Raising rates and offering a package discount

Peaches

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I am considering the following:

Raising my rates (Currently $55 per hour) to $80 per hour, but then offering a package of 3 for $180, which brings the price down to $60 per session. A package would have to be used within 3 months. My cancelation policy would be enforced. If someone reschedules within this time, they would be charged an extra $20, which would bring the price back to $80.

In my area, the price of an one hour massage start at $35 and go on up to $65, so $80 would make me the highest priced massage around here. I have no doubt my regulars would pay three at a time and not compain, much, or at least in my face. I am not sure what my once in a while clients would think. I doubt I would have as many once in whilers actually, maybe I would be wrong.

What do you think? What do you predict would happen? I sure wish I had a crystal ball!
 
Raising rates and offering a package discount

My first thought is that's a pretty serious rate hike. If you are trying to clear out your regular clientele, then that would help. My second thought was that maybe you are offering something substantially more that would justify a nearly 50% hike - like significant and specialized training, or a new facility.

Regardless, it's a pretty bold move, but if you are comfortable with it, and feel that $80/hour is what you deserve to be paid, go for it. If you are offering the discount packages as an incentive, that's great, but if it is because you think the new rate is too high, you might want to reevaluate the jump.
 
Raising rates and offering a package discount

While I certainly understand the need to raise your rates, I question the response you'll get for those who can't afford to put out the larger fee of $180.00 for 3 sessions at a time, or accepting the big jump from the old rates to the new.

You may do better to offer the 3 package deal, while also offering a single session booking at say a $10.00 price jump now & plan on another hike increment of $5.00 in the next 6 to 9 months. Or you might consider offering a couple different length sessions with some optional services for an extra fee - such as Hot Stone, hot packs, a special foot bath, reflexology, or some special spa type treatment.

JMHO - FWIW
 
Raising rates and offering a package discount

peacenut said:
My cancelation policy would be enforced. If someone reschedules within this time, they would be charged an extra $20, which would bring the price back to $80.
This if I'm reading it correctly seems excessive. If I call and reschedule you will charge me $20? Maybe I am misunderstanding?
I think it is a huge rate hike, and you would need new clients who want to pay that much. I always sold packages of 10, with a 1 year expiration.
 
Raising rates and offering a package discount

peacenut said:
A package would have to be used within 3 months. My cancelation policy would be enforced. If someone reschedules within this time, they would be charged an extra $20, which would bring the price back to $80.

What happens if you are busy and your availability is reduced? Seems to me that if you have a 3mo use it or lose it policy, you would be obligated to take all requests. What happens if YOU reschedule? do they get a $20 off coupon?
 
Raising rates and offering a package discount

peacenut said:
I am considering the following:

Raising my rates (Currently $55 per hour) to $80 per hour...
A $25 increase seems like a lot to me - $55 to $80.

When we increased our fees, we went from $60 to $75.

We had not raised prices in something like 5 or 6 years. My husband (also an MT in the practice) wanted to increase it to $80 and leave it there for about 8 or so years. I just couldn't do it. To me, the $15 was a lot, but I could mentally handle that one, so, in the end we ended up doing this.

We ended up loosing a few clients, but not many. We definitely ended up loosing some of the clients who were always looking for a deal (the ones who only came in on a coupon). And, we started to see less of our "problem" clients --not the clients with problems, but the ones who liked to gritch and moan. We also ended up with a better quality of client and people who took their appointments seriously and rarely no-showed. Granted, I've never had much of a problem with that... but even a few less no-shows makes for a better schedule.

Now, let's see... that was in 2005. Right now, I am starting to feel the itch that I would like the fee to be $85 (it's been about 4 years since the increase). Mainly this has to do with increases in my own purchases/cost of living, an upcoming lease renewal and the current going market price in my area.

What will I actually do? Most likely wait until approximately 2011 to implement it (so we'll probably be about where we had expected, just in a different format, when that 8 or so years comes around that my husband had thought about).

