make it hard to get paid that much. You could try introductory rates to fill up your schedule and see what happens. Also look at your marketing efforts obviously. If that doesn't work, I would consider lowering your rate.

[votoshka]

Originally Posted by SnerpGoodWord

$115 per hour seems above the market, even for California. Assuming you were able to bill half your hours and worked 40 hours per week, that would work out to $115K/year with two weeks of vacation. That's more than twice what the median US household earns and is more than the median household income in any county in California. In other words, it's a lot of money. And massage therapy, while a skilled profession, has a somewhat lower barrier to entry than most jobs that pay as much.

Point being, I think economic forces will make it hard to get paid that much. You could try introductory rates to fill up your schedule and see what happens. Also look at your marketing efforts obviously. If that doesn't work, I would consider lowering your rate.

Hmm but her point was $115 is in home, so she has to travel there and travel back again, making it overall considerably less than $115 per hour. It also means she wouldn't be able to constantly "work" for 8 hours a day, as there would definitely be traveling time + set up time etc.

It's also quite a physical job, or so I've heard, so it's not the same as sitting at a desk for 8 hours!

[goldberg]

Originally Posted by Firefly101

I know it might be somewhat "challenging" to imagine that I am a talented massage therapist by looking at my avatar, but that is, in fact, what I am. I have been in this profession for 16 years. I recently relocated and want to offer my services in-home. I 've done home visits here and there, but have never tried to do this exclusively.

I am very hung up right now about whether I should charge what would normally be an appropriate amount of money to have me come to the client, or whether I should lower my rates "because of the economy." That pisses me off because I am very good at what I do and because an hour massage in-home is really about two hours of time for me and I should be compensated for that.

I'm in a mid-sized city in the midwest. What I want to charge is $115/hr., which is very fair. What I feel I should charge to be affordable right now is more like $85, which is a steal, but which might generate more business.

What do you think? What would YOU pay to have a very good massage in your home? Is that desirable/undesirable?

Any and all feedback is appreciated. I am, once again, trying to examine my beliefs, attitudes around doing my work. Right now I'm broke and that's unacceptable to me. I have got to figure out how to make this work or get the hell out of it.

I would stick to your prices at $115 and offer one off discounts for first timers (assuming that people tend to use your services multiple times). And as ssandra says offer referral discounts. That way your price stays fixed. At the end of the day you can always lower your prices 3 months down the road if it is not working.

[SnerpGoodWord]

Originally Posted by votoshka

Hmm but her point was $115 is in home, so she has to travel there and travel back again, making it overall considerably less than $115 per hour.

That's why I assumed only 4 billable hours per day. 8 billable hours per day, 50 weeks a year, would be an income of $230K/year.

I based the 4 hours on firefly's statement:

because an hour massage in-home is really about two hours of time for me

It should also be noted that most households with incomes as high as we're discussing engage in well over 40 hours of labor per week either because more than one person is working, or because one person is working more than 40 hours. Point being, it may not be possible to be in the top few percent of US earners on the basis of working 40 hours at a job that requires less than a 4-year degree. Certainly, economics is going to work against that outcome.

[ssandra]

Originally Posted by SnerpGoodWord

That's why I assumed only 4 billable hours per day. 8 billable hours per day, 50 weeks a year, would be an income of $230K/year.

Even 4 billable hours a day would be stretching it I think.

If 1 client takes 2 hours, you will need at least 2 hours a day as well to do marketing, taxes, admin, answering phone etc. And 2 hours is a minimum...

And even if she would make more than average? So what? If you are good at what you are doing, you are worth the price you put.
I recently paid 250 dollars for a 80 minute massage and 1 hour spa (sauna etc) for 2 persons.
And it was worth every cent!
And this was in a resort. I'd expect to pay more if someone would come to my house.

[Firefly101]

Originally Posted by SnerpGoodWord

$115 per hour seems above the market, even for California. Assuming you were able to bill half your hours and worked 40 hours per week, that would work out to $115K/year with two weeks of vacation. That's more than twice what the median US household earns and is more than the median household income in any county in California. In other words, it's a lot of money. And massage therapy, while a skilled profession, has a somewhat lower barrier to entry than most jobs that pay as much.

Point being, I think economic forces will make it hard to get paid that much. You could try introductory rates to fill up your schedule and see what happens. Also look at your marketing efforts obviously. If that doesn't work, I would consider lowering your rate.

Do you value massage SGW? Have you had a massage in-home? That you thought was fantastic? What did you pay?