Why am I telling you this? Well, you have to make a few plans as to when you will raise rates again, and timing. I'm giving you some examples of time-frames in case it helps you in looking at the big plan.

peacenut said:
...but then offering a package of 3 for $180, which brings the price down to $60 per session. A package would have to be used within 3 months. My cancelation policy would be enforced. If someone reschedules within this time, they would be charged an extra $20, which would bring the price back to $80.
I am not so fond of package deals, but I know many people use them. For me, it adds an extra complication regarding explanations -- to existing, new and potential clients -- that you don't have to go through when you keep a simple pricing structure. I like trying to keep the money side of things simple.

Then, there is that extra $20 you have for those who re-schedule. That seems even more complicated to try and explain to a person.

I don't know but I would expect you'd not do so well with this plan. If you implement it, please let us know what happens in your business.
 
Raising rates and offering a package discount

peacenut said:
I have no doubt my regulars would pay three at a time and not compain, much, or at least in my face.

I missed this at first.

If you feel your regulars may complain.... basically what you say when mentioning "at least not in my face"... I can't begin to think that is a good thing.
 
Raising rates and offering a package discount

peacenut,

I know we all change our opinions as our practices morph, but I just wanted to alert you to a prior post of yours regarding rate increases, FWIW. Previously it was a pet peeve of yours. So, it may be another reason for this to be something to consider.

peacenut said:
pueppi said:
peacenut said:
But I have nearly 1000 addresses to mail to, so it costs me more. I prefer to send out postcards for multiple reasons.

So I guess this means there are some clients of yours (non-regulars) who don't get the "... more honest" information and just find out the next time they come in.

Making a point that I don't appreciate you trying to say I am not honest because I choose to give paper notice, in advance.

Pueppi, you miss read my comment. I did not say your way was not honest. It was clearly my opinion that mine was more honest, making yours less. Only less honest, not dishonest.

Sending postcards is cool, but it is also costly. I have better things I would like to do with $400 than send out a mailing letting everyone know I increased my rates. I am part of a larger set up than some of the little ones around here. I know well enough a $5 increase doesn't warrant a postcard mailing which will cost in excess of $400 plus my time plus the cost of paying my associate to help me. Plus the pay hit because I lose money if I am paying her hourly for office work rather than performing massage. Not to mention my hours of earning nothing while I am addressing and stamping all of it?

Now, if I jumped it up $10 or $15, yeah, that warrants a postcard mailing. I believe you jump your rates up like that Peuppi. That is another pet peeve of mine. People just don't like huge rate hikes. I don't care that you haven't raised your rates in 7 years. Your clients you have seen for a long time may not care, but what about your clients you recently added? To a client with you for only 3 months, that may be enough to get them looking for a different MT.

For my situation, I wouldn't do it. I might just as well take $700 and flush it down the toilet.
 
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  49. SugarLoveSpa:
    Monday at ❤️💙 💜⎝𝗦𝗨𝗚𝗔𝗥 𝗟𝗢𝗩𝗘 𝗦𝗣𝗔⎠💖💗💘: ANA, CHRISTINA, MIA, TIFFANY & VIVI. 1270 Finch Ave W (at Keele St), Unit 18. North York, ON ☎ 𝟰𝟯𝟳-𝟯𝟲𝟱-𝟮𝟲𝟴𝟴 ☎ ANA is a young, short and sweet lady, 5’1 & 105 Lbs, very tight, with a small to medium booty. Ana is a versatile honey who provides great massage, & can accommodate your needs. CHRISTINA is Spanish, C Cups, 5'3", tall & nice curves, very open mind
  50. bnwellness_wilson:
    We have 4 young girls are working today, young pretty Lily 25’s with curve body and flirty Ivy 36DD with curly body 30’s open mind, young sweet popular Michelle 26’s with curve body open mind and cute GFE Ella are providing deep tissue massage, pls call 4163985777 book appointment and walk in always welcome,back entrance and parking available, 350 Wilson Ave North York
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